TacticScaleWhat Astec Industries Does & How It Makes Money (ASTE)
Updated October 2026 · reflects Astec Industries's latest reported financials
Maker of road-building, asphalt, and rock-crushing equipment. Astec makes most of its money selling equipment and plants to contractors, material producers, and agencies.
How Astec Industries makes money
Astec makes most of its money selling equipment and plants to contractors, material producers, and agencies. It also earns revenue from parts, components, servicing, automation controls, and telematics software.
What Astec Industries does
Astec Industries, founded in 1972 and based in Chattanooga, Tennessee, designs, manufactures, and services equipment used mainly in road building and related construction around the world. It has two segments. Infrastructure Solutions covers asphalt and concrete plants, liquid asphalt terminals, pavers, material transfer vehicles, milling machines, burners, wood chippers and grinders, plus industrial automation controls and telematics platforms. Materials Solutions supplies equipment for processing and handling aggregates: jaw, cone, and impact crushers; many types of screens; washing and classifying plants; conveyors, feeders, and ship loaders; and rock breakers. Customers include asphalt and concrete producers, highway contractors, sand and gravel producers, mine and quarry operators, recyclers, port authorities, power stations, and government agencies. Because most of what it sells is used to build roads, its business is closely linked to infrastructure spending.
Products & services
- Asphalt plants
- Asphalt pavers and material transfer vehicles
- Milling machines
- Concrete batch plants
- Jaw and cone crushers
- Screens and conveyors
What is Astec Industries worth?
On an owner-earnings DCF, Astec Industries's most-likely value is about $33 versus a recent price near $39 (16% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$18) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 7.0× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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