Astec Industries, Inc. announced strong financial results for the first quarter ended March 31, 2025, with increases in net sales, EBITDA, net income, and earnings per share. The company reported net income of $14.3 million and a non-GAAP profit of $0.88 per share, exceeding analyst estimates by 91.3%. Revenue for the quarter was $329.4 million, representing a 6.5% increase year-over-year.
Alongside its earnings report, Astec announced the signing of a definitive agreement to acquire TerraSource Holdings, LLC for $245.0 million in cash. TerraSource is a manufacturer and distributor of materials processing equipment and related aftermarket parts, with annual revenues exceeding $150 million.
The acquisition is expected to be accretive from day one and offers significant growth and value creation opportunities, including access to new markets, an improved aftermarket parts mix, and enhanced margins. Astec anticipates an adjusted EBITDA multiple of 5.9x, adjusted for approximately $15 million in expected tax benefits and $10 million in annual run-rate synergies by the end of year two. The transaction is projected to close early in the third quarter of 2025, pending regulatory approvals.
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