Astec Industries Inc (ASTE) 2025 Q2 法說會逐字稿

Hello, and welcome to the Astec Industries second quarter 2025 earnings call. As a reminder, this conference call is being recorded.

您好，歡迎參加 Astec Industries 2025 年第二季財報電話會議。提醒一下，本次電話會議正在錄音。

It is my pleasure to introduce your host, Steve Anderson, Senior Vice President of Administration and Investor Relations. Mr. Anderson, you may begin.

我很高興介紹您的主持人、行政和投資者關係高級副總裁史蒂夫·安德森。安德森先生，您可以開始了。

Thank you, and good morning, everyone. Joining me on today's call are Jaco van der Merwe, Chief Executive Officer; and Brian Harris, 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.

謝謝大家，早安。參加今天電話會議的還有執行長 Jaco van der Merwe 和財務長 Brian Harris。稍後，我將把電話轉給 Jaco 來發表他的看法，然後 Brian 將總結我們的財務表現。

For your convenience, a copy of our press release and presentation have been posted on our website under the Astec Investor Relations tab at www.astecindustries.com.

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 上的 Astec 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.

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績效相關的前瞻性陳述，這些陳述旨在符合《私人證券訴訟改革法案》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。

Factors that could influence our results are highlighted in today's financial news release and others are contained in our filings with the US Securities and Exchange Commission. As usual, we ask that you familiarize yourself with those factors.

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.

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。

A reconciliation of GAAP to non-GAAP results are included in our news release and the appendix of our slide presentation.

我們的新聞稿和幻燈片簡報的附錄中包含了 GAAP 與非 GAAP 結果的對帳。

And now, I will turn the call over to Jaco.

現在，我將把電話轉給 Jaco。

Thank you, Steve. Good morning, everyone, and thank you for joining us. I'm excited to report the Astec team delivered another strong quarter and completed the previously announced TerraSource acquisition to drive future growth. Our team continues to progress as we execute our strategic initiatives to deliver consistency, profitability and growth. Thanks to the 4,500-plus team members around the world for their dedication and engagement.

謝謝你，史蒂夫。大家早安，感謝大家的收看。我很高興地報告，Astec 團隊又取得了一個強勁的季度業績，並完成了先前宣布的 TerraSource 收購，以推動未來的成長。隨著我們執行策略性舉措以實現一致性、獲利能力和成長，我們的團隊不斷進步。感謝全球 4,500 多位團隊成員的奉獻和參與。

On slide 4, we provide a second quarter overview. Our results for the quarter were solid for net sales, and we generated increased profitability, as evidenced by our adjusted EBITDA and adjusted earnings per share. Adjusted EBITDA of $33.7 million increased $6.1 million or 22.1% over the second quarter of 2024. Adjusted EBITDA margin of 10.2% increased 220 basis points and adjusted earnings per share were strong at $0.88, a 44.3% increase over the second quarter of 2024.

在投影片 4 上，我們提供了第二季的概述。我們本季的業績表現穩健，淨銷售額穩健，獲利能力增強，這從我們的調整後 EBITDA 和調整後每股盈餘中可以看出。調整後的 EBITDA 為 3,370 萬美元，比 2024 年第二季增加了 610 萬美元，增幅為 22.1%。調整後的 EBITDA 利潤率為 10.2%，增加了 220 個基點，調整後的每股盈餘強勁至 0.88 美元，比 2024 年第二季成長 44.3%。

Backlog stood at $380.8 million and declined sequentially by 5.4%. This was primarily due to a combination of shorter lead times that allowed customers to place orders closer to the desired delivery dates, and challenging market conditions for forestry and mobile paving products in the Infrastructure Solutions segment. We continue to see healthy demand for asphalt and concrete plants in the Infrastructure Solutions segment.

積壓訂單為 3.808 億美元，季減 5.4%。這主要是因為交貨時間較短，使客戶能夠在更接近預期交貨日期時下訂單，以及基礎設施解決方案領域的林業和移動鋪路產品的市場條件嚴峻。我們繼續看到基礎設施解決方案領域對瀝青和混凝土廠的強勁需求。

Net sales in Materials Solutions remained relatively stable at $125.7 million, despite being challenged by the impact of high interest rates. We were especially pleased to see sequential and year-over-year increases in applied orders. Initial signs of dealer inventory replenishment were seen and rental utilization remained strong.

儘管受到高利率的影響，材料解決方案的淨銷售額仍保持相對穩定，為 1.257 億美元。我們特別高興地看到應用程式訂單量連續和同比增長。經銷商庫存補充的初步跡像已經顯現，租賃利用率仍然強勁。

We expect continued progress in our Materials Solutions segment in the second half of the year. Another quarter of positive free cash flow was driven by increased profitability and continued focus on working capital management.

