Astec (NASDAQ: ASTE) shares plummeted 5.13% in pre-market trading on Wednesday, following the company's Q1 2025 earnings call held the previous day. Despite reporting robust financial results, including a 6.5% increase in net sales and an 86.2% surge in adjusted EBITDA, investors seemed to focus on the uncertainties highlighted during the call.

The earnings report revealed several positive aspects, including a strong balance sheet with $90.1 million in cash and cash equivalents, and available credit of $148.8 million. Astec also announced a strategic acquisition of Pterosaurs, expected to enhance their material solutions segment. However, these positives were overshadowed by concerns about potential tariff impacts and management's decision not to raise guidance for the year.

During the earnings call, CEO Yao van der Merwe emphasized the uncertainty surrounding tariffs and their potential effect on costs and customer behavior. This cautious outlook, combined with challenges in some segments such as mobile paving and forestry units, appears to have dampened investor enthusiasm. The slight decline in backlog on a sequential basis, despite double-digit improvements in material solutions backlog and implied orders, may have further contributed to the stock's downward movement. As the market digests this mixed bag of strong current performance and cautious future outlook, Astec's stock price reflects the ongoing uncertainty in the construction equipment sector.