What changed in this filing

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Item 1. Business

2025-02-26 compared with 2024-02-28 · 63 added, 84 removed, 270 unchanged (35% of the section changed)

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sand and gravel producers;

construction, demolition, recycle and crushing contractors;

construction, demolition, recycling and crushing contractors;

forestry and environmental recycling contractors;

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Corporate Strategic Objectives

In late 2023, management refreshed our OneASTEC Vision:

Our OneASTEC Vision is:

To build industry changing solutions that create life-changing opportunities .

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• Identifying opportunities to strengthen our global presence in attractive new markets, supplement our current product offerings or accelerate technologies or other enhancements that leverage our existing product portfolio to better meet our customers' needs either through strategic acquisition, partnerships or organic growth.

• Enhancing quality, parts availability and customer connectivity through Astec Digital.

• Enhancing quality, parts availability and customer connectivity.

Industry Changing Innovation

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• Developing the Astec Digital Ecosystem to enable customers to leverage our entire product portfolio and associated data.

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Strategic Transformation Program

We are undergoing a multi-year phased implementation of a standardized enterprise resource planning ("ERP") system across our global organization, which will replace much of our existing disparate core financial systems.

The upgraded ERP will support our focus on our employees, our customers and innovation initially through the conversion of our internal operations, manufacturing, finance, human capital resources management and customer relationship systems to cloud-based platforms.

This new ERP system will also provide for standardized processes and integrated technology solutions that enable us to better leverage automation and process efficiency, transforming how we connect people, products and processes to operate as OneASTEC.

We materially completed the ERP global design in 2022, launched the human capital resources module in our locations in the United States in January 2023 and converted the operations of one manufacturing site along with Corporate during the second quarter of 2023 to set the foundation before accelerating the implementation at additional sites in 2024 and 2025.

Additionally, in the first quarter of 2022, a lean manufacturing initiative at one of our largest sites was initiated and is expected to drive improvement in gross margin at that site.

We substantially completed the design efforts for this project during 2022.

We also began executing investments to acquire and install manufacturing equipment intended to drive increased efficiencies in our production processes.

We continued these capital investments during 2023, which were largely completed as of December 31, 2023.

Gross margin improvements are expected to be realized in conjunction with the project completion in early to mid-2024.

This improvement is intended to serve as the optimal blueprint for our other manufacturing facilities.

Our strategic transformation program includes the ongoing multi-year phased implementation of a standardized enterprise resource planning ("ERP") system, which is replacing much of our existing disparate core financial systems.

During 2024, we modified the pace of deployment of future site conversions to improve efficiencies and reduce business disruptions at our manufacturing sites, which will reduce the scope of the program to exclude sites outside North America.

To date, we have launched the human capital resources module in our U.S.

locations and converted the operations of three manufacturing sites along with Corporate, two of which occurred during the second quarter of 2024.

Business Segments

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Our two reportable business segments, Infrastructure Solutions and Materials Solutions, comprise sites based upon the nature of the products produced or services provided, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations.

The Corporate and Other category consists primarily of our parent company, Astec Insurance Company ("Astec Insurance" or the "captive"), our captive insurance company, and Astec Digital, our controls and automation business including the MINDS Automation Group, Inc.

business acquired in April 2022, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments.

The Corporate and Other category consists primarily of our parent company and Astec Insurance Company ("Astec Insurance" or the "captive"), our captive insurance company, which do not meet the requirements as an operating segment or inclusion in one of the other reporting segments.

We evaluate performance and allocate resources to our operating segments based on Segment Operating Adjusted EBITDA.

Segment Operating Adjusted EBITDA, a non-GAAP financial measure, is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered in the evaluation of ongoing operating performance.

Segment Operating Adjusted EBITDA is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered in the evaluation of ongoing operating performance.

The Company's presentation of Segment Operating Adjusted EBITDA may not be comparable to similar measures used by other companies and is not necessarily indicative of the results of operations that would have occurred had each reportable segment been an independent, stand-alone entity during the periods presented.

Infrastructure Solutions Segment

The Infrastructure Solutions segment designs, engineers, manufactures and markets a complete line of asphalt and concrete plants, components and ancillary equipment as well as asphalt road construction equipment, industrial thermal systems, land clearing, recycling and other heavy equipment.

