Astec Industries Inc (ASTE) 2025 Q1 法說會逐字稿

Hello and welcome to the ASIC Industries's first quarter 2025 Earnings Call. As a reminder, this conference call is being recorded. It is my pleasure to introduce your host, Stephen Anderson, Senior Vice President of Administration and Investor relations.

您好，歡迎參加 ASIC Industries 2025 年第一季財報電話會議。提醒一下，本次電話會議正在錄音。我很高興介紹您的主持人、行政和投資者關係高級副總裁 Stephen Anderson。

Thank you. Good morning, everyone. Joining me on today's call are Jaco van Der Merwe, our Chief Executive Officer; and Brian Harris, our Chief Financial Officer. In just a moment, I'll turn the call over to Jaco to provide his comments, and then Brian will summarize our financial results. For your convenience, a copy of our press release and presentation are posted on our website under the investor relations tab at www.astecindustries.com.

謝謝。大家早安。參加今天電話會議的還有我們的執行長 Jaco van Der Merwe；以及我們的財務長 Brian Harris。稍後，我將把電話轉給 Jaco 來發表他的評論，然後 Brian 將總結我們的財務結果。為了您的方便，我們的新聞稿和簡報的副本已發佈在我們的網站 www.astecindustries.com 的投資者關係標籤下。

Turning to slide 2, I'll remind you that our discussion this morning may contain forward-looking statements that relate to the future performance of the company, and these statements are intended to qualify for the safe harbor liability established by the private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions. Factors that can influence our results are highlighted in today's financial news release, and others are contained in our filings with the US Securities Exchange and commission. As usual, we ask that you familiarize yourself with those factors.

翻到投影片 2，我要提醒您，我們今天早上的討論可能包含與公司未來業績相關的前瞻性陳述，這些陳述旨在符合私人證券訴訟改革法案所規定的安全港責任。此類聲明並非對未來業績的保證，且受某些風險、不確定性和假設的影響。今天的財經新聞稿中重點介紹了可能影響我們業績的因素，其他因素則包含在我們向美國證券交易所和委員會提交的文件中。像往常一樣，我們要求您熟悉這些因素。

In an effort to provide investors with additional information regarding the company's results, the company refers to various US GAAP and non-GAAP financial measures which management believes provide useful information to investors. These non-GAAP measures have no standardized meaning prescribed by US GAAP and are therefore unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. A reconciliation of GAAP to non-GAAP results are included in our news release in the appendix of our slide presentation. And now turning to slide 3, I'll turn the call over to Jaco.

為了向投資者提供有關公司業績的更多信息，該公司參考了各種美國 GAAP 和非 GAAP 財務指標，管理層認為這些指標可以為投資者提供有用的信息。這些非公認會計準則指標沒有美國公認會計準則規定的標準化意義，因此不太可能與其他公司的類似指標的計算進行比較。管理階層並不打算單獨考慮這些項目或將其作為相關 GAAP 指標的替代。我們的新聞稿中幻燈片簡報的附錄中包含了 GAAP 與非 GAAP 結果的對帳。現在翻到投影片 3，我將把電話交給 Jaco。

Thank you, Steve. Good morning, everyone, and thank you for joining us. Today is a very exciting day for the Astec family for two reasons. First, our team delivered exceptional results for Quarter 1. And second, we are happy to announce we signed a definitive agreement to purchase TerraSource. TerraSource is a market leading manufacturer of materials processing equipment and the related aftermarket parts, serving complimentary crushing, screening, and separation markets. We will talk more about TerraSource in a few minutes. But let me start on slide 4 by telling you more about our first quarter results.

謝謝你，史蒂夫。大家早安，感謝大家的收看。今天對於 Astec 家族來說是非常令人興奮的一天，原因有二。首先，我們的團隊在第一季取得了卓越的成績。其次，我們很高興地宣布，我們簽署了收購 TerraSource 的最終協議。TerraSource 是材料加工設備及相關售後零件市場領先的製造商，服務於互補的破碎、篩選和分離市場。我們將在幾分鐘內詳細討論 TerraSource。但是，請容許我從第 4 張投影片開始向您詳細介紹我們的第一季業績。

I am pleased to report we experience another strong quarter for net sales, adjusted EBITDA, and adjusted earnings per share. This is in line with our plans to deliver consistency, profitability, and growth. Adjusted EBITDA of $35.2 million, increased $16.3 million, or 86.2%, over the first quarter of 2024. Adjusted EBITDA margin of 10.7%, increased 460 basis points, and adjusted earnings per share was strong at $0.88. Although our backlog of $402.6 million moderated sequentially by 4.1%, we were encouraged by improved implied orders.

我很高興地報告，我們又經歷了一個淨銷售額、調整後 EBITDA 和調整後每股收益強勁的季度。這符合我們實現一致性、獲利能力和成長的計劃。調整後 EBITDA 為 3,520 萬美元，比 2024 年第一季增加 1,630 萬美元，增幅 86.2%。調整後的 EBITDA 利潤率為 10.7%，增加了 460 個基點，調整後的每股盈餘強勁，達到 0.88 美元。儘管我們的積壓訂單量為 4.026 億美元，環比下降了 4.1%，但隱含訂單量的改善令我們感到鼓舞。

In our infrastructure solution segment, strong net sales for the quarter were primarily driven by capital equipment and healthy aftermarket parts sales. We continue to see strong demand for asphalt and concrete plants, which was partially offset by softness in the demand for mobile paving and forestry units. Capital equipment sales in our material solution segment continue to be challenged by high interest rates and further dealer inventory destocking activity, while aftermarket parts sales remain stable at healthy levels. We were encouraged by the sequential double-digit improvement in our material solutions backlog and implied orders, and we expect to see restocking activity resume in the second half of the year. Order intake momentum continued in April.

