Fourth Quarter 2022 Highlights (all comparisons are made to the prior year fourth quarter):

•Net sales increased 31.2% to $349.9 million

•Operating margin of 0.9% increased 320 bps

•Diluted loss per share of $(0.04) compared to $(0.44); Adjusted EPS of $0.34 compared to a loss of $(0.06) per share

•Backlog increased 19.7% to $912.7 million

•Repurchased $4.0 million of shares

CHATTANOOGA, Tenn. (March 1, 2023) – Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the fourth quarter and full year of 2022.

"We had a solid finish to the year as demand for our products remained robust in the fourth quarter and top line growth was achieved by realizing the benefits of pricing actions, volume and mix." said Jaco van der Merwe, Chief Executive Officer of Astec. "As a leader in the markets we serve, we capitalized on the success of our commercial teams by delivering double-digit percentages of net sales growth in both Infrastructure Solutions and Materials Solutions, improving 27% and 39%, respectively. Investments in personnel and tools to improve output are paying off, and we were able to improve consolidated margins. We are on schedule to deliver our initial implementations of our standardized enterprise resource planning and related systems, which will further enhance efficiency. We remain committed to our Simplify, Focus and Grow and Built To Connect strategies and are well-positioned to drive additional long-term, sustainable value to our customers and shareholders."

•Net sales were driven by volume, pricing and mix that generated increases in both domestic and international equipment and parts sales. International sales increased in nearly all international markets in which we sell.

•Operating margin increased as higher net sales outpaced inflation, manufacturing inefficiencies, increased expenses for selling, general and administrative, research and development and restructuring. Selling, general and administrative expense were lower as a percentage of sales as we leveraged investments in future growth initiatives.

•The effective tax rate for the quarter was higher compared to the same quarter in 2021 primarily due to a discrete income tax expense for establishing a valuation allowance at our Brazilian subsidiary, partially offset by benefits of research and development net tax credits and from the foreign derived intangible income deduction.

•Adjusted net income and Adjusted EPS exclude $8.8 million and $0.38, respectively, of incremental costs, net of tax, primarily driven by our transformation program initiatives to optimize our company for long term value creation and restructuring charges related to our recent chief executive officer transition. Excluding the discrete income tax effect of the Brazil valuation allowance, Adjusted EPS would have been $0.58.

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

•Net sales of $238.4 million increased 27.1% due to strong domestic and stable international demand, pricing and mix that generated increased equipment and parts sales.

•Segment Operating Adjusted EBITDA of $23.1 million increased 79.1% primarily due to higher net sales and a 110 basis point improvement in gross profit margin partially offset by manufacturing inefficiencies and increased research and development costs. Segment Operating Adjusted EBITDA margin of 9.7% increased 280 basis points.

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

•Net sales of $109.8 million increased 39.0% due to favorable volume, pricing and mix in both equipment and parts sales.

•Segment Operating Adjusted EBITDA of $9.7 million increased 246.4% due to increased net sales partially offset by a 50 basis point decline in gross profit margin resulting from manufacturing inefficiencies. Segment Operating Adjusted EBITDA margin of 8.8% increased 530 basis points.

•We ended the year with balance sheet cash of $66.0 million, a 50.9% decrease from the prior year end.

•Net cash used in operating activities for the year was $73.9 million as we carried additional inventories on hand to satisfy growth in customer demand for our products.

•Net cash used in investing activities for the year was $53.2 million including the investments in property and equipment to facilitate growth as well as an acquisition, net of cash acquired.

•Net cash provided by financing activities for the year was $60.1 million driven by net proceeds from borrowings partially offset by the payment of dividends and repurchase of stock.

•Capital expenditure investments to increase capacity and improve efficiency were $13.1 million.

•Dividend of $0.13 per share.

•Repurchased approximately $4.0 million of shares. Remaining authorization is $115.7 million.

As previously announced on January 6, 2023, Mr. Barry A. Ruffalo's employment as President and Chief Executive Officer was terminated and he was succeeded by Mr. Jaco van der Merwe. In accordance with the terms of Mr. Ruffalo's separation agreement, we recorded $4.4 million of restructuring related costs in the fourth quarter of 2022. Additional costs are anticipated to be incurred in the first quarter of 2023 for this separation related to the modification of Mr. Ruffalo's equity awards as well as third-party transition support costs.

Management continually reviews our organizational structure and operations to ensure they are optimized and aligned with achieving our near-term and long-term operational and profitability targets. In connection with this review, in February 2023, we implemented a limited restructuring plan to right-size and reduce the fixed cost structure of our overhead departments. We anticipate charges of $3.0 million to $4.0 million for employee termination costs, excluding equity award modifications, to be incurred primarily in the first quarter of 2023. No further actions are currently planned. However, additional actions may be taken as a result of management’s ongoing business reviews.

Investor Conference Call and Webcast

Astec will conduct a conference call and live webcast today, March 1, 2023, at 8:30 A.M. Eastern Time, to review its fourth quarter financial results as well as current business conditions.

To access the call, dial (888) 440-4118 on Wednesday, March 1, 2023 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/803984884

You will need to give your name and company affiliation and reference Astec. An archived webcast 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. Astec also operates a line of controls and automation products designed to deliver enhanced productivity through improved equipment performance.

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 this 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," "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 Operating Adjusted EBITDA to the Company's net (loss) 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.