ASTEC INDUSTRIES Business Summary

Astec Industries Inc. (ASTE) operates as a leading global manufacturer of specialized equipment for the "Rock to Road" infrastructure lifecycle, generating revenue through the sale of heavy machinery, high-margin aftermarket parts, and integrated digital control systems. The company's operations are divided into two primary reportable segments: Infrastructure Solutions, which designs and manufactures asphalt and concrete plants, mobile paving equipment, and thermal storage systems; and Materials Solutions, which focuses on aggregate processing, crushing, and screening equipment. In 2025, the company achieved record net sales of $1.41 billion, with aftermarket parts accounting for approximately 31% of total revenue, providing a resilient buffer against cyclical equipment demand. Astec competes directly with industry giants such as Caterpillar Inc., Terex Corporation, and Gencor Industries, positioning itself as a specialized, high-touch alternative that offers a comprehensive, end-to-end solution for road-building contractors and aggregate producers. Founded in 1972 by Dr. J. Don Brock alongside Norm Smith, Al Guth, Gail Mize, and Mike Uchytil, Astec is currently led by President and CEO Jaco van der Merwe, who assumed the role in January 2023 following an 18-year tenure at Epiroc (Atlas Copco). The executive team was further strengthened in October 2024 with the appointment of Brian J. Harris as CFO, bringing extensive industry experience from Summit Materials and Bausch + Lomb. Other key leaders include Ben Snyman (Group President, Infrastructure), Michael Norris (Group President, Materials Solutions), and Terrell Gilbert (General Counsel). The company is overseen by a robust Board of Directors chaired by William D. Gehl and includes notable independent directors such as Patrick S. Shannon and Nalin Jain. Astec maintains a highly concentrated institutional ownership structure of approximately 99%, with major positions held by Dimensional Fund Advisors and Victory Capital Management, reflecting strong market confidence in its 2026 strategic growth initiatives and recent acquisitions of TerraSource and CWMF.