在我們的基礎設施解決方案部門，本季強勁的淨銷售額主要得益於資本設備和健康的售後零件銷售。我們繼續看到對瀝青和混凝土廠的強勁需求，但移動鋪路和林業設備需求的疲軟部分抵消了這一需求。我們材料解決方案部門的資本設備銷售繼續受到高利率和經銷商進一步去庫存活動的挑戰，而售後零件銷售則保持穩定在健康水平。我們對材料解決方案積壓訂單和隱含訂單連續兩位數的成長感到鼓舞，我們預計下半年補貨活動將恢復。四月訂單量持續成長。

Free cash flow of $16.6 million was 116% of net income, and was generated due to increased profitability and continued focus on working capital management. For the full year 2025, we are maintaining our expectations for adjusted EBITDA in the range of $105 million to $125 million, excluding the impact of tariffs. On the topic of tariffs, we all know this is a very fluid situation. I will share more details on tariffs on slide 7.

1,660 萬美元的自由現金流佔淨收入的 116%，這是由於盈利能力的提高和持續關注營運資本管理而產生的。對於 2025 年全年，我們維持調整後 EBITDA 在 1.05 億美元至 1.25 億美元範圍內的預期，不包括關稅的影響。關於關稅問題，我們都知道這是一個非常不穩定的情況。我將在第 7 張投影片上分享更多有關關稅的細節。

On slide 5, we provide a brief update of the state of our industry. As America's infrastructure is foundational to our national economy, global competitiveness, and quality of life. The 2025 report card for America's infrastructure provided by the American Society of Civil Engineers highlights the need for continued infrastructure investment. Before recent legislation like the 2021 Infrastructure Investment and Jobs Act, many of our infrastructure networks have been neglected for decades. According to the report, America's roads improved to a D+ rating in 2025, versus a rating of D in 2021. Although signs of progress have been made, the need for improvement to our roads is substantial. America's more than 4.1 million miles of public roadways form a vital network facilitating the movement of people and goods. Of those 4.1 million miles, 39% are in poor or mediocre condition.

在第 5 張投影片上，我們簡要介紹了產業現狀。因為美國的基礎設施是我們國民經濟、全球競爭力和生活品質的基礎。美國土木工程師學會提供的2025年美國基礎設施成績單強調了持續基礎設施投資的必要性。在《2021 年基礎設施投資和就業法案》等最新立法出台之前，我們的許多基礎設施網路幾十年來一直被忽視。根據該報告，美國的道路等級將在 2025 年提升至 D+，而 2021 年則為 D。儘管我們已經取得了一些進步，但是我們的道路改善需求仍然很大。美國擁有超過 410 萬英里的公共道路，構成了重要的網絡，促進了人員和貨物的流動。在這 410 萬英里中，39% 的路況較差或一般。

Bridges receive the grade of C. Many bridges are approaching or having exceeded the 50-year life they were designed for. Of the 623,000 bridges across the US, only 44% were deemed to be in a good condition. 49% in fair condition and 7% are in poor condition. Continued maintenance and upgrades are essential for these bridges to withstand the higher traffic volumes and vehicle weights they need to support. As you know, Astec is a niche industry player focused on the rock to road sector. We have strong brand recognition in the infrastructure sector, which is largely comprised of aggregates and road and bridge construction. Needed improvements to our infrastructure provide long term stable demand for our equipment, aftermarket parts, and digital solutions.

橋樑的等級為 C。許多橋樑的使用壽命已接近或超過 50 年。在全美 623,000 座橋樑中，只有 44% 被認為狀況良好。 49％狀況良好，7％狀況不佳。持續的維護和升級對於這些橋樑承受其需要支撐的更高交通量和車輛重量至關重要。如您所知，Astec 是一家專注於岩石到公路領域的利基行業參與者。我們在基礎設施領域擁有很高的品牌知名度，該領域主要包括骨材和道路橋樑建設。我們基礎設施所需的改進為我們的設備、售後零件和數位解決方案提供了長期穩定的需求。

Slide 6 shows our booth at the 2025 World of Asphalt AGG1 Show, and conference held last month in St. Louis, Missouri. Meeting with customers and interacting with our employees reminded me why I love working at Astec. We have great products, industry changing technology, and more importantly, the best team in the industry. As I walked the show and looked at other providers, I feel Astec is well positioned to win.

幻燈片 6 展示了我們在上個月於密蘇裡州聖路易斯舉行的 2025 年世界瀝青 AGG1 展會和會議上的展位。與客戶會面並與員工互動讓我想起了為什麼我喜歡在 Astec 工作。我們擁有優秀的產品、改變產業的技術，更重要的是，我們擁有業界最好的團隊。當我參觀展會並觀察其他供應商時，我感覺 Astec 很有機會獲勝。

We also invite you to mark your calendars for a 2026 Con Expo trade show to be held in Las Vegas, Nevada on March 3-7, 2026. We are excited about the new products and technology we will display at this show. On slide 7, we show proactive actions we are taking to mitigate the risk associated with the new tariff environment. One Astec procurement team is requiring suppliers to provide support for any price increases, and we are actively negotiating all purchases. We have initiated additional pricing actions and will continue to assess the situation to protect margins. We continued to practice sourcing and resourcing. We are managing supply chain alignment and will reshore to the United States when feasible.

我們也邀請您在日曆上標記 2026 年 3 月 3 日至 7 日在內華達州拉斯維加斯舉辦的 2026 年 Con Expo 貿易展。我們對將在本次展會上展示的新產品和新技術感到非常興奮。在第 7 張投影片上，我們展示了我們正在採取的主動行動，以減輕與新關稅環境相關的風險。一個 Astec 採購團隊正在要求供應商對任何價格上漲提供支持，我們正在積極協商所有採購。我們已經採取了額外的定價措施，並將繼續評估情況以保護利潤率。我們繼續進行採購和資源配置實務。我們正在管理供應鏈協調，並將在可行的情況下返回美國。

We are continually managing our manufacturing footprint. As this is a dynamic situation that can change quickly, but the Astec team is diligently tracking the current and potential impact of the tariff environment. I'll also mention, this is a great time to be an American manufacturer.

