Construction equipment company Astec (NASDAQ:ASTE) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 6.5% year on year to $329.4 million. Its non-GAAP profit of $0.88 per share was 91.3% above analysts’ consensus estimates. Is now the time to buy Astec?

Find out in our full research report. Astec (ASTE) Q1 CY2025 Highlights: Revenue: $329.4 million vs analyst estimates of $320.4 million (6.5% year-on-year growth, 2.8% beat) Adjusted EPS: $0.88 vs analyst estimates of $0.46 (91.3% beat) Adjusted EBITDA: $35.2 million vs analyst estimates of $22 million (10.7% margin, 60% beat) Operating Margin: 6.2%, up from 3.9% in the same quarter last year Free Cash Flow was $16.6 million, up from -$52.8 million in the same quarter last year Backlog: $402.6 million at quarter end, down 28.1% year on year Market Capitalization: $805.3 million "We are pleased to report another strong quarter in line with our plans to deliver consistency, profitability and growth," said Jaco van der Merwe, Chief Executive Officer. Company Overview Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Sales Growth Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Astec grew its sales at a sluggish 3.2% compounded annual growth rate.

This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis. Astec Quarterly Revenue Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Astec’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

We also note many other Construction Machinery businesses have faced declining sales because of cyclical headwinds. While Astec’s growth wasn’t the best, it did do better than its peers. Astec Year-On-Year Revenue Growth Astec also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered.

Astec’s backlog reached $402.6 million in the latest quarter and averaged 28.1% year-on-year declines over the last two years. Because this number is lower than its revenue growth, we can see the company hasn’t secured enough new orders to maintain its growth rate in the future. Astec Backlog This quarter, Astec reported year-on-year revenue growth of 6.5%, and its $329.4 million of revenue exceeded Wall Street’s estimates by 2.8%.