10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-11595

Astec Industries, Inc.

(Exact name of registrant as specified in its charter)

Tennessee	62-0873631
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1725 Shepherd Road
Chattanooga, TN	37421
(Address of principal executive offices)	(Zip Code)

(423) 899-5898

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ASTE	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 27, 2023, there were 22,739,296 shares of Common Stock outstanding.

ASTEC INDUSTRIES, INC.

Index to Quarterly Report on Form 10-Q

For the Quarter Ended September 30, 2023

		Page
PART I
Item 1.	Financial Statements (Unaudited)	1
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	35
SIGNATURES		36

PART I ‑ FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

ASTEC INDUSTRIES, INC.

Consolidated Balance Sheets

(In millions, except share and per share data, unaudited)

	September 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	73.8	$	66.0
Investments	5.7		3.9
Trade receivables and contract assets, net of allowance for credit losses of $2.5 and $2.3, respectively	174.7		167.1
Other receivables, net of allowance for credit losses of $0.7, respectively	3.4		6.5
Inventories	450.1		393.4
Prepaid and refundable income taxes	17.3		15.9
Prepaid expenses and other assets	21.3		28.2
Assets held for sale	—		15.4
Total current assets	746.3		696.4
Property and equipment, net of accumulated depreciation of $243.2 and $233.8, respectively	181.0		173.6
Investments	14.3		15.1
Goodwill	45.3		45.2
Intangible assets, net of accumulated amortization of $49.3 and $45.1, respectively	17.5		22.5
Deferred income tax assets	34.2		32.1
Other long-term assets	35.8		29.5
Total assets	$	1,074.4	$	1,014.4
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	0.1	$	0.2
Short-term debt	6.9		9.4
Accounts payable	114.3		107.2
Customer deposits	60.6		69.5
Accrued product warranty	16.7		11.9
Accrued employee related liabilities	44.4		35.3
Accrued loss reserves	2.9		1.9
Other current liabilities	36.3		38.6
Total current liabilities	282.2		274.0
Long-term debt	122.0		78.1
Deferred income tax liabilities	2.4		2.1
Other long-term liabilities	33.0		33.3
Total liabilities	439.6		387.5
Commitments and contingencies (Note 8)
Shareholders' equity:
Preferred stock – authorized 2,000,000 shares of $1.00 par value; none issued	—		—
Common stock – authorized 40,000,000 shares of $0.20 par value; issued and outstanding – 22,739,296 as of September 30, 2023 and 22,624,031 as of December 31, 2022	4.5		4.5
Additional paid-in capital	137.7		135.8
Accumulated other comprehensive loss	(44.2)		(40.1)
Company stock held by deferred compensation programs, at cost	(1.0)		(1.1)
Retained earnings	537.5		527.8
Shareholders' equity	634.5		626.9
Noncontrolling interest	0.3		—
Total equity	634.8		626.9
Total liabilities and equity	$	1,074.4	$	1,014.4

    

The accompanying notes are an integral part of these unaudited consolidated financial statements.

1

ASTEC INDUSTRIES, INC.

Consolidated Statements of Operations

(In millions, except share and per share data, unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net sales	$	303.1	$	315.2	$	1,001.0	$	924.6
Cost of sales	233.5		249.7		759.3		731.5
Gross profit	69.6		65.5		241.7		193.1
Selling, general and administrative expenses	74.3		63.5		206.7		184.4
Restructuring, impairment and other asset charges, net	0.5		0.1		5.3		4.5
(Loss) income from operations	(5.2)		1.9		29.7		4.2
Other expenses, net:
Interest expense	(2.4)		(0.6)		(6.4)		(1.6)
Interest income	0.5		0.3		1.5		0.7
Other (expenses) income, net	—		(0.4)		0.5		(1.8)
(Loss) income before income taxes	(7.1)		1.2		25.3		1.5
Income tax (benefit) provision	(0.6)		0.7		6.5		0.8
Net (loss) income	(6.5)		0.5		18.8		0.7
Net (income) loss attributable to noncontrolling interest	(0.1)		0.2		(0.2)		0.2
Net (loss) income attributable to controlling interest	$	(6.6)	$	0.7	$	18.6	$	0.9
Per share data:
(Loss) earnings per common share - Basic	$	(0.29)	$	0.03	$	0.82	$	0.04
(Loss) earnings per common share - Diluted	$	(0.29)	$	0.03	$	0.82	$	0.04
Weighted average shares outstanding - Basic	22,746,783		22,837,314		22,709,238		22,824,028
Weighted average shares outstanding - Diluted	22,746,783		22,916,316		22,776,158		22,932,206

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2

ASTEC INDUSTRIES, INC.

Consolidated Statements of Comprehensive (Loss) Income

(In millions, unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net (loss) income	$	(6.5)	$	0.5	$	18.8	$	0.7
Other comprehensive loss:
Foreign currency translation adjustments	(4.6)		(9.2)		(4.0)		(13.5)
Other comprehensive loss	(4.6)		(9.2)		(4.0)		(13.5)
Comprehensive (loss) income	(11.1)		(8.7)		14.8		(12.8)
Comprehensive (income) loss attributable to noncontrolling interest	(0.1)		0.2		(0.3)		0.1
Comprehensive (loss) income attributable to controlling interest	$	(11.2)	$	(8.5)	$	14.5	$	(12.7)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

ASTEC INDUSTRIES, INC.

Consolidated Statements of Cash Flows

(In millions, unaudited)

	Nine Months Ended September 30,
	2023		2022
Cash flows from operating activities:
Net income	$	18.8	$	0.7
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	19.6		20.9
Provision for credit losses	0.6		0.9
Provision for warranties	14.4		9.3
Deferred compensation expense (benefit)	0.2		(1.1)
Share-based compensation	3.5		5.4
Deferred tax benefit	(2.1)		(12.6)
Gain on disposition of property and equipment, net	(3.1)		(0.4)
Asset impairment charges	0.8		3.4
Amortization of debt issuance costs	0.2		—
Distributions to deferred compensation programs' participants	(1.5)		(0.9)
Change in operating assets and liabilities:
Purchase of trading securities, net	(1.4)		(0.7)
Receivables and other contract assets	(5.8)		(25.0)
Inventories	(59.7)		(98.9)
Prepaid expenses	8.3		0.9
Other assets	(9.6)		(10.3)
Accounts payable	7.1		25.3
Accrued loss reserves	1.2		0.3
Accrued employee related liabilities	9.3		10.0
Other accrued liabilities	(0.8)		1.7
Accrued product warranty	(9.6)		(8.6)
Customer deposits	(8.2)		21.1
Income taxes payable/prepaid	(1.0)		1.8
Net cash used in operating activities	(18.8)		(56.8)
Cash flows from investing activities:
Acquisitions, net of cash acquired	—		(17.8)
Expenditures for property and equipment	(25.0)		(27.6)
Proceeds from sale of property and equipment	20.2		0.7
Purchase of investments	(0.8)		(0.8)
Sale of investments	1.7		0.5
Net cash used in investing activities	(3.9)		(45.0)

(Continued)

4

ASTEC INDUSTRIES, INC.

Consolidated Statements of Cash Flows (Continued)

(In millions, unaudited)

	Nine Months Ended September 30,
	2023		2022
Cash flows from financing activities:
Payment of dividends	(8.9)		(8.3)
Proceeds from borrowings on credit facilities and bank loans	221.4		50.1
Repayments of borrowings on credit facilities and bank loans	(180.2)		(42.5)
Sale of Company stock by deferred compensation programs, net	0.1		0.2
Withholding tax paid upon vesting of share-based compensation awards	(1.6)		(1.8)
Repurchase of Company stock	—		(6.1)
Net cash provided by (used in) financing activities	30.8		(8.4)
Effect of exchange rates on cash	(0.3)		(3.4)
Increase (decrease) in cash, cash equivalents and restricted cash	7.8		(113.6)
Cash, cash equivalents and restricted cash, beginning of period	66.0		134.4
Cash, cash equivalents and restricted cash, end of period	$	73.8	$	20.8
Supplemental cash flow information:
Cash paid during the year for:
Interest, net of capitalized interest	$	5.0	$	0.7
Income taxes paid	$	10.3	$	12.3
Supplemental disclosures of non-cash items:
Non-cash investing activities:
Capital expenditures in accounts payable	$	0.4	$	1.2
Non-cash financing activities:
Additions to right-of-use assets and lease liabilities	$	0.6	$	2.8

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5

ASTEC INDUSTRIES, INC.

Consolidated Statements of Equity

(In millions except share and per share data, unaudited)

	Common Stock	Common Stock Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Loss		Company Shares Held by DCP		Retained Earnings		Noncontrolling Interest		Total Equity
Balance, December 31, 2022	22,624,031	$	4.5	$	135.8	$	(40.1)	$	(1.1)	$	527.8	$	—	$	626.9
Net income	—	—		—		—		—		12.1		—		12.1
Other comprehensive income	—	—		—		—		—		—		0.1		0.1
Dividends ($0.13 per share)	—	—		—		—		—		(2.9)		—		(2.9)
Share-based compensation	—	—		0.8		—		—		—		—		0.8
Issuance of common stock under incentive plan	66,536	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting	—	—		(1.4)		—		—		—		—		(1.4)
Balance, March 31, 2023	22,690,567	$	4.5	$	135.2	$	(40.1)	$	(1.1)	$	537.0	$	0.1	$	635.6
Net income	—	—		—		—		—		13.1		0.1		13.2
Other comprehensive income	—	—		—		0.5		—		—		—		0.5
Dividends ($0.13 per share)	—	—		—		—		—		(3.0)		—		(3.0)
Share-based compensation	—	—		1.4		—		—		—		—		1.4
Issuance of common stock under incentive plan	46,003	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting	—	—		(0.2)		—		—		—		—		(0.2)
Balance, June 30, 2023	22,736,570	$	4.5	$	136.4	$	(39.6)	$	(1.1)	$	547.1	$	0.2	$	647.5
Net (loss) income	—	—		—		—		—		(6.6)		0.1		(6.5)
Other comprehensive loss	—	—		—		(4.6)		—		—		—		(4.6)
Dividends ($0.13 per share)	—	—		—		—		—		(3.0)		—		(3.0)
Share-based compensation	—	—		1.3		—		—		—		—		1.3
Issuance of common stock under incentive plan	2,726	—		—		—		—		—		—		—
Deferred compensation programs' transactions, net	—	—		—		—		0.1		—		—		0.1
Balance, September 30, 2023	22,739,296	$	4.5	$	137.7	$	(44.2)	$	(1.0)	$	537.5	$	0.3	$	634.8

(Continued)

6

ASTEC INDUSTRIES, INC.

Consolidated Statements of Equity (Continued)

(In millions except share and per share data, unaudited)

	Common Stock	Common Stock Amount		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Company Shares Held by DCP		Retained Earnings		Noncontrolling Interest		Total Equity
Balance, December 31, 2021	22,767,052	$	4.5	$	130.6	$	(32.4)	$	(1.2)	$	549.3	$	0.5	$	651.3
Net income	—	—		—		—		—		4.1		—		4.1
Other comprehensive income	—	—		—		4.1		—		—		0.1		4.2
Dividends ($0.12 per share)	—	—		—		—		—		(2.8)		—		(2.8)
Share-based compensation	—	—		1.8		—		—		—		—		1.8
Issuance of common stock under incentive plan	69,995	0.1		—		—		—		—		—		0.1
Withholding tax paid upon equity award vesting	—	—		(1.3)		—		—		—		—		(1.3)
Balance, March 31, 2022	22,837,047	$	4.6	$	131.1	$	(28.3)	$	(1.2)	$	550.6	$	0.6	$	657.4
Net loss	—	—		—		—		—		(3.9)		—		(3.9)
Other comprehensive loss	—	—		—		(8.5)		—		—		—		(8.5)
Dividends ($0.12 per share)	—	—		0.1		—		—		(2.7)		—		(2.6)
Share-based compensation	—	—		1.6		—		—		—		—		1.6
Issuance of common stock under incentive plan	27,482	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting	—	—		(0.3)		—		—		—		—		(0.3)
Deferred compensation programs' transactions, net	—	—		0.1		—		0.1		—		—		0.2
Balance, June 30, 2022	22,864,529	$	4.6	$	132.6	$	(36.8)	$	(1.1)	$	544.0	$	0.6	$	643.9
Net income (loss)	—	—		—		—		—		0.7		(0.2)		0.5
Other comprehensive loss	—	—		—		(9.2)		—		—		—		(9.2)
Dividends ($0.12 per share)	—	—		—		—		—		(2.8)		—		(2.8)
Share-based compensation	—	—		2.0		—		—		—		—		2.0
Issuance of common stock under incentive plan	6,343	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting	—	—		(0.2)		—		—		—		—		(0.2)
Share repurchases	(160,445)	$	(0.1)	$	—	$	—	$	—	$	(6.0)	$	—	$	(6.1)
Balance, September 30, 2022	22,710,427	$	4.5	$	134.4	$	(46.0)	$	(1.1)	$	535.9	$	0.4	$	628.1

The accompanying notes are an integral part of these unaudited consolidated financial statements.

7

ASTEC INDUSTRIES, INC.

Notes To Unaudited Consolidated Financial Statements

Note 1. Basis of Presentation and Significant Accounting Policies

Description of Business

Astec Industries, Inc. ("Astec" or the "Company") is a Tennessee corporation which was incorporated in 1972. The Company designs, engineers, manufactures and markets equipment and components used primarily in road building and related construction activities, as well as other products discussed below. 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 manufactures certain equipment and components unrelated to road construction, including equipment for the mining, quarrying, construction and demolition industries and port and rail yard operators; industrial heat transfer equipment; commercial whole-tree pulpwood chippers; horizontal grinders; blower trucks; concrete plants; commercial and industrial burners; and combustion control systems.

The Company operates in two reportable segments (plus Corporate and Other) - Infrastructure Solutions and Materials Solutions. The Company's two reportable business segments comprise sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations.

The Corporate and Other category consists primarily of the parent company, Astec Insurance Company ("Astec Insurance" or the "captive"), a captive insurance company, and the controls and automation business, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments.

Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Astec and its subsidiaries and have been prepared by the Company, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The Company prepares its financial statements in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the SEC rules and regulations governing interim financial statements. However, the Company believes that the disclosures made in the unaudited consolidated financial statements and related notes are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. All intercompany balances and transactions between the Company and its affiliates have been eliminated in consolidation.

Noncontrolling interest in the Company's consolidated financial statements represents the 7% interest in a consolidated subsidiary which is not owned by the Company. Since the Company controls this subsidiary, the subsidiary's financial statements are consolidated with those of the Company, and the noncontrolling owner's 7% share of the subsidiary's net assets and results of operations is deducted and reported as "Noncontrolling interest" in the Consolidated Balance Sheets and as "Net (income) loss attributable to noncontrolling interest" in the Consolidated Statements of Operations. The Company executed an agreement in February 2022 with the noncontrolling interest holder, which is undergoing a judicial reorganization in Brazil, to acquire their outstanding interest in full for R$10.0M (approximately $2.0 million, subject to the effect of exchange rates). Completion of the transaction is subject to obtaining certain judicial approval in Brazil.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include excess and obsolete inventory, inventory net realizable value, product warranty obligations, self-insurance loss reserves, capitalization of internal use software, goodwill impairment and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results could differ from those estimates.

In the opinion of management, the consolidated financial statements contain all adjustments necessary for a fair statement of the results of operations and comprehensive (loss) income for the three and nine months ended September 30, 2023 and 2022, the financial position as of September 30, 2023 and December 31, 2022 and the cash flows for the nine months ended September 30, 2023 and 2022, and except as otherwise discussed herein, such adjustments consist only of those of a normal recurring nature. The interim results are not necessarily indicative of results that may be achieved in a full reporting year.

All dollar amounts, except share and per share amounts, are in millions of dollars unless otherwise indicated.

8

Reclassifications and Adjustments

Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the nine months ended September 30, 2023.

•The Company elected to present research and development expenses in "Selling, general and administrative expenses". These amounts were previously included in a separate financial statement caption in the Consolidated Statements of Operations.

•The Company reclassified certain accrued liability balances from "Other current liabilities" to "Accrued employee related liabilities" to more appropriately reflect the nature of such accrued balances.

•The Company elected to present gains and losses recognized on the change in fair value of derivative instruments and foreign currency transaction gains and losses, net in "Other (expenses) income, net". These amounts were previously included in "Cost of sales".

There was no change to previously reported "Total current liabilities" or "Net (loss) income attributable to controlling interest" related to these reclassifications.

During the first quarter of 2023, the Company identified immaterial errors associated with over-accruals of inventory-related expenses in its historical financial statements. The cumulative effect of the errors generated in 2021 and 2022 was corrected during the first quarter of 2023, resulting in a decrease in "Cost of sales" of $1.9 million. Such adjustment was not considered material to the Company's consolidated financial statements for the year ended December 31, 2022 or any of the financial statements for the previously filed annual periods.

Recently Adopted Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers", which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company elected to early adopt this guidance on April 1, 2022. The adoption of this new standard did not have a material impact on its financial position, results of operations, cash flows or disclosures.

Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact on the Company.

Note 2. Acquisition

MINDS Acquisition - The Company entered into a Share Purchase Agreement, dated as of March 22, 2022, by and between MINDS Automation Group, Inc., a leader in plant automation control systems and cloud-based data management in the asphalt industry in Canada. The acquisition was completed on April 1, 2022 at a purchase price of $19.3 million, which was paid in cash. The Company's allocation of the purchase price resulted in the recognition of $9.3 million of goodwill and $9.3 million of intangible assets primarily consisting of customer relationships (9 year life) and developed technology (7 year life). Significant inputs and assumptions used in determining the fair values of these intangible assets include management's forecasts of future revenues, earnings and cash flows, a discount rate based on the median weighted average cost of capital of the Company and select market competitors, and the proportion of intangible assets acquired in relation to tangible assets. Goodwill acquired is attributable to future growth opportunities provided by the acquired intellectual capital and the ability to generate cross-selling synergies. The acquisition provides the Company with a broader line of controls and automation products designed to deliver enhanced productivity through improved equipment performance. Results of operations have been consolidated from the date of acquisition. The goodwill is not deductible for income tax purposes. Proforma financial information is not included since not significant.

Acquisition and integration costs incurred were nominal during the three and nine months ended September 30, 2023 for this acquisition. Acquisition and integration costs incurred were $0.2 million and $1.1 million during the three and nine months ended September 30, 2022, respectively. These costs are recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.

9

The following table summarizes the allocations of the total purchase price:

(in millions)	Amount
Cash	$	1.5
Trade receivables	2.7
Inventories	0.7
Prepaid expenses and other assets	0.4
Property and equipment	0.2
Goodwill	9.3
Intangible assets	9.3
Other long-term assets	0.5
Total assets acquired	$	24.6
Accounts payable	(0.7)
Accrued payroll and related liabilities	(0.8)
Other current liabilities	(1.1)
Deferred income tax liabilities	(2.4)
Other long-term liabilities	(0.3)
Total liabilities assumed	(5.3)
Total purchase price	$	19.3

Note 3. Inventories

Inventories are valued at the lower of cost (first-in, first-out) or net realizable value, which requires the Company to make specific estimates, assumptions and judgments in determining the amount, if any, of reductions in the valuation of inventories to their net realizable values.

Inventories consist of the following:

(in millions)	September 30, 2023		December 31, 2022
Raw materials and parts	$	313.1	$	302.9
Work-in-process	78.0		57.3
Finished goods	57.4		32.1
Used equipment	1.6		1.1
Total	$	450.1	$	393.4

Note 4. Fair Value Measurements

The Company has various financial instruments that must be measured at fair value on a recurring basis, including marketable debt and equity securities held by Astec Insurance and marketable equity securities held in the Company's deferred compensation programs. The Company's deferred compensation programs ("DCP") include a non-qualified Supplemental Executive Retirement Plan ("SERP") and a separate non-qualified Deferred Compensation Plan. Although the deferred compensation programs' investments are allocated to individual participants, and investment decisions are made solely by those participants, they are non-qualified plans. Consequently, the Company owns the assets and the related offsetting liability for disbursement until such time as a participant makes a qualifying withdrawal. The SERP assets and related offsetting liability are recorded in non-current "Investments" and "Other long-term liabilities", respectively, in the Consolidated Balance Sheets. The Company's subsidiaries also occasionally enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates.

The carrying amount of cash and cash equivalents, trade receivables and contract assets, other receivables, accounts payable, and short-term and long-term debt approximates their fair value because of their short-term nature and/or interest rates associated with the instruments. Investments are carried at their fair value based on quoted market prices for identical or similar assets or, where no quoted prices exist, other observable inputs for the asset. The fair values of foreign currency exchange contracts are based on quotations from various banks for similar instruments using models with market-based inputs.

10

Financial assets and liabilities are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The inputs used to measure the fair value are identified in the following hierarchy:

Level 1 -	Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 -	Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability.
Level 3 -	Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

As indicated in the tables below, the Company has determined that all of its financial assets and liabilities as of September 30, 2023 and December 31, 2022 are Level 1 and Level 2 in the fair value hierarchy as defined above:

	September 30, 2023
(in millions)	Level 1		Level 2		Total
Financial assets:
Trading equity securities:
Deferred compensation programs' mutual funds	$	4.0	$	—	$	4.0
Preferred stocks	0.3		—		0.3
Equity funds	0.6		—		0.6
Trading debt securities:
Corporate bonds	4.0		—		4.0
Municipal bonds	—		0.3		0.3
Agency bonds	—		2.5		2.5
Floating rate notes	0.2		—		0.2
U.S. government securities	1.9		—		1.9
Asset-backed securities	—		4.3		4.3
Other	1.3		0.6		1.9
Derivative financial instruments	—		0.2		0.2
Total financial assets	$	12.3	$	7.9	$	20.2
Financial liabilities:
Deferred compensation programs' liabilities	$	—	$	5.7	$	5.7
Total financial liabilities	$	—	$	5.7	$	5.7

11

	December 31, 2022
(in millions)	Level 1		Level 2		Total
Financial assets:
Trading equity securities:
Deferred compensation programs' mutual funds	$	4.4	$	—	$	4.4
Preferred stocks	0.3		—		0.3
Equity funds	0.6		—		0.6
Trading debt securities:
Corporate bonds	5.0		—		5.0
Municipal bonds	—		0.3		0.3
Floating rate notes	0.2		—		0.2
U.S. government securities	0.8		—		0.8
Asset-backed securities	—		5.4		5.4
Other	1.3		0.7		2.0
Total financial assets	$	12.6	$	6.4	$	19.0
Financial liabilities:
Deferred compensation programs' liabilities	$	—	$	5.7	$	5.7
Total financial liabilities	$	—	$	5.7	$	5.7

Note 5. Product Warranty Reserves

The Company warrants its products against manufacturing defects and performance to specified standards. The warranty period and performance standards vary by market and uses of its products, but generally range from three months to two years or up to a specified number of hours of operation. The Company estimates the costs that may be incurred under its warranties and records a liability at the time product sales are recorded. The product warranty liability is primarily based on historical claim rates, nature of claims and the associated cost.