我們不斷管理我們的製造足跡。由於這是一個可能快速變化的動態情況，但 Astec 團隊正在努力追蹤關稅環境的當前和潛在影響。我還要說一下，現在是美國製造商的絕佳時機。

On slide 8 we show our backlog information. Overall, our backlog declined slightly on a sequential basis, but remained healthy, supported by growth in implied orders. Current backlog levels in the infrastructure solution segment are a combination of strong invoicing for asphalt and concrete plants, dealers ordering equipment closer to desired shipment dates, and internal operational excellence efforts to increase facility throughput. That said, we have experienced some softness in order for mobile paving products, and the market for forestry products are currently slow. In our Material Solution segment, backlog grew $12.1 million, or 10.6% due to increased order activity. As noted in prior quarters, we expect demand for Material Solutions products to pick up in the second half of the year.

在投影片 8 上，我們展示了我們的積壓資訊。整體而言，我們的積壓訂單量較上季略有下降，但仍保持健康，這得益於隱含訂單的成長。基礎設施解決方案領域目前的積壓訂單水準是瀝青和混凝土廠的強勁發票、經銷商在接近預期裝運日期時訂購設備以及內部卓越營運努力提高設施吞吐量的綜合結果。話雖如此，我們還是經歷了行動鋪路產品訂單的一些疲軟，林業產品市場目前也表現低迷。在我們的材料解決方案部門，由於訂單活動的增加，積壓訂單增加了 1,210 萬美元，即 10.6%。正如前幾季所指出的，我們預計材料解決方案產品的需求將在下半年回升。

Our implied orders and book-to-bill trends are shown on slide 9. We are pleased to report consolidated implied orders rose on a quarter-over-quarter and sequential basis. The infrastructure solution segment continued to generate solid numbers. We were especially pleased with our Material Solution segment, which posted an increase in implied orders for the 2nd consecutive quarter and posted a book-to-bill ratio of 113% for Quarter 1. With that, I will now turn the call over to Brian to provide additional comments on our first quarter financial results.

我們的隱含訂單和訂單出貨趨勢顯示在投影片 9 上。我們很高興地報告，合併隱含訂單量較上季和季比都有所成長。基礎設施解決方案部門持續創造可觀的數據。我們對材料解決方案部門尤其感到滿意，該部門連續第二季隱含訂單增加，第一季的訂單出貨比達到 113%。現在，我將把電話轉給 Brian，請他對我們的第一季財務表現提供更多評論。

Thank you, Jaco and good morning. Our consolidated financial results are highlighted on slide 11. The demand for Astec capital equipment and aftermarket parts continued, as net sales grew 6.5% over the prior year first quarter and increased 2% for the trailing 12 months ended March 31, 2025. We were pleased to generate an adjusted EBITDA of $35.2 million in the first quarter, which compared to $18.9 million in the first quarter of last year. Adjusted EBITDA margin reached 10.7%, a 460 basis point increase over the prior year. Adjusted EBITDA and adjusted EBITDA margins benefited from volume, pricing, and mix, as evidenced by a 320 basis point increase in gross margin. Adjusted selling, general and administrative expenses were relatively flat at approximately $63 million for the quarter, but improved by 130 basis points as a percentage of net sales. Quarter 1 adjusted earnings per share of $0.88 compared very favorably to $0.34 of earnings per share posted in Quarter 1 2024. On a trailing 12-month basis, we increased net sales, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share. This is in line with our commitment to provide consistency, profitability, and growth, and shows the actions we have taken are gaining traction.

謝謝你，Jaco，早安。我們的合併財務結果在第 11 張幻燈片中突出顯示。Astec 資本設備和售後零件的需求持續成長，淨銷售額較去年第一季成長 6.5%，截至 2025 年 3 月 31 日的 12 個月內成長 2%。我們很高興看到第一季的調整後 EBITDA 達到 3520 萬美元，而去年第一季為 1890 萬美元。調整後 EBITDA 利潤率達 10.7%，較前一年增加 460 個基點。調整後的 EBITDA 和調整後的 EBITDA 利潤率受益於銷售、定價和產品組合，毛利率增加了 320 個基點。本季調整後的銷售、一般及行政開支相對持平，約為 6,300 萬美元，但佔淨銷售額的百分比提高了 130 個基點。第一季調整後每股收益為 0.88 美元，與 2024 年第一季每股收益 0.34 美元相比非常有利。在過去 12 個月中，我們的淨銷售額、調整後 EBITDA、調整後 EBITDA 利潤率和調整後每股盈餘均有所增加。這符合我們提供一致性、獲利能力和成長的承諾，並表明我們所採取的行動正在獲得支持。

Moving on to the infrastructure solution segment shown on slide 12, we generated higher net sales for the quarter due to strong domestic capital equipment performance. Aftermarket parts were slightly lower in the first quarter but remained at favorable levels. For the trailing 12 months, net sales in infrastructure solutions increased 10.7%. Segment operating adjusted EBITDA dollars and adjusted EBITDA margins were positively affected by volume, pricing, and operational excellence initiatives and expense management. Both posted solid increases on the quarter over quarter and trailing 12-month basis.