The Infrastructure Solutions segment was operated from the following sites in 2023 :

Site Location Site Location

Australia Brisbane, Australia EUG-Airport Rd Oregon, United States

Blair Nebraska, United States India Ahmedabad, India

Burlington Wisconsin, United States LatAm Santiago, Chile

CHA-Jerome Ave Tennessee, United States Parsons Kansas, United States

CHA-Manufacturers Rd Tennessee, United States St-Bruno Quebec, Canada

CHA-Wilson Rd Tennessee, United States

The sites based in North America within the Infrastructure Solutions segment are primarily manufacturing operations while those located outside of North America generally market, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of our manufacturing sites.

The Infrastructure Solutions segment designs, engineers, manufactures and markets a complete line of asphalt plants, concrete plants and their related components and ancillary equipment, including industrial automation controls and telematics platforms, as well as asphalt road construction equipment, industrial thermal systems, land clearing, recycling and other heavy equipment.

Infrastructure Solutions manufacturing operations are primarily located in the United States and Canada.

Our India site services and installs equipment and provides parts in the region in which it operates for many of the products produced by all of the Company's manufacturing sites.

Astec Digital, which is included in the Infrastructure Solutions segment, is responsible for the development and delivery of the Astec Digital Ecosystem which enables customers to leverage our product portfolio and associated data to provide insight into their operations.

Our focus is to connect all Astec products to the Astec Digital Ecosystem and leverage this data to create a competitive advantage for our customers that can allow them to be more efficient, productive and sustainable.

Astec Digital has locations in Belgium, Canada, France, the United Kingdom and the United States.

Beginning January 1, 2024, Astec Digital, which was previously included in the Corporate and Other category, is reported in the Infrastructure Solutions segment while the Australia and Chile ("LatAm") sites, which were previously included in the Infrastructure Solutions segment, are reported in the Materials Solutions segment.

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Products and Services

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Liquid terminals Storage equipment and related parts Engineering and environmental permitting services

Polymer plants Concrete mixers

Polymer plants Concrete mixers Cold central plant recycle systems

Industrial automation controls Telematics platforms

As the backbone of road infrastructure development, asphalt and concrete mixing plants play a crucial role in the construction industry.

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Horizontal grinders are used to create mulch from green waste for water retention, erosion control and compost for soil amendments.

Our new 5710E Horizontal Grinder allows for efficiency gains and higher productivity while also delivering reduced fuel consumption per unit of material produced and safety enhancements during maintenance activities.

The 5710E represents a new generation of organic waste reducing machines, diverting low value material away from landfills and turning it into high value saleable product for our customers.

Our horizontal grinders allow the diversion of low value material away from landfills and conversion to high value saleable product for our customers.

Drum chippers create biomass wood chips from un-merchantable wood for energy production, erosion control, playground chips or landscaping.

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Our F-Series pavers also feature a significant noise reduction over previous models, efficiency improvements in the cooling and hydraulic systems and an articulating track frame that, in addition to operator comfort, will also further improve the high quality road smoothness reputation of our pavers.

The mobile, self-propelled material transfer vehicle, known as the "Shuttle Buggy," allows

continuous paving, reducing time and haul trucks required while keeping asphalt mix temperatures consistent to create a smooth, durable finished product.

The mobile, self-propelled material transfer vehicle, known as the "Shuttle Buggy," allows for continuous paving, reducing time and haul trucks required while keeping asphalt mix temperatures consistent to create a smooth, durable finished product.

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While our large asphalt plants excel in the North American market, we have designed single-load and single-chassis portable plants tailored for international markets.

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Our product lines extend beyond asphalt production, encompassing full milling machines, soil stabilizers, patented screeds and concrete production equipment.

The new RX-405 Cold Planer is ideal for contractors who need a smaller cold planer with the high productivity that our larger milling machines are known for.

This new machine allows for a range of cut widths from two to five feet thanks to a quick-change drum, and tooth changes are made faster with an electric drum indexer.

The all new operator station also makes controlling the machine more ergonomic and intuitive.

Our concrete plants, known for quick setup, tear-down and reliability, cater to both portable and stationary needs, providing custom-engineered design flexibility.

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• Morbark (part of Alamo Group)

The backlog for the Infrastructure Solutions segment at December 31, 2023 and 2022 was approximately $404.6 million and $567.1 million, respectively.