我們預計今年下半年材料解決方案部門將持續取得進展。獲利能力的提高和對營運資本管理的持續關注推動了自由現金流再度出現正值。

On Slide 5, we provide second quarter highlights and our full year outlook. As discussed, we generated strong adjusted earnings per share on solid net sales. We were pleased to achieve double-digit adjusted EBITDA margin and return on invested capital of 10.2% and 11.6%, respectively. Return on invested capital has improved 61.1% since the second quarter of 2024.

在第 5 張投影片上，我們提供了第二季的亮點和全年展望。如上所述，我們憑藉穩健的淨銷售額實現了強勁的每股調整收益。我們很高興實現了兩位數的調整後 EBITDA 利潤率和投資資本回報率，分別為 10.2% 和 11.6%。自 2024 年第二季以來，投資資本回報率提高了 61.1%。

Based on progress made in the first half, we are raising the lower end of our full year guidance from $105 million to $110 million on our core business, while keeping the top end unchanged at $125 million.

根據上半年的進展，我們將核心業務全年預期的下限從 1.05 億美元提高到 1.1 億美元，同時將上限維持在 1.25 億美元不變。

Our updated full year guidance also reflects the expected second half contributions by TerraSource. We expect TerraSource to provide adjusted EBITDA in the $13 million to $17 million range, bringing our consolidated guidance expectations for adjusted EBITDA to a range of $123 million to $142 million for the full year. This range is based on the current state of the operating environment that I will cover on Slide 8.

我們更新的全年指引也反映了 TerraSource 預期的下半年貢獻。我們預計 TerraSource 的調整後 EBITDA 將在 1,300 萬美元至 1,700 萬美元之間，使我們對全年調整後 EBITDA 的綜合指引預期達到 1.23 億美元至 1.42 億美元之間。此範圍是基於我將在投影片 8 中介紹的操作環境的目前狀態。

Continuing the TerraSource discussion on slide 6. We were pleased to announce the completion of the TerraSource acquisition on July 1st. TerraSource is a market-leading manufacturer of material processing equipment and related aftermarket parts, serving complementary crushing, screening and separation markets. This presents a unique opportunity for Astec as it will be accretive from day one with aftermarket part sales representing approximately 63% of total revenue and 80% of gross margin.

繼續第 6 張投影片上的 TerraSource 討論。我們很高興地宣布 TerraSource 收購已於 7 月 1 日完成。TerraSource 是市場領先的材料加工設備及相關售後零件製造商，服務於互補的破碎、篩選和分離市場。這為 Astec 提供了一個獨特的機會，因為它將從第一天起實現增值，售後零件銷售額約佔總收入的 63% 和毛利率的 80%。

On slide 7, we highlight the TerraSource integration and synergy focus for the second half of this year. We feel very good about the way this process has started. Thank you to both teams for all the hard work over the last 90 days. Collaboration among our combined team members has been strong. I'm also glad to report that our Oracle Human Resource system allowed us to integrate the payroll and onboarding process seamlessly from day 1, identified various procurement and other synergies and are off to a good start towards realizing the savings.

在第 7 張投影片上，我們重點介紹了今年下半年 TerraSource 的整合和協同重點。我們對這一進程的開始感到非常滿意。感謝兩個團隊在過去 90 天的辛勤工作。我們團隊成員之間的合作一直很緊密。我也很高興地報告，我們的 Oracle 人力資源系統使我們能夠從第一天起無縫地整合工資和入職流程，確定了各種採購和其他協同效應，並且在實現節約方面取得了良好的開端。

Further, increasing parts and service revenue is a major opportunity, and we are focused on optimizing parts fill rates and increasing our feet on the street for further growth. Other opportunities include sales channel alignment and capitalizing on cross-selling, new product development, and factory utilization.

此外，增加零件和服務收入是一個重大機遇，我們專注於優化零件填充率並增加我們的實際業務以實現進一步成長。其他機會包括銷售通路調整和交叉銷售、新產品開發和工廠利用。

Slide 8 reflects the current operating environment. Currently, there are a number of external tailwinds and headwinds in the market in which we operate. Among opportunities is the status of federal highway funding in the United States. Multiyear core levels of work on federal roads and bridge projects provide stability for many Astec customers. As a result, customer sentiment is generally positive as many have reported having large backlogs of work.

投影片 8 反映了目前的營運環境。目前，我們經營的市場面臨許多外部順風和逆風。其中一個機會是美國聯邦公路資金的現狀。多年來在聯邦道路和橋樑項目上的核心工作為許多 Astec 客戶提供了穩定性。因此，客戶情緒總體上是正面的，因為許多客戶都報告說有大量的工作積壓。

As evidenced by our recent acquisition of TerraSource, we have current and future opportunities to grow inorganically. The search and data center infrastructure is another opportunity for Astec customers. These huge construction projects require large amounts of concrete for foundations, walls, sidewalks and curbs and asphalt pavement. All of these contain construction materials that have been processed through the type of equipment Astec make.