Changes in the Company's product warranty liability for the three and nine month periods ended September 30, 2023 and 2022 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Reserve balance, beginning of the period	$	16.5	$	11.6	$	11.9	$	10.5
Warranty liabilities accrued	3.8		2.9		14.4		9.3
Warranty liabilities settled	(3.6)		(3.4)		(9.6)		(8.6)
Other	—		(0.2)		—		(0.3)
Reserve balance, end of the period	$	16.7	$	10.9	$	16.7	$	10.9

Note 6. Accrued Loss Reserves

The Company records reserves for losses related to known workers' compensation and general liability claims that have been incurred but not yet paid or are estimated to have been incurred but not yet reported to the Company. The undiscounted reserves are actuarially determined based on the Company's evaluation of the type and severity of individual claims and historical information, primarily its own claims experience, along with assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change in the future. Total accrued loss reserves were $7.1 million and $5.8 million as of September 30, 2023 and December 31, 2022, respectively, of which $4.2 million and $3.9 million were included in "Other long-term liabilities" in the Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively.

Note 7. Income Taxes

For the three months ended September 30, 2023, the Company recorded an income tax benefit of $0.6 million, reflecting an 8.5% effective tax rate, compared to a $0.7 million income tax expense for the three months ended September 30, 2022, reflecting a 58.3% effective tax rate. The income tax benefit for the three months ended September 30, 2023 as compared to the expense for the same period in 2022 was primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss.

12

For the nine months ended September 30, 2023, the Company recorded an income tax provision of $6.5 million, reflecting a 25.7% effective tax rate, compared to $0.8 million expense, reflecting a 53.3% effective tax rate, for the nine months ended September 30, 2022. The income tax expense for the nine months ended September 30, 2023 was higher compared to the same period in 2022, primarily due to higher pretax book income and changes in the relative weighting of jurisdictional income and loss, partially offset by a net discrete tax benefit related to a research and development credit.

The Company's recorded liability for uncertain tax positions was $12.7 million and $12.0 million as of September 30, 2023 and December 31, 2022, respectively. The increase is the result of $0.7 million of incremental reserves associated with the 2023 research and development credit. The Company does not anticipate a significant change in unrecognized tax benefits due to the expiration of relevant statutes of limitations and federal, state, and foreign tax audit resolutions over the next twelve months.

The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. The Company is currently under audit by the U.S. Internal Revenue Service for the federal income tax return from the 2018 tax year as well as various other state income tax and jurisdictional audits. As of September 30, 2023, the Company believes that it is more-likely-than-not that the tax positions it has taken will be sustained upon the resolution of its audits, resulting in no material impact on its consolidated financial position, results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company's estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties and/or interest assessments.

On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into law. The IRA levies a 1% excise tax on net stock repurchases after December 31, 2022 and imposes a 15% corporate alternative minimum tax ("CAMT") for tax years beginning after December 31, 2022. The Company did not repurchase any shares during the three and nine months ended September 30, 2023. CAMT does not impact the Company's results of operations or financial position.

Note 8. Commitments and Contingencies

Certain customers have financed purchases of Company products through arrangements with third-party financing institutions. Under these arrangements, the Company is contingently liable for customer debt of $0.9 million and $2.4 million as of September 30, 2023 and December 31, 2022, respectively. These arrangements expire at various dates running through September 2026. Additionally, the Company is also contingently liable for 1.75% of the unpaid balance, determined as of December 31 of the prior year (or approximately $0.1 million for 2023), on certain past customer equipment purchases that were financed by an outside finance company. The agreements provide that the Company will receive the lender's full security interest in the financed equipment if the Company is required to fulfill its contingent liability under these arrangements. The Company has recorded a liability of $0.5 million and $1.0 million related to these guarantees, which were included in "Other current liabilities" in the Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively.

The Company reviews off-balance sheet guarantees individually and at the loss pool level based on one agreement. Prior history is considered with respect to the Company having to perform on any off-balance sheet guarantees, as well as future projections of individual customer credit worthiness with respect to assessing credit losses related to off-balance sheet guarantees.

In addition, the Company is contingently liable under letters of credit issued under its $250.0 million revolving credit facility (the "Credit Facilities"), which outstanding letters of credit totaled $2.4 million as of September 30, 2023. The outstanding letters of credit expire at various dates through April 2024. As of September 30, 2023, the Company's foreign subsidiaries are contingently liable for a total of $6.1 million in performance letters of credit, advance payments and retention guarantees, of which $4.5 million is secured by separate credit facilities with local financial institutions.

The Company and certain of its former executive officers were named as defendants in a putative shareholder class action lawsuit filed on February 1, 2019, as amended on August 26, 2019, in the United States District Court for the Eastern District of Tennessee. The action is styled City of Taylor General Employees Retirement System v. Astec Industries, Inc., et al., Case No. 1:19-cv-24-CEA-CHS. The complaint generally alleges that the defendants violated the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 promulgated thereunder, by making allegedly false and misleading statements and that the individual defendants were control persons under Section 20(a) of the Exchange Act. The complaint is filed on behalf of shareholders who purchased stock of the Company between July 26, 2016 and October 22, 2018 and seeks monetary damages on behalf of the purported class. On October 25, 2019, the defendants filed a Motion to Dismiss. On February 19, 2021, the Motion to Dismiss was granted with prejudice and judgment was entered for the defendants. On March 19, 2021, plaintiff filed a Motion to Alter or Amend the Judgment and For Leave to File the Proposed Amended Complaint, which was denied on May 5, 2021. Plaintiff appealed the Motion to Dismiss and denial of its Motion to Alter or Amend the Judgment and For Leave to File the Proposed Amended Complaint to the United States Court of Appeals for the Sixth Circuit. On March 31, 2022, the United States Court of Appeals for the Sixth Circuit issued an opinion reversing the dismissal of the Company and one former executive officer, affirming the dismissal of certain other former executive officers and remanding the action to the United States District Court for the Eastern District of Tennessee for proceedings consistent with the opinion. On July 11, 2022 Defendants filed an answer to the complaint, and the action is now in discovery.

13

The Company's GEFCO, Inc. ("GEFCO") subsidiary has been named a defendant in a lawsuit originally filed on August 16, 2018, with an amended complaint filed on January 25, 2019, in the United States District Court for the Western District of Oklahoma. The action is styled VenVer S.A. and Americas Coil Tubing LLP v. GEFCO, Inc., Case No. CIV-18-790-SLP. The complaint alleges breaches of warranty and other similar claims regarding equipment sold by GEFCO in 2013. In addition to seeking a rescission of the purchase contract, the plaintiff is seeking special and consequential damages. The original purchase price of the equipment was approximately $8.5 million. On July 7, 2020, the plaintiffs filed a separate lawsuit directly against Astec Industries, Inc. that generally mirrored the allegations in the GEFCO suit. In January 2023, the court allowed Astec Industries, Inc. to be added as a defendant to the GEFCO suit and, as a result, the separate suit against Astec Industries, Inc. was dismissed. The Company and GEFCO each dispute the plaintiffs' allegations and are vigorously defending the GEFCO suit. The Company is unable to determine whether or not a future loss will be incurred due to this litigation or estimate the possible loss or range of loss, if any, at this time.

On October 5, 2023, a jury, in the 355th Judicial District Court, Hood County, State of Texas, rendered a verdict against the Company's Telsmith, Inc. subsidiary in the matter styled 37 Building Products, Ltd. ("37 BP") v. Telsmith, Inc. ("Telsmith"), et al. originally filed on January 28, 2019, with additional defendants later added. All other defendants settled prior to trial except Telsmith. Telsmith will receive credit for the settlement amounts of all other defendants against any judgment entered in this case against Telsmith. 37 BP alleged breaches of warranty and negligent misrepresentation regarding equipment manufactured by Telsmith and purchased by 37 BP in 2017 through one of the Company's dealers. Based on the jury verdict, management has determined that a loss for this matter is probable in a range between $6.4 million and $18.1 million, inclusive of attorneys' fees and prejudgment interest. A loss contingency of $6.4 million was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations and "Other current liabilities" in the Consolidated Balance Sheets during the third quarter of 2023 representing management's best estimate of the loss. A judgment has not been entered by the trial court, however, a judgment is anticipated to be entered by the end of 2023 or during the first quarter of 2024. The judgment, once entered, may result in a change to the estimate of loss recorded and will incur post-judgment interest charges. The Company will evaluate the judgment once entered, including whether to appeal any judgment entered by the court.

In addition to the matters noted above, the Company is currently a party, and may become a party, to various other claims and legal proceedings in the ordinary course of business. If management believes that a loss arising from any claims and legal proceedings is probable and can reasonably be estimated, the Company records the amount of the loss (excluding estimated legal fees) or, when the loss is estimated using a range and no point within the range is more probable than another, the minimum estimated liability. As management becomes aware of additional information concerning such contingencies, any potential liability related to these matters is assessed and the estimates are revised, if necessary. If management believes that a loss arising from such claims and legal proceedings is either (i) probable but cannot be reasonably estimated or (ii) reasonably estimable but not probable, the Company does not record the amount of the loss but does make specific disclosure of such matter.

Based upon currently available information and with the advice of counsel, management believes that the ultimate outcome of its current claims and legal proceedings, individually and in the aggregate, will not have a material adverse effect on the Company's financial position, cash flows or results of operations. However, claims and legal proceedings are subject to inherent uncertainties, and rulings unfavorable to the Company could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse effect on the Company's financial position, cash flows or results of operations.

14

Note 9. Revenue Recognition

The following tables disaggregate the Company's revenue by major source for the three and nine month periods ended September 30, 2023 and 2022 (excluding intercompany sales):

	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Net Sales-Domestic:
Equipment sales	$	94.4	$	54.7	$	0.5	$	149.6	$	105.9	$	60.6	$	0.8	$	167.3
Parts and component sales	50.3		20.5		0.1		70.9		46.3		21.8		0.1		68.2
Service and equipment installation revenue	3.6		0.2		—		3.8		5.2		0.3		—		5.5
Used equipment sales	—		—		—		—		3.2		—		—		3.2
Freight revenue	5.2		1.9		—		7.1		5.3		2.1		—		7.4
Other	0.3		(2.4)		0.3		(1.8)		0.2		(2.5)		0.1		(2.2)
Total domestic revenue	153.8		74.9		0.9		229.6		166.1		82.3		1.0		249.4
Net Sales-International:
Equipment sales	26.3		23.1		0.7		50.1		23.8		17.7		0.3		41.8
Parts and component sales	9.2		9.9		—		19.1		10.1		9.6		—		19.7
Service and equipment installation revenue	1.0		1.8		0.1		2.9		1.0		0.9		0.1		2.0
Used equipment sales	—		0.4		—		0.4		0.3		1.0		—		1.3
Freight revenue	0.5		0.4		—		0.9		0.6		0.3		—		0.9
Other	—		—		0.1		0.1		—		—		0.1		0.1
Total international revenue	37.0		35.6		0.9		73.5		35.8		29.5		0.5		65.8
Total net sales	$	190.8	$	110.5	$	1.8	$	303.1	$	201.9	$	111.8	$	1.5	$	315.2

15

	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Net Sales-Domestic:
Equipment sales	$	314.6	$	197.8	$	2.2	$	514.6	$	315.2	$	162.0	$	0.9	$	478.1
Parts and component sales	159.9		64.1		0.2		224.2		146.4		63.7		0.1		210.2
Service and equipment installation revenue	38.0		0.6		0.1		38.7		17.8		0.6		—		18.4
Used equipment sales	2.6		—		—		2.6		5.2		—		—		5.2
Freight revenue	17.4		6.4		—		23.8		18.1		5.9		—		24.0
Other	0.4		(7.5)		0.5		(6.6)		0.4		(4.1)		0.1		(3.6)
Total domestic revenue	532.9		261.4		3.0		797.3		503.1		228.1		1.1		732.3
Net Sales-International:
Equipment sales	68.3		56.9		3.9		129.1		67.4		50.5		1.1		119.0
Parts and component sales	31.4		30.0		0.1		61.5		33.4		29.4		0.1		62.9
Service and equipment installation revenue	3.3		4.1		0.4		7.8		2.8		2.1		0.3		5.2
Used equipment sales	0.6		1.2		—		1.8		0.5		1.6		—		2.1
Freight revenue	2.3		1.0		—		3.3		1.8		1.0		—		2.8
Other	—		—		0.2		0.2		—		0.2		0.1		0.3
Total international revenue	105.9		93.2		4.6		203.7		105.9		84.8		1.6		192.3
Total net sales	$	638.8	$	354.6	$	7.6	$	1,001.0	$	609.0	$	312.9	$	2.7	$	924.6

16

Sales into major geographic regions were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
United States	$	229.6	$	249.4	$	797.3	$	732.3
Canada	13.4		12.9		48.7		49.2
Australia	20.6		10.8		44.4		31.3
Africa	10.6		10.9		28.6		25.9
Europe	8.0		9.1		24.5		22.4
Brazil	8.3		7.7		22.1		18.5
South America (Excluding Brazil)	5.1		4.5		14.4		17.1
Asia	2.8		1.5		6.5		8.6
Mexico	3.4		4.2		6.2		9.1
Central America (Excluding Mexico)	0.5		3.9		3.6		7.5
Other	0.8		0.3		4.7		2.7
Total foreign	73.5		65.8		203.7		192.3
Total net sales	$	303.1	$	315.2	$	1,001.0	$	924.6

As of September 30, 2023, the Company had contract assets of $3.6 million and contract liabilities, excluding customer deposits, of $6.2 million, including $2.6 million of deferred revenue related to extended warranties. As of December 31, 2022, the Company had contract assets of $3.8 million and contract liabilities, excluding customer deposits, of $5.5 million, including $2.9 million of deferred revenue related to extended warranties.

Note 10. Segment Information

The Company has two reportable segments, each of which comprise sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations.

Segment Operating Adjusted EBITDA is the measure of segment profit or loss used by the Company's Chief Executive Officer, whom is determined to be the chief operating decision maker ("CODM"), to evaluate performance and allocate resources to the operating segments is Segment Operating Adjusted EBITDA. Segment Operating Adjusted EBITDA, a non-GAAP financial measure, is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered by the CODM in the evaluation of ongoing operating performance. The Company's presentation of Segment Operating Adjusted EBITDA may not be comparable to similar measures used by other companies and is not necessarily indicative of the results of operations that would have occurred had each reportable segment been an independent, stand-alone entity during the periods presented.

A brief description of each segment is as follows:

Infrastructure Solutions – Sites within the Infrastructure Solutions segment design, engineer, manufacture and market a complete line of asphalt plants, concrete plants and their related components and ancillary equipment as well as supplying asphalt road construction equipment, industrial thermal systems and other heavy equipment. The sites based in North America within the Infrastructure Solutions segment are primarily manufacturing operations, while those located outside of North America 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. The primary purchasers of the products produced by this segment are asphalt and concrete producers, highway and heavy equipment contractors, utility contractors, forestry and environmental recycling contractors and domestic and foreign governmental agencies.

Materials Solutions – Sites within the Materials Solutions segment design and manufacture heavy processing equipment, in addition to servicing and supplying parts for the aggregate, metallic mining, recycling, ports and bulk handling markets. The sites within the Materials Solutions segment are primarily manufacturing operations, with the AME site functioning 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. Additionally, the Materials Solutions segment offers consulting and engineering services to provide complete "turnkey" processing systems. The principal purchasers of aggregate processing equipment include distributors, highway and heavy equipment contractors, sand and gravel producers, demolition, recycle and crushing contractors, open mine operators, quarry operators, port and inland terminal authorities, power stations and foreign and domestic governmental agencies.

17

Corporate and Other – The Corporate and Other category consists primarily of the parent company, the Company's captive insurance company, Astec Insurance, and the controls and automation business, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments. The parent company and the captive insurance company provide support and corporate oversight for other sites. The controls and automation business manufactures hardware and software products that are marketed independently and included in certain products of the Company's other segments.

The accounting policies of the reportable segments are the same as those described in Note 1, Basis of Presentation and Significant Accounting Policies. Intersegment sales and transfers between foreign subsidiaries are valued at prices comparable to those for unrelated parties.

Segment Information:

	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Revenues from external customers	$	190.8	$	110.5	$	1.8	$	303.1	$	201.9	$	111.8	$	1.5	$	315.2
Intersegment sales	4.3		14.0		—		18.3		1.9		14.1		—		16.0
Segment Operating Adjusted EBITDA	16.5		8.3		(14.4)		10.4		17.6		13.1		(14.2)		16.5
	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Revenues from external customers	$	638.8	$	354.6	$	7.6	$	1,001.0	$	609.0	$	312.9	$	2.7	$	924.6
Intersegment sales	8.2		40.9		0.6		49.7		7.0		35.8		—		42.8
Segment Operating Adjusted EBITDA	70.5		41.9		(33.5)		78.9		49.9		34.8		(36.3)		48.4

,

A reconciliation of total Segment Operating Adjusted EBITDA to the Company's "Net (loss) income attributable to controlling interest" is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Net (loss) income attributable to controlling interest
Segment Operating Adjusted EBITDA	$	10.4	$	16.5	$	78.9	$	48.4
Adjustments:
Transformation program	(7.7)		(7.0)		(22.5)		(18.7)
Restructuring and other related charges	(0.1)		(0.1)		(7.6)		(1.5)
Asset impairment	—		(0.4)		(0.8)		(3.4)
(Loss) gain on sale of property and equipment, net	(0.4)		0.4		3.1		0.4
Transaction costs	—		(0.5)		—		(1.9)
Interest expense, net	(1.9)		(0.3)		(4.9)		(0.9)
Depreciation and amortization	(7.1)		(7.3)		(19.6)		(20.9)
Income tax benefit (provision)	0.6		(0.7)		(6.5)		(0.8)
Net (income) loss attributable to noncontrolling interest	(0.1)		0.2		(0.2)		0.2
Elimination of intercompany profit	(0.3)		(0.1)		(1.3)		—
Net (loss) income attributable to controlling interest	$	(6.6)	$	0.7	$	18.6	$	0.9

18

Note 11. Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net

The Company is undergoing a multi-year phased implementation of a standardized enterprise resource planning ("ERP") system across the global organization, which will replace much of the existing disparate core financial systems. The upgraded ERP will initially convert internal operations, manufacturing, finance, human capital resources management and customer relationship systems to cloud-based platforms. This new ERP system will provide for standardized processes and integrated technology solutions that enable the Company to better leverage automation and process efficiency. An implementation of this scale is a major financial undertaking and requires substantial time and attention of management and key employees.

In addition, beginning in the first quarter of 2022, a lean manufacturing initiative at one of the Company's largest sites was initiated and is expected to drive improvement in gross margin at that site. Gross margin improvements are expected to be realized in conjunction with the project completion in early to mid-2024. This improvement is intended to serve as the optimal blueprint for the Company's other manufacturing facilities.

Total costs of $7.8 million and $22.8 million were incurred related to these strategic transformation initiatives in the three and nine months ended September 30, 2023, respectively, of which $7.7 million and $22.6 million, respectively, are recorded in "Selling, general and administrative expenses" and $0.1 million and $0.2 million, respectively, are included in "Cost of sales" in the Consolidated Statements of Operations. Costs totaling $7.0 million and $18.7 million were incurred in the three and nine months ended September 30, 2022, respectively, and are recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.

The Company periodically sells or disposes of its assets in the normal course of its business operations as they are no longer needed or used, and the Company may incur gains or losses on these disposals. Certain of the costs associated with these decisions are separately identified as restructuring. The Company reports asset impairment charges and gains or losses on the sales of property and equipment collectively, with restructuring charges in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations to the extent they are experienced.

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Restructuring, asset impairment charges and the net losses and gains on sale of property and equipment are presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Restructuring charges:
Costs associated with leadership change and overhead restructuring	$	—	$	—	$	7.3	$	—
Costs associated with exited operations - Enid	0.1		0.1		0.3		0.7
Costs associated with closing Tacoma	—		—		—		0.8
Total restructuring related charges	0.1		0.1		7.6		1.5
Asset impairment charges:
Other impairment charges	—		0.4		0.8		3.4
Total asset impairment charges	—		0.4		0.8		3.4
Loss (gain) on sale of property and equipment, net
Loss (gain) on sale of property and equipment, net	0.4		(0.4)		(3.1)		(0.4)
Total loss (gain) on sale of property and equipment, net	0.4		(0.4)		(3.1)		(0.4)
Restructuring, impairment and other asset charges, net	$	0.5	$	0.1	$	5.3	$	4.5

Restructuring charges by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Infrastructure Solutions	$	0.1	$	0.1	$	0.4	$	1.5
Corporate and Other	—		—		7.2		—
Total restructuring related charges	$	0.1	$	0.1	$	7.6	$	1.5

Impairment charges by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Infrastructure Solutions	$	—	$	0.4	$	—	$	2.5
Corporate and Other	—		—		0.8		0.9
Total impairment charges	$	—	$	0.4	$	0.8	$	3.4

Net losses and gains on sale of property and equipment by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Infrastructure Solutions	$	0.4	$	(0.4)	$	(3.0)	$	(0.4)
Corporate and Other	—		—		(0.1)		—
Total loss (gain) on sale of property and equipment, net	$	0.4	$	(0.4)	$	(3.1)	$	(0.4)

Restructuring charges accrued, but not paid, were $0.2 million and $4.7 million as of September 30, 2023 and December 31, 2022, respectively.

