Astec Industries, Inc. designs, engineers, manufactures, markets and services equipment and components used primarily in asphalt and concrete road building and related construction activities, as well as other products.
The company’s products are used in each phase of road building, from quarrying and crushing the aggregate to application of the road surface. The company also offers industrial automation controls and telematics platforms, as well as manufacturing certain equipment and component...
Astec Industries, Inc. designs, engineers, manufactures, markets and services equipment and components used primarily in asphalt and concrete road building and related construction activities, as well as other products.
The company’s products are used in each phase of road building, from quarrying and crushing the aggregate to application of the road surface. The company also offers industrial automation controls and telematics platforms, as well as manufacturing certain equipment and components unrelated to road construction, including equipment for the mining, quarrying, construction, demolition, land clearing, and recycling industries, and port and rail yard operators; industrial heat transfer equipment; commercial whole-tree pulpwood chippers; horizontal grinders; blower trucks; commercial and industrial burners; and combustion control systems.
The company’s products are marketed both domestically and internationally, primarily to asphalt and concrete producers; highway and heavy equipment contractors; utility contractors; sand and gravel producers; construction, demolition, recycling, and crushing contractors; forestry and environmental recycling contractors; mine and quarry operators; port and inland terminal authorities; power stations, and domestic and foreign government agencies. In addition to equipment sales, the company manufactures and sells replacement parts for equipment in each of its product lines and replacement parts for some competitors' equipment. The distribution and sale of replacement parts is an integral part of the company’s business.
Business Segments
The company operates manufacturing sites and sites that operate as sales and service offices for its manufacturing locations. The company’s two reportable business segments are Infrastructure Solutions and Materials Solutions.
The Corporate and Other category consists primarily of the company’s parent company and Astec Insurance Company (‘Astec Insurance’ or the ‘captive’), its captive insurance company, which do not meet the requirements as an operating segment or inclusion in one of the other reporting segments.
Infrastructure Solutions Segment
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. The company’s 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 its product portfolio and associated data to provide insight into their operations. The company’s focus is to connect all the company’s products to the Astec Digital Ecosystem and leverage this data. Astec Digital has locations in Belgium, Canada, France, the United Kingdom, and the United States.
Products and Services
The primary products produced and services provided by the Infrastructure Solutions segment include: Asphalt plants and related components, heaters, concrete dust control systems, asphalt pavers, vaporizers, concrete material handling systems, screeds, heat recovery units, paste back-fill plants, asphalt storage tanks, hot oil heaters, bagging plants, fuel storage tanks, industrial and asphalt burners and systems, blower trucks and trailers, material transfer vehicles, soil stabilizing/reclaiming machinery, wood chippers and grinders, milling machines, soil remediation plants, control systems, pump trailers, concrete batch plants, service, construction and retrofits, liquid terminals, storage equipment and related parts, engineering and environmental permitting services, polymer plants, concrete mixers, cold central plant recycle systems, industrial automation controls, and telematics platforms.
The company’s Portable Self-Erect Cement Bins for the concrete industry provide low-profile mobile cement storage and ship pre-wired and pre-plumbed for quick setup. Customized concrete plants are engineered to fit within job site constraints across a wide range of concrete production applications.
The company’s patented water injection warm mix asphalt system stands out as a revolutionary advancement. This system allows the preparation and placement of asphalt mix at lower temperatures, resulting in substantial emissions reduction during paving and load-out. Unlike previous technologies, the company’s multi-nozzle device eliminates the need for costly additives by creating microscopic bubbles through the mixing of water and asphalt cement.
The company’s burner products find applications across various industries, emphasizing customization for specific applications. From chemical plants to oil-and-gas refineries, offshore platforms, power generation plants, and more, the company’s burner products are known for their versatility and adaptability. Certain of the company’s asphalt burner platforms are developed for retrofit applications and offer compatibility with most drum designs. The company’s investment in combustion technology aims to help customers achieve carbon footprint reduction goals. The company offers burners that can use alternative fuels, such as renewable natural gas, hydrogen blended natural gas, and biomass, as opposed to traditional liquid fuels. The company’s burner portfolio has the ability to achieve the most stringent emissions and efficiency requirements for a variety of projects.
The company’s mixing plants boast fully automated components, incorporating microprocessor-based and programmable logic control systems for optimal efficiency. As part of the company’s commitment to environmental responsibility, these plants are manufactured to meet or exceed federal and state clean air standards. The company offers many products with advanced control technology, including low-emission burners and emissions-control devices like dust collectors, charcoal fume scrubbers, and blue smoke systems.
