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Jun 30, 2022
Astec Q2 2022 Earnings Report
Astec's financial results were negatively impacted by supply chain disruptions, but demand remained strong and backlog reached record levels.
Key Takeaways
Astec Industries reported a net sales increase of 14.6% to $318.2 million, but experienced a net loss of $3.9 million compared to a net income of $8.3 million in the prior year. The company's backlog increased significantly by 92.0% to $837.4 million. Financial results were negatively impacted by supply chain disruptions and inflationary pressures.
Net Sales increased 14.6% to $318.2 million.
Gross Profit Margin decreased 480 bps to 19.0%.
Net Income decreased 147.0% to a loss of $3.9 million.
Backlog increased 92.0% to a record level of $837.4 million.
Revenue by Segment
Forward Guidance
Astec will continue to realize prior pricing actions as they ship backlog and, if necessary, take additional pricing actions to combat new inflationary pressures.
Positive Outlook
- Demand for Astec products continued.
- Backlog remained at record levels.
- The company will continue to realize prior pricing actions as they ship our backlog.
- Astec is well-positioned to execute its Simplify, Focus and Grow strategy.
- There is a tailwind in demand provided by the long-term federal infrastructure bill.
Challenges Ahead
- Financial results were negatively impacted by lingering supply chain disruptions.
- The procurement team is laser-focused on sourcing purchased components and mitigating inbound deliveries and increased costs.
- Steel prices began increasing in the latter part of 2020.
- Global supply chain disruptions caused by the Russia-Ukraine conflict have added further pressure on steel prices.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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