正如我們最近收購 TerraSource 所證明的那樣，我們現在和將來都擁有無機成長的機會。搜尋和資料中心基礎設施是 Astec 客戶的另一個機會。這些大型建築工程需要大量混凝土用於地基、牆壁、人行道和路緣以及瀝青路面。所有這些都含有經過 Astec 製造的設備加工的建築材料。

On July 4, 2025, the one big beautiful bill was enacted into law in the United States. This bill extends many expiring provisions of the 2017 Tax Cuts and Job Act and restores favorable tax treatment for certain business provisions, including accelerated depreciation and R&D tax credits.

2025年7月4日，一項美麗的大法案在美國頒布成為法律。該法案延長了2017年減稅與就業法案中許多即將到期的條款，並恢復了對某些商業條款的優惠稅收待遇，包括加速折舊和研發稅收抵免。

Challenges currently being faced include the ever-changing tariff environment and high interest rates, which present headwinds to equipment dealers, end users, and contribute to a soft market for forestry and mobile paving equipment. We rarely mentioned weather as a challenge. However, this year could be an exception. May was the wettest month on record in many states. In our hometown of Chattanooga, for example, the rainfall in May broke a record previously set in 1929. Excessive amounts of rain caused widespread delays in processing aggregates and in construction projects.

目前面臨的挑戰包括不斷變化的關稅環境和高利率，這給設備經銷商和最終用戶帶來了阻力，並導致林業和行動鋪路設備市場疲軟。我們很少提到天氣是一個挑戰。然而，今年可能是個例外。五月是許多州有史以來降雨量最多的月份。例如，在我們的家鄉查塔努加，五月的降雨量打破了1929年創下的紀錄。過多的降雨導致骨材加工和建築工程大面積延誤。

Moving to slide 9. As we have shared previously, approximately 80% of Astec's revenues are generated in the United States, which is a favorable market. America's infrastructure is foundational to our national economy, global competitiveness and our quality of life.

移至幻燈片 9。正如我們之前所分享的，Astec 約 80% 的收入來自美國，這是一個有利的市場。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。

Domestically, state and local government contract awards are a leading indicator of future construction activity expected to break ground within 30 to 60 days. Depending on the size and scope of the project, actual construction work often takes place over a multiyear period. According to the American Road and Transportation Association, ARPA, Economics Team and Dodge Data Analytics, the total value of state and local government transportation contract awards increased 9%, growing to $47.8 billion through April 2025 compared to $43.8 billion through April of 2024.

在國內，州和地方政府合約授予是未來建築活動的領先指標，預計將在 30 至 60 天內破土動工。根據專案的規模和範圍，實際施工工作通常需要多年的時間。根據美國道路與運輸協會、高級研究計劃局 (ARPA)、經濟團隊和道奇數據分析公司的數據，州和地方政府交通運輸合約授予的總價值增長了 9%，到 2025 年 4 月將增長至 478 億美元，而到 2024 年 4 月則為 438 億美元。

Approximately $202 billion or 58% of the Infrastructure Investment and Job Act funds have been committed as of April 2025 and $124 billion or 36% has been funded. According to ARPA, the obligation rates are on track and a lot more money will be spent even after 2026.

截至 2025 年 4 月，已承諾投入約 2,020 億美元（佔基礎建設投資和就業法案資金的 58%），並已落實 1,240 億美元（佔 36%）。據 ARPA 稱，義務率已步入正軌，即使在 2026 年後仍將花費更多資金。

The current surface transportation law expires October 1, 2026. During the Transportation Construction Coalition Fly-In on May 6 through May 8, ARPA reported Washington transportation policymakers were optimistic about the prospects for enactment of a new surface transportation bill next year and have pledged to bring the new bill for President Trump's signature well before the current one expires.

現行地面運輸法將於 2026 年 10 月 1 日到期。在 5 月 6 日至 5 月 8 日的交通建設聯盟飛行活動中，ARPA 報告稱，華盛頓交通政策制定者對明年頒布新的地面交通法案的前景持樂觀態度，並承諾在當前法案到期之前將新法案提交給川普總統簽署。

On July 17th, US Transportation Secretary, Sean Duffy, spoke at an 'America Is Building Again' infrastructure event. Secretary Duffy announced that the priority for the House of Representatives is the Surface Transportation Reauthorization and noted the house theme for the Surface Transportation Reauthorization is 'America Builds'. Their goals are to get money to the states efficiently and cut the amount of red tape through permitting reform.

7月17日，美國交通部長肖恩·達菲在「美國再次建設」基礎設施活動上發表演說。達菲部長宣布眾議院的首要任務是地面運輸重新授權，並指出眾議院地面運輸重新授權的主題是「美國建設」。他們的目標是透過許可改革有效地將資金輸送到各州並減少繁瑣的手續。

These messages bode well for Astec as we are a niche industry player focused on the rock to road sector. Needed improvements to our infrastructure provide long-term stable demand for our equipment, aftermarket parts and digital solutions. We have strong brand recognition in the infrastructure sector, which is largely comprised of aggregates and the road and bridge construction.

