Astec Industries Inc. (ASTE) stock surged 10.84% on Wednesday during the intraday trading session, driven by robust fourth-quarter 2024 earnings results that outpaced analysts' estimates. The company reported strong financial performance, including record quarterly net sales, adjusted EBITDA, and adjusted earnings per share (EPS).

The key highlights from Astec's Q4 2024 earnings report include:

• Net sales of $359.0 million, up 6.5% year-over-year, beating estimates of $371.4 million.
• Adjusted EPS of $1.19, significantly higher than the consensus estimate of $0.73.
• Record adjusted EBITDA of $47.9 million, representing a 46.9% increase from the prior year.
• Strong operating cash flow of $36.6 million and free cash flow of $32.1 million in the quarter.

The company attributed its impressive performance to robust demand for its infrastructure solutions products, including asphalt and concrete plants, as well as effective working capital management and operational excellence initiatives. Astec's Infrastructure Solutions segment saw a 52.1% increase in operating adjusted EBITDA, driven by the continued strength in the infrastructure construction market.

Jaco van der Merwe, CEO of Astec Industries, expressed optimism about the company's future growth prospects, stating, "Our results show what our team is capable of." The company provided a positive outlook for fiscal year 2025, forecasting adjusted EBITDA in the range of $105 million to $125 million, reflecting expectations for consistent and profitable growth.

Investors cheered Astec's strong financial performance and upbeat guidance, propelling the stock higher during Wednesday's trading session. The company's ability to capitalize on robust demand, improve operational efficiency, and generate solid cash flows reinforced confidence in its long-term growth trajectory.