The backlog for the Infrastructure Solutions segment as of December 31, 2024 and 2023 was approximately $305.5 million and $364.7 million, respectively.

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Materials Solutions Segment

The Materials Solutions segment designs and manufactures heavy rock processing equipment, in addition to servicing and supplying parts for the aggregate, mining, recycling, ports and bulk handling markets.

The Materials Solutions segment was operated from the following sites in 2023 :

Site Location Site Location

AME Johannesburg, South Africa Sterling Illinois, United States

Belo Horizonte Belo Horizonte, Brazil Thailand Bangkok, Thailand

EUG-Franklin Blvd Oregon, United States Thornbury Ontario, Canada

Johannesburg Johannesburg, South Africa Yankton South Dakota, United States

Omagh Omagh, United Kingdom

The sites within the Materials Solutions segment primarily focus on manufacturing operations with the AME and Thailand sites functioning to market, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of our manufacturing sites.

In addition to manufacturing core Materials Solutions products and asphalt plants, Belo Horizonte markets all our products to the Brazilian market.

At December 31, 2023, we had an ownership interest of approximately 93% in Belo Horizonte.

Materials Solutions manufacturing operations are primarily located in the United States, Brazil, Canada, South Africa and the United Kingdom.

Locations in Australia, Chile and Thailand function to market, service and install equipment and provide parts in the regions in which they operate for many of the products produced by all of our manufacturing sites.

In addition to manufacturing core Materials Solutions products and asphalt plants, Belo Horizonte, our Brazilian site, markets all our products to the Brazilian market.

As of December 31, 2024, we had an ownership interest of approximately 93% in Belo Horizonte.

During the first quarter of 2022, we executed an agreement with the noncontrolling interest holder to acquire their outstanding interest in full.

Completion of the transaction is subject to obtaining certain judicial approval in Brazil.

Completion of the transaction is subject to resolution of certain disputes between the parties.

Beginning January 1, 2024, the Australia and LatAm sites, which were previously included in the Infrastructure Solutions segment, are reported in the Materials Solutions segment.

Products and Services

The primary products produced and services provided by the Materials Solutions segment include:

Crushing equipment

Mobile plants Bulk material handling solutions

Crushing equipment Mobile plants Bulk material handling solutions

Vibrating equipment Screening equipment Electrical control centers

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We offer cone crushers with both roller-bearing and bushing style cones to fit any customer’s needs.

Our newly redesigned FT-Series Mobile Cone Crushers are equipped with updated controls systems, more reliable engines and increased capacity for use in secondary and tertiary crushing applications.

Our industry-leading hydraulic-relief jaw crushers offer enhanced safety and easy maintenance.

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Our comprehensive range of rock breaker boom systems are designed to break oversized material at large gyratories, grizzlies and primary/secondary crushing application sites.

These systems include boom-mounted configurations, automatic greasing packages, motor starter panels, joystick controls and easy plant integration.

These systems

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include boom-mounted configurations, automatic greasing packages, motor starter panels, joystick controls and easy plant integration.

Focus on Sustainability

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While the energy content produced by HVO fuels is less than conventional diesel, HVO fuels offer reduced net carbon emissions with no need for upfront equipment modifications.

The principal purchasers of aggregate processing equipment include distributors, highway and heavy equipment contractors, sand and gravel producers, demolition, recycle and crushing contractors, open mine operators, quarry operators, port and inland terminal authorities, power stations and both domestic and foreign governmental agencies.

The principal purchasers of aggregate processing equipment include distributors, highway and heavy equipment contractors, sand and gravel producers, demolition, recycling and crushing contractors, open mine operators, quarry operators, port and inland terminal authorities, power stations and both domestic and foreign governmental agencies.

Materials Solutions equipment and aftermarket sales and service programs are primarily marketed through an extensive network of dealers via dealer support sales employees, domestic and international independent distributors and our international distribution sites in each of our reportable segments.

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Superior Industries, Inc.

At December 31, 2023 and 2022, the backlog for the Materials Solutions segment was approximately $162.7 million and $341.2 million, respectively.

As of December 31, 2024 and 2023, the backlog for the Materials Solutions segment was approximately $114.1 million and $205.1 million, respectively.

Corporate and Other

The Corporate and Other category consists primarily of the parent company, the Company's captive insurance company, Astec Insurance, and the controls and automation business including the MINDS Automation Group, Inc.

business acquired in April 2022, collectively, Astec Digital, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments.