接下來是投影片 12 所示的基礎設施解決方案部分，由於國內資本設備表現強勁，我們本季的淨銷售額有所提高。第一季售後零件市場略有下降，但仍處於良好水平。過去 12 個月，基礎設施解決方案的淨銷售額成長了 10.7%。分部營運調整後 EBITDA 金額和調整後 EBITDA 利潤率受到銷售、定價、卓越營運措施和費用管理的正面影響。兩家公司季度環比和過去 12 個月均實現了穩健增長。

The material solution segment is shown on slide 13. As previously noted, net sales for the quarter, along with the trailing 12 months were negatively impacted by lower capital equipment sales resulting from the influence of high interest rates and dealer destocking. Aftermarket parts sales declined slightly but remained at healthy levels. Despite lower sales revenue, we have been able to control costs and achieve improved adjusted down margins.

材料解決方案部分顯示在投影片 13 上。如前所述，本季以及過去 12 個月的淨銷售額受到高利率和經銷商去庫存導致的資本設備銷售下降的負面影響。售後零件市場銷售額略有下降，但仍維持在健康水準。儘管銷售收入較低，我們仍然能夠控製成本並實現更好的調整後利潤率。

Moving on to the first quarter, adjusted EBITDA Bridge on slide 14, we were pleased to report adjusted EBITDA of $35.2 million, an increase of $16.3 million over the first quarter of 2024. Favorable volume and pricing were the primary drivers. Proactive one asset procurement efforts helped contain inflation and manufacturing efficiencies also contributed.

進入第一季度，第 14 張投影片上的調整後 EBITDA Bridge，我們很高興地報告調整後的 EBITDA 為 3520 萬美元，比 2024 年第一季度增加了 1630 萬美元。有利的銷售和定價是主要驅動因素。積極主動的單一資產採購努力有助於控制通貨膨脹，製造效率也做出了貢獻。

On slide 15, we show adjusted EBITDA of $128.1 million on a trailing 12-month basis. This was an increase of $34.4 million or 36.7%, driven by increased volume, pricing, mix, and expense management, partially offset by inflation and manufacturing inefficiencies and other period costs. On slide 16 you can see we maintain a strong balance sheet with ample liquidity. We ended the quarter with cash and cash equivalents of $90.1 million available credit of $148.8 million for a total available liquidity of $238.9 million. Our free cash flow in the quarter of $16.6 million was 116% of net income. These results were driven by profitable sales and sound working capital management. I'll now turn the call back to Jaco.

在投影片 15 上，我們顯示了過去 12 個月的調整後 EBITDA 為 1.281 億美元。這一增長為 3,440 萬美元，即 36.7%，主要由於銷售、定價、產品組合和費用管理的增加，但被通貨膨脹、製造效率低下和其他期間成本部分抵消。在投影片 16 上您可以看到我們保持著強勁的資產負債表和充足的流動性。本季末，我們的現金和現金等價物為 9,010 萬美元，可用信貸額度為 1.488 億美元，總可用流動資金為 2.389 億美元。本季我們的自由現金流為 1,660 萬美元，佔淨收入的 116%。這些業績是由盈利的銷售和良好的營運資金管理所推動的。我現在將電話轉回給 Jaco。

Thank you, Brian. Turning to slide 17. We are very pleased to announce we have entered into a definitive agreement to acquire TerraSource. This is our first step towards growth through a significant strategic acquisition. Moving to slide 18, let me share our strategic rationale for adding TerraSource to the Astec family of products. As you will see, TerraSource and Astec are a strong fit. TerraSource provides market leading process equipment and aftermarket parts and services. They will strengthen our material solution segment. Astec and TerraSource have complementary portfolios of products and technologies that will provide a meaningful synergy opportunity. Astec's international footprint will be enhanced. Our two companies are a strong cultural fit.

謝謝你，布萊恩。翻到第 17 張投影片。我們非常高興地宣布，我們已達成收購 TerraSource 的最終協議。這是我們透過重大策略收購實現成長的第一步。前往第 18 張投影片，讓我分享將 TerraSource 加入 Astec 產品系列的策略理由。如您所見，TerraSource 和 Astec 非常契合。TerraSource 提供市場領先的製程設備和售後零件和服務。他們將加強我們的材料解決方案部門。Astec 和 TerraSource 擁有互補的產品和技術組合，將提供有意義的協同機會。Astec 的國際影響力將會增強。我們兩家公司的文化非常契合。

On slide 19, you can see TerraSource's products and services align well with the Astec rock to road value chain. TerraSource has assembled century old brands that will flourish under our strategic ownership. This portfolio includes well-known and respected brands that include Gunlach Crushers, Peninsula Iron Works, Jeffrey Rader, Pennsylvania Crusher and Elgin. Their products and services are used in soft rock, rare earth, and other minerals, dewatering and recycling applications used in diversified end markers.

在第 19 張投影片上，您可以看到 TerraSource 的產品和服務與 Astec 岩石到道路價值鏈完美契合。TerraSource 匯集了百年歷史的品牌，這些品牌將在我們的策略所有權下蓬勃發展。投資組合包括一些知名且受人尊敬的品牌，包括 Gunlach Crushers、Peninsula Iron Works、Jeffrey Rader、Pennsylvania Crusher 和 Elgin。他們的產品和服務用於軟岩、稀土和其他礦物、脫水和回收應用，用於多樣化的終端標記。

On slide 20, we show information highlighting the size and scope of TerraSource. The company has over $150 million in annual revenue. Approximately 400 employees and a diverse network of manufacturing, sales, services, engineering sites, and channel partners. TerraSource will be part of our material solution segment, and will strengthen our business through scale and product portfolio expansion. TerraSource has developed market leading positions that are complementary to our crushing, screening, and separation applications. A globally integrated platform with end-to-end capabilities. An attractive recurring aftermarket parts business. A portfolio of high -performance industry leading brands, and a strong executive leadership team that will join Astec.