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In January 2021, the Company announced plans to close the Tacoma facility in order to simplify and consolidate operations. The Tacoma facility ceased manufacturing operations at the end of 2021. The transfer of the manufacturing and marketing of Tacoma product lines to other facilities within the Infrastructure Solutions segment was completed during the first quarter of 2022. In conjunction with this action, the Company recorded $0.8 million of restructuring related charges during the three months ended March 31, 2022 in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. The Company recorded the Tacoma facility's land, building and certain equipment assets of $15.4 million as held for sale in its Consolidated Balance Sheets as of December 31, 2022. The sale of these assets was completed in the first quarter of 2023 for $19.9 million. The Company recorded a gain on the sale of $3.4 million, which was recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations.

Additional restructuring costs of $0.1 million and $0.3 million were incurred during the three and nine months ended September 30, 2023, respectively, for the Company's exited oil and gas drilling product lines produced at its former Enid, Oklahoma ("Enid") location. Costs of $0.1 million and $0.7 million were incurred during the three and nine months ended September 30, 2022, respectively. An impairment charge of $0.4 million was incurred during the third quarter of 2022 to record certain land and building assets held for sale at fair value less costs to sell.

Effective as of January 6, 2023, Mr. Barry A. Ruffalo's employment as President and Chief Executive Officer was terminated. In connection with his separation, the Company entered into an agreement with Mr. Ruffalo (the "Separation Agreement") pursuant to which, Mr. Ruffalo was entitled to certain severance payments and benefits. During the first quarter of 2023, $1.8 million of restructuring costs, related to the modification of Mr. Ruffalo's equity awards and other third-party transition support costs, were recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. The related recovery of $1.6 million of incurred share-based compensation expense was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations during the first quarter of 2023. The Separation Agreement also included a release and waiver by Mr. Ruffalo and other customary provisions.

Management continually reviews the Company's organizational structure and operations to ensure they are optimized and aligned with achieving near-term and long-term operational and profitability targets. In connection with this review, in February 2023, the Company implemented a limited restructuring plan to right-size and reduce the fixed cost structure of certain overhead departments. Total charges of $5.5 million for employee termination costs, including equity award modifications, were recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations, of which $5.2 million and $0.3 million were recorded in the first and second quarters of 2023, respectively. The related recovery of $1.0 million of incurred share-based compensation expense was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations, of which $0.8 million and $0.2 million were recorded during the first and second quarters of 2023, respectively.

During the second quarter of 2022, the Company determined that certain manufacturing equipment contracted to be constructed by a third-party vendor, which had been prepaid, would not be recovered. Impairment charges of $2.1 million were recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations during the nine months ended September 30, 2022. An additional $0.8 million and $0.9 million of impairment charges were incurred related to abandoned in-process internally developed software that was determined to be impaired during the nine months ended September 30, 2023 and 2022, respectively.

Note 12. (Loss) Earnings Per Common Share

Basic (loss) earnings per common share is determined by dividing "Net (loss) income attributable to controlling interest" by the weighted average number of common shares outstanding during the reporting period. Diluted (loss) earnings per common share includes the dilutive effect of common stock equivalents, consisting of restricted stock units, performance stock units and stock held in the Company's deferred compensation programs, using the treasury stock method. Performance stock units, which are considered contingently issuable, are considered dilutive when the related performance criterion has been met.

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The following table sets forth a reconciliation of the number of shares used in the computation of basic and diluted (loss) earnings per common share:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Denominator:
Denominator for basic earnings per common share	22,746,783	22,837,314	22,709,238	22,824,028
Effect of dilutive securities	—	79,002	66,920	108,178
Denominator for diluted earnings per common share	22,746,783	22,916,316	22,776,158	22,932,206
Antidilutive securities excluded from the calculation of diluted earnings per share	67,408	124,229	9,345	32,218

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The financial condition, results of operations and cash flows discussed in this Management's Discussion and Analysis of Financial Condition and Results of Operations are those of Astec Industries, Inc. and its consolidated subsidiaries, collectively, the "Company," "Astec," "we," "our" or "us." The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and related notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. The financial position, results of operations, cash flows and other information included herein are not necessarily indicative of the financial position, results of operations and cash flows that may be expected in future periods.

Forward-Looking Statements

This Quarterly Report on Form 10-Q, particularly the following discussion and analysis of our results of operations, financial condition and liquidity in this "Management's Discussion and Analysis of Financial Condition and Results of Operations," 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 Quarterly Report on Form 10-Q 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," or 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 described under the caption "Item 1A. Risk Factors" in Part II of this Report, elsewhere herein and in other documents filed by the Company with the Securities and Exchange Commission, including Part I, Item 1A. Risk Factors of the Company's Annual Report on Form 10-K for the year ended December 31, 2022, 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.

Overview

We design, engineer, manufacture and market equipment and components used primarily in road building and related construction activities, as well as certain other products. Our products are used in each phase of road building, from quarrying and crushing the aggregate to application of the road surface for both asphalt and concrete. We also manufacture certain equipment and components unrelated to road construction, including equipment for the mining, quarrying, construction and demolition 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.

Our products are marketed both domestically and internationally primarily to asphalt producers; highway and heavy equipment contractors; utility contractors; sand and gravel producers; construction, demolition, recycle and crushing contractors; mine and quarry operators; port and inland terminal authorities; power stations; and domestic and foreign government agencies. In addition to equipment sales, we manufacture and sell replacement parts for equipment in each of our product lines and replacement parts for some competitors' equipment. The distribution and sale of replacement parts is an integral part of our business.

See Note 10, Segment Information, of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion of our reportable segments.

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Executive Summary

Highlights of our financial results for the three months ended September 30, 2023 as compared to the same period of the prior year include the following:

•Net sales were $303.1 million, a decrease of 3.8%

•Gross profit was $69.6 million, an increase of 6.3%

•Income from operations decreased 373.7% to a loss of $5.2 million

•Net income attributable to Astec decreased $7.3 million to a loss of $6.6 million

•Diluted loss per share was $0.29, a decrease of $0.32

•Backlog of $614.7 million, a decrease of 36.6% as compared to September 30, 2022

Significant Items Impacting Operations in 2023

Strategic Transformation – We are undergoing a multi-year phased implementation of a standardized ERP system across our global organization, which will replace much of our existing disparate core financial systems. The upgraded ERP will initially convert our internal operations, manufacturing, finance, human capital resources management and customer relationship systems to cloud-based platforms. This new ERP system will provide for standardized processes and integrated technology solutions that enable us to better leverage automation and process efficiency. An implementation of this scale is a major financial undertaking and requires substantial time and attention of management and key employees. We materially completed the ERP global design in 2022, launched the human capital resources module in our locations in the United States in January 2023 and converted the operations of one manufacturing site along with Corporate during the second quarter of 2023 to set the foundation before accelerating the implementation at additional sites in 2024 and 2025. We anticipate incurring total costs associated with the ERP implementation in the range of $125 to $150 million, with an estimated $25 to $30 million incurred per year which began in 2022.

In addition, in the first quarter of 2022, a lean manufacturing initiative at one of our largest sites was initiated and is expected to drive improvement in gross margin at that site. We substantially completed the design efforts for this project during 2022. We also began executing investments to acquire and install manufacturing equipment intended to drive increased efficiencies in our production processes. We plan to continue these capital investments during 2023, which are anticipated to be largely completed by the end of 2023. Gross margin improvements are expected to be realized in conjunction with the project completion in early to mid-2024. This improvement is intended to serve as the optimal blueprint for our other manufacturing facilities.

Total costs of $7.8 million and $22.8 million were incurred related to these strategic transformation initiatives in the three and nine months ended September 30, 2023, respectively, of which $7.7 million and $22.6 million, respectively, are recorded in "Selling, general and administrative expenses" and $0.2 million included in "Cost of sales" in the Consolidated Statements of Operations. Costs totaling $7.0 million and $18.7 million were incurred in the three and nine months ended September 30, 2022, respectively, and are recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Additionally, as of September 30, 2023, we have capitalized $28.1 million in deferred implementation costs associated with the ERP implementation that are being amortized ratably over the remaining contract term, of which $3.0 million and $25.1 million were included in "Prepaid expenses and other assets" and "Other long-term assets" in the Consolidated Balance Sheets, respectively.

Tacoma Site Closure – In January 2021, we announced plans to close the Tacoma facility in order to simplify and consolidate operations. The Tacoma facility ceased manufacturing operations at the end of 2021. The transfer of the manufacturing and marketing of Tacoma product lines to other facilities within the Infrastructure Solutions segment was completed during the first quarter of 2022. The Tacoma facility's land, building and certain equipment assets of $15.4 million were included in "Assets held for sale" in the Consolidated Balance Sheets as of December 31, 2022. The sale of these assets was completed in the first quarter of 2023 for $19.9 million. We recorded a $3.4 million gain for the sale of these assets in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations.

Leadership Change and Overhead Restructuring – 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 $1.8 million of restructuring costs during the first quarter of 2023 related to the modification of Mr. Ruffalo's equity awards as well as third-party transition support costs in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. The related recovery of $1.6 million of incurred share-based compensation expense was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.

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

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implemented a limited restructuring plan to right-size and reduce the fixed cost structure of certain overhead departments. Total charges of $5.5 million for employee termination costs, including equity award modifications, were recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations, of which $5.2 million and $0.3 million were recorded in the first and second quarters of 2023, respectively. The related recovery of $1.0 million of incurred share-based compensation expense was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations, of which $0.8 million and $0.2 million were recorded during the first and second quarters of 2023, respectively.

37 BP Litigation – On October 5, 2023, a jury rendered a verdict against our Telsmith, Inc. subsidiary in the matter styled 37 Building Products, Ltd. ("37 BP") v. Telsmith, Inc. ("Telsmith"), et al. originally filed on January 28, 2019. 37 BP alleged breaches of warranty and negligent misrepresentation regarding equipment manufactured by Telsmith and purchased by 37 BP in 2017 through one of our dealers. Based on the jury verdict, a loss for this matter has been determined to be probable in a range between $6.4 million and $18.1 million, inclusive of attorneys' fees and prejudgment interest. A loss contingency of $6.4 million was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations and "Other current liabilities" in the Consolidated Balance Sheets during the third quarter of 2023 representing our best estimate of the loss. See Note 8, Commitments and Contingencies of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion of this matter.

Industry and Business Condition

Our financial performance is affected by a number of factors, including the cyclical nature and varying conditions of the markets we serve. Demand in these markets fluctuates in response to overall economic conditions and is particularly sensitive to the amount of public sector spending on infrastructure development, privately funded infrastructure development and changes in the prices of liquid asphalt, oil, natural gas and steel. In addition, many of our markets are highly competitive, and our products compete worldwide with similar products produced and sold by a number of other manufacturers and dealers.

Backlog represents the dollar value of orders for equipment and parts which are expected to be recognized in net sales in the future. Orders are contractually binding purchase commitments from customers, which are included in backlog when we are in receipt of an executed contract and any required deposits or security and have not yet been recognized into net sales. Certain orders for which we have received binding letters of intent or contracts will not be included in backlog until all required contractual documents and deposits are received. Backlog is not a measure defined by U.S. GAAP, and our methodology for determining backlog may vary from the methodology used by other companies in determining their backlog amounts. In addition, our backlog should not necessarily be viewed as an accurate indicator of revenue for any particular period and there is no guarantee that our backlog will be converted to net sales.

Backlog levels provide management and investors additional details of committed orders that are expected to convert to future net sales. Management uses backlog information for capacity and resource planning as well as to monitor inventory levels in our facilities relative to expected future net sales.

Our $614.7 million backlog of orders as of September 30, 2023 continues to remain strong. The backlog of orders decreased $354.3 million, or 36.6%, compared to $969.0 million as of September 30, 2022. The decrease in backlog was driven by 2023 sales delivery outpacing new orders compared to a build of backlog throughout 2022, which was largely due to strong customer demand and logistics and manufacturing throughput disruptions. We expect backlog levels to continue to normalize from the historically high levels we have experienced in recent years largely based on supply chain stabilization. Macroeconomic factors such as higher inflation and increased interest rates, among other factors, may also influence future customer spending. Additionally, we are focused on prudent expansion of our production capacity that we anticipate will allow us to more effectively convert backlog to sales in the future with greater efficiency and shorter lead times.

Federal funding provides a significant portion of all highway, street, roadway and parking construction in the United States. As federal highway funding programs have consistently been in place for several decades, we believe that these funding programs provide stability in the purchasing decisions of our customers by allowing them to plan and execute longer-term projects with federal legislation in place over a multi-year period. The U.S. government enacted the Infrastructure Investment and Jobs Act ("IIJA") in November 2021 as a replacement for the prior program. The IIJA allocates $548 billion in government spending to new infrastructure over the five-year period concluding in 2026, with certain amounts specifically allocated to fund highway and bridge projects. We believe that multi-year highway programs (such as the IIJA) have a positive impact on the domestic road construction industry.

Significant portions of our revenues from the Infrastructure Solutions segment relate to the sale of equipment involved in the production, handling, recycling or application of asphalt mix and, to a lesser extent, concrete as surface choices for roads and highways. Liquid asphalt is a by-product of oil refining. An increase or decrease in the price of oil impacts the cost of asphalt, which is likely to alter demand for asphalt and therefore affect demand for certain of our products. While increasing oil prices may have a negative financial impact on many of our customers, our equipment can use a significant amount of reclaimed asphalt pavement, thereby partially mitigating the effect of increased oil prices on the final cost of asphalt for the customer. We continue to develop products and initiatives to reduce the amount of oil and related products required to produce asphalt. While oil prices had declined from the peak prices in 2022, throughout 2023 they have remained at relatively high levels. Price volatility continues to make it difficult to predict the costs of oil-based products used in road construction such as liquid asphalt and gasoline. Oil

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prices have routinely fluctuated in recent years and are expected to continue to fluctuate in the future. Based on the current macroeconomic environment, including current international conflicts, we anticipate that oil prices will remain at relatively high levels throughout the remainder of 2023 and into 2024.

Steel is a major component of our equipment. Driven by supply constraints, steel prices increased throughout the prior year, stabilizing at historically high levels at the end of 2022. Steel prices have softened slightly in 2023 and are expected to be maintained at these regulated levels through the remainder of 2023 and into 2024. During 2022, we observed a slowing in market demand and reduced lead times as buyers were responding to recessionary pressures and restricted their purchases to near-term needs. Lead times increased during the first quarter of 2023 driven by stronger demand, however, have moderated to a consistent rate as the prior year. We anticipate that steel demand will remain relatively strong through the balance of 2023 and into 2024, driven by the IIJA domestically and impacted by international production capacity. We continue to employ flexible strategies to ensure supply and minimize the impact of price volatility. Potential ongoing constraints in the supply of certain steel products may continue pressuring the availability of other components used in our manufacturing process. Furthermore, given the volatility of steel prices and the nature of our customers' orders, we may not be able to pass through all increases in steel costs to our customers, which negatively impacts our gross profit and margins.

We actively manage our global supply chain for any identified constraints and volatility. Supply chain constraints experienced in prior periods have eased recently, however, lead times for certain key supplies remain elongated. We continue to focus on identifying and qualifying alternative suppliers wherever possible, to help alleviate any lagging or potential future challenges in our supply chain. We also continually monitor potential future supply costs and availability in an effort to proactively address challenges that might occur.

In addition, while we have continued to experience shortages of necessary production personnel in certain markets, we have seen a slight easing in the tight labor market. However, higher turnover during the pandemic periods of 2020 through 2022 have contributed to lower tenured production staff. Higher labor costs to attract staff in our manufacturing operations are normalizing at elevated levels. We continue to adjust our production schedules and manufacturing workload distribution, provide comprehensive training, outsource components, implement efficiency improvements and actively modify our recruitment process and compensation and benefits to attract and retain production personnel in our manufacturing facilities.

Whenever possible, we attempt to cover increased costs of production by adjusting the prices of our products. Backlog fulfillment times from the initial order to completing the contracted sale vary and can extend past twelve months. For this reason, we have limitations on our ability to pass on cost increases to our customers on a short-term basis. In addition, the markets we serve are competitive in nature, and competition limits our ability to pass through cost increases in many cases. Through our operational excellence initiatives, we also strive to minimize the effect of inflation through cost reductions and improved manufacturing efficiencies.

Results of Operations

Net Sales

Net sales for the third quarter of 2023 were $303.1 million compared to $315.2 million for the third quarter of 2022, a decrease of $12.1 million, or 3.8%. The decrease in net sales was primarily driven by net unfavorable changes in the volume, pricing and mix of sales that generated decreases in (i) equipment sales of $9.4 million, (ii) used equipment sales of $4.1 million and (iii) service and equipment installation revenue of $0.8 million. These decreases were partially offset by an increase in parts and component sales of $2.1 million. Sales reported by our foreign subsidiaries in U.S. dollars for the third quarter of 2023 would have been $1.1 million higher had third quarter 2023 foreign exchange rates been the same as third quarter 2022 rates.

Net sales for the first nine months of 2023 were $1,001.0 million compared to $924.6 million for the first nine months of 2022, an increase of $76.4 million, or 8.3%. The increase in net sales was primarily driven by net favorable changes in the volume, pricing and mix of sales that generated increases in (i) equipment sales of $46.6 million, (ii) service and equipment installation revenue of $22.9 million and (iii) parts and component sales of $12.6 million. These increases were partially offset by a decrease in other revenue of $3.1 million, which was primarily driven by increased utilization of our interest subsidy programs offered to certain of our dealer customers and used equipment of $2.9 million. Sales reported by our foreign subsidiaries in U.S. dollars for the first nine months of 2023 would have been $7.9 million higher had the first nine months of 2023 foreign exchange rates been the same as the first nine months of 2022 rates.

Domestic sales for the third quarter of 2023 were $229.6 million, or 75.8% of consolidated net sales, compared to $249.4 million, or 79.1% of consolidated net sales, for the third quarter of 2022, a decrease of $19.8 million, or 7.9%. Domestic sales decreased primarily due to (i) $17.7 million lower equipment sales, (ii) $3.2 million lower used equipment sales and (iii) $1.7 million lower service and equipment installation revenue. These decreases were partially offset by an increase in parts and components sales of $2.7 million.

Domestic sales for the first nine months of 2023 were $797.3 million, or 79.7% of consolidated net sales, compared to $732.3 million, or 79.2% of consolidated net sales, for the first nine months of 2022, an increase of $65.0 million, or 8.9%. Domestic sales increased primarily due to (i) $36.5 million higher equipment sales, (ii) $20.3 million higher service and equipment

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installation revenue and (iii) $14.0 million higher parts and component sales. These increases were partially offset by a decrease in other revenue of $3.0 million, which was primarily driven by higher utilization of our interest subsidy programs offered to certain of our dealer customers, and lower used equipment sales of $2.6 million.

International sales for the third quarter of 2023 were $73.5 million, or 24.2% of consolidated net sales, compared to $65.8 million, or 20.9% of consolidated net sales, for the third quarter of 2022, an increase of $7.7 million, or 11.7%. International sales increased primarily due to higher equipment sales of $8.3 million and service and equipment installation revenue of $0.9 million partially offset by lower used equipment sales of $0.9 million.

International sales for the first nine months of 2023 were $203.7 million, or 20.3% of consolidated net sales, compared to $192.3 million, or 20.8% of consolidated net sales, for the first nine months of 2022, an increase of $11.4 million, or 5.9%. International sales increased primarily due to higher (i) equipment sales of $10.1 million and (ii) service and equipment installation sales of $2.6 million.

Gross Profit

Gross profit for the third quarter of 2023 was $69.6 million, or 23.0% of net sales, as compared to $65.5 million, or 20.8% of net sales, for the third quarter of 2022, an increase of $4.1 million, or 6.3%. The increase was primarily driven by favorable pricing partially offset by net unfavorable volume and mix that generated $17.2 million higher gross profit. These increases were also partially offset by the impact of inflation on materials, labor and overhead of $10.5 million and manufacturing inefficiencies of $2.6 million due in part to increased warranty program costs.

Gross profit for the first nine months of 2023 was $241.7 million, or 24.1% of net sales, as compared to $193.1 million, or 20.9% of net sales, for the first nine months of 2022, an increase of $48.6 million, or 25.2%. The increase was primarily driven by the net favorable volume, pricing and mix of $90.1 million and $2.3 million of gross profit generated by an acquired business. These increases were partially offset by the impact of inflation on materials, labor and overhead of $35.0 million and manufacturing inefficiencies of $8.8 million due in part to the effects of lower tenured production staff associated with the turnover experienced in the prior year and increased warranty program costs partially offset by the impact of an out-of-period benefit of $1.9 million associated with the correction of over-accruals of inventory-related expenses recorded in the first quarter of 2023.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $10.8 million, or 17.0%, to $74.3 million, or 24.5% of net sales, for the third quarter of 2023, compared to $63.5 million, or 20.1% of net sales, for the third quarter of 2022 primarily due to (i) a $6.4 million loss contingency recorded related to the 37 BP litigation, (ii) increased net payroll and employee benefit costs of $4.1 million, which was largely driven by general employee cost increases and higher annual incentive compensation costs of $1.7 million, partially offset by reduced health insurance costs of $1.8 million, (iii) $1.3 million increased consulting and project costs and (iv) $0.7 million increased costs related to our strategic transformation program. These increases were partially offset by lower amortization and research and development expenses of $0.9 million, respectively.