The parent company and the captive insurance company provide support and corporate oversight for other sites.

Astec Digital is responsible for the development and delivery of the Astec Digital Ecosystem that can enable customers to leverage our product portfolio and associated data into a competitive advantage.

Astec Digital products include our industrial automation controls and our telematics platforms.

Our focus is to connect all Astec products in the "Rock to Road" value chain and leverage this data and emerging technologies to provide our customers with insight into their operations that can allow them to be more efficient, productive and sustainable.

The Corporate and Other category consists primarily of the parent company and the captive, which do not meet the requirements as an operating segment or inclusion in one of the other reporting segments.

The parent company and the captive provide support and corporate oversight for our other sites.

Common to Both Reporting Segments

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When market dynamics warrant, we strategically and selectively order inventory items beyond a just in time basis.

Although raw materials for manufacturing are normally readily available, certain highly customized components may require longer than normal lead times such as engines, gearboxes, hydraulic and electronic systems.

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Government Regulations

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Due to the size and weight of certain equipment we manufacture, we and our customers may encounter various state regulations on maximum weights transportable on highways.

Some states have regulations governing the operation of asphalt mixing plants, and most states have regulations relating to the accuracy of weights and measures, which affect some of the control systems we manufacture.

Additionally, some states have regulations governing the operation of asphalt mixing plants, and most states have regulations relating to the accuracy of weights and measures, which affect some of the control systems we manufacture.

Compliance with these government regulations has not had a material effect on our capital expenditures, earnings or competitive position within the market to date.

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Our Innovation Services team has experts in advanced fields, such as simulation and digital twin creation, who support our development initiatives.

In addition, we are focused on innovation in our core products to support the "Rock to Road" value chain.

Seasonality and Backlog

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Backlog represents the dollar value of firm orders for equipment, parts and related installation which are expected to be recognized in net sales in the future.

Firm orders are signed commitments from customers to complete a purchase for machinery, equipment or parts that is expected to be noncancellable and are included in backlog when we are in receipt of an executed contract and any required deposits or security and have not yet been recognized into net sales.

Certain orders for which we have received binding letters of intent or contracts will not be included in backlog until all required contractual documents and deposits are received.

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While specific competitors are named within each business segment discussion above, imports do not generally constitute significant competition for us in the United States, except for milling machines and track-mounted crushers.

In international sales, however, we often compete with foreign manufacturers that may have a local presence in the market we are attempting to penetrate.

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international sales, however, we often compete with foreign manufacturers that may have a local presence in the market we are attempting to penetrate.

In addition, asphalt and concrete are generally considered competitive products as a surface choice for new roads and highways.

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In everyday work, our employees embody our core values of Safety, Devotion, Integrity, Respect and Innovation.

They do so by living our winning behaviors of Open and Honest Communications, Drive Creativity, Customer Driven Innovation and OneASTEC in all they do.

They do so by living our winning behaviors of Open and Honest Communications, Collaboration, Customer Driven Innovation and OneASTEC in all they do.

We strive to be an employer of choice, attracting and retaining top talent committed to creating a diverse, equitable and inclusive workplace where individuals are respected and valued for their diverse backgrounds and experiences.

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We engaged our employees through the Voice of OneASTEC survey in 2024, with 83% of our workforce responding and providing us with valuable feedback.

With the strong survey results provided in 2022, we continued our focus during 2023 on the areas of opportunity identified:

Astec's overall engagement score improved by 5% since the last survey completed in 2022.

The 2024 survey also showed improvements in our previously identified focus areas of opportunity:

communication, performance management and change management.

We also focused on re-establishing engagement at the site level after a lengthy period of pandemic-related social distancing requirements.

Employee Profile

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11-508-03, with an expiration date of December 11, 2025.

Unions also represent approximately seven percent of our employees at our manufacturing facilities outside the U.S.

Unions also represent approximately 12 percent of our employees at our facilities outside the U.S.

We consider our employee relations to be good.

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We achieve this by regularly conducting market reviews and adjusting as needed.

In addition to salaries, we provide regional programs, which can include annual bonuses, share-based compensation awards, a 401(k) plan with employee matching opportunities, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, family care resources, flexible work arrangements, employee assistance programs, tuition assistance and on-site services.