在第 20 張投影片上，我們展示了重點介紹 TerraSource 的規模和範圍的資訊。該公司年收入超過 1.5 億美元。擁有約 400 名員工和多元化的製造、銷售、服務、工程站點和通路合作夥伴網路。TerraSource 將成為我們材料解決方案部門的一部分，並將透過規模和產品組合擴展來加強我們的業務。TerraSource 已佔據市場領先地位，與我們的破碎、篩選和分離應用形成互補。具有端到端功能的全球整合平台。一項頗具吸引力的經常性售後零件業務。一系列高性能行業領先品牌和一支強大的執行領導團隊將加入 Astec。

Additional points are shown on slide 21. Of note, over 50% of the company's 2024 revenue was derived from aftermarket parts and components. Equipment sales and rebuilds represent 37% and 11% of sales respectively. As you have heard me say over the past 2 years, we are passionate about providing aftermarket parts for our customers. We will continue to grow this business. By geography, TerraSource is well balanced, with 55% of revenues being in the United States, and 45% generated in the rest of the world.

投影片 21 上顯示了其他要點。值得注意的是，該公司 2024 年超過 50% 的收入來自售後零件市場。設備銷售和重建分別佔銷售額的 37% 和 11%。正如您在過去兩年裡聽到我所說的那樣，我們熱衷於為客戶提供售後零件。我們將繼續發展這項業務。從地理分佈來看，TerraSource 的分佈非常均衡，55% 的營收來自美國，45% 來自世界其他地區。

The addition of TerraSource provides us attractive international growth opportunities. TerraSource also has diversified end markets. General industrial products and services comprise approximately one-third of revenue, while metals and mining and energy and power each account for approximately 125% of revenues. The remaining 15% of TerraSource revenues are generated by forestry products.

TerraSource 的加入為我們提供了極具吸引力的國際成長機會。TerraSource 也擁有多元化的終端市場。一般工業產品和服務約佔收入的三分之一，而金屬和採礦以及能源和電力分別佔收入的約 125%。TerraSource 剩餘 15% 的收入來自林業產品。

On slide 22, we provide a transaction overview. Let me summarize the key points. The purchase price will be $245 million in cash on a cash-free, debt-free basis. The net purchase price after approximately $15 million of tax benefits is expected to be $230 million. The purchase price represents a 2024 adjusted EBITDA multiple of 5.9 times adjusted for expected tax benefits and including run rate synergies. Annual integration synergies of $10 million are expected to be recognized by the end of year two. Additional upside is expected by cross-selling products to existing and new customers. We will finance the transaction with existing cash on the balance sheet and external financing in the form of Term Loan A.

在投影片 22 上，我們提供了交易概述。我來總結一下重點。收購價格為 2.45 億美元，以無現金、無債務的方式支付。扣除約 1,500 萬美元的稅收優惠後，淨購買價格預計為 2.3 億美元。該購買價格相當於 2024 年調整後 EBITDA 的 5.9 倍，已根據預期稅收優惠和運行率協同效應進行了調整。預計到第二年年底將實現每年 1000 萬美元的整合綜效。透過向現有客戶和新客戶交叉銷售產品，預計會帶來額外的收益。我們將利用資產負債表上的現有現金和定期貸款 A 形式的外部融資來為交易提供資金。

Initial net leverage is expected to be 2 times and between 1 and 1.5 times by the end of 2026. Our strong balance sheet allows for additional inorganic opportunities while keeping leverage below 2.5 times. We expect adjusted EBITDA to be accretive from day one with significant synergy opportunities. TerraSource is expected to provide even our marginal expansion and improved free cash flow. The closing is subject to customary regulatory considerations and closing conditions, and we anticipate closing in the early part of Quarter 3 2025.

預計初始淨槓桿率為2倍，到2026年底將達到1至1.5倍之間。我們強勁的資產負債表可提供額外的無機機會，同時將槓桿率保持在 2.5 倍以下。我們預計調整後的 EBITDA 將從第一天起就實現增值，並具有顯著的綜效機會。TerraSource 預計將為我們提供邊際擴張和改善的自由現金流。此交易的完成取決於慣常的監管考慮和成交條件，我們預計將於 2025 年第三季初完成。

Turning to slide 23, our Astec investment highlights are summarized. Astec continues to be a trusted source of globally recognized brands and a high-quality solution for our customers. Customers continue to cautiously display favorable sentiment as they are encouraged by the level of activity in construction markets. Likewise, we are encouraged by a high-level of aftermarket sales, which validates equipment in the field is being used. As previously discussed, tariffs present an element of uncertainty. However, we are taking proactive measures to mitigate their impact. We were also encouraged by the cautious customer optimism expressed at the recent World of Asphalt AGG1 show last month, and attendance at our booth was strong.

翻到第 23 張投影片，我們總結了 Astec 的投資亮點。Astec 持續成為全球知名品牌的可信賴來源，並為客戶提供高品質的解決方案。受到建築市場活躍程度的鼓舞，客戶繼續謹慎地表現出樂觀情緒。同樣，高水準的售後市場銷售也令我們感到鼓舞，這證明現場的設備確實得到了使用。如前所述，關稅存在一些不確定因素。然而，我們正在採取積極措施來減輕其影響。上個月舉行的世界瀝青 AGG1 展會上，客戶表現出謹慎的樂觀態度，這也讓我們感到鼓舞，我們的展位出席人數眾多。

Our operational excellence efforts will continue to gain traction, with many of the benefits yet to come. Manufacturing and procurement efforts are driving efficiencies, and we are seeing positive adjusted EBITDA trends. Our business has several growth drivers, including our exciting new product pipeline. A growing recurring aftermarket parts business. Stability provided by multi-year federal and state funding for interstates and highways. Expansion opportunities in current and future international markets. And in organic growth opportunities that are strategically aligned to meet our financial criteria. A strong balance sheet provides ample liquidity to fund growth and manage leverage highlighted by today's announcement to acquire TerraSource. With that operator, we are now ready to take questions.

