Astec Industries, Inc.

call over to Yaku to provide his comments, and then Brian will summarize our financial results. For your convenience, a copy of our press release and presentation are posted on our website under the investor relations tab at www.aztechindustries.com. Turning to slide two, I'll 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 are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions. Factors that can influence our results are highlighted in today's financial news release and others are contained in our filings with the U.S. Securities Exchange and Commission. As usual, we ask that you familiarize yourself with those factors. In an effort to provide investors with additional information regarding the company's results, the company refers to various U.S. GAAP and non-GAAP financial measures which management believes provide useful information to investors. These non-GAAP measures have no standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAP measures. A reconciliation of GAP to non-GAP results are included in our news release in the appendix of our slide presentation. And now, turning to slide three, I'll turn the call over to Yaku.

Thank you, Steve. Good morning, everyone, and thank you for joining us. Today is a very exciting day for the Aztec family for two reasons. First, our team delivered exceptional results for Q1. And second, we are happy to announce we signed a definitive agreement to purchase TerraSource. TerraSource is a market-leading manufacturer of materials processing equipment and related aftermarket parts, serving complementary crushing, screening, and separation markets. We will talk more about TerraSource in a few minutes, but let me start on slide four, by telling you more about our first quarter results. I am pleased to report we experienced another strong quarter for net sales, adjusted EBITDA, and adjusted earnings per share. This is in line with our plans to deliver consistency, profitability, and growth. Adjusted EBITDA of 35.2 million increased 16.3 million, or 86.2%, over the first quarter of 2024. Adjusted EBITDA margin of 10.7%, increased 460 basis points, and adjusted earnings per share were strong at $0.88. Although our backlog of $402.6 million moderated sequentially by 4.1%, we were encouraged by improved implied orders. In our infrastructure solution segment, Strong net sales for the quarter were primarily driven by capital equipment and healthy aftermarket part sales. We continue to see strong demand for asphalt and concrete plants, which was partially offset by softness in the demand for mobile paving and forestry units. Capital equipment sales in our material solution segment continue to be challenged by high interest rates, and further dealer inventory restocking activity, while aftermarket part sales remain stable at healthy levels. We were encouraged by the sequential double-digit improvement in our material solutions backlog and implied orders, and we expect to see restocking activity resume in the second half of the year. Order intake momentum continued in April. Free cash flow of $16.6 million was 116% of net income and was generated due to increased profitability and continued focus on working capital management. For the full year 2025, we are maintaining our expectations for adjusted EBITDA in the range of $105 to $125 million, excluding the impact of tariffs. On the topic of tariffs, we all know this is a very fluid situation. I will share more details on tariffs on slide seven. On slide five, we provide a brief update of the state of our industry. As you know, America's infrastructure is foundational to our national economy, global competitiveness, and quality of life. The 2025 report card for America's infrastructure provided by the American Society of Civil Engineers highlights the need for continued infrastructure investment. Before recent legislation like the 2021 Infrastructure Investment and Jobs Act, many of our infrastructure networks had been neglected for decades. According to the report, America's roads improved to a D plus rating in 2025, versus a rating of D in 2021. Although signs of progress have been made, the need for improvement to our roads is substantial. America's more than 4.1 million miles of public roadways form a vital network facilitating the movement of people and goods. Of that 4.1 million miles, 39% are in poor or mediocre condition. Bridges received a grade of C. Many bridges are approaching or having exceeded the 50-year life they were designed for. Of the 623,000 bridges across the US, only 44% were deemed to be in a good condition, 49% in fair condition, and 7% are in poor condition. Continued maintenance and upgrades are essential for these bridges to withstand the higher traffic volumes and vehicle weights they need to support. As you know, ASTIC is a niche industry player focused on the rock-to-road sector. We have strong brand recognition in the infrastructure sector, which is largely comprised of aggregates and road and bridge construction. Needed improvements to our infrastructure provide long-term stable demand for our equipment aftermarket parts, and digital solutions. Slide six shows our booth at the 2025 World of Asphalt Ag One show and conference held last month in St. Louis, Missouri. Meeting with customers and interacting with our employees reminded me why I love working at Aztec. We have great products, industry-changing technology, and more importantly, the best team in the industry. As I walked the show and looked at other providers, I feel Aztec is well positioned to win. We also invite you to mark your calendars for the 2026 ConExpo Trade Show to be held in Las Vegas, Nevada on March 3rd to 7th, 2026. We are excited about the new products and technology we will display at the show. On slide 7, we show proactive actions we are taking to mitigate risk associated with the new tariff environment. Our one Aztec procurement team is requiring suppliers to provide support for any price increases, and we are actively negotiating all purchases. We have initiated additional pricing actions and will continue to assess the situation to protect margins. We continue to practice dual sourcing and resourcing. We are managing supply chain alignment and will reshore to the United States when feasible. We are continually managing our manufacturing footprint. As you know, this is a dynamic situation that can change quickly, but the ASTEC team is diligently tracking the current and potential impact of the tariff environment. I'll also mention, this is a great time to be an American manufacturer. On slide eight, we show our backlog information. Overall, our backlog declined slightly on a sequential basis, but remained healthy, supported by growth in implied orders. Current backlog levels in the infrastructure solution segment are a combination of strong invoicing for asphalt and concrete plants, dealers ordering equipment closer to desired shipment dates, and internal operational excellence efforts to increase facility throughput. That said, we have experienced some softness in order for mobile paving products, and the market for forestry products are currently slow. In our material solution segment, backlog grew 12.1 million, or 10.6%, due to increased order activity. As noted in prior quarters, we expect demand for material solutions products to pick up in the second half of the year. Our implied orders and book-to-bill trends are showed on slide 9. We are pleased to report consolidated implied orders rose on a quarter-over-quarter and sequential basis. The infrastructure solution segment continued to generate solid numbers. We were especially pleased with our material solution segment, which posted an increase in implied orders for the second consecutive quarter and posted a book-to-bill ratio of 113% for Q1. With that, I will now turn the call over to Brian to provide additional comments on our first quarter financial results.