這些資訊對 Astec 來說是個好兆頭，因為我們是一家專注於岩石到道路領域的利基產業參與者。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。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。

Turning to slide 10. Thus far, we have successfully navigated the ever-changing tariff environment. To date, mitigation efforts have offset tariff impacts to cost of goods, which have been in the 2% to 3% range. This is reflected in our second quarter results, and we expect our actions will continue to be effective for the remainder of the year. Astec has ongoing proactive strategies to mitigate the impact of tariffs. Our 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 action, and we'll continue to assess the situation to protect margins.

翻到第 10 張投影片。到目前為止，我們已經成功應對了不斷變化的關稅環境。迄今為止，緩解措施已經抵消了關稅對商品成本的影響，降幅在 2% 至 3% 之間。這反映在我們的第二季業績中，我們預計我們的行動將在今年剩餘時間內繼續有效。Astec 正在採取積極主動的策略來減輕關稅的影響。我們的 One Astec 採購團隊要求供應商對任何價格上漲提供支持，並且我們正在積極協商所有採購。我們已經採取了額外的定價行動，並將繼續評估情況以保護利潤率。

We continue to practice dual sourcing and resourcing. We are managing supply chain alignment and will reshore to the United States when feasible. We are continually managing our manufacturing footprint. Our updated full year adjusted EBITDA guidance includes our current view of the tariff environment.

我們繼續實行雙重採購和資源配置。我們正在管理供應鏈協調，並將在可行的情況下返回美國。我們不斷管理我們的製造足跡。我們更新的全年調整後 EBITDA 指引包括了我們對當前關稅環境的看法。

On slide 11, we show our backlog information. Our shorter production lead times and part fill rates have allowed customers to place orders closer to the desired delivery dates. We have also experienced variability in the ordering patterns from customers due to macroeconomic factors mentioned on slide 8.

在投影片 11 上，我們展示了積壓資訊。我們更短的生產交付週期和零件填充率使得客戶能夠在更接近期望交貨日期時下訂單。由於幻燈片 8 中提到的宏觀經濟因素，我們也經歷了客戶訂購模式的變化。

Current backlog levels in the Infrastructure Solutions segment are a combination of healthy invoicing for asphalt and concrete plants, dealers ordering equipment closer to desired shipment dates, and softness in our orders for mobile paving products and the markets for forestry products.

基礎設施解決方案部門目前的積壓水準是瀝青和混凝土廠的健康發票、經銷商訂購設備接近預期裝運日期以及移動鋪路產品和林業產品市場訂單疲軟等因素綜合作用的結果。

In our Materials Solutions segment, backlog has stabilized in the $125 million range for the past four quarters, and we expect demand for Materials Solutions products to gain momentum in the second half of the year.

在我們的材料解決方案部門，過去四個季度的積壓訂單一直穩定在 1.25 億美元的範圍內，我們預計材料解決方案產品的需求將在今年下半年獲得成長動力。

Our implied orders and book-to-bill trends are shown on slide 12. Implied orders on a consolidated basis have stayed above $300 million for 4 of the last five quarters. In Q2, a decline in forestry and mobile paving orders in the Infrastructure Solutions segment was significantly offset by an increase in implied orders in the Materials Solutions segment. The Materials Solutions segment has increased implied orders for four consecutive quarters and posted increases on both a sequential and quarter-over-quarter basis.

我們的隱含訂單和訂單出貨趨勢顯示在投影片 12 上。在過去五個季度中，有四個季度的合併隱含訂單量保持在 3 億美元以上。第二季度，基礎設施解決方案部門林業和移動鋪路訂單的下降被材料解決方案部門隱含訂單的增加顯著抵消。材料解決方案部門已連續四個季度增加隱含訂單，並且環比和環比均有所增長。

The consolidated book-to-bill ratio declined slightly from 95% to 93% as an increase in Infrastructure Solutions was offset by a drop from a strong 113% to 99% in Materials Solutions.

合併訂單出貨比從 95% 略微下降至 93%，因為基礎設施解決方案的成長被材料解決方案從 113% 的強勁下降至 99% 所抵消。

Though some degree of uncertainty remains in the broader economic environment, we are focused on maintaining discipline and taking the necessary actions to achieve our goals.

儘管在更廣泛的經濟環境中仍然存在一定程度的不確定性，但我們專注於保持紀律並採取必要行動來實現我們的目標。

With that, I will now turn the call over to Brian to provide additional comments on our second quarter financial results.

現在，我將把電話轉給 Brian，請他對我們的第二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 14. Net sales decreased 4.4% as healthy demand for asphalt and concrete plants was offset by declines in the demand for forestry and mobile paving equipment in the Infrastructure Solutions segment.