我們的卓越營運努力將繼續獲得推動，並將帶來許多好處。製造和採購工作正在提高效率，我們看到了積極的調整後 EBITDA 趨勢。我們的業務有多個成長動力，包括我們令人興奮的新產品線。不斷成長的售後零件業務。聯邦政府和州政府多年來為州際公路和高速公路提供的資金提供了穩定性。當前和未來國際市場的擴張機會。並在策略上與我們的財務標準一致的有機成長機會中。強勁的資產負債表提供了充足的流動性來資助成長和管理槓桿，今天宣布收購 TerraSource 就凸顯了這一點。有了這個接線員，我們現在就可以回答問題了。

Thank you, ladies and gentlemen, we will now begin the question-and-answer session. (Operartor Instructions)

謝謝女士們、先生們，我們現在開始問答環節。（操作員指令）

Steve Ferazani, Sidoti & Company

史蒂夫費拉扎尼 (Steve Ferazani)，Sidoti & Company

Jaco and Brian, I appreciate all the detail on the call. Obviously, 2nd straight really strong quarter. Got to ask, why not raise guidance here given some of your commentary implied orders were good. You said MS, you expect to see better orders by the second half. Obviously, margins are much better. Did you pull forward anything from Quarter 2, anything that would indicate why not raise here?

Jaco 和 Brian，我很感謝通話中提供的所有細節。顯然，這是連續第二季表現非常強勁。必須要問的是，鑑於您的一些評論暗示訂單很好，為什麼不在這裡提高指導。您說 MS，您預計下半年的訂單會更好。顯然，利潤率好得多。您是否從第二季度提出了任何建議，任何可以表明為什麼不在這裡提高的建議？

Yeah, no, Steve, just to answer the last part, no, we didn't pull anything forward. If you look at the range that we provided, it still gives some upside from the midpoint, $115 million. I think the one thing that maybe kept us from raising, obviously, there is some uncertainty around the tariffs. From two sides, one, obviously, from a cost point of view, and then the next one is, customers just sitting on the sideline for 2 or 3 months to see what the outcome of tariffs will be. On the tariff side, I think a couple of things from our side. We have a really strong team that that drives this discussion for us right now. I feel that our team has been very proactive in terms of understanding the potential impact for us, looking at price adjustments, and then, of course, this is potentially the best time to be a US manufacturer. But there is still a little bit of uncertainty on how that will all play out.

是的，不，史蒂夫，只是回答最後一部分，不，我們沒有推動任何事情。如果你看我們提供的範圍，它仍然比中間值 1.15 億美元有一些上漲空間。我認為，阻止我們提高關稅的一個因素顯然是關稅存在一些不確定性。從兩個方面來看，首先，顯然是從成本的角度，其次，客戶只是在場邊坐等 2 到 3 個月，看看關稅的結果會如何。在關稅方面，我認為我們有幾點看法。我們擁有一支非常強大的團隊，目前正在為我們推動這項討論。我覺得我們的團隊非常積極主動地了解對我們的潛在影響，研究價格調整，當然，這可能是成為美國製造商的最佳時機。但這一切將如何發展仍存在一些不確定性。

Yeah, makes sense. How's your position now, given the current tariffs that are in place? If you pass through, is it still reasonable to think there'll be a lag where your margins may trend lower and then come back up? As you catch up on some of the equipment cost.

是的，有道理。考慮到現行的關稅，您現在的處境如何？如果您通過了，那麼認為會出現一個滯後，您的利潤率可能會下降然後回升，這是否仍然合理？當你追上一些設備成本時。

Yeah Steve, as I mentioned, I think our team have learned a great deal, during COVID. We've got good internal models now to simulate the effect of these things that we maybe didn't have during COVID, so our team were very proactive. When the first tariffs came around, we saw, an artificial bump here of steel pricing. And we took immediate action on that, on things like parts, there will be almost immediate flow through, if we see significant part changes. So, I feel that the team have done a really good job here. Obviously, there's always risk, especially with having backlog that goes into, 2 or 3 quarters in the future. On some of our equipment like our concrete plants, we are giving deliveries, well into the first part of next year. So, we believe we've taken appropriate action, but it's a highly fluid situation. If there's significant increases announced here recently, obviously we're going to have to take some more actions.

是的，史蒂夫，正如我所提到的，我認為我們的團隊在 COVID 期間學到了很多東西。我們現在有了很好的內部模型來模擬這些在 COVID 期間我們可能沒有的事物的影響，所以我們的團隊非常積極主動。當第一批關稅出台時，我們看到鋼鐵價格人為上漲。我們立即採取了行動，例如在零件方面，如果我們發現零件有重大變化，幾乎會立即採取行動。所以，我覺得團隊在這裡做得非常好。顯然，風險總是存在的，尤其是未來 2 到 3 個季度的積壓訂單。我們的一些設備（例如混凝土廠）將在明年上半年交付。因此，我們相信我們已經採取了適當的行動，但情況非常不穩定。如果最近宣布大幅增加，顯然我們將不得不採取更多行動。

Okay. Appreciate the thoughts on that. If I could turn to the acquisition, you noted it'll fit within Material Solutions, which has been your more your underperforming side. Can you indicate how TerraSource has been performing? And I know the end markets are different. You have more geographic diversification, and I certainly appreciate the much higher aftermarket exposure. But can you give us some indication on how TerraSource has performed in the last couple of years versus your legacy Material Solutions?