Selling, general and administrative expenses increased $22.3 million, or 12.1%, to $206.7 million, or 20.6% of net sales, for the first nine months of 2023, compared to $184.4 million, or 19.9% of net sales, for the first nine months of 2022 primarily due to (i) increased net payroll and employee benefit costs of $8.4 million, which was largely driven by general employee cost increases and higher annual incentive compensation costs of $2.9 million, partially offset by lower share-based compensation expense of $3.4 million mainly related to the recovery of share-based compensation expense for awards that were forfeited or modified in conjunction with the termination of our previous CEO and the limited overhead restructuring action implemented in February 2023 and reduced health insurance costs of $2.1 million, (ii) a $6.4 million loss contingency recorded related to the 37 BP litigation, (iii) $3.9 million of increased costs related to our strategic transformation program, (iv) $2.9 million of higher exhibit and promotional costs primarily due to the ConExpo industry trade show held once every three years, (v) $2.8 million increased consulting, prototype and project costs and (vi) incremental expenses associated with the acquisition of MINDS of $1.1 million. These increases were partially offset by lower amortization expense of $2.9 million and reduced acquisition and integration related costs of $1.9 million primarily associated with the acquisition of MINDS.

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Restructuring, Impairment and Other Asset Charges, net

Restructuring, asset impairment charges and the net losses and gains on sale of property and equipment for the three and nine month periods ended September 30, 2023 and 2022 are presented below: 

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Restructuring charges:
Costs associated with leadership change and overhead restructuring	$	—	$	—	$	7.3	$	—
Costs associated with exited operations - Enid	0.1		0.1		0.3		0.7
Costs associated with closing Tacoma	—		—		—		0.8
Total restructuring related charges	0.1		0.1		7.6		1.5
Asset impairment charges:
Other impairment charges	—		0.4		0.8		3.4
Total asset impairment charges	—		0.4		0.8		3.4
Loss (gain) on sale of property and equipment, net
Loss (gain) on sale of property and equipment, net	0.4		(0.4)		(3.1)		(0.4)
Total loss (gain) on sale of property and equipment, net	0.4		(0.4)		(3.1)		(0.4)
Restructuring, impairment and other asset charges, net	$	0.5	$	0.1	$	5.3	$	4.5

See Note 11, Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for discussion of the individual restructuring actions taken.

Interest Expense

Interest expense of $2.4 million and $6.4 million was incurred in the three and nine months ended September 30, 2023, respectively, as compared to $0.6 million and $1.6 million in the three and nine months ended September 30, 2022, respectively, primarily related to higher outstanding borrowings on our revolving credit facility.

Other (Expenses) Income, net

Other (expenses) income, net was $0.5 million for the first nine months of 2023 compared to an expense of $1.8 million for the first nine months of 2022, an increase of $2.3 million primarily due to the change in net foreign currency transaction gains and losses.

Income Tax

Our income tax benefit for the third quarter of 2023 was $0.6 million compared to an income tax expense of $0.7 million for the third quarter of 2022. Our effective income tax rate was 8.5% for the third quarter of 2023 compared to 58.3% for the third quarter of 2022. The income tax benefit for the three months ended September 30, 2023 as compared to expense in the same period in 2022 was primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss.

Our income tax expense for the first nine months of 2023 was $6.5 million, reflecting a 25.7% effective tax rate, compared to $0.8 million expense, reflecting a 53.3% effective tax rate, for the first nine months of 2022. The income tax expense for the nine months ended September 30, 2023 was higher compared to the same period in 2022 primarily due to higher pretax book income and changes in the relative weighting of jurisdictional income and loss, partially offset by a net discrete tax benefit related to a research and development credit.

Backlog

The backlog of orders as of September 30, 2023 was $614.7 million compared to $969.0 million as of September 30, 2022, a decrease of $354.3 million, or 36.6%. Domestic backlog decreased $302.1 million, or 37.2%, and international backlog

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decreased $52.2 million, or 33.4%, respectively. The backlog decreased $165.0 million to $435.2 million in the Infrastructure Solutions segment and decreased $189.4 million to $176.9 million in the Materials Solutions segment. The Corporate and Other backlog represents our controls and automation business and increased $0.1 million to $2.6 million.

The decrease in backlog was driven by 2023 sales delivery outpacing new orders compared to a build of backlog throughout 2022, which was largely due to strong customer demand and logistics and manufacturing throughput disruptions. We expect backlog levels to continue to normalize from the historically high levels we have experienced in recent years largely based on supply chain stabilization. Macroeconomic factors such as higher inflation and increased interest rates, among other factors, may also influence future customer spending. Furthermore, as a result of such macroeconomic factors, we are actively monitoring orders from our high-volume dealers for potential modifications, push-outs or cancellations. Additionally, we are focused on prudent expansion of our production capacity that we anticipate will allow us to more effectively convert backlog to sales in the future with greater efficiency and shorter lead times.

Segment Net Sales - Three Months Ended:

	Three Months Ended September 30,				$ Change		% Change
(in millions, except percentage data)	2023		2022
Infrastructure Solutions	$	190.8	$	201.9	$	(11.1)	(5.5)	%
Materials Solutions	110.5		111.8		(1.3)		(1.2)	%
Corporate and Other	1.8		1.5		0.3		20.0	%

Infrastructure Solutions

Sales in this segment were $190.8 million for the third quarter of 2023 compared to $201.9 million for the same period in 2022, a decrease of $11.1 million, or 5.5%. The decrease was primarily driven by net unfavorable changes in the volume, pricing and mix of sales that generated decreased (i) equipment sales of $9.0 million, (ii) used equipment sales of $3.5 million and (iii) service and equipment installation revenue of $1.6 million. These decreases were offset by higher parts and component sales of $3.1 million.

Domestic sales for the Infrastructure Solutions segment decreased $12.3 million, or 7.4%, for the third quarter of 2023 compared to the same period in 2022 primarily due to decreased (i) equipment sales of $11.5 million, (ii) used equipment sales of $3.2 million and (iii) service and equipment installation sales of $1.6 million. These decreases were partially offset by an increase in parts and component sales of $4.0 million.

International sales for the Infrastructure Solutions segment increased $1.2 million, or 3.4%, for the third quarter of 2023 compared to the same period in 2022 primarily due to increased equipment sales of $2.5 million partially offset by decreased parts and component sales of $0.9 million.

Materials Solutions

Sales in this segment were $110.5 million for the third quarter of 2023 compared to $111.8 million for the same period in 2022, a decrease of $1.3 million, or 1.2%. The decrease was primarily driven by net unfavorable changes in the volume, pricing and mix of sales that generated decreased parts and component sales and used equipment sales of $1.0 million and $0.6 million, respectively. These decreases were partially offset by an increase in service and equipment installation revenue of $0.8 million.

Domestic sales for the Materials Solutions segment decreased by $7.4 million, or 9.0%, for the third quarter of 2023 compared to the same period in 2022, primarily driven by decreased equipment sales and parts and component sales of $5.9 million and $1.3 million, respectively.

International sales for the Materials Solutions segment increased $6.1 million, or 20.7%, for the third quarter of 2023 compared to the same period in 2022 primarily due to increased equipment sales and service and equipment installation sales of $5.4 million and $0.9 million, respectively.

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Segment Net Sales - Nine Months Ended:

	Nine Months Ended September 30,				$ Change		% Change
(in millions, except percentage data)	2023		2022
Infrastructure Solutions	$	638.8	$	609.0	$	29.8	4.9	%
Materials Solutions	354.6		312.9		41.7		13.3	%
Corporate and Other	7.6		2.7		4.9		181.5	%

Infrastructure Solutions

Sales in this segment were $638.8 million for the first nine months of 2023 compared to $609.0 million for the same period in 2022, an increase of $29.8 million or 4.9%. The increase was primarily driven by net favorable changes in the volume, pricing and mix of sales that generated increased service and equipment installation revenue of $20.7 million and parts and component sales of $11.5 million. These increases were partially offset by decreased used equipment sales of $2.5 million.

Domestic sales for the Infrastructure Solutions segment increased $29.8 million or 5.9% for the first nine months of 2023 compared to the same period in 2022 primarily due to increased service and equipment installation sales of $20.2 million and increased parts and component sales of $13.5 million. These increases were partially offset by a decrease in used equipment sales of $2.6 million.

International sales for the Infrastructure Solutions segment were consistent for the first nine months of 2023 compared to the same period in 2022.

Materials Solutions

Sales in this segment were $354.6 million for the first nine months of 2023 compared to $312.9 million for the same period in 2022, an increase of $41.7 million, or 13.3%. The increase was primarily driven by net favorable changes in the volume, pricing and mix of sales that generated increased new equipment sales and service and equipment installation revenue of $42.2 million and $2.0 million, respectively. These increases were partially offset by decreased other revenue of $3.6 million, which was primarily driven by increased utilization of our interest subsidy programs offered to some of our dealer customers.

Domestic sales for the Materials Solutions segment increased by $33.3 million, or 14.6%, for the first nine months of 2023 compared to the same period in 2022, driven by increased new equipment sales of $35.8 million. This increase was partially offset by decreased other revenue of $3.4 million, which was primarily driven by increased utilization of our interest subsidy programs offered to certain of our dealer customers.

International sales for the Materials Solutions segment increased $8.4 million, or 9.9%, for the first nine months of 2023 compared to the same period in 2022 primarily due to increased new equipment sales of $6.4 million and service and equipment installation revenue of $2.0 million.

Corporate and Other

Corporate and Other sales are generated from our controls and automation business. Sales were $7.6 million for the first nine months of 2023 compared to $2.7 million for the same period in 2022, an increase of $4.9 million, or 181.5%. The increase was primarily related to net incremental sales from MINDS during the first quarter of 2023. The MINDS acquisition was completed on April 1, 2022 and results of operations have been consolidated from that date.

Segment Operating Adjusted EBITDA

Segment Operating Adjusted EBITDA is the measure of segment profit or loss used by our Chief Executive Officer, whom is determined to be the chief operating decision maker ("CODM"), to evaluate performance and allocate resources to the operating segments. Segment Operating Adjusted EBITDA, a non-GAAP financial measure, is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered by the CODM in the evaluation of ongoing operating performance. This non-GAAP financial measure can be useful to investors in understanding operating results and the performance of our core business from management's perspective. Our presentation of Segment Operating Adjusted EBITDA may not be comparable to similar measures used by other companies and is not necessarily indicative of the results of operations that would have occurred had each reportable segment been an independent, stand-alone entity during the periods presented. See Note 10, Segment Information, of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a reconciliation of Segment Operating Adjusted EBITDA to total consolidated net income attributable to controlling interest.

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Segment Operating Adjusted EBITDA - Three Months Ended:

	Three Months Ended September 30,				$ Change		% Change
(in millions, except percentage data)	2023		2022
Infrastructure Solutions	$	16.5	$	17.6	$	(1.1)	(6.3)	%
Materials Solutions	8.3		13.1		(4.8)		(36.6)	%
Corporate and Other	(14.4)		(14.2)		(0.2)		(1.4)	%

Infrastructure Solutions

Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $16.5 million for the third quarter of 2023 compared to $17.6 million for the same period in 2022, a decrease of $1.1 million, or 6.3%. The decrease in Segment Operating Adjusted EBITDA resulted primarily from the impact of higher inflation on materials, labor and overhead costs of $6.8 million and increased selling, general, administrative and other net costs of $4.8 million, primarily due to higher personnel related costs. These decreases were partially offset by the impact of favorable pricing net of unfavorable volume/mix that generated $10.5 million higher gross profit.

Materials Solutions

Segment Operating Adjusted EBITDA for the Materials Solutions segment was $8.3 million for the third quarter of 2023 compared to $13.1 million for the same period in 2022, a decrease of $4.8 million, or 36.6%. The decrease in Segment Operating Adjusted EBITDA between periods resulted primarily from increased selling, general, administrative and other net costs of $7.8 million, primarily driven by a $6.4 million loss contingency recorded related to the 37 BP litigation and higher personnel related costs, and the impact of higher inflation on materials, labor and overhead costs of $3.7 million. These decreases were partially offset by the impact of favorable pricing net of unfavorable volume/mix that generated $7.2 million higher gross profit.

Segment Operating Adjusted EBITDA - Nine Months Ended:

	Nine Months Ended September 30,				$ Change		% Change
(in millions, except percentage data)	2023		2022
Infrastructure Solutions	$	70.5	$	49.9	$	20.6	41.3	%
Materials Solutions	41.9		34.8		7.1		20.4	%
Corporate and Other	(33.5)		(36.3)		2.8		7.7	%

Infrastructure Solutions

Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $70.5 million for the first nine months of 2023 compared to $49.9 million for the same period in 2022, an increase of $20.6 million, or 41.3%. The increase in Segment Operating Adjusted EBITDA resulted primarily from the impact of favorable net volume, pricing and mix that generated $59.1 million higher gross profit. These increases were partially offset by (i) the impact of higher inflation on materials, labor and overhead costs of $22.2 million, (ii) increased selling, general and administrative costs of $13.5 million, primarily due to $10.3 million higher personnel related costs, $2.6 million increased consulting, prototype and project costs and $1.1 million of increased exhibit and promotional costs related to the ConExpo industry trade show and (iii) manufacturing inefficiencies of $3.1 million, partially offset by the impact of an out-of-period benefit of $1.9 million associated with the correction of over-accruals of inventory-related expenses recorded in the first quarter of 2023.

Materials Solutions

Segment Operating Adjusted EBITDA for the Materials Solutions segment was $41.9 million for the first nine months of 2023 compared to $34.8 million for the same period in 2022, an increase of $7.1 million, or 20.4%. The increase in Segment Operating Adjusted EBITDA resulted primarily from the impact of favorable net volume, pricing and mix that generated $32.5 million higher gross profit. These increases were partially offset by (i) the impact of higher inflation on materials, labor and overhead costs of $12.8 million, (ii) increased general and administrative costs of $8.9 million, primarily due to a $6.4 million loss contingency recorded related to the 37 BP litigation and $1.2 million higher personnel related costs and (iii) manufacturing inefficiencies of $3.7 million due in part to increased warranty program costs.

Corporate and Other

Corporate and Other operations had net expenses of $33.5 million for the first nine months of 2023 compared to $36.3 million for the first nine months of 2022, a decrease of $2.8 million, or 7.7%. The decrease in expenses was primarily driven by an

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incremental $1.5 million of profit contributed by MINDS during the first quarter of 2023 and $2.4 million of lower general and administrative expenses, primarily associated with employee related costs including the recovery of share-based compensation expense related to awards forfeited or modified in conjunction with the termination of our previous CEO and the limited overhead restructuring action implemented in February 2023 partially offset by increased health insurance costs. The MINDS acquisition was completed on April 1, 2022 and results of operations have been consolidated from that date.

Liquidity and Capital Resources

Our primary sources of liquidity and capital resources are cash and cash equivalents on hand, borrowing capacity under a $250.0 million revolving credit facility and cash flows from operations. As of September 30, 2023, our total liquidity was $196.9 million, consisting of $71.3 million of cash and cash equivalents available for operating purposes and $125.6 million available for additional borrowings under our revolving credit facility, to the extent our compliance with financial covenants permits such borrowings. Our foreign subsidiaries held $34.0 million of cash and cash equivalents available for operating purposes, which is considered to be indefinitely invested in those jurisdictions.

Our future cash requirements primarily include working capital needs, debt service obligations, capital expenditures, vendor hosted software arrangements including the related implementation costs, unrecognized tax benefits and operating lease payments. In addition, our variable cash uses may include the payment of our quarterly cash dividend, financing other strategic initiatives of our business, including, but not limited to, transformation initiatives, strategic acquisitions and share repurchases under our share repurchase authorization. We believe that our current working capital, cash flows generated from future operations and available capacity under our revolving credit facility will be sufficient to meet working capital and capital expenditure requirements for our existing business for at least the next 12 months.

On December 19, 2022, we entered into a new credit agreement (the "Credit Agreement") with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, which replaced the previously existing credit facility with a borrowing capacity of $150.0 million and a maturity date of December 29, 2023 (the "Previous Credit Facility"). The Credit Agreement provides for (i) a revolving credit facility (consisting of revolving credit loans and swingline loans) and a letter of credit facility, in an aggregate amount of up to $250.0 million, (ii) an incremental credit facility in an aggregate amount not to exceed $125.0 million (the "Credit Facilities") and (iii) a maturity date of December 19, 2027.

We had $122.0 million in outstanding borrowings under the Credit Facilities as of September 30, 2023. Our outstanding letters of credit totaling $2.4 million decreased borrowing availability to $125.6 million under the revolving credit facility as of September 30, 2023. We anticipate continuing to utilize the Credit Facilities with more frequency in the near-term to support our domestic working capital needs. The Credit Agreement contains certain financial covenants, including requirements related to our Consolidated Total Net Leverage Ratio and Consolidated Interest Coverage Ratio, each as defined in the agreement. Failure to satisfy these covenants could result in the accelerated repayment of our indebtedness. We were in compliance with the financial covenants of the Credit Facilities as of September 30, 2023. Due to the increased borrowings under our Credit Facilities and higher interest rates, we expect our interest expense in 2023 to be significantly higher than in prior years.

Our Brazilian subsidiary maintains a separate term loan for working capital purposes with a bank in Brazil, which is secured by its manufacturing facility.

Certain of our international subsidiaries in South Africa, Australia, Brazil, Canada and the United Kingdom each have separate credit facilities with local financial institutions, primarily to finance short-term working capital needs, as well as to cover foreign exchange contracts, performance letters of credit, advance payment and retention guarantees. In addition, the Brazilian subsidiary also enters into order anticipation agreements on a periodic basis. Both the outstanding borrowings under the credit facilities of the international subsidiaries and the order anticipation agreements are recorded in "Short-term debt" in our Consolidated Balance Sheets. Each of the credit facilities are generally guaranteed by Astec Industries, Inc. and/or secured with certain assets of the local subsidiary.

We regularly enter into agreements, primarily to purchase inventory, in the ordinary course of business. As of September 30, 2023, open purchase obligations totaled $222.5 million, of which $145.5 million are expected to be fulfilled within the remainder of 2023.

We estimate that our capital expenditures will not exceed $35 million for the year ending December 31, 2023, which may be impacted by general economic, financial or operational changes and competitive, legislative and regulatory factors, among other considerations.

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Cash Flows

The following table summarizes cash flows during the nine months ended September 30, 2023 and 2022, respectively:

	Nine Months Ended September 30,
(in millions)	2023		2022
Net cash used in operating activities	$	(18.8)	$	(56.8)
Net cash used in investing activities	(3.9)		(45.0)
Net cash provided by (used in) financing activities	30.8		(8.4)
Effect of exchange rates on cash	(0.3)		(3.4)
Increase (decrease) in cash, cash equivalents and restricted cash	7.8		(113.6)
Cash, cash equivalents and restricted cash, end of period	$	73.8	$	20.8

Net cash used in operating activities

Net cash used in operating activities decreased by $38.0 million during the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022 primarily due to higher net income of $18.1 million and reduced net cash usages for our operating assets and liabilities of $12.2 million. The net cash usages for our operating assets and liabilities were mainly driven by decreased inventory purchases in 2023 of $39.2 million and the timing of payments on trade accounts payables of $18.2 million, partially offset by decreased customer deposits of $29.3 million associated with lower backlog and the timing of collections on trade accounts receivables $19.2 million.

Net cash used in investing activities

Net cash used in investing activities decreased by $41.1 million during the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, primarily due to the cash inflows from the sale of the Tacoma facility's land, building and certain equipment assets for $19.9 million in the first quarter of 2023 and the net cash used to acquire MINDS in the second quarter of 2022 for $17.8 million.

Net cash provided by (used in) financing activities

Our financing activities provided net cash of $30.8 million during the nine months ended September 30, 2023 as opposed to a net cash use of $8.4 million during the nine months ended September 30, 2022, primarily due to increased borrowings net of repayments of $33.6 million and share repurchases of $6.1 million in the third quarter of 2022.

Dividends

We paid quarterly dividends of $0.13 and $0.12 per common share to shareholders in the third quarter of 2023 and 2022, respectively.

Share Repurchases

As announced in a Form 8-K filing on July 30, 2018, we approved a share repurchase program, which authorizes us to repurchase up to $150.0 million of our common stock. As of September 30, 2023, $115.7 million remains available for repurchase under the approved share repurchase program. No shares were repurchased under the plan during the three months ended September 30, 2023; however, we may conduct opportunistic share repurchases under this authorization in future periods utilizing cash on hand or borrowings under our Credit Facilities. The timing, manner and number of shares repurchased will depend on a variety of factors, including, but not limited to, the level of cash balances, credit availability, financial performance, general business conditions, regulatory requirements, the market price of our stock and the availability of alternative investment opportunities.

Financial Condition

Our total current assets increased to $746.3 million as of September 30, 2023 from $696.4 million as of December 31, 2022, an increase of $49.9 million, or 7.2%, due primarily to increases of $56.7 million in inventory, $7.8 million in cash, cash equivalents and restricted cash and $7.6 million in trade receivables and contract assets. These increases were partially offset by the sale of our Tacoma site previously recorded as "Assets held for sale" for $15.4 million and a decrease in prepaid assets of $5.5 million.

Our total current liabilities increased to $282.2 million as of September 30, 2023 from $274.0 million as of December 31, 2022, an increase of $8.2 million, or 3.0%, due primarily to increases of $9.1 million in accrued employee related liabilities, $7.1 million in accounts payable and $4.8 million in accrued product warranty. These increases were partially offset by an $8.9 million decrease in customer deposits, a $2.5 million decrease in short-term debt and a $2.3 million decrease in other current liabilities.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our quantitative and qualitative disclosures about market risk are incorporated by reference from Part II, "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended December 31, 2022. Our market risk exposures have not materially changed since our Annual Report on Form 10-K for the year ended December 31, 2022 was filed.

Item 4. Controls and Procedures 

Disclosure Controls and Procedures

Our management has established and maintains disclosure controls and procedures that are designed to ensure that the information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of September 30, 2023, the Company's disclosure controls and procedures were effective.