In 2023, we announced an increase to our 401(k) employer match beginning in 2024 to further support our employees into retirement.

We also implemented parental leave, providing paid time off for our new mothers and fathers.

In addition to salaries, we provide regional programs, which can include annual bonuses, share-based compensation awards, a 401(k) plan with employee matching opportunities, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family and parental leave, family care resources, flexible work arrangements, employee assistance programs, tuition assistance and on-site services.

Health and Safety

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We continually invest in state-of-the-art safety technologies and regularly review and update our safety procedures to align with industry best practices and regulatory standards.

Our Safety Committee, comprised of cross-functional experts, meets regularly to assess and address emerging safety challenges.

Our Safety Committees, comprised of cross-functional experts, meet regularly to assess and address emerging safety challenges.

This collaborative approach ensures that we are proactive in identifying potential hazards and implementing effective preventative measures.

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We believe that by prioritizing safety, we not only safeguard our workforce but also contribute to the long-term sustainability and success of our business.

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We believe in following a proactive approach to identify and mitigate safety issues.

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Abatement of safety issues in a timely manner is incentivized through our annual incentive program, which is partially focused on this leading safety metric.

We strive for continual, incremental improvements in our safety program to reduce recordable injuries and lost time each year.

During the year ended December 31, 2023, we had zero recordable injuries at five of our manufacturing sites.

In 2023, we experienced a 35% decrease in our OSHA Recordable Incident Rate for the year ended December 31, 2023, to 1.27 compared to 1.96 for the year ended December 31, 2022.

We continually assess safety risks in order to address issues before accidents happen.

Our consistent focus on accountability, standardization of safety policies and continuing education have been instrumental in reducing our overall injury rates.

Additionally, we have simplified our communication style and methodology by utilizing picture-based communications where possible to making messaging digestible within 30 seconds or less for numerous safety topics.

Talent Development, Diversity, Equity and Inclusion

We aspire to reduce recordable injuries and lost time each year and have added safety resources at all our sites and within our corporate structure to improve our overall safety program.

During the year ended December 31, 2024, we had zero recordable injuries at three of our manufacturing sites.

However, we experienced a 31% increase in our OSHA Recordable Incident Rate for the year ended December 31, 2024, to 1.66 compared to 1.27 for the year ended December 31, 2023.

Although we have seen an increase in the recordable incident rate, the incidents are concentrated in a limited number of sites.

We have taken action to address these localized safety issues by increasing the number of corporate safety audits, providing thorough training at the site, realigning site safety focus, providing standardized safety policies and procedures and focusing on proactive injury prevention.

We are focused on improving our safety training and communications by being proactive and transparent and persistently delivering our safety messaging to all Astec employees.

Talent Development

Talent and Diversity are key components of our OneASTEC business model.

We strive to create an environment that attracts top talent and where high performance is fostered and thrives, continuous learning is engrained, diverse experience is leveraged as a competitive advantage and careers are propelled forward.

We utilized our High Performance Framework process for the second year during 2023 to ensure company-wide alignment to achieve company goals and targets.

We utilize our High Performance Framework process to ensure company-wide alignment to achieve company goals and targets.

This model includes values, professional development and cascaded common performance goals.

We provide all employees a wide range of professional development experiences, both formal and informal, at various stages in their careers.

During 2023, we offered leadership training to all employees at the supervisor and manager level worldwide.

This training focused on building key leadership competencies including leading diverse and inclusive teams.

Specifically, we offer leadership training to all employees at the supervisor and manager level worldwide.

This training focuses on building key leadership competencies including leading diverse and inclusive teams.

In addition, talent development and succession planning for critical roles is a cornerstone of our talent program.

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We recognize that our best performance comes when our teams are diverse and inclusive.

We continue to define our diversity, equity and inclusion strategy.

These efforts touch all levels of our organization including our Board of Directors.

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is a Tennessee corporation which was incorporated in 1972.

documents filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is filed with, or furnished to, the Securities and Exchange Commission ("SEC").

We make available, free of charge on or through our website (www.astecindustries.com), access to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements on Schedule 14A, Section 16 reports, amendments to those reports and other documents filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is filed with, or furnished to, the Securities and Exchange Commission ("SEC").

Information contained in our website is not part of, and is not incorporated into, this Annual Report on Form 10-K or any other report we file with or furnish to the SEC.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business