好的。感謝您對此的想法。如果我可以談談此次收購，您指出它將適合材料解決方案，這是您表現較差的部門。您能說明一下 TerraSource 的表現如何嗎？我知道終端市場是不同的。你們的地域分佈更加多樣化，我當然很欣賞更高的售後市場曝光率。但是，您能否向我們介紹 TerraSource 過去幾年的表現與您傳統的材料解決方案相比如何？

Yeah, so, I just want to highlight one significant difference here. If you look at TerraSource product portfolio, they have a much smaller exposure to the mobile crashing and screening market that is typically, equipment that goes through rental fleets and then converts. So, most of their products are part of larger fixed installations, so, they've been less affected by what we've seen on the historical or the traditional MS side. The other thing here is they have a significant part of their business or aftermarket parts. I mean you can see about 63% is parts and service and, that's also where the majority of the gross margin comes from. These guys have assembled here, a portfolio of legacy brands that I will say maybe didn't fit with their previous owners and they've done a really good job to put them back on the map. And now the growth will come from the huge installed fleet that they have, and, with our ability to support with our manufacturing around the world, we feel that these guys will perform really well in the future for us.

是的，所以，我只想在這裡強調一個顯著的差異。如果你看一下 TerraSource 的產品組合，你會發現他們在移動碰撞和篩選市場的曝光率要小得多，這些設備通常是透過租賃車隊然後轉換的。因此，他們的大多數產品都是較大固定裝置的一部分，因此，它們受到的歷史或傳統 MS 方面的影響較小。另一件事是他們的業務很大一部分是售後零件市場。我的意思是，你可以看到大約 63% 是零件和服務，這也是大部分毛利率的來源。這些人聚集在這裡，我想說，這些傳統品牌可能與它們以前的主人不太相配，但他們確實做得很好，讓它們重新回到了人們的視線中。現在的成長將來自於他們擁有的龐大的安裝車隊，並且憑藉我們在全球範圍內的製造支援能力，我們認為這些傢伙在未來將為我們帶來非常好的表現。

Great, thanks, Jaco.

太好了，謝謝，Jaco。

Mircea Dobre, Baird

米爾恰·多布雷，貝爾德

Thank you, good morning. Just a quick clarification, making sure that I heard this correctly, in your prepared remarks, the guidance that you've reiterated today that excludes any impact from tariffs. Did I heard that correctly?

謝謝，早安。只需簡單澄清一下，確保我沒有聽錯，在您準備好的發言中，您今天重申的指導意見不包括關稅的任何影響。我沒聽錯吧？

That is correct at this point in time.

目前來說這是正確的。

Okay. I am a little bit confused in terms of kind of how you're talking about tariffs. Because we do know that there are some that are in place, right? Steel tariffs are certainly in place. We've seen steel prices move higher in the US as a result. I would imagine that within your supply chain, there are certain portions of it that that are impacted right now by the tariffs that are in place, so maybe reiterating a previous question based on what you know today. Is there a way to size the impact, recognizing that maybe that changes 3 months from now?

好的。我對於您談論的關稅有點困惑。因為我們確實知道有些措施已經到位了，對吧？鋼鐵關稅肯定存在。因此，我們看到美國鋼鐵價格上漲。我可以想像，在您的供應鏈中，某些部分目前受到現行關稅的影響，因此，根據您今天所了解的情況，也許可以重申一下先前的問題。有沒有辦法衡量其影響，並承認三個月後可能會改變？

Yeah. Depending on the product, with the information that is available right now, we modeled this that it could be anything between, 4% and 10% impact, depending on, exactly, what product we have. Now, remember here, about a third of our product or our sales is from parts, and we are going to focus on, flowing through that to our customers. From a steel point of view, we source all our steel in the US. We don't import any steel. And of course, there was a little bit of a bump on local steel prices after the initial announcement, that have moderated quite a bit. We did, implement some price increasing, very early on to take care of that. Our procurement team was also really quick to go out and do some forward buying on steel. So, you might see a little bit of bump in working capital here in the next quarter. But, we are well covered now, Quarter 2 and even partially into Quarter 3. So yes, Mig, you're right, there is some risk, but once again, I feel like we've been very quick to react to this. I think the other thing here is we feel that we are well positioned as a US manufacturer, as a lot of our competitors import a lot of units to the states and they will obviously see different levels of tariffs than what we are experiencing.

是的。根據產品，利用目前可用的信息，我們對此進行了建模，其影響可能在 4% 到 10% 之間，具體取決於我們擁有的產品。現在，請記住，我們的產品或銷售額的大約三分之一來自零件，我們將專注於將其流向我們的客戶。從鋼鐵的角度來看，我們所有的鋼鐵都來自美國。我們不進口任何鋼材。當然，在最初的公告發布後，當地鋼鐵價格略有上漲，但目前已回落不少。我們確實很早就實施了一些提價措施來解決這個問題。我們的採購團隊也迅速出去進行一些鋼材的長期採購。因此，您可能會看到下個季度營運資金略有增加。但是，我們現在已經很好地覆蓋了第二季度，甚至部分第三季度。是的，米格，你是對的，確實存在一些風險，但我再次感覺到我們對此的反應非常迅速。我認為另一件事是，我們覺得作為美國製造商，我們處於有利地位，因為我們的許多競爭對手都向美國進口了大量產品，他們顯然會看到與我們經歷的不同水平的關稅。

When you are saying 4% to 10% impact, is that 4% to 10% of sales, or is it COGS impact on margin? What is that metric referred to?

當您說影響 4% 到 10% 時，是指銷售額的 4% 到 10%，還是 COGS 對利潤率的影響？這個指標指的是什麼？

Oh yeah, it really just shows the exposure that there is if we do nothing. And obviously it's our ambition to make that neutral. So that's the potential impact it has on COGS if we do nothing. But we've already, as I mentioned, parts will flow through as we get increases from suppliers. We've already made some adjustments due to steel, and we are watching it. We know exactly, what to do by product line if we see significant price changes from suppliers. The other thing is, we are very focused. We have a really good tracking process here. Because we are going to push our suppliers to be very clear to show us, where do they actually get the product from, what is the effect on tariffs before we just accept, price increases.