謝謝你，Jaco，早安。我們的合併財務結果在第 14 張投影片上突出顯示。淨銷售額下降 4.4%，因為基礎設施解決方案部門對林業和移動鋪路設備的需求下降抵消了對瀝青和混凝土廠的強勁需求。

Materials Solutions sales increased slightly to $125.7 million, and our consolidated aftermarket parts sales grew 2.9%. We were pleased to generate an adjusted EBITDA of $33.7 million in the second quarter, which compared to $27.6 million in the second quarter of last year. Adjusted EBITDA margin reached 10.2%, a 220 basis point increase over the prior year. Adjusted EBITDA and adjusted EBITDA margins benefited from pricing and mix, as evidenced by a 330 basis point increase in gross margin.

材料解決方案銷售額小幅成長至 1.257 億美元，我們的綜合售後零件銷售額成長了 2.9%。我們很高興看到第二季的調整後 EBITDA 達到 3,370 萬美元，而去年第二季為 2,760 萬美元。調整後的 EBITDA 利潤率達到 10.2%，比前一年增加 220 個基點。調整後的 EBITDA 和調整後的 EBITDA 利潤率受益於定價和產品組合，毛利率增加了 330 個基點。

Adjusted earnings per share of $0.88 in the second quarter compared favorably to $0.61 of earnings per share posted in Q2 2024 for an increase of 44.3%.

第二季調整後每股收益為 0.88 美元，與 2024 年第二季每股收益 0.61 美元相比成長 44.3%。

Moving on to the Infrastructure Solutions segment shown on slide 15. As just discussed, equipment sales in the quarter were lower as healthy demand for asphalt and concrete plants was offset by weak demand for forestry and mobile paving equipment. Aftermarket parts increased $4.8 million or 9.4% compared to the second quarter of 2024.

繼續第 15 張投影片所示的基礎設施解決方案部分。正如剛才所討論的，本季設備銷售額較低，因為瀝青和混凝土廠的強勁需求被林業和移動鋪路設備的疲軟需求所抵消。與 2024 年第二季相比，售後零件增加了 480 萬美元，即 9.4%。

Segment operating adjusted EBITDA dollars and adjusted EBITDA margins were positively affected by pricing, operational excellence initiatives and expense management. Adjusted EBITDA of $32.2 million was an 18.4% increase over $27.2 million in the prior year. Adjusted EBITDA margin was 15.7% compared to 12.3% in the second quarter of 2024, for an increase of 340 basis points.

定價、卓越營運措施和費用管理對分部營運調整後 EBITDA 金額和調整後 EBITDA 利潤率產生了積極影響。調整後的 EBITDA 為 3,220 萬美元，比上年的 2,720 萬美元成長 18.4%。調整後的 EBITDA 利潤率為 15.7%，而 2024 年第二季為 12.3%，增加了 340 個基點。

The Material Solutions segment is shown on Slide 16. Equipment sales for the quarter increased $4.1 million or 4.9%, while aftermarket parts sales declined slightly by $2.2 million or 5.9%. Similar to the Infrastructure Solutions segment, Materials Solutions margins were positively affected by pricing, operational excellence initiatives and expense management. This was evidenced by a 39.2% increase in adjusted EBITDA to $14.2 million from $10.2 million in the prior year and a 310 basis point increase in adjusted EBITDA margin to 11.3% from 8.2% for the same quarter in 2024.

材料解決方案部分顯示在投影片 16 上。本季設備銷售額成長 410 萬美元，增幅 4.9%，而售後零件銷售額則小幅下降 220 萬美元，增幅 5.9%。與基礎設施解決方案部門類似，材料解決方案部門的利潤率受到定價、卓越營運計劃和費用管理的正面影響。證據是，調整後的 EBITDA 從上年的 1,020 萬美元成長 39.2% 至 1,420 萬美元，調整後的 EBITDA 利潤率從 2024 年同期的 8.2% 成長 310 個基點至 11.3%。

Moving on to the second quarter adjusted EBITDA bridge on Slide 17. We were pleased to report adjusted EBITDA of $33.7 million, an increase of $6.1 million or 22.1% over the second quarter of 2024. Favorable pricing, lower steel and freight costs and the proactive efforts by our OneASTEC procurement team helped manage inflation, the impact of tariffs and modest manufacturing and other period costs.

繼續查看幻燈片 17 上的第二季調整後 EBITDA 橋。我們很高興地報告調整後的 EBITDA 為 3,370 萬美元，比 2024 年第二季增加 610 萬美元，增幅為 22.1%。優惠的價格、較低的鋼材和運費成本以及我們的 OneASTEC 採購團隊的積極努力有助於控制通貨膨脹、關稅的影響以及適度的製造和其他期間成本。

On Slide 18, you can see we maintain a strong balance sheet with ample liquidity. We ended the quarter with a cash and cash equivalents of $87.8 million, available credit of $159.8 million for total available liquidity of $247.6 million. Our free cash flow in the quarter of $9 million was 53.9% of net income. These results were driven by profitable sales and sound working capital management.

