Astec Q2: Revenue Surges 24%, but Profits Tumble 37% as Costs Climb
ASTE sits 16% above its 52-week low of $38.09 on elevated volume (3.5× avg).
Summary
Astec Industries posted mixed Q2 2026 results: revenue surged 24% to $408M, but net income fell 37% to $10.5M as higher costs and interest expense offset growth. Backlog jumped 58% to $601M, signaling strong future demand.
Key Events · Earnings and Guidance · ASTE
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Revenue Up, Profits Down
Net sales climbed 23.6% to $408.1M in Q2, yet net income attributable to Astec dropped 37.1% to $10.5M, or $0.45 per diluted share.
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Margin Compression
Gross margin slipped to 26.2% from 26.7% a year ago, weighed down by $8.6M in manufacturing inefficiencies, $8.4M in inflation, and $6.4M in unfavorable inventory adjustments.
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Backlog Surge
Backlog swelled to $601.1M, up 57.9% year-over-year, driven by organic demand from large data center projects and contributions from acquisitions.
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Rising Interest Burden
Interest expense more than tripled to $7.1M in Q2, reflecting higher debt levels from the TerraSource and CWMF acquisitions.
Analysis · ASTE · Technology
Impressive top-line growth, fueled by acquisitions and surging data center demand, masks severe profitability pressure. Gross margins contracted as manufacturing inefficiencies, inflation, and unfavorable inventory adjustments eroded gains. Meanwhile, interest expense tripled, reflecting the debt taken on to fund acquisitions. The 58% backlog jump provides strong revenue visibility, but the market will focus on whether management can convert that backlog into profits given the cost headwinds. Adding execution risk, the ERP overhaul is now projected to cost up to $200 million and will be a multi-year drag on earnings.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 36% of the 1040 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ASTE was trading at $44.35 on NASDAQ in the Technology sector, with a market capitalization of approximately $1B. The 52-week trading range was $38.09 to $65.69. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.