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Sep 30, 2022
Astec Q3 2022 Earnings Report
Reported an increase in net sales and backlog, but a decrease in gross profit margin and operating margin.
Key Takeaways
Astec Industries reported an 18.1% increase in net sales to $315.2 million, driven by volume, price realization, and mix in both Infrastructure Solutions and Materials Solutions groups. Backlog increased 56.2% to $969.0 million. However, gross profit margin decreased by 250 bps to 20.7% due to manufacturing inefficiencies from supply chain disruptions, and operating margin also declined.
Net sales increased 18.1% to $315.2 million.
Gross Profit Margin decreased 250 bps to 20.7%.
Backlog increased 56.2% to $969.0 million.
Repurchased $6.1 million of shares.
Revenue by Segment
Forward Guidance
Astec is confident in the long-term value our Simplify, Focus and Grow strategy will create for Astec stakeholders.
Positive Outlook
- Customer demand for Astec products continues to drive increased backlog, which grew year-over-year and sequentially.
- Net sales were driven by net volume, pricing and mix that generated increases primarily in domestic equipment and parts sales.
- Resilience of our customers and employees.
- Strong balance sheet.
- Multi-year tailwind provided by the long-term federal highway bill.
Challenges Ahead
- Inconsistent vendor deliveries negatively affected manufacturing efficiencies.
- Operating margin decreased due to lower gross profit margin (manufacturing inefficiencies due to supply chain disruptions).
- Operating margin decreased due to higher selling, general and administrative expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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