Third Quarter 2022 Highlights (all comparisons are made to the prior year third quarter):

•Net sales increased 18.1% to $315.2 million

•Gross Profit Margin of 20.7% decreased 250 bps

•Backlog increased 56.2% to $969.0 million

•Repurchased $6.1 million of shares

CHATTANOOGA, Tenn. (November 2, 2022) – Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the third quarter of 2022.

"We are pleased to have net sales growth through volume, price realization and mix in both the Infrastructure Solutions and Materials Solutions groups" said Barry Ruffalo, Chief Executive Officer of Astec. "Customer demand for Astec products continues to drive increased backlog, which grew year-over-year and sequentially. We are seeing areas of improvement to a still fragile supply chain however inconsistent vendor deliveries negatively affected manufacturing efficiencies. Despite the challenges, the resilience of our customers and employees, along with our strong balance sheet and the multi-year tailwind provided by the long-term federal highway bill, continue to provide stability. We are confident in the long-term value our Simplify, Focus and Grow strategy will create for Astec stakeholders."

•Net sales were driven by net volume, pricing and mix that generated increases primarily in domestic equipment and parts sales. International sales were relatively flat (of note, Europe and Asia account for less than 4% of total net sales). Net sales for the third quarter of 2022 would have been $6.7 million higher had third quarter 2022 foreign exchange rates been the same as third quarter 2021 rates.

•Operating margin decreased due to lower gross profit margin (manufacturing inefficiencies due to supply chain disruptions) and higher selling, general and administrative expenses, which were lower as a percentage of sales as we invest in future growth initiatives.

•The effective tax rate for the quarter was higher compared to the same quarter in 2021 primarily due to net discrete tax benefits in the prior year that did not reoccur partially offset by the tax effect of lower pre-tax earnings.

•Adjusted Net Income and Adjusted EPS exclude $5.8 million and $0.25, respectively, of incremental costs, net of tax, primarily driven by our transformation program from initiatives to optimize our company for long term value creation.

Infrastructure Solutions - Road building equipment, asphalt and concrete plants, thermal storage solutions.

•Net sales of $201.9 million increased 15.7% due to strong domestic demand and favorable net volume, pricing and mix that generated increased equipment and parts sales.

•Segment Operating Adjusted EBITDA of $17.6 million decreased 3.8% primarily from the impact of higher inflation on materials, labor and overhead costs and manufacturing inefficiencies coupled with increases in general and administrative costs partially offset by the benefit of higher net sales. Segment Operating Adjusted EBITDA margin of 8.7% decreased 180 basis points.

Materials Solutions - Processing equipment to crush, screen and convey aggregates.

•Net sales of $111.8 million increased 21.0% due to favorable net volume, pricing and mix primarily in equipment sales.

•Segment Operating Adjusted EBITDA of $13.1 million increased 22.4% from the benefit of higher net sales partially offset by the impact of higher inflation on materials, labor and overhead costs and manufacturing inefficiencies. Segment Operating Adjusted EBITDA margin of 11.7% was essentially flat.

•We ended the quarter with balance sheet cash of $20.8 million, a 58.9% decrease in the quarter.

•Net cash used in operating activities for the nine months ended September 30, 2022 was $56.8 million as we carried additional working capital to satisfy growth in customer demand for our products.

•Net cash used in investing activities for the nine months ended September 30, 2022 was $45.0 million including the investments in property and equipment to facilitate growth as well as acquisitions, net of cash acquired.

•Net cash used in financing activities for the nine months ended September 30, 2022 was $8.4 million including the payment of dividends and repurchase of stock which were partially offset by net proceeds from borrowings.

•Capital expenditure investments in the quarter primarily to increase capacity and improve efficiency were $8.8 million.

•Dividend of $0.12 per share.

•Repurchased approximately $6.1 million of shares. Remaining authorization is $119.7 million.

Investor Conference Call and Webcast

Astec will conduct a conference call and live webcast today, November 2, 2022, at 8:30 A.M. Eastern Time, to review its third quarter financial results as well as current business conditions.

To access the call, dial (888) 440-4118 on Wednesday, November 2, 2022 at least 10 minutes prior to the scheduled time for the call. International callers should dial (646) 960-0833.

You may also access a live webcast of the call at: https://events.q4inc.com/attendee/606285553

You will need to give your name and company affiliation and reference Astec. An archived web cast will be available for ninety days at www.astecindustries.com.

A replay of the call can be accessed by dialing (800) 770-2030, or (647) 362-9199 for international callers, Conference ID# 8741406. A transcript of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 business days after the call.

Astec, (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. Astec's manufacturing operations are divided into two primary business segments: Infrastructure Solutions that includes road building, asphalt and concrete plants, thermal and storage solutions; and Materials Solutions that include our aggregate processing equipment.

This News Release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the United States and global economies. Statements in News Release that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "hope," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed and described in our most recent Annual Report on Form 10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.

In an effort to provide investors with additional information regarding the Company's results, the Company refers to various U.S. GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provides useful information to investors. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore may not be comparable to the calculation of similar measures for other companies. Management of the Company does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Nonetheless, this non-GAAP information can be useful in understanding the Company's operating results and the performance of its core business. Management of the Company uses both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate the Company's financial performance against such budgets and targets. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in the appendix to this News Release.

Steve Anderson 

Senior Vice President of Administration and Investor Relations

Phone: (423) 899-5898 

E-mail: sanderson@astecindustries.com

Segment net sales are reported net of intersegment sales. Segment gross profit excludes profit on intersegment sales remaining in inventory.

A reconciliation of total segment Adjusted EBITDA to the Company's net income attributable to controlling interest is as follows (in millions; unaudited):

(Continued)

The following tables present selected line items from the Consolidated Statements of Operations and segment information for the respective periods identified.