Q2 2024 Astec Industries Inc Earnings Call Transcript
Key Points
- Infrastructure Solutions segment saw an 11% year-over-year increase in net sales due to strong performance from equipment sales and pricing actions.
- Implied orders for both Infrastructure Solutions and Material Solutions increased sequentially, indicating strong future demand.
- Astec Industries Inc (ASTE) reduced inventory by 5.9%, or $28.7 million, from the first quarter of 2024, showcasing effective inventory management.
- International sales increased by 15.4%, driven by increased activity in Canada, Mexico, Africa, and Europe.
- The company has a strong backlog of $531 million, providing stability and confidence in meeting future demand.
- Net sales decreased slightly by 1.3% to $345.5 million compared to the record second quarter in 2023.
- Material Solutions segment experienced a 17.7% year-over-year decrease in net sales due to longer product conversions and finance capacity constraints.
- Adjusted EBITDA and adjusted EBITDA margin declined by 14.3% and 120 basis points, respectively, due to lower manufacturing efficiencies and higher SG&A costs.
- Adjusted EPS decreased by 29.9% to $0.61 compared to the prior year.
- The company faced manufacturing inefficiencies and higher SG&A costs, impacting overall profitability.
Hello, and welcome to Astec Industries Second Quarter Earnings Call. As a reminder, this conference call is being recorded.
Itâs my pleasure to introduce your host, Steve Anderson, Senior Vice President of Administration, and Investor Relations. Mr. Anderson, you may begin.
Thank you, and welcome to the Astec second quarter 2024 earnings conference call. Joining me on todayâs call are President and Chief Executive Officer, Jaco van der Merwe; and our Interim Chief Financial Officer, Heinrich Jonker. In just a moment, Iâll turn the call over to Jaco to provide comments, and then Heinrich will summarize our financial results.
Before we begin, Iâll 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
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