Monday, Astec Industries, Inc. (ASTE), an equipment manufacturer for road building, reported 63.5% decline in second-quarter profit, as revenues were down 32% from the prior year. The Chattanooga, Tennessee-based company's net income attributable to controlling interest plunged to $7.75 million or $0.34 per share from $21.07 million or $0.93 per share in the previous year. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items. Net sales for the quarter plunged to $188.84 million from $277.7 million in the same period last year. Nine analysts had a consensus revenue estimate of $216.16 million for the quarter. Domestic sales declined to $129.2 million from $184.7 million in the previous year. International sales generated revenues of $59.6 million, down from $93 million in the same period last year. Segment-wise, revenues from Asphalt Group declined to $69.58 million from $72.33 million in the prior year. Aggregate and Mining Group revenues were $55.45 million, compared to $92.39 million in the previous year. Revenues from Mobile Asphalt Paving Group were $36.86 million, down from $55.05 million a year ago.
Underground Group revenues declined to $17.14 million from $36.21 million in the same period last year. The underground business, which primarily serves the energy and residential business, turned very weak during the quarter, the company said. Revenues from All Others were $9.81 million, down from $21.71 million in the prior year. Backlog as on June 30 was $133.6 million, 50.1% lower than $267.9 million in the preceding year. For the six-month period, net income attributable to controlling interest declined to $15.18 million or $0.67 per share from $38.59 million or $1.71 per share in the earlier year. Net sales decreased to $394.15 million from $540.77 million a year ago.
Don Brock, chairman and chief executive officer said, "We anticipate that the impact of the stimulus package will continue to be beneficial over the next 18 months. With the current backlog and incoming orders, we believe revenue in the third quarter will be generally consistent with second quarter revenues."
ASTE closed Friday's regular trading at $25.73 on the Nasdaq.
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