Internal Control over Financial Reporting

We are currently undertaking a significant multi-year global ERP implementation to upgrade our information technology platforms and business processes. The implementation is occurring in phases over several years beginning in 2023. During the first quarter of 2023, we implemented the human capital resources management module, including the payroll application for all locations within the United States. During the second quarter of 2023, we implemented the ERP at Corporate and one manufacturing site. During the third quarter of 2023, we implemented the consolidations and reporting module.

As a result of this multi-year implementation, we expect certain changes to our processes and procedures, which, in turn, will result in changes to our internal control over financial reporting. While we expect this implementation to strengthen our internal control over financial reporting by automating certain manual processes and standardizing business processes and reporting across our organization, we will continue to evaluate and monitor our internal control over financial reporting as processes and procedures in the affected areas evolve.

With the exception of the implementations described above, there have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the three month period ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II ‑ OTHER INFORMATION

Item 1. Legal Proceedings

From time to time we are involved in legal actions arising in the ordinary course of our business. Other than as set forth in Note 8, Commitments and Contingencies, to the unaudited consolidated financial statements and Part I, "Item 3. Legal Proceedings" in our Annual Report on Form 10-K for the year ended December 31, 2022, we currently have no pending or threatened litigation that our management believes will result in an outcome that would materially affect our business, financial position, cash flows or results of operations. Nevertheless, there can be no assurance that future litigation to which we become a party will not have a material adverse effect on our business, financial position, cash flows or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this Report, you should carefully consider the factors discussed in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K for the year ended December 31, 2022, our Quarterly Report on Form 10-Q for the three months ended March 31, 2023, our Quarterly Report on Form 10-Q for the three and six months ended June 30, 2023 and in this Quarterly Report on Form 10-Q are not the only risks facing our Company. Additional risks and uncertainties not currently known to management or that management currently deems to be immaterial also may materially and adversely affect our business, financial condition or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Exhibit Description	Filed Herewith
31.1	Certification of Chief Executive Officer of Astec Industries, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification of Chief Financial Officer of Astec Industries, Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32.1	Certification of Chief Executive Officer of Astec Industries, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
32.2	Certification of Chief Financial Officer of Astec Industries, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101	The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 formatted in Inline Extensible Business Reporting Language ("iXBRL"): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive (Loss) Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Equity and (vi) related notes, tagged as blocks of text and including detailed tags.	X
104	Cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in iXBRL (included as Exhibit 101).	X

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ASTEC INDUSTRIES, INC. (Registrant)
Date: November 2, 2023	/s/ Rebecca A. Weyenberg
	Rebecca A. Weyenberg Chief Financial Officer (Principal Financial Officer)
Date: November 2, 2023	/s/ Jamie E. Palm
	Jamie E. Palm Vice President, Chief Accounting Officer and Corporate Controller (Principal Accounting Officer)

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EX-31.1

Exhibit 31.1

Certification pursuant to Rule 13a-14(a)/15d-14(a),

as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jaco van der Merwe, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Astec Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2023	/s/ Jaco van der Merwe
	Jaco van der Merwe
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification pursuant to Rule 13a-14(a)/15d-14(a),

as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Rebecca A. Weyenberg, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Astec Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2023	/s/ Rebecca A. Weyenberg
	Rebecca A. Weyenberg
	Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification pursuant to 18 U.S.C. Section 1350, as adopted

pursuant to Section 906 Of The Sarbanes-Oxley Act Of 2002

In connection with the Quarterly Report of Astec Industries, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jaco van der Merwe, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 2, 2023	/s/ Jaco van der Merwe
	Jaco van der Merwe
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

Certification pursuant to 18 U.S.C. Section 1350, as adopted

pursuant to Section 906 Of The Sarbanes-Oxley Act Of 2002

In connection with the Quarterly Report of Astec Industries, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Rebecca A. Weyenberg, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 2, 2023	/s/ Rebecca A. Weyenberg
	Rebecca A. Weyenberg
	Chief Financial Officer
	(Principal Financial Officer)

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Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Oct. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-11595
Entity Registrant Name	Astec Industries, Inc.
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-0873631
Entity Address, Address Line One	1725 Shepherd Road
Entity Address, City or Town	Chattanooga
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37421
City Area Code	423
Local Phone Number	899-5898
Title of 12(b) Security	Common Stock
Trading Symbol	ASTE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,739,296
Entity Central Index Key	0000792987
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3

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Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash, cash equivalents and restricted cash	$ 73.8	$ 66.0
Investments	5.7	3.9
Trade receivables and contract assets, net of allowance for credit losses of $2.5 and $2.3, respectively	174.7	167.1
Other receivables, net of allowance for credit losses of $0.7, respectively	3.4	6.5
Inventories	450.1	393.4
Prepaid and refundable income taxes	17.3	15.9
Prepaid expenses and other assets	21.3	28.2
Assets held for sale	0.0	15.4
Total current assets	746.3	696.4
Property and equipment, net of accumulated depreciation of $243.2 and $233.8, respectively	181.0	173.6
Investments	14.3	15.1
Goodwill	45.3	45.2
Intangible assets, net of accumulated amortization of $49.3 and $45.1, respectively	17.5	22.5
Deferred income tax assets	34.2	32.1
Other long-term assets	35.8	29.5
Total assets	1,074.4	1,014.4
Current liabilities:
Current maturities of long-term debt	0.1	0.2
Short-term debt	6.9	9.4
Accounts payable	114.3	107.2
Customer deposits	60.6	69.5
Accrued product warranty	16.7	11.9
Accrued employee related liabilities	44.4	35.3
Accrued loss reserves	2.9	1.9
Other current liabilities	36.3	38.6
Total current liabilities	282.2	274.0
Long-term debt	122.0	78.1
Deferred income tax liabilities	2.4	2.1
Other long-term liabilities	33.0	33.3
Total liabilities	439.6	387.5
Commitments and contingencies (Note 8)
Shareholders' equity:
Preferred stock – authorized 2,000,000 shares of $1.00 par value; none issued	0.0	0.0
Common stock – authorized 40,000,000 shares of $0.20 par value; issued and outstanding – 22,739,296 as of September 30, 2023 and 22,624,031 as of December 31, 2022	4.5	4.5
Additional paid-in capital	137.7	135.8
Accumulated other comprehensive loss	(44.2)	(40.1)
Company stock held by deferred compensation programs, at cost	(1.0)	(1.1)
Retained earnings	537.5	527.8
Shareholders' equity	634.5	626.9
Noncontrolling interest	0.3	0.0
Total equity	634.8	626.9
Total liabilities and equity	$ 1,074.4	$ 1,014.4

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit loss	$ 2.5	$ 2.3
Allowance for credit loss, receivable, other, current	0.7	0.7
Accumulated depreciation	243.2	233.8
Accumulated amortization	$ 49.3	$ 45.1
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares issued	0	0
Common stock, shares authorized	40,000,000	40,000,000
Common stock, par value (in dollars per share)	$ 0.20	$ 0.20
Common stock, shares issued	22,739,296	22,624,031
Common stock, shares outstanding	22,739,296	22,624,031

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Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net sales	$ 303.1	$ 315.2	$ 1,001.0	$ 924.6
Cost of sales	233.5	249.7	759.3	731.5
Gross profit	69.6	65.5	241.7	193.1
Selling, general and administrative expenses	74.3	63.5	206.7	184.4
Restructuring, impairment and other asset charges, net	0.5	0.1	5.3	4.5
(Loss) income from operations	(5.2)	1.9	29.7	4.2
Other expenses, net:
Interest expense	(2.4)	(0.6)	(6.4)	(1.6)
Interest income	0.5	0.3	1.5	0.7
Other (expenses) income, net	0.0	(0.4)	0.5	(1.8)
(Loss) income before income taxes	(7.1)	1.2	25.3	1.5
Income tax (benefit) provision	(0.6)	0.7	6.5	0.8
Net (loss) income	(6.5)	0.5	18.8	0.7
Net (income) loss attributable to noncontrolling interest	(0.1)	0.2	(0.2)	0.2
Net (loss) income attributable to controlling interest	$ (6.6)	$ 0.7	$ 18.6	$ 0.9
Per share data:
(Loss) earnings per common share - Basic (in dollars per share)	$ (0.29)	$ 0.03	$ 0.82	$ 0.04
(Loss) earnings per common share - Diluted (in dollars per share)	$ (0.29)	$ 0.03	$ 0.82	$ 0.04
Weighted average shares outstanding - Basic	22,746,783	22,837,314	22,709,238	22,824,028
Weighted average shares outstanding - Diluted	22,746,783	22,916,316	22,776,158	22,932,206

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Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (6.5)	$ 0.5	$ 18.8	$ 0.7
Other comprehensive loss:
Foreign currency translation adjustments	(4.6)	(9.2)	(4.0)	(13.5)
Other comprehensive loss	(4.6)	(9.2)	(4.0)	(13.5)
Comprehensive (loss) income	(11.1)	(8.7)	14.8	(12.8)
Comprehensive (income) loss attributable to noncontrolling interest	(0.1)	0.2	(0.3)	0.1
Comprehensive (loss) income attributable to controlling interest	$ (11.2)	$ (8.5)	$ 14.5	$ (12.7)

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net (loss) income	$ 18.8	$ 0.7
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	19.6	20.9
Provision for credit losses	0.6	0.9
Provision for warranties	14.4	9.3
Deferred compensation expense (benefit)	0.2	(1.1)
Share-based compensation	3.5	5.4
Deferred tax benefit	(2.1)	(12.6)
Loss (gain) on sale of property and equipment, net	(3.1)	(0.4)
Asset impairment charges	0.8	3.4
Amortization of debt issuance costs	0.2	0.0
Distributions to deferred compensation programs' participants	(1.5)	(0.9)
Change in operating assets and liabilities:
Purchase of trading securities, net	(1.4)	(0.7)
Receivables and other contract assets	(5.8)	(25.0)
Inventories	(59.7)	(98.9)
Prepaid expenses	8.3	0.9
Other assets	(9.6)	(10.3)
Accounts payable	7.1	25.3
Accrued loss reserves	1.2	0.3
Accrued employee related liabilities	9.3	10.0
Other accrued liabilities	(0.8)	1.7
Accrued product warranty	(9.6)	(8.6)
Customer deposits	(8.2)	21.1
Income taxes payable/prepaid	(1.0)	1.8
Net cash used in operating activities	(18.8)	(56.8)
Cash flows from investing activities:
Acquisitions, net of cash acquired	0.0	(17.8)
Expenditures for property and equipment	(25.0)	(27.6)
Proceeds from sale of property and equipment	20.2	0.7
Purchase of investments	(0.8)	(0.8)
Sale of investments	1.7	0.5
Net cash used in investing activities	(3.9)	(45.0)
Cash flows from financing activities:
Payment of dividends	(8.9)	(8.3)
Proceeds from borrowings on credit facilities and bank loans	221.4	50.1
Repayments of borrowings on credit facilities and bank loans	(180.2)	(42.5)
Sale of Company stock by deferred compensation programs, net	0.1	0.2
Withholding tax paid upon vesting of share-based compensation awards	(1.6)	(1.8)
Repurchase of Company stock	0.0	(6.1)
Net cash provided by (used in) financing activities	30.8	(8.4)
Effect of exchange rates on cash	(0.3)	(3.4)
Increase (decrease) in cash, cash equivalents and restricted cash	7.8	(113.6)
Cash, cash equivalents and restricted cash, beginning of period	66.0	134.4
Cash, cash equivalents and restricted cash, end of period	73.8	20.8
Cash paid during the year for:
Interest, net of capitalized interest	5.0	0.7
Income taxes paid	10.3	12.3
Non-cash investing activities:
Capital expenditures in accounts payable	0.4	1.2
Non-cash financing activities:
Additions to right-of-use assets and lease liabilities	$ 0.6	$ 2.8

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Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in-Capital	Accumulated Other Comprehensive Loss	Company Shares Held by DCP	Retained Earnings	Noncontrolling Interest
Balance (in shares) at Dec. 31, 2021		22,767,052
Balance at Dec. 31, 2021	$ 651.3	$ 4.5	$ 130.6	$ (32.4)	$ (1.2)	$ 549.3	$ 0.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4.1					4.1
Other comprehensive income (loss)	4.2			4.1			0.1
Dividends	(2.8)					(2.8)
Share-based compensation	1.8		1.8
Issuance of common stock under incentive plan (in shares)		69,995
Issuance of common stock under incentive plan	0.1	$ 0.1
Withholding tax paid upon equity award vesting	(1.3)		(1.3)
Balance (in shares) at Mar. 31, 2022		22,837,047
Balance at Mar. 31, 2022	657.4	$ 4.6	131.1	(28.3)	(1.2)	550.6	0.6
Balance (in shares) at Dec. 31, 2021		22,767,052
Balance at Dec. 31, 2021	651.3	$ 4.5	130.6	(32.4)	(1.2)	549.3	0.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	0.7
Other comprehensive income (loss)	(13.5)
Balance (in shares) at Sep. 30, 2022		22,710,427
Balance at Sep. 30, 2022	628.1	$ 4.5	134.4	(46.0)	(1.1)	535.9	0.4
Balance (in shares) at Mar. 31, 2022		22,837,047
Balance at Mar. 31, 2022	657.4	$ 4.6	131.1	(28.3)	(1.2)	550.6	0.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3.9)					(3.9)
Other comprehensive income (loss)	(8.5)			(8.5)
Dividends	(2.6)		0.1			(2.7)
Share-based compensation	1.6		1.6
Issuance of common stock under incentive plan (in shares)		27,482
Withholding tax paid upon equity award vesting	(0.3)		(0.3)
Deferred compensation programs' transactions, net	0.2		0.1		0.1
Balance (in shares) at Jun. 30, 2022		22,864,529
Balance at Jun. 30, 2022	643.9	$ 4.6	132.6	(36.8)	(1.1)	544.0	0.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	0.5					0.7	(0.2)
Other comprehensive income (loss)	(9.2)			(9.2)
Dividends	(2.8)					(2.8)
Share-based compensation	2.0		2.0
Issuance of common stock under incentive plan (in shares)		6,343
Withholding tax paid upon equity award vesting	(0.2)		(0.2)
Share repurchases (in shares)		(160,445)
Share repurchases	(6.1)	$ (0.1)				(6.0)
Balance (in shares) at Sep. 30, 2022		22,710,427
Balance at Sep. 30, 2022	$ 628.1	$ 4.5	134.4	(46.0)	(1.1)	535.9	0.4
Balance (in shares) at Dec. 31, 2022	22,624,031	22,624,031
Balance at Dec. 31, 2022	$ 626.9	$ 4.5	135.8	(40.1)	(1.1)	527.8	0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	12.1					12.1
Other comprehensive income (loss)	0.1						0.1
Dividends	(2.9)					(2.9)
Share-based compensation	0.8		0.8
Issuance of common stock under incentive plan (in shares)		66,536
Withholding tax paid upon equity award vesting	(1.4)		(1.4)
Balance (in shares) at Mar. 31, 2023		22,690,567
Balance at Mar. 31, 2023	$ 635.6	$ 4.5	135.2	(40.1)	(1.1)	537.0	0.1
Balance (in shares) at Dec. 31, 2022	22,624,031	22,624,031
Balance at Dec. 31, 2022	$ 626.9	$ 4.5	135.8	(40.1)	(1.1)	527.8	0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	18.8
Other comprehensive income (loss)	$ (4.0)
Balance (in shares) at Sep. 30, 2023	22,739,296	22,739,296
Balance at Sep. 30, 2023	$ 634.8	$ 4.5	137.7	(44.2)	(1.0)	537.5	0.3
Balance (in shares) at Mar. 31, 2023		22,690,567
Balance at Mar. 31, 2023	635.6	$ 4.5	135.2	(40.1)	(1.1)	537.0	0.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	13.2					13.1	0.1
Other comprehensive income (loss)	0.5			0.5
Dividends	(3.0)					(3.0)
Share-based compensation	1.4		1.4
Issuance of common stock under incentive plan (in shares)		46,003
Withholding tax paid upon equity award vesting	(0.2)		(0.2)
Balance (in shares) at Jun. 30, 2023		22,736,570
Balance at Jun. 30, 2023	647.5	$ 4.5	136.4	(39.6)	(1.1)	547.1	0.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(6.5)					(6.6)	0.1
Other comprehensive income (loss)	(4.6)			(4.6)
Dividends	(3.0)					(3.0)
Share-based compensation	1.3		1.3
Issuance of common stock under incentive plan (in shares)		2,726
Deferred compensation programs' transactions, net	$ 0.1		0.0		0.1
Balance (in shares) at Sep. 30, 2023	22,739,296	22,739,296
Balance at Sep. 30, 2023	$ 634.8	$ 4.5	$ 137.7	$ (44.2)	$ (1.0)	$ 537.5	$ 0.3

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Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.13	$ 0.13	$ 0.13	$ 0.12	$ 0.12	$ 0.12

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Basis of Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Description of Business

Astec Industries, Inc. ("Astec" or the "Company") is a Tennessee corporation which was incorporated in 1972. The Company designs, engineers, manufactures and markets equipment and components used primarily in road building and related construction activities, as well as other products discussed below. 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 manufactures certain equipment and components unrelated to road construction, including equipment for the mining, quarrying, construction and demolition industries and port and rail yard operators; industrial heat transfer equipment; commercial whole-tree pulpwood chippers; horizontal grinders; blower trucks; concrete plants; commercial and industrial burners; and combustion control systems.

The Company operates in two reportable segments (plus Corporate and Other) - Infrastructure Solutions and Materials Solutions. The Company's two reportable business segments comprise sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations.

The Corporate and Other category consists primarily of the parent company, Astec Insurance Company ("Astec Insurance" or the "captive"), a captive insurance company, and the controls and automation business, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments.

Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Astec and its subsidiaries and have been prepared by the Company, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The Company prepares its financial statements in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the SEC rules and regulations governing interim financial statements. However, the Company believes that the disclosures made in the unaudited consolidated financial statements and related notes are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. All intercompany balances and transactions between the Company and its affiliates have been eliminated in consolidation.

Noncontrolling interest in the Company's consolidated financial statements represents the 7% interest in a consolidated subsidiary which is not owned by the Company. Since the Company controls this subsidiary, the subsidiary's financial statements are consolidated with those of the Company, and the noncontrolling owner's 7% share of the subsidiary's net assets and results of operations is deducted and reported as "Noncontrolling interest" in the Consolidated Balance Sheets and as "Net (income) loss attributable to noncontrolling interest" in the Consolidated Statements of Operations. The Company executed an agreement in February 2022 with the noncontrolling interest holder, which is undergoing a judicial reorganization in Brazil, to acquire their outstanding interest in full for R$10.0M (approximately $2.0 million, subject to the effect of exchange rates). Completion of the transaction is subject to obtaining certain judicial approval in Brazil.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include excess and obsolete inventory, inventory net realizable value, product warranty obligations, self-insurance loss reserves, capitalization of internal use software, goodwill impairment and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results could differ from those estimates.

In the opinion of management, the consolidated financial statements contain all adjustments necessary for a fair statement of the results of operations and comprehensive (loss) income for the three and nine months ended September 30, 2023 and 2022, the financial position as of September 30, 2023 and December 31, 2022 and the cash flows for the nine months ended September 30, 2023 and 2022, and except as otherwise discussed herein, such adjustments consist only of those of a normal recurring nature. The interim results are not necessarily indicative of results that may be achieved in a full reporting year.

All dollar amounts, except share and per share amounts, are in millions of dollars unless otherwise indicated.

Reclassifications and Adjustments

Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the nine months ended September 30, 2023.

•The Company elected to present research and development expenses in "Selling, general and administrative expenses". These amounts were previously included in a separate financial statement caption in the Consolidated Statements of Operations.

•The Company reclassified certain accrued liability balances from "Other current liabilities" to "Accrued employee related liabilities" to more appropriately reflect the nature of such accrued balances.

•The Company elected to present gains and losses recognized on the change in fair value of derivative instruments and foreign currency transaction gains and losses, net in "Other (expenses) income, net". These amounts were previously included in "Cost of sales".

There was no change to previously reported "Total current liabilities" or "Net (loss) income attributable to controlling interest" related to these reclassifications.

During the first quarter of 2023, the Company identified immaterial errors associated with over-accruals of inventory-related expenses in its historical financial statements. The cumulative effect of the errors generated in 2021 and 2022 was corrected during the first quarter of 2023, resulting in a decrease in "Cost of sales" of $1.9 million. Such adjustment was not considered material to the Company's consolidated financial statements for the year ended December 31, 2022 or any of the financial statements for the previously filed annual periods.

Recently Adopted Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers", which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company elected to early adopt this guidance on April 1, 2022. The adoption of this new standard did not have a material impact on its financial position, results of operations, cash flows or disclosures.

Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact on the Company.

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Acquisition

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisition

Acquisition

MINDS Acquisition - The Company entered into a Share Purchase Agreement, dated as of March 22, 2022, by and between MINDS Automation Group, Inc., a leader in plant automation control systems and cloud-based data management in the asphalt industry in Canada. The acquisition was completed on April 1, 2022 at a purchase price of $19.3 million, which was paid in cash. The Company's allocation of the purchase price resulted in the recognition of $9.3 million of goodwill and $9.3 million of intangible assets primarily consisting of customer relationships (9 year life) and developed technology (7 year life). Significant inputs and assumptions used in determining the fair values of these intangible assets include management's forecasts of future revenues, earnings and cash flows, a discount rate based on the median weighted average cost of capital of the Company and select market competitors, and the proportion of intangible assets acquired in relation to tangible assets. Goodwill acquired is attributable to future growth opportunities provided by the acquired intellectual capital and the ability to generate cross-selling synergies. The acquisition provides the Company with a broader line of controls and automation products designed to deliver enhanced productivity through improved equipment performance. Results of operations have been consolidated from the date of acquisition. The goodwill is not deductible for income tax purposes. Proforma financial information is not included since not significant.

Acquisition and integration costs incurred were nominal during the three and nine months ended September 30, 2023 for this acquisition. Acquisition and integration costs incurred were $0.2 million and $1.1 million during the three and nine months ended September 30, 2022, respectively. These costs are recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.