哦，是的，這確實表明如果我們什麼都不做，就會有暴露的危險。顯然，我們的目標是保持中立。如果我們不採取任何行動，這可能會對 COGS 產生影響。但正如我所提到的，隨著供應商的增加，零件將會流通。我們已經針對鋼材做出了一些調整，我們正在觀察。我們清楚知道，如果我們發現供應商的價格有重大變化，我們會根據產品線採取什麼措施。另一件事是，我們非常專注。我們這裡有一個非常好的追蹤流程。因為我們要敦促我們的供應商非常清楚地向我們展示，他們實際上從哪裡獲得產品，在我們接受價格上漲之前，關稅會有什麼影響。

And are you able to reprice your backlog?

您能對積壓訂單重新定價嗎？

No, we are not, but, once again, as I mentioned, we've been very proactive. We feel that we are well covered this time compared to what we have in during COVID, especially now that our backlog is down to a more normal level of that 1 to 1.5 or so.

不，我們不是，但是，正如我再次提到的，我們一直非常積極主動。我們覺得，與 COVID 期間相比，這次我們的保障已經很好了，尤其是現在我們的積壓工作量已經降到了 1 到 1.5 左右的正常水平。

I see. The guidance excludes obviously all these effects. So given the fact that it excludes the tariffs, it is interesting relative to Quarter 1 the way you're formulating the rest of the year. You have roughly 30% of your EBITDA, the midpoint generated in Quarter 1, which is pretty rare. You normally have less than that. Normally, where we would see this sort of cadence is in years in which things are getting tougher from a margin perspective. So, I guess the way I would ask the question is if all these uncertainties are excluded from the guidance. How should we think about how you see the year progressing in this outlook and maybe more specifically in infrastructure solutions you started with 18% EBITDA margin. I'm curious how you think about that as the year progresses, again excluding tariffs.

我懂了。該指南顯然排除了所有這些影響。因此，考慮到它不包括關稅，相對於第一季度，您對今年剩餘時間的製定方式很有趣。您的 EBITDA 大約有 30%，即第一季產生的中點，這非常罕見。通常情況下，你的收入會比這個少。通常情況下，我們會看到這種節奏出現在利潤率越來越艱難的年份。所以，我想我會問這個問題，所有這些不確定性是否都被排除在指導之外。我們應該如何看待您對今年前景的展望，更具體地說，在基礎設施解決方案方面，您以 18% 的 EBITDA 利潤率起步。我很好奇，隨著時間的推移，您對此有何看法，再次排除關稅。

Yeah, good point. I mean, we actually had that same discussion yesterday. We know that there's obviously a range here. We have a higher end of the range. If Quarter 2 shape up to be strong, obviously, that will be the ideal time to update guidance. We just felt that with the uncertainty we have right now, it was too early to raise the guidance.

是的，說得對。我的意思是，我們昨天實際上進行了同樣的討論。我們知道這裡顯然有一個範圍。我們擁有更高等級的產品。如果第二季表現強勁，顯然這將是更新指導的理想時機。我們只是覺得，鑑於目前存在的不確定性，提高預期還為時過早。

Final question from me, just to be clear on the acquisition. Can you tell us what the sort of year one or maybe I should say trailing 2024 EBITDA for annual EBITDA for this business was? Taking out all the synergies and and all the other stuff around the multiple. Thank you.

我的最後一個問題是為了明確收購事宜。您能告訴我們這家企業第一年的 EBITDA 是多少嗎？或者我應該說是 2024 年以後的年度 EBITDA 是多少？消除所有協同效應以及倍數周圍的所有其他東西。謝謝。

Yeah, we're probably not going to provide that guidance at this point, it's a little early. Obviously, when we get to report Quarter 2 and we close the transaction, we'll be updating our guidance for the full year to include TerraSource in the numbers at that point. You can probably back into it a little bit. At least to get a ballpark range from the numbers we've disclosed with the purchase price along with the synergies that we've identified and the tax step up benefit that we'll get. But we're not going to provide a historical EBITDA number at this stage.

是的，我們現在可能不會提供該指導，現在還為時過早。顯然，當我們報告第二季並完成交易時，我們將更新全年指導，將 TerraSource 納入當時的數字中。您或許可以稍微退後一點。至少從我們揭露的數字以及購買價格、我們已經確定的協同效應和我們將獲得的稅收遞增優惠中獲得一個大概的範圍。但我們目前不會提供歷史 EBITDA 數字。

Well, we can do the math, but I would rather hear it from you soon. We make sure that's correct. Thank you though.

好吧，我們可以算一下，但我希望盡快聽到你的答案。我們確保這是正確的。不過還是謝謝你。

There are no further questions at this time. With that, I will turn the call back over to Stephen Anderson for closing remarks. Please go ahead.

目前沒有其他問題。說完這些，我將把電話轉回給史蒂芬安德森，請他做最後發言。請繼續。

Thank you, Kelvin. We do appreciate your participation in our conference call this morning and thank you for your interest in Astech. As today's news release states, this conference call has been recorded. A replay of this conference call will be available through May 13, 2025, and archives webcast will be available for 90 days. The transcript will be available under the investor relations section of the Astec Industries website within the next 5-business days. This concludes our call. I'm happy to connect if you have additional questions later on. Thank you all. Have a good day.

謝謝你，凱爾文。我們非常感謝您參加我們今天早上的電話會議，並感謝您對 Astech 的關注。正如今天的新聞稿所述，本次電話會議已被錄音。本次電話會議的重播將保留至 2025 年 5 月 13 日，檔案網路直播將保留 90 天。該記錄將在未來 5 個工作天內於 Astec Industries 網站的投資者關係部分提供。我們的通話到此結束。如果您稍後還有其他問題，我很樂意與您聯繫。謝謝大家。祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference call. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，並請您斷開線路。