Astec Industries, Inc.

Hello, and welcome to the Aztec Industries fourth quarter and full year 2025 earnings call. As a reminder, this conference call is being recorded. It is my pleasure to introduce your host, Steve Anderson, Senior Vice President of Administration and Investor Relations. Mr. Anderson, you may begin.

Thank you, and good morning. Joining me on today's call are Jakob van der Merwe, our chief executive officer, and Brian Harris, our chief financial officer. In just a moment, I'll turn the call over to Jaco to provide his comments, and then Brian will summarize our financial results. For your convenience, a copy of our press release and the presentation have been posted on the 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 and Exchange 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 will turn the call over to Jakub. Thank you, Steve.

Good morning, everyone, and thank you for joining us. We were pleased to report strong fourth quarter and full year results. that shows the benefits of our focus on consistency, profitability, and growth. I would like to thank our ASTEC team members for their dedication and hard work that produced a successful year in 2025. On slide four, we highlight our fourth quarter and full year performance. For the quarter, we achieved record fourth quarter net sales of 400.6 million. Full-year net sales increased 8.1% due to a combination of organic and inorganic growth. Adjusted EBITDA for the quarter was a solid 44.7 million. This yielded an adjusted EBITDA margin of 11.2%. Adjusted EBITDA of 140.7 million for the year was at the upper end of our guidance range. The full-year adjusted EBITDA margin was 10%. which was 140 basis point increase over the prior year. We are optimistic about 2026 due to our progress on internal initiatives, positive customer sentiment, and the stability provided by federal funding for infrastructure in the United States. Based on expected organic and inorganic contributions, our full year 2026 adjusted EBITDA guidance range is 170 million to 190 million. We continue to generate positive free cash flow, which allows us to fund both organic and inorganic growth. In 2025, we saw healthy demand for asphalt plants and concrete plants within the infrastructure solution segment, while forestry and mobile paving equipment were challenged. During the fourth quarter, we saw an increase in the backlogs for forestry and mobile paving equipment, though they remain at the lower end of historical ranges. The material solution segment demonstrated anticipated recovery late in the year with a combination of organic and inorganic growth. Federal funding, healthy state and local budgets, and the construction of data centers are expected to drive multi-year demand in the material solutions and infrastructure solution segments in 2026. Part sales increased 19.7% versus the first quarter prior year. For the year, part sales totaled $432.7 million, representing an 11.5% increase over the prior year and 30.7% of total net sales in 2025. As previously stated, growing our parts and service business continues to be a priority. we were pleased to show an increase in backlog to 514 million. This represented sequential year-over-year growth of 14.4% and 22.5%, respectively, through a combination of organic and inorganic activity. On slide five, we highlight the acquisitions of TerraSource and CWMF that collectively represent over 200 million of annual revenue acquired by ASTEC. As part of the TerraSource integration, we will share their new brand designs at Conexpo. The new designs are consistent with existing Aztec products and incorporate our name and logo with the TerraSource legacy flagship brands, including Gunlock, Jeffrey Rider, Pennsylvania Crusher, and Elgin. Our joint teams are busy expanding the part sales force, coordinating sales channels, and cross-selling strategies, pursuing new product development and assessing opportunities for optimal factory use. We anticipate benefits from these actions will be realized in 2026. On January 1, 2026, we were excited to welcome the skilled and dedicated employees of CWMF to the Aztec family. As a reminder, CWMF is a highly respected manufacturer of portable and stationary asphalt plant equipment and parts, primarily concentrated in the Midwest, South Central, and Great Lakes regions of the United States. Our organizations are a strong cultural fit, and we expect CWMF to be accretive from day one. Slide 6 provides detail on the state of the U.S. infrastructure and aggregate industries. ASTEC benefits from strong road construction and aggregate markets in the United States. As you may know, in 2022, Congress approved a five-year $347.5 billion infrastructure investment bill. Funds committed within the bill totaled $248 billion, or 71%, through November 30, 2025. These highway and bridge formula funds support over 111,000 new projects and construction increased over the prior year. Although the existing five-year bill is set to expire on September 30th, 2026, Congress recently reached an agreement on transportation spending legislation for the remainder of fiscal year 2026. and now plans to turn their attention to securing an on-time renewal of a robust long-term surface transportation reauthorization. Investments in highways, bridges, and street construction also supports the U.S. aggregate industry as aggregates are used in asphalt, concrete, and as base material. In addition to expected increases in federal funds for roads and bridge construction, 2026 state transportation budgets anticipate growth as well. Data centers and the aggregates and the infrastructure necessary to support them are also expected to drive multi-year demand. In an October 2025 study by Thompson Research Group, aggregate quarries within a 30-mile truck haul distance of a major data center construction project saw the demand for aggregate tonnage that nearly doubled that of pre-construction levels. Overall, a healthy compound annual rate of 3.41% is expected for the US aggregate markets through 2033. These industry trends provide advantages for ASTEC, a company specializing in the rock-to-road sector. Ongoing infrastructure enhancements contribute to sustained demand for our equipment parts, and digital solutions. Our established reputation in aggregates as well as road and bridge construction underpins consistent growth. On slide seven, we show fourth quarter implied orders, which were up 46 million or 11% from the prior quarter in 2024. The infrastructure solution segment showed a 31% increase while our material solution segment declined slightly by 6.8%. We were pleased with our overall order intake as our book to bowl ratio was 116% on a consolidated basis. The book to bowl ratios for the infrastructure and material solution segments were 115% and 117% respectively. Moving to slide eight. We are pleased to report that our backlog grew to 514 million and increased on a sequential and year over year basis by 14.4% and 22.5% respectively. The backlog in our infrastructure solution segments reflects a combination of strong water activity for asphalt and concrete plants, partially offset by softer demand for mobile and forestry equipment. We are especially pleased with increased backlog in our material solution segment, which grew 105.8 million or 92.7% over the prior year fourth quarter from organic and inorganic contributions and 29.9 million or 15.7% sequentially. As a reminder, backlog represents the dollar value of firm orders with executed contracts. Backlog is also a function of lead times, and we continue to focus on increasing our manufacturing velocity to fulfill customer orders as soon as possible. And now I will turn the call over to our Chief Financial Officer, Brian Harris.