The following table summarizes the allocations of the total purchase price:

(in millions)	Amount
Cash	$	1.5
Trade receivables	2.7
Inventories	0.7
Prepaid expenses and other assets	0.4
Property and equipment	0.2
Goodwill	9.3
Intangible assets	9.3
Other long-term assets	0.5
Total assets acquired	$	24.6
Accounts payable	(0.7)
Accrued payroll and related liabilities	(0.8)
Other current liabilities	(1.1)
Deferred income tax liabilities	(2.4)
Other long-term liabilities	(0.3)
Total liabilities assumed	(5.3)
Total purchase price	$	19.3

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Inventories

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are valued at the lower of cost (first-in, first-out) or net realizable value, which requires the Company to make specific estimates, assumptions and judgments in determining the amount, if any, of reductions in the valuation of inventories to their net realizable values.

Inventories consist of the following:

(in millions)	September 30, 2023		December 31, 2022
Raw materials and parts	$	313.1	$	302.9
Work-in-process	78.0		57.3
Finished goods	57.4		32.1
Used equipment	1.6		1.1
Total	$	450.1	$	393.4

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Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company has various financial instruments that must be measured at fair value on a recurring basis, including marketable debt and equity securities held by Astec Insurance and marketable equity securities held in the Company's deferred compensation programs. The Company's deferred compensation programs ("DCP") include a non-qualified Supplemental Executive Retirement Plan ("SERP") and a separate non-qualified Deferred Compensation Plan. Although the deferred compensation programs' investments are allocated to individual participants, and investment decisions are made solely by those participants, they are non-qualified plans. Consequently, the Company owns the assets and the related offsetting liability for disbursement until such time as a participant makes a qualifying withdrawal. The SERP assets and related offsetting liability are recorded in non-current "Investments" and "Other long-term liabilities", respectively, in the Consolidated Balance Sheets. The Company's subsidiaries also occasionally enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates.

The carrying amount of cash and cash equivalents, trade receivables and contract assets, other receivables, accounts payable, and short-term and long-term debt approximates their fair value because of their short-term nature and/or interest rates associated with the instruments. Investments are carried at their fair value based on quoted market prices for identical or similar assets or, where no quoted prices exist, other observable inputs for the asset. The fair values of foreign currency exchange contracts are based on quotations from various banks for similar instruments using models with market-based inputs.

Financial assets and liabilities are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The inputs used to measure the fair value are identified in the following hierarchy:

Level 1 -	Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 -	Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability.
Level 3 -	Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

As indicated in the tables below, the Company has determined that all of its financial assets and liabilities as of September 30, 2023 and December 31, 2022 are Level 1 and Level 2 in the fair value hierarchy as defined above:

	September 30, 2023
(in millions)	Level 1		Level 2		Total
Financial assets:
Trading equity securities:
Deferred compensation programs' mutual funds	$	4.0	$	—	$	4.0
Preferred stocks	0.3		—		0.3
Equity funds	0.6		—		0.6
Trading debt securities:
Corporate bonds	4.0		—		4.0
Municipal bonds	—		0.3		0.3
Agency bonds	—		2.5		2.5
Floating rate notes	0.2		—		0.2
U.S. government securities	1.9		—		1.9
Asset-backed securities	—		4.3		4.3
Other	1.3		0.6		1.9
Derivative financial instruments	—		0.2		0.2
Total financial assets	$	12.3	$	7.9	$	20.2
Financial liabilities:
Deferred compensation programs' liabilities	$	—	$	5.7	$	5.7
Total financial liabilities	$	—	$	5.7	$	5.7

	December 31, 2022
(in millions)	Level 1		Level 2		Total
Financial assets:
Trading equity securities:
Deferred compensation programs' mutual funds	$	4.4	$	—	$	4.4
Preferred stocks	0.3		—		0.3
Equity funds	0.6		—		0.6
Trading debt securities:
Corporate bonds	5.0		—		5.0
Municipal bonds	—		0.3		0.3
Floating rate notes	0.2		—		0.2
U.S. government securities	0.8		—		0.8
Asset-backed securities	—		5.4		5.4
Other	1.3		0.7		2.0
Total financial assets	$	12.6	$	6.4	$	19.0
Financial liabilities:
Deferred compensation programs' liabilities	$	—	$	5.7	$	5.7
Total financial liabilities	$	—	$	5.7	$	5.7

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Product Warranty Reserves

9 Months Ended

Sep. 30, 2023

Product Warranties Disclosures [Abstract]

Product Warranty Reserves

Product Warranty Reserves

The Company warrants its products against manufacturing defects and performance to specified standards. The warranty period and performance standards vary by market and uses of its products, but generally range from three months to two years or up to a specified number of hours of operation. The Company estimates the costs that may be incurred under its warranties and records a liability at the time product sales are recorded. The product warranty liability is primarily based on historical claim rates, nature of claims and the associated cost.

Changes in the Company's product warranty liability for the three and nine month periods ended September 30, 2023 and 2022 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Reserve balance, beginning of the period	$	16.5	$	11.6	$	11.9	$	10.5
Warranty liabilities accrued	3.8		2.9		14.4		9.3
Warranty liabilities settled	(3.6)		(3.4)		(9.6)		(8.6)
Other	—		(0.2)		—		(0.3)
Reserve balance, end of the period	$	16.7	$	10.9	$	16.7	$	10.9

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Accrued Loss Reserves	9 Months Ended
	Sep. 30, 2023
Accrued Loss Reserves [Abstract]
Accrued Loss Reserves	Accrued Loss ReservesThe Company records reserves for losses related to known workers' compensation and general liability claims that have been incurred but not yet paid or are estimated to have been incurred but not yet reported to the Company. The undiscounted reserves are actuarially determined based on the Company's evaluation of the type and severity of individual claims and historical information, primarily its own claims experience, along with assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change in the future. Total accrued loss reserves were $7.1 million and $5.8 million as of September 30, 2023 and December 31, 2022, respectively, of which $4.2 million and $3.9 million were included in "Other long-term liabilities" in the Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively.

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Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

For the three months ended September 30, 2023, the Company recorded an income tax benefit of $0.6 million, reflecting an 8.5% effective tax rate, compared to a $0.7 million income tax expense for the three months ended September 30, 2022, reflecting a 58.3% effective tax rate. The income tax benefit for the three months ended September 30, 2023 as compared to the expense for the same period in 2022 was primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss.For the nine months ended September 30, 2023, the Company recorded an income tax provision of $6.5 million, reflecting a 25.7% effective tax rate, compared to $0.8 million expense, reflecting a 53.3% effective tax rate, for the nine months ended September 30, 2022. The income tax expense for the nine months ended September 30, 2023 was higher compared to the same period in 2022, primarily due to higher pretax book income and changes in the relative weighting of jurisdictional income and loss, partially offset by a net discrete tax benefit related to a research and development credit.

The Company's recorded liability for uncertain tax positions was $12.7 million and $12.0 million as of September 30, 2023 and December 31, 2022, respectively. The increase is the result of $0.7 million of incremental reserves associated with the 2023 research and development credit. The Company does not anticipate a significant change in unrecognized tax benefits due to the expiration of relevant statutes of limitations and federal, state, and foreign tax audit resolutions over the next twelve months.

The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. The Company is currently under audit by the U.S. Internal Revenue Service for the federal income tax return from the 2018 tax year as well as various other state income tax and jurisdictional audits. As of September 30, 2023, the Company believes that it is more-likely-than-not that the tax positions it has taken will be sustained upon the resolution of its audits, resulting in no material impact on its consolidated financial position, results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company's estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties and/or interest assessments.

On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into law. The IRA levies a 1% excise tax on net stock repurchases after December 31, 2022 and imposes a 15% corporate alternative minimum tax ("CAMT") for tax years beginning after December 31, 2022. The Company did not repurchase any shares during the three and nine months ended September 30, 2023. CAMT does not impact the Company's results of operations or financial position.

Commitments and ContingenciesCommitments and Contingencies

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Certain customers have financed purchases of Company products through arrangements with third-party financing institutions. Under these arrangements, the Company is contingently liable for customer debt of $0.9 million and $2.4 million as of September 30, 2023 and December 31, 2022, respectively. These arrangements expire at various dates running through September 2026. Additionally, the Company is also contingently liable for 1.75% of the unpaid balance, determined as of December 31 of the prior year (or approximately $0.1 million for 2023), on certain past customer equipment purchases that were financed by an outside finance company. The agreements provide that the Company will receive the lender's full security interest in the financed equipment if the Company is required to fulfill its contingent liability under these arrangements. The Company has recorded a liability of $0.5 million and $1.0 million related to these guarantees, which were included in "Other current liabilities" in the Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively.

The Company reviews off-balance sheet guarantees individually and at the loss pool level based on one agreement. Prior history is considered with respect to the Company having to perform on any off-balance sheet guarantees, as well as future projections of individual customer credit worthiness with respect to assessing credit losses related to off-balance sheet guarantees.

In addition, the Company is contingently liable under letters of credit issued under its $250.0 million revolving credit facility (the "Credit Facilities"), which outstanding letters of credit totaled $2.4 million as of September 30, 2023. The outstanding letters of credit expire at various dates through April 2024. As of September 30, 2023, the Company's foreign subsidiaries are contingently liable for a total of $6.1 million in performance letters of credit, advance payments and retention guarantees, of which $4.5 million is secured by separate credit facilities with local financial institutions.

The Company and certain of its former executive officers were named as defendants in a putative shareholder class action lawsuit filed on February 1, 2019, as amended on August 26, 2019, in the United States District Court for the Eastern District of Tennessee. The action is styled City of Taylor General Employees Retirement System v. Astec Industries, Inc., et al., Case No. 1:19-cv-24-CEA-CHS. The complaint generally alleges that the defendants violated the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 promulgated thereunder, by making allegedly false and misleading statements and that the individual defendants were control persons under Section 20(a) of the Exchange Act. The complaint is filed on behalf of shareholders who purchased stock of the Company between July 26, 2016 and October 22, 2018 and seeks monetary damages on behalf of the purported class. On October 25, 2019, the defendants filed a Motion to Dismiss. On February 19, 2021, the Motion to Dismiss was granted with prejudice and judgment was entered for the defendants. On March 19, 2021, plaintiff filed a Motion to Alter or Amend the Judgment and For Leave to File the Proposed Amended Complaint, which was denied on May 5, 2021. Plaintiff appealed the Motion to Dismiss and denial of its Motion to Alter or Amend the Judgment and For Leave to File the Proposed Amended Complaint to the United States Court of Appeals for the Sixth Circuit. On March 31, 2022, the United States Court of Appeals for the Sixth Circuit issued an opinion reversing the dismissal of the Company and one former executive officer, affirming the dismissal of certain other former executive officers and remanding the action to the United States District Court for the Eastern District of Tennessee for proceedings consistent with the opinion. On July 11, 2022 Defendants filed an answer to the complaint, and the action is now in discovery.

The Company's GEFCO, Inc. ("GEFCO") subsidiary has been named a defendant in a lawsuit originally filed on August 16, 2018, with an amended complaint filed on January 25, 2019, in the United States District Court for the Western District of Oklahoma. The action is styled VenVer S.A. and Americas Coil Tubing LLP v. GEFCO, Inc., Case No. CIV-18-790-SLP. The complaint alleges breaches of warranty and other similar claims regarding equipment sold by GEFCO in 2013. In addition to seeking a rescission of the purchase contract, the plaintiff is seeking special and consequential damages. The original purchase price of the equipment was approximately $8.5 million. On July 7, 2020, the plaintiffs filed a separate lawsuit directly against Astec Industries, Inc. that generally mirrored the allegations in the GEFCO suit. In January 2023, the court allowed Astec Industries, Inc. to be added as a defendant to the GEFCO suit and, as a result, the separate suit against Astec Industries, Inc. was dismissed. The Company and GEFCO each dispute the plaintiffs' allegations and are vigorously defending the GEFCO suit. The Company is unable to determine whether or not a future loss will be incurred due to this litigation or estimate the possible loss or range of loss, if any, at this time.

On October 5, 2023, a jury, in the 355th Judicial District Court, Hood County, State of Texas, rendered a verdict against the Company's Telsmith, Inc. subsidiary in the matter styled 37 Building Products, Ltd. ("37 BP") v. Telsmith, Inc. ("Telsmith"), et al. originally filed on January 28, 2019, with additional defendants later added. All other defendants settled prior to trial except Telsmith. Telsmith will receive credit for the settlement amounts of all other defendants against any judgment entered in this case against Telsmith. 37 BP alleged breaches of warranty and negligent misrepresentation regarding equipment manufactured by Telsmith and purchased by 37 BP in 2017 through one of the Company's dealers. Based on the jury verdict, management has determined that a loss for this matter is probable in a range between $6.4 million and $18.1 million, inclusive of attorneys' fees and prejudgment interest. A loss contingency of $6.4 million was recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations and "Other current liabilities" in the Consolidated Balance Sheets during the third quarter of 2023 representing management's best estimate of the loss. A judgment has not been entered by the trial court, however, a judgment is anticipated to be entered by the end of 2023 or during the first quarter of 2024. The judgment, once entered, may result in a change to the estimate of loss recorded and will incur post-judgment interest charges. The Company will evaluate the judgment once entered, including whether to appeal any judgment entered by the court.

In addition to the matters noted above, the Company is currently a party, and may become a party, to various other claims and legal proceedings in the ordinary course of business. If management believes that a loss arising from any claims and legal proceedings is probable and can reasonably be estimated, the Company records the amount of the loss (excluding estimated legal fees) or, when the loss is estimated using a range and no point within the range is more probable than another, the minimum estimated liability. As management becomes aware of additional information concerning such contingencies, any potential liability related to these matters is assessed and the estimates are revised, if necessary. If management believes that a loss arising from such claims and legal proceedings is either (i) probable but cannot be reasonably estimated or (ii) reasonably estimable but not probable, the Company does not record the amount of the loss but does make specific disclosure of such matter.

Based upon currently available information and with the advice of counsel, management believes that the ultimate outcome of its current claims and legal proceedings, individually and in the aggregate, will not have a material adverse effect on the Company's financial position, cash flows or results of operations. However, claims and legal proceedings are subject to inherent uncertainties, and rulings unfavorable to the Company could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse effect on the Company's financial position, cash flows or results of operations.

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Revenue Recognition

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following tables disaggregate the Company's revenue by major source for the three and nine month periods ended September 30, 2023 and 2022 (excluding intercompany sales):

	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Net Sales-Domestic:
Equipment sales	$	94.4	$	54.7	$	0.5	$	149.6	$	105.9	$	60.6	$	0.8	$	167.3
Parts and component sales	50.3		20.5		0.1		70.9		46.3		21.8		0.1		68.2
Service and equipment installation revenue	3.6		0.2		—		3.8		5.2		0.3		—		5.5
Used equipment sales	—		—		—		—		3.2		—		—		3.2
Freight revenue	5.2		1.9		—		7.1		5.3		2.1		—		7.4
Other	0.3		(2.4)		0.3		(1.8)		0.2		(2.5)		0.1		(2.2)
Total domestic revenue	153.8		74.9		0.9		229.6		166.1		82.3		1.0		249.4
Net Sales-International:
Equipment sales	26.3		23.1		0.7		50.1		23.8		17.7		0.3		41.8
Parts and component sales	9.2		9.9		—		19.1		10.1		9.6		—		19.7
Service and equipment installation revenue	1.0		1.8		0.1		2.9		1.0		0.9		0.1		2.0
Used equipment sales	—		0.4		—		0.4		0.3		1.0		—		1.3
Freight revenue	0.5		0.4		—		0.9		0.6		0.3		—		0.9
Other	—		—		0.1		0.1		—		—		0.1		0.1
Total international revenue	37.0		35.6		0.9		73.5		35.8		29.5		0.5		65.8
Total net sales	$	190.8	$	110.5	$	1.8	$	303.1	$	201.9	$	111.8	$	1.5	$	315.2

	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Net Sales-Domestic:
Equipment sales	$	314.6	$	197.8	$	2.2	$	514.6	$	315.2	$	162.0	$	0.9	$	478.1
Parts and component sales	159.9		64.1		0.2		224.2		146.4		63.7		0.1		210.2
Service and equipment installation revenue	38.0		0.6		0.1		38.7		17.8		0.6		—		18.4
Used equipment sales	2.6		—		—		2.6		5.2		—		—		5.2
Freight revenue	17.4		6.4		—		23.8		18.1		5.9		—		24.0
Other	0.4		(7.5)		0.5		(6.6)		0.4		(4.1)		0.1		(3.6)
Total domestic revenue	532.9		261.4		3.0		797.3		503.1		228.1		1.1		732.3
Net Sales-International:
Equipment sales	68.3		56.9		3.9		129.1		67.4		50.5		1.1		119.0
Parts and component sales	31.4		30.0		0.1		61.5		33.4		29.4		0.1		62.9
Service and equipment installation revenue	3.3		4.1		0.4		7.8		2.8		2.1		0.3		5.2
Used equipment sales	0.6		1.2		—		1.8		0.5		1.6		—		2.1
Freight revenue	2.3		1.0		—		3.3		1.8		1.0		—		2.8
Other	—		—		0.2		0.2		—		0.2		0.1		0.3
Total international revenue	105.9		93.2		4.6		203.7		105.9		84.8		1.6		192.3
Total net sales	$	638.8	$	354.6	$	7.6	$	1,001.0	$	609.0	$	312.9	$	2.7	$	924.6

Sales into major geographic regions were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
United States	$	229.6	$	249.4	$	797.3	$	732.3
Canada	13.4		12.9		48.7		49.2
Australia	20.6		10.8		44.4		31.3
Africa	10.6		10.9		28.6		25.9
Europe	8.0		9.1		24.5		22.4
Brazil	8.3		7.7		22.1		18.5
South America (Excluding Brazil)	5.1		4.5		14.4		17.1
Asia	2.8		1.5		6.5		8.6
Mexico	3.4		4.2		6.2		9.1
Central America (Excluding Mexico)	0.5		3.9		3.6		7.5
Other	0.8		0.3		4.7		2.7
Total foreign	73.5		65.8		203.7		192.3
Total net sales	$	303.1	$	315.2	$	1,001.0	$	924.6

As of September 30, 2023, the Company had contract assets of $3.6 million and contract liabilities, excluding customer deposits, of $6.2 million, including $2.6 million of deferred revenue related to extended warranties. As of December 31, 2022, the Company had contract assets of $3.8 million and contract liabilities, excluding customer deposits, of $5.5 million, including $2.9 million of deferred revenue related to extended warranties.

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Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two reportable segments, each of which comprise sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations.

Segment Operating Adjusted EBITDA is the measure of segment profit or loss used by the Company's Chief Executive Officer, whom is determined to be the chief operating decision maker ("CODM"), to evaluate performance and allocate resources to the operating segments is Segment Operating Adjusted EBITDA. Segment Operating Adjusted EBITDA, a non-GAAP financial measure, is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered by the CODM in the evaluation of ongoing operating performance. The Company's presentation of Segment Operating Adjusted EBITDA may not be comparable to similar measures used by other companies and is not necessarily indicative of the results of operations that would have occurred had each reportable segment been an independent, stand-alone entity during the periods presented.

A brief description of each segment is as follows:

Infrastructure Solutions – Sites within the Infrastructure Solutions segment design, engineer, manufacture and market a complete line of asphalt plants, concrete plants and their related components and ancillary equipment as well as supplying asphalt road construction equipment, industrial thermal systems and other heavy equipment. The sites based in North America within the Infrastructure Solutions segment are primarily manufacturing operations, while those located outside of North America 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. The primary purchasers of the products produced by this segment are asphalt and concrete producers, highway and heavy equipment contractors, utility contractors, forestry and environmental recycling contractors and domestic and foreign governmental agencies.

Materials Solutions – Sites within the Materials Solutions segment design and manufacture heavy processing equipment, in addition to servicing and supplying parts for the aggregate, metallic mining, recycling, ports and bulk handling markets. The sites within the Materials Solutions segment are primarily manufacturing operations, with the AME site functioning 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. Additionally, the Materials Solutions segment offers consulting and engineering services to provide complete "turnkey" processing systems. The principal purchasers of aggregate processing equipment include distributors, highway and heavy equipment contractors, sand and gravel producers, demolition, recycle and crushing contractors, open mine operators, quarry operators, port and inland terminal authorities, power stations and foreign and domestic governmental agencies.

Corporate and Other – The Corporate and Other category consists primarily of the parent company, the Company's captive insurance company, Astec Insurance, and the controls and automation business, which do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments. The parent company and the captive insurance company provide support and corporate oversight for other sites. The controls and automation business manufactures hardware and software products that are marketed independently and included in certain products of the Company's other segments.

The accounting policies of the reportable segments are the same as those described in Note 1, Basis of Presentation and Significant Accounting Policies. Intersegment sales and transfers between foreign subsidiaries are valued at prices comparable to those for unrelated parties.