在投影片 18 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 8,780 萬美元，可用信貸為 1.598 億美元，總可用流動資金為 2.476 億美元。本季我們的自由現金流為 900 萬美元，佔淨收入的 53.9%。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。

In connection with the closing of the TerraSource acquisition, we entered into a new credit agreement, providing for: one, a revolving credit facility, a term loan facility, a swing line facility and a letter of credit facility in an initial aggregate amount of up to $600 million; and two, an incremental facilities limit in an aggregate amount not to exceed $150 million.

在完成 TerraSource 收購的同時，我們達成了一項新的信貸協議，其中規定：一、循環信貸額度、定期貸款額度、週轉額度和信用證額度，初始總額最高為 6 億美元；二、增量信貸額度限額，總額不超過 1.5 億美元。

Our team has done an excellent job of managing liquidity as we have reshaped the balance sheet. We expect net leverage below 2 times at the end of 2025 on a pro forma basis and expect net leverage to decline further in 2026, providing availability for further inorganic growth.

在我們重塑資產負債表的過程中，我們的團隊在管理流動性方面做得非常出色。我們預計，到 2025 年底，淨槓桿率將低於 2 倍（按備考基礎計算），並且預計到 2026 年淨槓桿率將進一步下降，從而為進一步的無機增長提供可能性。

I will now turn the call back to Jaco.

我現在將電話轉回給 Jaco。

Thank you, Brian. On slide 19, we summarize our Astec investment highlights. We are proud that Astec continues to be a trusted source of globally recognized brands and high-quality solutions for our customers.

謝謝你，布萊恩。在第 19 張投影片上，我們總結了 Astec 的投資亮點。我們很自豪 Astec 繼續成為客戶值得信賴的全球知名品牌和高品質解決方案的來源。

We consistently maintain an ongoing high level of customer interaction. At the recent National Asphalt Pavement Association midyear meeting in July, we were pleased to hear that though customers continue to remain somewhat cautious, they displayed favorable sentiment and are encouraged by the level of activity in construction markets. We are also pleased that our operational excellence efforts continue to gain traction, and we have many of the benefits yet to come.

我們始終保持持續高水準的客戶互動。在最近於 7 月舉行的全國瀝青路面協會年中會議上，我們很高興地聽到，儘管客戶仍然保持謹慎態度，但他們表現出樂觀的情緒，並受到建築市場活動水平的鼓舞。我們也很高興看到我們的卓越營運努力繼續獲得進展，並且我們還將獲得許多好處。

Manufacturing and procurement efforts are driving efficiencies, and we are seeing positive adjusted EBITDA trends. Our business has several exciting growth drivers, including growing our recurring aftermarket parts business. This is an ongoing major initiative for the Astec team, our robust new product pipeline, the stability provided by multiyear federal and state funding for interstates and highways in our major markets, the United States, numerous expansion opportunities in current and future international markets, inorganic growth opportunities that are strategically aligned to meet our financial criteria. And as Brian mentioned, we have a strong balance sheet that provides ample liquidity to fund growth and manage leverage.

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。我們的業務有幾個令人興奮的成長動力，包括不斷成長的售後零件業務。這是 Astec 團隊正在進行的一項重大舉措，我們擁有強大的新產品線，我們的主要市場美國的州際公路和高速公路由聯邦政府和州政府多年資助，這為當前和未來國際市場的眾多擴張機會以及符合我們財務標準的戰略性無機增長機會提供了保障。正如布萊恩所提到的，我們擁有強大的資產負債表，可以提供充足的流動性來資助成長和管理槓桿。

With that, operator, we are now ready to take questions.

接線員，現在我們可以回答問題了。

(Operator Instructions)

（操作員指示）

Steve Ferazani from Sidoti.

來自 Sidoti 的 Steve Ferazani。

Morning Jaco. Morning Brian. Appreciate all the detail on the call. I did want to dig a little bit deeper on the year-over-year margin improvement. Just trying to get a better sense of how much that is pricing versus mix? Because, I mean, when I look at the year-over-year incremental margins in both segments, they're pretty impressive.

早上好，雅科。早安，布萊恩。感謝通話中的所有細節。我確實想更深入地了解一下同比利潤率的成長情況。只是想更了解定價與混合的比例是多少？因為，我的意思是，當我查看這兩個部門的同比增量利潤率時，它們相當令人印象深刻。

Yeah, absolutely. We are very proud of the work our teams have done on margin expansion here. I will say our OneASTEC procurement team's efforts are one of the main contributors here. As you could see in the EBITDA bridge, the team have been very successful to navigate inflationary pressures, tariff pressures and have helped us to further improve our margins.