The company’s horizontal wood grinders, disc and drum chippers, as well as blower trucks and trailers, have been diverting green waste from landfills for over 40 years. Horizontal grinders are used to create mulch from green waste for water retention, erosion control, and compost for soil amendments. The company’s horizontal grinders allow the diversion of low-value material away from landfills and conversion to high-value saleable products for its customers. Drum chippers create biomass wood chips from un-merchantable wood for energy production, erosion control, playground chips, or landscaping. Blower trucks are used for erosion control, landscaping, green roofs, and the application of playground chips.
The company’s pavers are designed for minimal maintenance costs while exceeding road surface smoothness requirements. The company’s 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 its pavers. 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.
While the company’s large asphalt plants excel in the North American market, the company has designed single-load and single-chassis portable plants tailored for international markets. The company’s portable asphalt plants offer high production capacity, reclaimed asphalt pavement (‘RAP’) mixing capabilities, and compact, highly mobile designs. The BG-Series is a line of batch plants specifically designed for the global market. The plant features a containerized design, which simplifies shipping and transporting the plant. The BG-Series is offered in a variety of production rates to accommodate the smallest jobs to large projects. The BG-Series is capable of utilizing high percentages of RAP and offers the versatility of a batch plant. A number of these plants are operating in various countries around the world.
The company’s product lines extend beyond asphalt production, encompassing full milling machines, soil stabilizers, patented screeds, and concrete production equipment. The company’s concrete plants, known for quick setup, tear-down, and reliability, cater to both portable and stationary needs, providing custom-engineered design flexibility.
Marketing
The company markets its products domestically and internationally through direct and dealer support sales staff, domestic and international independent distributors, and the company’s international distribution sites in each of its reportable segments.
Asphalt and concrete plants and their related equipment are sold to asphalt or concrete producers, respectively, or domestic and foreign government agencies. Asphalt paving and road building equipment are sold to highway and heavy equipment contractors, utility contractors, commercial and residential paving contractors, and governmental agencies, both domestically and internationally. Wood chippers, horizontal grinders, and blower trucks are primarily sold to clearing, right-of-way, forestry, and environmental recycling contractors.
Competition
The Infrastructure Solutions segment's primary competitors include the following, as well as smaller manufacturers, both domestic and international:
Asphalt plants and related components: Asphalt Drum Mixers Inc, Asphalt Equipment Company Inc. dba ALmix, Ammann Group, Gencor Industries, Inc, and Benninghoven (part of Wirtgen Group, a John Deere Company).
Concrete equipment: ERIE Strayer Company, Stephens Manufacturing, and Vince Hagan Co.
Paving and related equipment: Bomag (part of Fayat Group), Caterpillar Paving Products (part of Caterpillar, Inc.), Dynapac (part of Fayat Group), LeeBoy, Vogele (part of Wirtgen Group, a John Deere Company), and Weiler Inc.
Milling equipment: Bomag (part of Fayat Group), Caterpillar Paving Products (part of Caterpillar, Inc.), CMI Roadbuilding, Dynapac (part of Fayat Group), and Wirtgen Group (a John Deere Company).
Forestry and recycling equipment: Bandit Industries, Inc., Diamond Z, Doppstadt, EDGE Innovate, Tigercat, and Morbark (part of Alamo Group).
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. 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 the company’s manufacturing sites. In addition to manufacturing core Materials Solutions products and asphalt plants, Belo Horizonte, the company’s Brazilian site, markets all its products to the Brazilian market.
As of December 31, 2024, the company had an ownership interest of approximately 93% in Belo Horizonte.
Products and Services
The primary products produced and services provided by the Materials Solutions segment include: Crushing equipment, mobile plants, bulk material handling solutions, vibrating equipment, screening equipment, electrical control centers, modular plants and systems, conveying equipment, plant automation products, portable plants, mineral processing equipment, and consulting and engineering services.
The company manufactures comprehensive lines of crushing, screening, washing, and classifying, material and bulk handling, and rock breaking equipment in a variety of configurations, including stationary, portable (wheeled), and mobile (track). In conjunction with the Materials Solutions products, the company offers consulting and engineering services to provide complete ‘turnkey’ processing systems, which often include electrical control centers and plant automation products that the company produces.