Segment Information:

	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Revenues from external customers	$	190.8	$	110.5	$	1.8	$	303.1	$	201.9	$	111.8	$	1.5	$	315.2
Intersegment sales	4.3		14.0		—		18.3		1.9		14.1		—		16.0
Segment Operating Adjusted EBITDA	16.5		8.3		(14.4)		10.4		17.6		13.1		(14.2)		16.5
	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Revenues from external customers	$	638.8	$	354.6	$	7.6	$	1,001.0	$	609.0	$	312.9	$	2.7	$	924.6
Intersegment sales	8.2		40.9		0.6		49.7		7.0		35.8		—		42.8
Segment Operating Adjusted EBITDA	70.5		41.9		(33.5)		78.9		49.9		34.8		(36.3)		48.4

,

A reconciliation of total Segment Operating Adjusted EBITDA to the Company's "Net (loss) income attributable to controlling interest" is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Net (loss) income attributable to controlling interest
Segment Operating Adjusted EBITDA	$	10.4	$	16.5	$	78.9	$	48.4
Adjustments:
Transformation program	(7.7)		(7.0)		(22.5)		(18.7)
Restructuring and other related charges	(0.1)		(0.1)		(7.6)		(1.5)
Asset impairment	—		(0.4)		(0.8)		(3.4)
(Loss) gain on sale of property and equipment, net	(0.4)		0.4		3.1		0.4
Transaction costs	—		(0.5)		—		(1.9)
Interest expense, net	(1.9)		(0.3)		(4.9)		(0.9)
Depreciation and amortization	(7.1)		(7.3)		(19.6)		(20.9)
Income tax benefit (provision)	0.6		(0.7)		(6.5)		(0.8)
Net (income) loss attributable to noncontrolling interest	(0.1)		0.2		(0.2)		0.2
Elimination of intercompany profit	(0.3)		(0.1)		(1.3)		—
Net (loss) income attributable to controlling interest	$	(6.6)	$	0.7	$	18.6	$	0.9

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Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net

9 Months Ended

Sep. 30, 2023

Restructuring, Settlement and Impairment Provisions [Abstract]

Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net

Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net

The Company is undergoing a multi-year phased implementation of a standardized enterprise resource planning ("ERP") system across the global organization, which will replace much of the existing disparate core financial systems. The upgraded ERP will initially convert internal operations, manufacturing, finance, human capital resources management and customer relationship systems to cloud-based platforms. This new ERP system will provide for standardized processes and integrated technology solutions that enable the Company to better leverage automation and process efficiency. An implementation of this scale is a major financial undertaking and requires substantial time and attention of management and key employees.

In addition, beginning in the first quarter of 2022, a lean manufacturing initiative at one of the Company's largest sites was initiated and is expected to drive improvement in gross margin at that site. Gross margin improvements are expected to be realized in conjunction with the project completion in early to mid-2024. This improvement is intended to serve as the optimal blueprint for the Company's other manufacturing facilities.

Total costs of $7.8 million and $22.8 million were incurred related to these strategic transformation initiatives in the three and nine months ended September 30, 2023, respectively, of which $7.7 million and $22.6 million, respectively, are recorded in "Selling, general and administrative expenses" and $0.1 million and $0.2 million, respectively, are included in "Cost of sales" in the Consolidated Statements of Operations. Costs totaling $7.0 million and $18.7 million were incurred in the three and nine months ended September 30, 2022, respectively, and are recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.

The Company periodically sells or disposes of its assets in the normal course of its business operations as they are no longer needed or used, and the Company may incur gains or losses on these disposals. Certain of the costs associated with these decisions are separately identified as restructuring. The Company reports asset impairment charges and gains or losses on the sales of property and equipment collectively, with restructuring charges in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations to the extent they are experienced.

Restructuring, asset impairment charges and the net losses and gains on sale of property and equipment are presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Restructuring charges:
Costs associated with leadership change and overhead restructuring	$	—	$	—	$	7.3	$	—
Costs associated with exited operations - Enid	0.1		0.1		0.3		0.7
Costs associated with closing Tacoma	—		—		—		0.8
Total restructuring related charges	0.1		0.1		7.6		1.5
Asset impairment charges:
Other impairment charges	—		0.4		0.8		3.4
Total asset impairment charges	—		0.4		0.8		3.4
Loss (gain) on sale of property and equipment, net
Loss (gain) on sale of property and equipment, net	0.4		(0.4)		(3.1)		(0.4)
Total loss (gain) on sale of property and equipment, net	0.4		(0.4)		(3.1)		(0.4)
Restructuring, impairment and other asset charges, net	$	0.5	$	0.1	$	5.3	$	4.5

Restructuring charges by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Infrastructure Solutions	$	0.1	$	0.1	$	0.4	$	1.5
Corporate and Other	—		—		7.2		—
Total restructuring related charges	$	0.1	$	0.1	$	7.6	$	1.5

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(Loss) Earnings Per Common Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

(Loss) Earnings Per Common Share

(Loss) Earnings Per Common ShareBasic (loss) earnings per common share is determined by dividing "Net (loss) income attributable to controlling interest" by the weighted average number of common shares outstanding during the reporting period. Diluted (loss) earnings per common share includes the dilutive effect of common stock equivalents, consisting of restricted stock units, performance stock units and stock held in the Company's deferred compensation programs, using the treasury stock method. Performance stock units, which are considered contingently issuable, are considered dilutive when the related performance criterion has been met.

The following table sets forth a reconciliation of the number of shares used in the computation of basic and diluted (loss) earnings per common share:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Denominator:
Denominator for basic earnings per common share	22,746,783	22,837,314	22,709,238	22,824,028
Effect of dilutive securities	—	79,002	66,920	108,178
Denominator for diluted earnings per common share	22,746,783	22,916,316	22,776,158	22,932,206
Antidilutive securities excluded from the calculation of diluted earnings per share	67,408	124,229	9,345	32,218

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Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Astec and its subsidiaries and have been prepared by the Company, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The Company prepares its financial statements in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the SEC rules and regulations governing interim financial statements. However, the Company believes that the disclosures made in the unaudited consolidated financial statements and related notes are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. All intercompany balances and transactions between the Company and its affiliates have been eliminated in consolidation.

Noncontrolling interest in the Company's consolidated financial statements represents the 7% interest in a consolidated subsidiary which is not owned by the Company. Since the Company controls this subsidiary, the subsidiary's financial statements are consolidated with those of the Company, and the noncontrolling owner's 7% share of the subsidiary's net assets and results of operations is deducted and reported as "Noncontrolling interest" in the Consolidated Balance Sheets and as "Net (income) loss attributable to noncontrolling interest" in the Consolidated Statements of Operations. The Company executed an agreement in February 2022 with the noncontrolling interest holder, which is undergoing a judicial reorganization in Brazil, to acquire their outstanding interest in full for R$10.0M (approximately $2.0 million, subject to the effect of exchange rates). Completion of the transaction is subject to obtaining certain judicial approval in Brazil.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include excess and obsolete inventory, inventory net realizable value, product warranty obligations, self-insurance loss reserves, capitalization of internal use software, goodwill impairment and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results could differ from those estimates.

In the opinion of management, the consolidated financial statements contain all adjustments necessary for a fair statement of the results of operations and comprehensive (loss) income for the three and nine months ended September 30, 2023 and 2022, the financial position as of September 30, 2023 and December 31, 2022 and the cash flows for the nine months ended September 30, 2023 and 2022, and except as otherwise discussed herein, such adjustments consist only of those of a normal recurring nature. The interim results are not necessarily indicative of results that may be achieved in a full reporting year.

All dollar amounts, except share and per share amounts, are in millions of dollars unless otherwise indicated.

Reclassifications and Adjustments

Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the nine months ended September 30, 2023.

•The Company elected to present research and development expenses in "Selling, general and administrative expenses". These amounts were previously included in a separate financial statement caption in the Consolidated Statements of Operations.

•The Company reclassified certain accrued liability balances from "Other current liabilities" to "Accrued employee related liabilities" to more appropriately reflect the nature of such accrued balances.

•The Company elected to present gains and losses recognized on the change in fair value of derivative instruments and foreign currency transaction gains and losses, net in "Other (expenses) income, net". These amounts were previously included in "Cost of sales".

There was no change to previously reported "Total current liabilities" or "Net (loss) income attributable to controlling interest" related to these reclassifications.

During the first quarter of 2023, the Company identified immaterial errors associated with over-accruals of inventory-related expenses in its historical financial statements. The cumulative effect of the errors generated in 2021 and 2022 was corrected during the first quarter of 2023, resulting in a decrease in "Cost of sales" of $1.9 million. Such adjustment was not considered material to the Company's consolidated financial statements for the year ended December 31, 2022 or any of the financial statements for the previously filed annual periods.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers", which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company elected to early adopt this guidance on April 1, 2022. The adoption of this new standard did not have a material impact on its financial position, results of operations, cash flows or disclosures.

Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact on the Company.

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Acquisition (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the allocations of the total purchase price:

(in millions)	Amount
Cash	$	1.5
Trade receivables	2.7
Inventories	0.7
Prepaid expenses and other assets	0.4
Property and equipment	0.2
Goodwill	9.3
Intangible assets	9.3
Other long-term assets	0.5
Total assets acquired	$	24.6
Accounts payable	(0.7)
Accrued payroll and related liabilities	(0.8)
Other current liabilities	(1.1)
Deferred income tax liabilities	(2.4)
Other long-term liabilities	(0.3)
Total liabilities assumed	(5.3)
Total purchase price	$	19.3

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Inventories (Tables)

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

Inventories consist of the following:

(in millions)	September 30, 2023		December 31, 2022
Raw materials and parts	$	313.1	$	302.9
Work-in-process	78.0		57.3
Finished goods	57.4		32.1
Used equipment	1.6		1.1
Total	$	450.1	$	393.4

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

As indicated in the tables below, the Company has determined that all of its financial assets and liabilities as of September 30, 2023 and December 31, 2022 are Level 1 and Level 2 in the fair value hierarchy as defined above:

	September 30, 2023
(in millions)	Level 1		Level 2		Total
Financial assets:
Trading equity securities:
Deferred compensation programs' mutual funds	$	4.0	$	—	$	4.0
Preferred stocks	0.3		—		0.3
Equity funds	0.6		—		0.6
Trading debt securities:
Corporate bonds	4.0		—		4.0
Municipal bonds	—		0.3		0.3
Agency bonds	—		2.5		2.5
Floating rate notes	0.2		—		0.2
U.S. government securities	1.9		—		1.9
Asset-backed securities	—		4.3		4.3
Other	1.3		0.6		1.9
Derivative financial instruments	—		0.2		0.2
Total financial assets	$	12.3	$	7.9	$	20.2
Financial liabilities:
Deferred compensation programs' liabilities	$	—	$	5.7	$	5.7
Total financial liabilities	$	—	$	5.7	$	5.7

	December 31, 2022
(in millions)	Level 1		Level 2		Total
Financial assets:
Trading equity securities:
Deferred compensation programs' mutual funds	$	4.4	$	—	$	4.4
Preferred stocks	0.3		—		0.3
Equity funds	0.6		—		0.6
Trading debt securities:
Corporate bonds	5.0		—		5.0
Municipal bonds	—		0.3		0.3
Floating rate notes	0.2		—		0.2
U.S. government securities	0.8		—		0.8
Asset-backed securities	—		5.4		5.4
Other	1.3		0.7		2.0
Total financial assets	$	12.6	$	6.4	$	19.0
Financial liabilities:
Deferred compensation programs' liabilities	$	—	$	5.7	$	5.7
Total financial liabilities	$	—	$	5.7	$	5.7

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Product Warranty Reserves (Tables)

9 Months Ended

Sep. 30, 2023

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Liability

Changes in the Company's product warranty liability for the three and nine month periods ended September 30, 2023 and 2022 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Reserve balance, beginning of the period	$	16.5	$	11.6	$	11.9	$	10.5
Warranty liabilities accrued	3.8		2.9		14.4		9.3
Warranty liabilities settled	(3.6)		(3.4)		(9.6)		(8.6)
Other	—		(0.2)		—		(0.3)
Reserve balance, end of the period	$	16.7	$	10.9	$	16.7	$	10.9

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables disaggregate the Company's revenue by major source for the three and nine month periods ended September 30, 2023 and 2022 (excluding intercompany sales):

	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Net Sales-Domestic:
Equipment sales	$	94.4	$	54.7	$	0.5	$	149.6	$	105.9	$	60.6	$	0.8	$	167.3
Parts and component sales	50.3		20.5		0.1		70.9		46.3		21.8		0.1		68.2
Service and equipment installation revenue	3.6		0.2		—		3.8		5.2		0.3		—		5.5
Used equipment sales	—		—		—		—		3.2		—		—		3.2
Freight revenue	5.2		1.9		—		7.1		5.3		2.1		—		7.4
Other	0.3		(2.4)		0.3		(1.8)		0.2		(2.5)		0.1		(2.2)
Total domestic revenue	153.8		74.9		0.9		229.6		166.1		82.3		1.0		249.4
Net Sales-International:
Equipment sales	26.3		23.1		0.7		50.1		23.8		17.7		0.3		41.8
Parts and component sales	9.2		9.9		—		19.1		10.1		9.6		—		19.7
Service and equipment installation revenue	1.0		1.8		0.1		2.9		1.0		0.9		0.1		2.0
Used equipment sales	—		0.4		—		0.4		0.3		1.0		—		1.3
Freight revenue	0.5		0.4		—		0.9		0.6		0.3		—		0.9
Other	—		—		0.1		0.1		—		—		0.1		0.1
Total international revenue	37.0		35.6		0.9		73.5		35.8		29.5		0.5		65.8
Total net sales	$	190.8	$	110.5	$	1.8	$	303.1	$	201.9	$	111.8	$	1.5	$	315.2

	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Net Sales-Domestic:
Equipment sales	$	314.6	$	197.8	$	2.2	$	514.6	$	315.2	$	162.0	$	0.9	$	478.1
Parts and component sales	159.9		64.1		0.2		224.2		146.4		63.7		0.1		210.2
Service and equipment installation revenue	38.0		0.6		0.1		38.7		17.8		0.6		—		18.4
Used equipment sales	2.6		—		—		2.6		5.2		—		—		5.2
Freight revenue	17.4		6.4		—		23.8		18.1		5.9		—		24.0
Other	0.4		(7.5)		0.5		(6.6)		0.4		(4.1)		0.1		(3.6)
Total domestic revenue	532.9		261.4		3.0		797.3		503.1		228.1		1.1		732.3
Net Sales-International:
Equipment sales	68.3		56.9		3.9		129.1		67.4		50.5		1.1		119.0
Parts and component sales	31.4		30.0		0.1		61.5		33.4		29.4		0.1		62.9
Service and equipment installation revenue	3.3		4.1		0.4		7.8		2.8		2.1		0.3		5.2
Used equipment sales	0.6		1.2		—		1.8		0.5		1.6		—		2.1
Freight revenue	2.3		1.0		—		3.3		1.8		1.0		—		2.8
Other	—		—		0.2		0.2		—		0.2		0.1		0.3
Total international revenue	105.9		93.2		4.6		203.7		105.9		84.8		1.6		192.3
Total net sales	$	638.8	$	354.6	$	7.6	$	1,001.0	$	609.0	$	312.9	$	2.7	$	924.6

Revenue from External Customers by Geographic Areas

Sales into major geographic regions were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
United States	$	229.6	$	249.4	$	797.3	$	732.3
Canada	13.4		12.9		48.7		49.2
Australia	20.6		10.8		44.4		31.3
Africa	10.6		10.9		28.6		25.9
Europe	8.0		9.1		24.5		22.4
Brazil	8.3		7.7		22.1		18.5
South America (Excluding Brazil)	5.1		4.5		14.4		17.1
Asia	2.8		1.5		6.5		8.6
Mexico	3.4		4.2		6.2		9.1
Central America (Excluding Mexico)	0.5		3.9		3.6		7.5
Other	0.8		0.3		4.7		2.7
Total foreign	73.5		65.8		203.7		192.3
Total net sales	$	303.1	$	315.2	$	1,001.0	$	924.6

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Segment Information:

	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Revenues from external customers	$	190.8	$	110.5	$	1.8	$	303.1	$	201.9	$	111.8	$	1.5	$	315.2
Intersegment sales	4.3		14.0		—		18.3		1.9		14.1		—		16.0
Segment Operating Adjusted EBITDA	16.5		8.3		(14.4)		10.4		17.6		13.1		(14.2)		16.5
	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
(in millions)	Infrastructure Solutions		Materials Solutions		Corporate and Other		Total		Infrastructure Solutions		Materials Solutions		Corporate and Other		Total
Revenues from external customers	$	638.8	$	354.6	$	7.6	$	1,001.0	$	609.0	$	312.9	$	2.7	$	924.6
Intersegment sales	8.2		40.9		0.6		49.7		7.0		35.8		—		42.8
Segment Operating Adjusted EBITDA	70.5		41.9		(33.5)		78.9		49.9		34.8		(36.3)		48.4

,

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

A reconciliation of total Segment Operating Adjusted EBITDA to the Company's "Net (loss) income attributable to controlling interest" is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Net (loss) income attributable to controlling interest
Segment Operating Adjusted EBITDA	$	10.4	$	16.5	$	78.9	$	48.4
Adjustments:
Transformation program	(7.7)		(7.0)		(22.5)		(18.7)
Restructuring and other related charges	(0.1)		(0.1)		(7.6)		(1.5)
Asset impairment	—		(0.4)		(0.8)		(3.4)
(Loss) gain on sale of property and equipment, net	(0.4)		0.4		3.1		0.4
Transaction costs	—		(0.5)		—		(1.9)
Interest expense, net	(1.9)		(0.3)		(4.9)		(0.9)
Depreciation and amortization	(7.1)		(7.3)		(19.6)		(20.9)
Income tax benefit (provision)	0.6		(0.7)		(6.5)		(0.8)
Net (income) loss attributable to noncontrolling interest	(0.1)		0.2		(0.2)		0.2
Elimination of intercompany profit	(0.3)		(0.1)		(1.3)		—
Net (loss) income attributable to controlling interest	$	(6.6)	$	0.7	$	18.6	$	0.9

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Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net (Tables)

9 Months Ended

Sep. 30, 2023

Restructuring, Settlement and Impairment Provisions [Abstract]

Restructuring and Related Costs

Restructuring, asset impairment charges and the net losses and gains on sale of property and equipment are presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Restructuring charges:
Costs associated with leadership change and overhead restructuring	$	—	$	—	$	7.3	$	—
Costs associated with exited operations - Enid	0.1		0.1		0.3		0.7
Costs associated with closing Tacoma	—		—		—		0.8
Total restructuring related charges	0.1		0.1		7.6		1.5
Asset impairment charges:
Other impairment charges	—		0.4		0.8		3.4
Total asset impairment charges	—		0.4		0.8		3.4
Loss (gain) on sale of property and equipment, net
Loss (gain) on sale of property and equipment, net	0.4		(0.4)		(3.1)		(0.4)
Total loss (gain) on sale of property and equipment, net	0.4		(0.4)		(3.1)		(0.4)
Restructuring, impairment and other asset charges, net	$	0.5	$	0.1	$	5.3	$	4.5

Restructuring charges by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Infrastructure Solutions	$	0.1	$	0.1	$	0.4	$	1.5
Corporate and Other	—		—		7.2		—
Total restructuring related charges	$	0.1	$	0.1	$	7.6	$	1.5

Schedule Of Asset Impairment Charges

Impairment charges by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Infrastructure Solutions	$	—	$	0.4	$	—	$	2.5
Corporate and Other	—		—		0.8		0.9
Total impairment charges	$	—	$	0.4	$	0.8	$	3.4

Schedule of Fixed Asset Sales

Net losses and gains on sale of property and equipment by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Infrastructure Solutions	$	0.4	$	(0.4)	$	(3.0)	$	(0.4)
Corporate and Other	—		—		(0.1)		—
Total loss (gain) on sale of property and equipment, net	$	0.4	$	(0.4)	$	(3.1)	$	(0.4)

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(Loss) Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Computation of Earnings Per Share

The following table sets forth a reconciliation of the number of shares used in the computation of basic and diluted (loss) earnings per common share:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Denominator:
Denominator for basic earnings per common share	22,746,783	22,837,314	22,709,238	22,824,028
Effect of dilutive securities	—	79,002	66,920	108,178
Denominator for diluted earnings per common share	22,746,783	22,916,316	22,776,158	22,932,206
Antidilutive securities excluded from the calculation of diluted earnings per share	67,408	124,229	9,345	32,218

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Basis of Presentation and Significant Accounting Policies (Details) R$ in Millions, $ in Millions	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 BRL (R$)
Product Information [Line Items]
Number of reportable segments | segment				2
Cost of sales	$ (233.5)		$ (249.7)	$ (759.3)	$ (731.5)
Revision of Prior Period, Error Correction, Adjustment
Product Information [Line Items]
Cost of sales		$ 1.9
Forecast
Product Information [Line Items]
Noncontrolling interest, decrease from redemptions or purchase of interests						$ 2.0	R$ 10.0
Consolidated Subsidiary
Product Information [Line Items]
Noncontrolling interest, ownership percentage by parent	7.00%			7.00%

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Acquisition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Mar. 22, 2022
Business Acquisition [Line Items]
Goodwill	$ 45.3		$ 45.3		$ 45.2
MINDS Automation Group Inc
Business Acquisition [Line Items]
Total purchase price						$ 19.3
Goodwill						9.3
Intangible assets						$ 9.3
Business combination, integration elated costs	$ 0.0	$ 0.2	$ 0.0	$ 1.1
MINDS Automation Group Inc | Customer Relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life			9 years
MINDS Automation Group Inc | Developed Technology Rights
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life			7 years

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Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Mar. 22, 2022
Business Acquisition [Line Items]
Goodwill	$ 45.3	$ 45.2
MINDS Automation Group Inc
Business Acquisition [Line Items]
Cash			$ 1.5
Trade receivables			2.7
Inventories			0.7
Prepaid expenses and other assets			0.4
Property and equipment			0.2
Goodwill			9.3
Intangible assets			9.3
Other long-term assets			0.5
Total assets acquired			24.6
Accounts payable			(0.7)
Accrued payroll and related liabilities			(0.8)
Other current liabilities			(1.1)
Deferred income tax liabilities			(2.4)
Other long-term liabilities			(0.3)
Total liabilities assumed			(5.3)
Total purchase price			$ 19.3

XML

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials and parts	$ 313.1	$ 302.9
Work-in-process	78.0	57.3
Finished goods	57.4	32.1
Used equipment	1.6	1.1
Total	$ 450.1	$ 393.4