是的，絕對是如此。我們為我們的團隊在擴大利潤方面所做的工作感到非常自豪。我想說，我們的 OneASTEC 採購團隊的努力是主要貢獻者之一。正如您在 EBITDA 橋中所看到的，該團隊非常成功地應對了通膨壓力和關稅壓力，並幫助我們進一步提高了利潤率。

And then the second contributor here, our operational excellence efforts are flowing through now. We've seen this now for a couple of quarters. And especially on the Materials Solutions side, as our factories are filling up, we expect that margin profile to further improve in the future. So, just a great work done by our procurement teams, our OpEx teams. And, of course, we have been very proactive looking at our market pricing to mitigate any potential tariff effects.

然後是這裡的第二個貢獻者，我們的卓越營運努力現在正在順利進行中。我們已經看到這種情況好幾個季度了。特別是在材料解決方案方面，隨著我們工廠的產能不斷增加，我們預計未來的利潤率將進一步提高。所以，我們的採購團隊和營運支出團隊做了出色的工作。當然，我們一直非常積極地關注我們的市場定價，以減輕任何潛在的關稅影響。

And did you see -- did you provide what was the EPS drag from tariffs in the quarter? Do you have a number?

您是否看到了—您是否提供了本季關稅對每股盈餘造成的拖累？你有電話號碼嗎？

Yeah. I think we've said in the call that we were pretty successful mitigating any effect during the quarter. So, we did not provide a number, Steve, because we feel like that we did a pretty good job eliminating most of the effect of tariffs.

是的。我想我們在電話會議中已經說過，我們在本季相當成功地減輕了任何影響。所以，史蒂夫，我們沒有提供具體數字，因為我們覺得我們在消除大部分關稅影響方面做得相當不錯。

Okay. Perfect. And then can you just talk a little bit about the market differences between what you're seeing in asphalt and concrete plants versus mobile paving equipment, why they're kind of going in different directions right now?

好的。完美的。然後，您能否稍微談談您所看到的瀝青和混凝土工廠與移動式鋪路設備之間的市場差異，為什麼它們現在的發展方向不同？

Yeah. So I think our mobile paving equipment is now in the same situation as what the MS business was for quite a while, where we see inventory levels in our dealers being full, interest rates hitting that customer environment. As a reminder, our mobile paving equipment goes through a dealer model where the asphalt plant business is direct. So, we're seeing a little bit of what's happening here now what the MS business have seen for the last 2 years.

是的。因此，我認為我們的行動鋪路設備現在的狀況與 MS 業務相當長一段時間以來的狀況相同，我們看到經銷商的庫存水準已滿，利率衝擊著客戶環境。提醒一下，我們的行動鋪路設備採用經銷商模式，其中瀝青廠業務是直接的。因此，我們現在看到的一些情況與 MS 業務在過去兩年中看到的情況有些相似。

Okay. I mean, I guess the concern would be that we're seeing early signs of caution as the current infrastructure spending bill winds down, even though there's been a lag in the release of dollars. And maybe you're seeing it first in mobile paving equipment and then you'll see it later on asphalt and concrete plants. Would you say that's just not true?

好的。我的意思是，我猜令人擔憂的是，隨著當前基礎設施支出法案的逐步減少，我們看到了謹慎的早期跡象，儘管資金的釋放有所滯後。也許您首先會在移動鋪路設備上看到它，然後再在瀝青和混凝土廠看到它。你會說這不是事實嗎？

Yes. I think when we look at backlog and the different product lines, I think there's a couple of things to consider here. Firstly, I think our team has done a great job delivering a great quarter despite all the challenges that we've listed on Slide 8. Our customers have work, and they are still cautiously optimistic here about funding, about backlog for next year. And I think that's evident in our implied orders being over $300 million here, four out of the last five quarters. So, I also think that our teams have done a really good job reducing our lead times, Steve. And just during the quarter, for instance, we reduced our parts backlog by 16%.

是的。我認為，當我們查看積壓訂單和不同的產品線時，我認為這裡有幾件事需要考慮。首先，我認為我們的團隊儘管面臨幻燈片 8 中列出的所有挑戰，但仍然出色地完成了本季的工作。我們的客戶有工作，他們對明年的資金和積壓訂單仍然持謹慎樂觀的態度。我認為這從我們隱含訂單超過 3 億美元可以看出，在過去五個季度中，有四個季度都是如此。所以，史蒂夫，我還認為我們的團隊在縮短交貨時間方面做得非常好。例如，僅在本季度，我們的零件積壓量就減少了 16%。

And as you know, that's something that I've been very passionate about driving down. So, we feel that we have Q3 covered in backlog from an equipment point of view. We see very stable parts order flow through. That provides us great visibility for Q3. Q4 still have availability in capacity. Our shorter lead times provide us the opportunity to process orders and still deliver that during this year. So, the asphalt and concrete plant side have definitely seen a different backlog level than what we've had historically. But we see this a little bit more normal. And I always ask my team what the definition of normal is.