The company’s complete line of primary, secondary, tertiary, and quaternary crushers includes jaw crushers, horizontal shaft impactors, vertical shaft impactors, cone crushers, and heavy-duty, mining-application crushers. These machines are used to crush large, oversized material in mining, quarrying, sand and gravel, and asphalt/concrete recycling applications. Once the material is crushed to size, it is utilized in a variety of products from road base to golf course sand. The company offers cone crushers with both roller-bearing and bushing style cones to fit any customer’s needs. The company’s industry-leading hydraulic-relief jaw crushers offer enhanced safety and easy maintenance. The company’s crushers are available as individual components, portable wheeled plants, and mobile track plants.
The company offers a wide variety of vibrating screens, including incline, horizontal, high frequency, multi-frequency, combo, and dewatering screens. The company’s high-frequency screens utilize a high-speed vibration directly induced into the screen media to improve screening efficiency and production rates. The screens' unique rotary tensioning system allows for quick media changes. The company’s screens are available in multiple sizes, with up to four decks and in a variety of configurations, including stationary, portable, and mobile.
The company’s washing and classifying equipment is well-suited for a wide range of applications and production goals. The company’s expertly engineered components and plants help producers meet the most stringent material specifications and get the most out of their material while significantly decreasing water usage. With complete lines of washing, classifying, fines recovery, and water clarification plants and systems, the company offers solutions for any operation in portable and stationary configurations.
The company designs and manufactures a broad range of material and bulk handling products for all production goals. The company’s material handling products cover many applications and are designed for efficiency and high-capacity material transferring, moving, and mixing. The company’s innovative line of material handling solutions includes radial and telescoping conveyors, truck unloaders, hopper feeders, mobile conveyors, pugmills, ship loaders and unloaders, bulk reception feeders, and stationary conveying systems. The company’s mobile bulk material handling solutions are designed to handle all free-flowing bulk materials, including, but not limited to, ores, coal, aggregates, fertilizers, grains, woodchips, and pellets. The company’s conveying equipment is designed to move or store aggregate and other bulk materials in radial cone-shaped or windrow stockpiles. Additionally, high-capacity rail and barge loading/unloading material handling systems are an important part of the company’s product lines.
The company has created its rock breaking equipment line for aggregate, mining, construction, and demolition applications, including the demolition and recycling of buildings, bridges, and roads. The company’s 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.
Marketing
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 the company’s international distribution sites in each of its reportable segments.
Competition
The Materials Solutions segment's primary competitors include the following, as well as smaller manufacturers, both domestic and international: CDE Group, McCloskey International (part of Metso Outotec Corporation), Terex Corporation, Deister Machine Company, Inc, McLanahan Corporation, Thor Manufacturing Ltd., Epiroc, Metso Outotec Corporation, Weir Group, EDGE Innovate, Sandvik Group, Wirtgen Group (a John Deere Company), Masaba, Inc., and Superior Industries, Inc.
Government Regulations
The air pollution control equipment the company manufactures, principally for hot-mix asphalt plants, must comply with certain performance standards promulgated by the Environmental Protection Agency (‘EPA’) under the Clean Air Act applicable to ‘new sources’ or new plants.
Patents and Trademarks
The company’s subsidiaries hold 113 United States patents and 129 foreign patents. The company’s subsidiaries have 10 United States and 23 foreign patent applications pending.
The company has 77 trademarks registered in the United States, including logos for Astec, Carlson Paving, Heatec, KPI-JCI, Peterson Pacific, Power Flame, Roadtec, and Telsmith, and the names ASTEC, CARLSON, HEATEC, JCI, KOLBERG, PETERSON, POWER FLAME, ROADTEC, and TELSMITH, as well as a number of other product names. The company also has 124 trademarks registered in foreign jurisdictions, including Argentina, Australia, Brazil, Canada, Chile, China, the European Union, France, Germany, India, Italy, Kazakhstan, Mexico, New Zealand, Paraguay, Peru, Russia, South Africa, South Korea, Taiwan, Thailand, the United Kingdom, Ukraine, Uruguay, and Vietnam. The company has 12 United States and 3 foreign trademark registration applications pending.
Seasonality
Revenues have historically been strongest during the first, second, and fourth quarters, with the third quarter (year ended December 31, 2024) typically generating weaker results.
Research and Development
The company incurred $23.8 million in research and development costs during 2024.
History
Astec Industries, Inc., a Tennessee corporation, was founded in 1972. The company was incorporated in 1972.
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