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Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Financial assets:
Derivative financial instruments	$ 0.2
Total financial assets	20.2	$ 19.0
Financial liabilities:
Deferred compensation programs' liabilities	5.7	5.7
Total financial liabilities	5.7	5.7
Corporate bonds
Financial assets:
Trading debt securities:	4.0	5.0
Municipal bonds
Financial assets:
Trading debt securities:	0.3	0.3
Agency bonds
Financial assets:
Trading debt securities:	2.5
Floating rate notes
Financial assets:
Trading debt securities:	0.2	0.2
U.S. government securities
Financial assets:
Trading debt securities:	1.9	0.8
Asset-backed securities
Financial assets:
Trading debt securities:	4.3	5.4
Other
Financial assets:
Trading debt securities:	1.9	2.0
Preferred stocks
Financial assets:
Trading equity securities:	0.3	0.3
Equity Funds
Financial assets:
Trading equity securities:	0.6	0.6
Supplemental Employee Retirement Plan and Non-Qualified Deferred Compensation Plan | Mutual Fund
Financial assets:
Trading equity securities:	4.0	4.4
Level 1
Financial assets:
Derivative financial instruments	0.0
Total financial assets	12.3	12.6
Financial liabilities:
Deferred compensation programs' liabilities	0.0	0.0
Total financial liabilities	0.0	0.0
Level 1 | Corporate bonds
Financial assets:
Trading debt securities:	4.0	5.0
Level 1 | Municipal bonds
Financial assets:
Trading debt securities:	0.0	0.0
Level 1 | Agency bonds
Financial assets:
Trading debt securities:	0.0
Level 1 | Floating rate notes
Financial assets:
Trading debt securities:	0.2	0.2
Level 1 | U.S. government securities
Financial assets:
Trading debt securities:	1.9	0.8
Level 1 | Asset-backed securities
Financial assets:
Trading debt securities:	0.0	0.0
Level 1 | Other
Financial assets:
Trading debt securities:	1.3	1.3
Level 1 | Preferred stocks
Financial assets:
Trading equity securities:	0.3	0.3
Level 1 | Equity Funds
Financial assets:
Trading equity securities:	0.6	0.6
Level 1 | Supplemental Employee Retirement Plan and Non-Qualified Deferred Compensation Plan | Mutual Fund
Financial assets:
Trading equity securities:	4.0	4.4
Level 2
Financial assets:
Derivative financial instruments	0.2
Total financial assets	7.9	6.4
Financial liabilities:
Deferred compensation programs' liabilities	5.7	5.7
Total financial liabilities	5.7	5.7
Level 2 | Corporate bonds
Financial assets:
Trading debt securities:	0.0	0.0
Level 2 | Municipal bonds
Financial assets:
Trading debt securities:	0.3	0.3
Level 2 | Agency bonds
Financial assets:
Trading debt securities:	2.5
Level 2 | Floating rate notes
Financial assets:
Trading debt securities:	0.0	0.0
Level 2 | U.S. government securities
Financial assets:
Trading debt securities:	0.0	0.0
Level 2 | Asset-backed securities
Financial assets:
Trading debt securities:	4.3	5.4
Level 2 | Other
Financial assets:
Trading debt securities:	0.6	0.7
Level 2 | Preferred stocks
Financial assets:
Trading equity securities:	0.0	0.0
Level 2 | Equity Funds
Financial assets:
Trading equity securities:	0.0	0.0
Level 2 | Supplemental Employee Retirement Plan and Non-Qualified Deferred Compensation Plan | Mutual Fund
Financial assets:
Trading equity securities:	$ 0.0	$ 0.0

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Product Warranty Reserves (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Reserve balance, beginning of the period	$ 16.5	$ 11.6	$ 11.9	$ 10.5
Warranty liabilities accrued	3.8	2.9	14.4	9.3
Warranty liabilities settled	(3.6)	(3.4)	(9.6)	(8.6)
Other	0.0	(0.2)	0.0	(0.3)
Reserve balance, end of the period	$ 16.7	$ 10.9	$ 16.7	$ 10.9
Minimum
Standard Product Warranty Disclosure [Abstract]
Standard product warranty, warranty period			3 months
Maximum
Standard Product Warranty Disclosure [Abstract]
Standard product warranty, warranty period			2 years

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Accrued Loss Reserves (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Accrued Loss Reserves [Abstract]
Liability for claims and claims adjustment expense	$ 7.1	$ 5.8
Self insurance reserve, noncurrent	$ 4.2	$ 3.9

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax (benefit) provision	$ (0.6)	$ 0.7	$ 6.5	$ 0.8
Effective income tax rate reconciliation, percent	8.50%	58.30%	25.70%	53.30%
Unrecognized tax benefits	$ 12.7		$ 12.7		$ 12.0
Unrecognized tax benefits, period increase (decrease)			$ 0.7

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Commitments and Contingencies (Details) - USD ($) $ in Millions		9 Months Ended	12 Months Ended
	Aug. 16, 2018	Sep. 30, 2023	Dec. 31, 2022	Oct. 05, 2023
Other Commitments [Line Items]
Contractual obligation		$ 0.9	$ 2.4
Percentage of potential contingent liability on unpaid balance		1.75%	1.75%
Maximum exposure		$ 0.1
Loss contingency accrual		0.5	$ 1.0
Loss contingency, estimate of possible loss		6.4
Minimum | Subsequent Event
Other Commitments [Line Items]
Loss contingency, estimate of possible loss				$ 6.4
Maximum | Subsequent Event
Other Commitments [Line Items]
Loss contingency, estimate of possible loss				$ 18.1
Pending Litigation
Other Commitments [Line Items]
Loss contingency, damages sought, value	$ 8.5
Letter of Credit Lender
Other Commitments [Line Items]
Amount of letters of credit outstanding		2.4
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries		4.5
Performance Guarantee
Other Commitments [Line Items]
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries		6.1
Revolving Credit Facility
Other Commitments [Line Items]
Line of credit facility, maximum borrowing capacity		$ 250.0

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Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Abstract]
Net sales	$ 303.1	$ 315.2	$ 1,001.0	$ 924.6
United States
Disaggregation of Revenue [Abstract]
Net sales	229.6	249.4	797.3	732.3
United States | Equipment sales
Disaggregation of Revenue [Abstract]
Net sales	149.6	167.3	514.6	478.1
United States | Parts and component sales
Disaggregation of Revenue [Abstract]
Net sales	70.9	68.2	224.2	210.2
United States | Service and equipment installation revenue
Disaggregation of Revenue [Abstract]
Net sales	3.8	5.5	38.7	18.4
United States | Used equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.0	3.2	2.6	5.2
United States | Freight revenue
Disaggregation of Revenue [Abstract]
Net sales	7.1	7.4	23.8	24.0
United States | Other
Disaggregation of Revenue [Abstract]
Net sales	(1.8)	(2.2)	(6.6)	(3.6)
Canada
Disaggregation of Revenue [Abstract]
Net sales	13.4	12.9	48.7	49.2
Australia
Disaggregation of Revenue [Abstract]
Net sales	20.6	10.8	44.4	31.3
Africa
Disaggregation of Revenue [Abstract]
Net sales	10.6	10.9	28.6	25.9
Europe
Disaggregation of Revenue [Abstract]
Net sales	8.0	9.1	24.5	22.4
Brazil
Disaggregation of Revenue [Abstract]
Net sales	8.3	7.7	22.1	18.5
South America (Excluding Brazil)
Disaggregation of Revenue [Abstract]
Net sales	5.1	4.5	14.4	17.1
Asia
Disaggregation of Revenue [Abstract]
Net sales	2.8	1.5	6.5	8.6
Mexico
Disaggregation of Revenue [Abstract]
Net sales	3.4	4.2	6.2	9.1
Central America (Excluding Mexico)
Disaggregation of Revenue [Abstract]
Net sales	0.5	3.9	3.6	7.5
Other
Disaggregation of Revenue [Abstract]
Net sales	0.8	0.3	4.7	2.7
International
Disaggregation of Revenue [Abstract]
Net sales	73.5	65.8	203.7	192.3
International | Equipment sales
Disaggregation of Revenue [Abstract]
Net sales	50.1	41.8	129.1	119.0
International | Parts and component sales
Disaggregation of Revenue [Abstract]
Net sales	19.1	19.7	61.5	62.9
International | Service and equipment installation revenue
Disaggregation of Revenue [Abstract]
Net sales	2.9	2.0	7.8	5.2
International | Used equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.4	1.3	1.8	2.1
International | Freight revenue
Disaggregation of Revenue [Abstract]
Net sales	0.9	0.9	3.3	2.8
International | Other
Disaggregation of Revenue [Abstract]
Net sales	0.1	0.1	0.2	0.3
Corporate and Other
Disaggregation of Revenue [Abstract]
Net sales	1.8	1.5	7.6	2.7
Corporate and Other | United States
Disaggregation of Revenue [Abstract]
Net sales	0.9	1.0	3.0	1.1
Corporate and Other | United States | Equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.5	0.8	2.2	0.9
Corporate and Other | United States | Parts and component sales
Disaggregation of Revenue [Abstract]
Net sales	0.1	0.1	0.2	0.1
Corporate and Other | United States | Service and equipment installation revenue
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.0	0.1	0.0
Corporate and Other | United States | Used equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.0	0.0	0.0
Corporate and Other | United States | Freight revenue
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.0	0.0	0.0
Corporate and Other | United States | Other
Disaggregation of Revenue [Abstract]
Net sales	0.3	0.1	0.5	0.1
Corporate and Other | International
Disaggregation of Revenue [Abstract]
Net sales	0.9	0.5	4.6	1.6
Corporate and Other | International | Equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.7	0.3	3.9	1.1
Corporate and Other | International | Parts and component sales
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.0	0.1	0.1
Corporate and Other | International | Service and equipment installation revenue
Disaggregation of Revenue [Abstract]
Net sales	0.1	0.1	0.4	0.3
Corporate and Other | International | Used equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.0	0.0	0.0
Corporate and Other | International | Freight revenue
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.0	0.0	0.0
Corporate and Other | International | Other
Disaggregation of Revenue [Abstract]
Net sales	0.1	0.1	0.2	0.1
Infrastructure Solutions
Disaggregation of Revenue [Abstract]
Net sales	190.8	201.9	638.8	609.0
Infrastructure Solutions | United States
Disaggregation of Revenue [Abstract]
Net sales	153.8	166.1	532.9	503.1
Infrastructure Solutions | United States | Equipment sales
Disaggregation of Revenue [Abstract]
Net sales	94.4	105.9	314.6	315.2
Infrastructure Solutions | United States | Parts and component sales
Disaggregation of Revenue [Abstract]
Net sales	50.3	46.3	159.9	146.4
Infrastructure Solutions | United States | Service and equipment installation revenue
Disaggregation of Revenue [Abstract]
Net sales	3.6	5.2	38.0	17.8
Infrastructure Solutions | United States | Used equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.0	3.2	2.6	5.2
Infrastructure Solutions | United States | Freight revenue
Disaggregation of Revenue [Abstract]
Net sales	5.2	5.3	17.4	18.1
Infrastructure Solutions | United States | Other
Disaggregation of Revenue [Abstract]
Net sales	0.3	0.2	0.4	0.4
Infrastructure Solutions | International
Disaggregation of Revenue [Abstract]
Net sales	37.0	35.8	105.9	105.9
Infrastructure Solutions | International | Equipment sales
Disaggregation of Revenue [Abstract]
Net sales	26.3	23.8	68.3	67.4
Infrastructure Solutions | International | Parts and component sales
Disaggregation of Revenue [Abstract]
Net sales	9.2	10.1	31.4	33.4
Infrastructure Solutions | International | Service and equipment installation revenue
Disaggregation of Revenue [Abstract]
Net sales	1.0	1.0	3.3	2.8
Infrastructure Solutions | International | Used equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.3	0.6	0.5
Infrastructure Solutions | International | Freight revenue
Disaggregation of Revenue [Abstract]
Net sales	0.5	0.6	2.3	1.8
Infrastructure Solutions | International | Other
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.0	0.0	0.0
Materials Solutions
Disaggregation of Revenue [Abstract]
Net sales	110.5	111.8	354.6	312.9
Materials Solutions | United States
Disaggregation of Revenue [Abstract]
Net sales	74.9	82.3	261.4	228.1
Materials Solutions | United States | Equipment sales
Disaggregation of Revenue [Abstract]
Net sales	54.7	60.6	197.8	162.0
Materials Solutions | United States | Parts and component sales
Disaggregation of Revenue [Abstract]
Net sales	20.5	21.8	64.1	63.7
Materials Solutions | United States | Service and equipment installation revenue
Disaggregation of Revenue [Abstract]
Net sales	0.2	0.3	0.6	0.6
Materials Solutions | United States | Used equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.0	0.0	0.0	0.0
Materials Solutions | United States | Freight revenue
Disaggregation of Revenue [Abstract]
Net sales	1.9	2.1	6.4	5.9
Materials Solutions | United States | Other
Disaggregation of Revenue [Abstract]
Net sales	(2.4)	(2.5)	(7.5)	(4.1)
Materials Solutions | International
Disaggregation of Revenue [Abstract]
Net sales	35.6	29.5	93.2	84.8
Materials Solutions | International | Equipment sales
Disaggregation of Revenue [Abstract]
Net sales	23.1	17.7	56.9	50.5
Materials Solutions | International | Parts and component sales
Disaggregation of Revenue [Abstract]
Net sales	9.9	9.6	30.0	29.4
Materials Solutions | International | Service and equipment installation revenue
Disaggregation of Revenue [Abstract]
Net sales	1.8	0.9	4.1	2.1
Materials Solutions | International | Used equipment sales
Disaggregation of Revenue [Abstract]
Net sales	0.4	1.0	1.2	1.6
Materials Solutions | International | Freight revenue
Disaggregation of Revenue [Abstract]
Net sales	0.4	0.3	1.0	1.0
Materials Solutions | International | Other
Disaggregation of Revenue [Abstract]
Net sales	$ 0.0	$ 0.0	$ 0.0	$ 0.2

XML

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Contract assets	$ 3.6	$ 3.8
Contract with customer, liability	6.2	5.5
Extended Warranty Revenue
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 2.6	$ 2.9

XML

Segment Information- Narrative (Details)	9 Months Ended
	Sep. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

XML

Segment Information - Summary of Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	$ 303.1	$ 315.2	$ 1,001.0	$ 924.6
Infrastructure Solutions
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	190.8	201.9	638.8	609.0
Materials Solutions
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	110.5	111.8	354.6	312.9
Operating Segments
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	303.1	315.2	1,001.0	924.6
Segment Operating Adjusted EBITDA	10.4	16.5	78.9	48.4
Operating Segments | Infrastructure Solutions
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	190.8	201.9	638.8	609.0
Segment Operating Adjusted EBITDA	16.5	17.6	70.5	49.9
Operating Segments | Materials Solutions
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	110.5	111.8	354.6	312.9
Segment Operating Adjusted EBITDA	8.3	13.1	41.9	34.8
Intersegment Eliminations
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	18.3	16.0	49.7	42.8
Intersegment Eliminations | Infrastructure Solutions
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	4.3	1.9	8.2	7.0
Intersegment Eliminations | Materials Solutions
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	14.0	14.1	40.9	35.8
Corporate and Other
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	1.8	1.5	7.6	2.7
Segment Operating Adjusted EBITDA	(14.4)	(14.2)	(33.5)	(36.3)
Corporate and Other
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Revenue	$ 0.0	$ 0.0	$ 0.6	$ 0.0

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Segment Information - Reconciliation of Total Segment Profits to Consolidated Totals (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reconciliation [Abstract]
Total asset impairment charges	$ 0.0	$ (0.4)	$ (0.8)	$ (3.4)
(Loss) gain on sale of property and equipment, net	(0.4)	0.4	3.1	0.4
Income tax benefit (provision)	0.6	(0.7)	(6.5)	(0.8)
Net (income) loss attributable to noncontrolling interest	(0.1)	0.2	(0.2)	0.2
Net (loss) income attributable to controlling interest	(6.6)	0.7	18.6	0.9
Operating Segments
Segment Reconciliation [Abstract]
Segment Operating Adjusted EBITDA	10.4	16.5	78.9	48.4
Transformation program	(7.7)	(7.0)	(22.5)	(18.7)
Restructuring and other related charges	(0.1)	(0.1)	(7.6)	(1.5)
Total asset impairment charges	0.0	(0.4)	(0.8)	(3.4)
(Loss) gain on sale of property and equipment, net	(0.4)	0.4	3.1	0.4
Transaction costs	0.0	(0.5)	0.0	(1.9)
Interest expense, net	(1.9)	(0.3)	(4.9)	(0.9)
Depreciation and amortization	(7.1)	(7.3)	(19.6)	(20.9)
Income tax benefit (provision)	0.6	(0.7)	(6.5)	(0.8)
Net (income) loss attributable to noncontrolling interest	(0.1)	0.2	(0.2)	0.2
Intersegment Eliminations
Segment Reconciliation [Abstract]
Elimination of intercompany profit	$ (0.3)	$ (0.1)	$ (1.3)	$ 0.0

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Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended					9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Restructuring charges:
Restructuring reserve	$ 0.2					$ 0.2		$ 4.7
Assets held for sale	0.0					0.0		15.4
Gain (loss) on disposition of property plant equipment	(0.4)			$ 0.4		3.1	$ 0.4
Total asset impairment charges	0.0			0.4		0.8	3.4
Costs associated with leadership change and overhead restructuring	0.0			0.0		7.3	0.0
Manufacturing Equipment
Restructuring charges:
Total asset impairment charges					$ 2.1
Internally Developed Software
Restructuring charges:
Total asset impairment charges		$ 0.8			$ 0.9
Tacoma Exit Plan
Restructuring charges:
Assets held for sale								$ 15.4
Tacoma Exit Plan | Discontinued Operations, Disposed of by Sale
Restructuring charges:
Disposal group, including discontinued operation, consideration			$ 19.9
Gain (loss) on disposition of property plant equipment			3.4
Operating Segments
Restructuring charges:
Transformation program	(7.7)			(7.0)		(22.5)	(18.7)
Gain (loss) on disposition of property plant equipment	(0.4)			0.4		3.1	0.4
Total asset impairment charges	0.0			0.4		0.8	3.4
Strategic Transformation Initiatives
Restructuring charges:
Transformation program	(7.8)					(22.8)
Strategic Transformation Initiatives | Selling, General and Administrative Expenses
Restructuring charges:
Transformation program	(7.7)			(7.0)		(22.6)	(18.7)
Strategic Transformation Initiatives | Cost of Sales
Restructuring charges:
Transformation program	(0.1)					(0.2)
Facility Closing | Tacoma Exit Plan
Restructuring charges:
Business exit costs	0.0			0.0		0.0	0.8
Facility Closing | Enid Exit Plan
Restructuring charges:
Business exit costs	$ 0.1			0.1		0.3	$ 0.7
Total asset impairment charges				$ 0.4
Other Restructuring
Restructuring charges:
Share-based payment arrangement, recovery of expense		0.2	0.8			1.0
Restructuring and related cost, incurred cost		$ 0.3	5.2			$ 5.5
Other Restructuring | Chief Executive Officer
Restructuring charges:
Costs associated with leadership change and overhead restructuring			1.8
Share-based payment arrangement, recovery of expense			$ 1.6

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Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net - Restructuring and the Net Gain on Sale of Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring charges:
Costs associated with leadership change and overhead restructuring	$ 0.0	$ 0.0	$ 7.3	$ 0.0
Total restructuring related charges	0.1	0.1	7.6	1.5
Other impairment charges	0.0	0.4	0.8	3.4
Total asset impairment charges	0.0	0.4	0.8	3.4
Loss (gain) on sale of property and equipment, net
Loss (gain) on sale of property and equipment, net	0.4	(0.4)	(3.1)	(0.4)
Total loss (gain) on sale of property and equipment, net	0.4	(0.4)	(3.1)	(0.4)
Restructuring, impairment and other asset charges, net	0.5	0.1	5.3	4.5
Facility Closing | Enid Exit Plan
Restructuring charges:
Business exit costs	0.1	0.1	0.3	0.7
Total asset impairment charges		0.4
Facility Closing | Tacoma Exit Plan
Restructuring charges:
Business exit costs	$ 0.0	$ 0.0	$ 0.0	$ 0.8

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Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net - Restructuring Charge by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring charges:
Total restructuring related charges	$ 0.1	$ 0.1	$ 7.6	$ 1.5
Corporate and Other
Restructuring charges:
Total restructuring related charges	0.0	0.0	7.2	0.0
Infrastructure Solutions | Operating Segments
Restructuring charges:
Total restructuring related charges	$ 0.1	$ 0.1	$ 0.4	$ 1.5

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Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net - Impairment Charges by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring charges:
Total asset impairment charges	$ 0.0	$ 0.4	$ 0.8	$ 3.4
Operating Segments
Restructuring charges:
Total asset impairment charges	0.0	0.4	0.8	3.4
Corporate and Other
Restructuring charges:
Total asset impairment charges	0.0	0.0	0.8	0.9
Infrastructure Solutions | Operating Segments
Restructuring charges:
Total asset impairment charges	$ 0.0	$ 0.4	$ 0.0	$ 2.5

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Strategic Transformation and Restructuring, Impairment and Other Asset Charges, net - Sale of Fixed Assets by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring charges:
Total loss (gain) on sale of property and equipment, net	$ 0.4	$ (0.4)	$ (3.1)	$ (0.4)
Operating Segments
Restructuring charges:
Total loss (gain) on sale of property and equipment, net	0.4	(0.4)	(3.1)	(0.4)
Corporate and Other
Restructuring charges:
Total loss (gain) on sale of property and equipment, net	0.0	0.0	(0.1)	0.0
Infrastructure Solutions | Operating Segments
Restructuring charges:
Total loss (gain) on sale of property and equipment, net	$ 0.4	$ (0.4)	$ (3.0)	$ (0.4)

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(Loss) Earnings Per Common Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Denominator:
Denominator for basic earnings per common share	22,746,783	22,837,314	22,709,238	22,824,028
Effect of dilutive securities	0	79,002	66,920	108,178
Denominator for diluted earnings per common share	22,746,783	22,916,316	22,776,158	22,932,206
Antidilutive restricted stock units excluded from the calculation of diluted earnings per share (in shares)	67,408	124,229	9,345	32,218