正如你所知，這是我一直熱衷於推動的事情。因此，我們認為從設備的角度來看，第三季的積壓訂單已經完成。我們看到零件訂單流非常穩定。這為我們提供了對第三季的良好了解。Q4 仍有可用產能。我們較短的交貨時間使我們有機會處理訂單並在今年內交付。因此，瀝青和混凝土廠的積壓水準肯定與歷史上有所不同。但我們認為這更正常一些。我總是問我的團隊正常的定義是什麼。

But if you go back historically, Q3 is typically a quarter where we will start to see asphalt plant orders right into the beginning of Q4 as companies release their budgets for next year. And then with especially this year with our short lead times, we feel that we can capitalize on any orders coming in between now and the next 2, 3 weeks that we can still deliver this year.

但如果回顧歷史，通常我們會在第三季開始看到瀝青廠訂單，直到第四季初，因為公司會發布明年的預算。尤其是今年我們的交貨時間很短，我們覺得我們可以利用現在和未來 2、3 週內收到的任何訂單，我們今年仍然可以交付。

Got it. Great. And if I get one more in, just about the impressive cash flow through the first half of the year. Typically, you see a working capital build that reverses in the second half and the second half typically is the stronger cash flow half. That being said, you're at over 100% conversion of adjusted net income. Brian, if I could ask, one, how you're doing it? It looks like it's really on the receivables line which you've held. But if you could talk about sort of how you're thinking the seasonality of working capital -- of free cash flow plays out this year?

知道了。偉大的。如果我再多說一點的話，那就是今年上半年令人印象深刻的現金流。通常，你會看到營運資本的累積在下半年出現逆轉，而下半年通常是現金流較強的一半。話雖如此，您的調整後淨收入轉換率已超過 100%。布萊恩，如果我可以問的話，第一，你是怎麼做到的？看起來它確實處於您所持有的應收帳款線上。但是，如果您可以談談您認為今年營運資本和自由現金流的季節性如何表現？

Yeah. Thanks, Steve. Yes, the working capital management has been very good this year, continues to be an area of focus for us. I think, actually, we still have some opportunity within inventory levels. As we get towards the end of the year, we typically start to see some more downward movement there.

是的。謝謝，史蒂夫。是的，今年的營運資金管理非常好，這仍然是我們關注的重點。我認為，實際上，我們在庫存水準方面仍然有一些機會。隨著年底的臨近，我們通常會開始看到一些下滑趨勢。

So, I'm pretty optimistic that we can continue on this trend. Free cash flow has obviously been an area of focus for us. And as I said, I think the team is doing a great job of managing that. So, it's just a constant area of focus.

因此，我非常樂觀地認為我們可以繼續保持這一趨勢。自由現金流顯然一直是我們關注的重點領域。正如我所說，我認為團隊在管理這一點上做得很好。所以，這只是一個持續關注的領域。

And maybe, Steve, if I can just add -- yes, maybe just add something there. I think if you look at our receivables and our payables, it's probably in the best shape it's been in a long time in our organization. But we're really attacking cash and cash flow from all aspects. And we want to make sure we have the ability to fund further inorganic growth. And the only way we can do that is if we continuously drive our cash flow.

也許，史蒂夫，如果我可以補充一點——是的，也許可以補充一些內容。我認為，如果你看一下我們的應收帳款和應付帳款，你會發現這可能是我們組織長期以來的最佳狀況。但我們確實正在從各個方面攻擊現金和現金流。我們希望確保我們有能力為進一步的無機成長提供資金。我們能做到這一點的唯一方法就是持續推動現金流。

Fantastic thanks Jaco van thanks Brian.

太棒了，謝謝 Jaco van，謝謝 Brian。

There are no further questions. I'd like to turn the call back over to Steve Anderson for closing remarks.

沒有其他問題了。我想將電話轉回給史蒂夫安德森，請他做最後發言。

All right. Thank you, Jordan. We do appreciate everyone's participation in our conference call this morning, and thank you for your interest in Astec. As today's news release states, this conference call has been recorded. A replay of the conference call will be available through August 20, 2025, and an archived 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 five business days.

好的。謝謝你，喬丹。我們非常感謝大家今天早上參加我們的電話會議，也感謝大家對 Astec 的關注。正如今天的新聞稿所述，本次電話會議已被錄音。電話會議的重播將保留至 2025 年 8 月 20 日，存檔的網路廣播將保留 90 天。該記錄將在未來五個工作天內發佈在 Astec Industries 網站的「投資者關係」部分。

This concludes our call, but I'm happy to connect with follow-up questions later. So, thank you, all, and have a good day.

我們的通話到此結束，但我很樂意稍後再回答後續問題。謝謝大家，祝大家有個愉快的一天。

This concludes the meeting. You may now disconnect.

會議到此結束。您現在可以斷開連線。