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Astec Industries, Inc.<\/strong> ASTE<\/a> is well-positioned to benefit from multi-year U.S. infrastructure spending cycle. The company is also building a steadier aftermarket stream that can cushion results through the cycle.\u00a0<\/p>\n<\/div>\n Astec makes equipment and components used across the road-building lifecycle, from aggregate quarrying to asphalt application. The company also sells industrial automation controls and telematics platforms.<\/p>\n<\/div>\n Astec\u2019s end markets are benefiting from sustained public infrastructure investments, with demand for asphalt and concrete plants remaining strong toward the end of 2025. This supportive backdrop is helping stabilize expectations for plant-related activity.<\/p>\n<\/div>\n Astec ended 2025 with consolidated backlog of $514.1 million, up 22.5% year over year as of Dec. 31, 2025. This followed a mid-year trough and supports a clearer shipment runway heading into 2026.<\/p>\n<\/div>\n The Zacks Consensus Estimate for revenues for 2026 stands at $1.59 million, suggesting year-over-year growth of 13%. The estimate for 2027 is at $1.64 million, indicating 3% growth.<\/p>\n<\/div>\n Image Source: Zacks Investment Research<\/p>\n<\/div>\n Implied consolidated orders also rose sequentially in the fourth quarter, led by the Infrastructure Solutions segment. This trend is notable, as Infrastructure has been identified as the primary near-term growth driver.<\/p>\n<\/div>\n Astec has emphasized aftermarket parts as an integral revenue stream that supports customer retention across cycles. A higher parts mix can reduce earnings volatility because it is tied to an installed base that continues operating even when new equipment orders fluctuate.\u00a0<\/p>\n<\/div>\n Parts sales increased 11.5% in 2025 and rose 19.7% year over year in the fourth quarter. Parts represented 30.7% of total sales in 2025, underscoring the growing contribution from recurring demand.\u00a0<\/p>\n<\/div>\n Astec strengthened its business in 2025 through targeted acquisitions and new product launches, adding more than $200 million in annual revenues. The TerraSource acquisition contributed $84.7 million of incremental net sales in 2025 and also lifted Materials Solutions year-end backlog, including a $53.2 million contribution.<\/p>\n<\/div>\n The company has also advanced an innovation pipeline that includes new plant technologies, processing equipment and a digital platform. These efforts expand the installed base and can increase recurring parts opportunities as more equipment operates within Astec\u2019s service and support ecosystem.<\/p>\n<\/div>\n Astec currently sports a Zacks Rank #1 (Strong Buy).\u00a0For context on the broader construction and mining equipment landscape, Caterpillar $CAT<\/a> Inc. CAT<\/a> and Terex Corporation<\/strong> TEX<\/a> are two notable industry peers. In the same peer set, CAT carries a Zacks Rank #2 (Buy), while TEX shows a Zacks Rank #5 (Strong Sell).<\/p>\n<\/div>\n You can see\u00a0the complete list of today\u2019s Zacks #1 Rank stocks here<\/strong><\/a>.<\/p>\n<\/div>\n From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.<\/p>\n This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren\u2019t winners but this one could far surpass earlier Zacks\u2019 Stocks Set to Double like Nano-X $TWTR<\/a> Imaging which shot up +129.6% in little more than 9 months.<\/p>\nImproving Demand Visibility for ASTE<\/h2>\n
Aftermarket Focus Enhances Stability<\/h2>\n
Portfolio Expansion and Innovation to Drive Growth<\/h2>\n
Research Chief Names “Single Best Pick to Double”<\/h2>\n