Thank you, Jaco, and good morning. Our consolidated financial results are highlighted on slide 11. The demand for Aztec capital equipment and aftermarket parts continued as net sales grew 6.5% over the prior year first quarter and increased 2% for the trailing 12 months ended March 31st, 2025. We were pleased to generate an adjusted EBITDA of $35.2 million in the first quarter, which compared to $18.9 million in the first quarter of last year. Adjusted EBITDA margin reached 10.7%, a 460 basis point increase over the prior year. Adjusted EBITDA and adjusted EBITDA margins benefited from volume, pricing, and mix. as evidenced by a 320 basis point increase in gross margin. Adjusted selling, general and administrative expenses were relatively flat at approximately 63 million for the quarter, but improved by 130 basis points as a percentage of net sales. Q1 adjusted earnings per share of 88 cents compared very favorably to 34 cents of earnings per share posted in Q1 2024. On a trailing 12 months basis, we increased net sales, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share. This is in line with our commitment to provide consistency, profitability, and growth, and shows the actions we have taken are gaining traction. Moving on to the infrastructure solution segment shown on slide 12, we generated higher net sales for the quarter due to strong domestic capital equipment performance. Aftermarket parts were slightly lower in the first quarter, but remained at favorable levels. For the trailing 12 months, net sales in infrastructure solutions increased 10.7%. Segment operating adjusted EBITDA dollars and adjusted EBITDA margins were positively affected by volume, pricing, and operational excellence initiatives and expense management. Both posted solid increases on a quarter-over-quarter and trailing 12-month basis. The material solution segment is shown on slide 13. As previously noted, net sales for the quarter, along with the trailing 12 months, were negatively impacted by lower capital equipment sales resulting from the influence of high interest rates and dealer destocking. Aftermarket parts sales declined slightly but remained at healthy levels. Despite lower sales revenue, we have been able to control costs and achieve improved adjusted EBITDA margins. Moving on to the first quarter adjusted EBITDA bridge on slide 14, we were pleased to report adjusted EBITDA of $35.2 million, an increase of $16.3 million over the first quarter of 2024. Favorable volume and pricing were the primary drivers. Proactive one-ass take procurement efforts helped contain inflation and manufacturing efficiencies also contributed. On slide 15, we show adjusted EBITDA of 128.1 million on a trailing 12-month basis. This was an increase of 34.4 million, or 36.7%, driven by increased volume, pricing, mix, and expense management, partially offset by inflation and manufacturing inefficiencies and other period costs. On slide 16, you can see we maintain a strong balance sheet with ample liquidity. We ended the quarter with cash and cash equivalents of 90.1 million, available credit of 148.8 million for a total available liquidity of $238.9 million. Our free cash flow in the quarter of $16.6 million was 116% of net income. These results were driven by profitable sales and sound working capital management. I'll now turn the call back to Jaco.