Arcosa, Inc. (NYSE:ACA) Q2 2023 Earnings Conference Call August 4, 2023 8:30 AM ET Company Participants Erin Drabek - Director, IR Antonio Carrillo - President, CEO & Director Gail Peck - CFO Conference Call Participants Noah Merkousko - Stephens Inc. Ian Zaffino - Oppenheimer Garik Shmois - Loop Capital Markets Jean Ramirez - D.A. Davidson & Co. Operator Good morning, ladies and gentlemen, and welcome to the Arcosa, Inc. Second Quarter 2023 Earnings Conference Call. My name is Shelby, and I will be your co ...

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 JUNE 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 1-38494 Arcosa, Inc. (Exact name of registrant as specified in its charter) Delaware 82-5339416 (State or Other ...

Financial Data and Key Metrics Changes - Arcosa reported strong first quarter results with record adjusted EBITDA driven by all three business segments [5][6] - Adjusted segment EBITDA for Construction Products increased 85% year-over-year, with a significant contribution from a land sale gain [9][10] - The company raised its 2023 revenue guidance to $2.25 billion, representing a 10% increase compared to 2022 [20] Business Line Data and Key Metrics Changes - In Construction Products, revenues increased by 12% primarily due to higher pricing, which offset organic volume declines [9][11] - Transportation Products saw a 43% increase in segment revenues, with adjusted segment EBITDA more than doubling [15] - Engineered Structures reported a 24% increase in adjusted EBITDA, benefiting from higher volumes and tax credits [14] Market Data and Key Metrics Changes - The backlog for the barge business reached its highest level in three years, providing production visibility into 2024 [7] - Wind tower orders totaled approximately $800 million during the quarter, marking the largest quarterly total in Arcosa's history [23] - The backlog for utility wind and related structures increased to $1.5 billion, up from $671 million at the start of the year [15] Company Strategy and Development Direction - The company is focused on value over volume, maintaining disciplined pricing to combat inflationary pressures [6][8] - Recent acquisitions in Construction Products are aimed at expanding presence and capabilities in key markets [8] - Arcosa plans to continue simplifying its portfolio and may consider divesting non-core businesses as part of its growth strategy [73] Management's Comments on Operating Environment and Future Outlook - Management views 2023 as a transition year, with expectations for improved profitability in cyclical businesses in 2024 [19][20] - The company remains optimistic about infrastructure spending and its ability to capitalize on market opportunities [21][22] - Management highlighted the positive impact of the Inflation Reduction Act on wind tower demand and production planning [23][24] Other Important Information - The company ended the quarter with a net debt to adjusted EBITDA ratio of 1.1 times and available liquidity of $624 million [16] - Capital expenditures were revised to a range of $185 million to $210 million, reflecting new investments in wind tower facilities [17] Q&A Session Summary Question: Progress on the redesign of the barge product - Management confirmed that the redesign of dry cargo barges using coil steel is performing well, providing flexibility in manufacturing and sales [28][30] Question: Margin expansion sustainability in Construction Products - Management indicated that pricing strength in infrastructure-related businesses supports continued margin expansion despite volume declines [36][38] Question: Wind tower business order lag and delivery capacity - Management noted that ramp-up in production will depend on hiring and training, with sufficient capacity available for future orders [44][45] Question: Tax credits impact on pricing and profitability - Management stated that the business needs to be profitable on its own, with tax credits expected to enhance margins rather than be the sole source of profitability [68] Question: Plans for divesting non-core businesses - Management reiterated the commitment to simplify the company and may consider divesting non-core assets when conditions are favorable [73]

Financial Performance & Guidance - Arcosa reported record quarterly Adjusted EBITDA, driven by strong performance across all segments and a strategic land sale gain[26] - The company increased its full-year 2023 revenue guidance to a range of $2200 million to $2300 million[44], reflecting a potential increase of approximately 10% from the $2054 million in FY22 (excluding storage tanks)[44] - Adjusted EBITDA guidance for 2023 was also increased to a range of $345 million to $370 million[44], which, normalizing for the sale of storage tanks, represents a 29% growth from the $278 million in 2022[43, 44] - The updated Adjusted EBITDA guidance includes an estimated $17 million to $22 million of AMP tax credits for wind towers[44] Segment Results (Q1 2023) - Construction Products saw revenues of $236.1 million[31], a 12% increase from Q1 2022's $211.5 million[31], with Adjusted Segment EBITDA increasing by 85% to $76.4 million[31] - Engineered Structures reported Adjusted Segment EBITDA growth of 24%, normalizing for the storage tanks divestiture, driven by higher volumes in utility structures and inclusion of AMP tax credits for wind towers[32] - Transportation Products experienced Adjusted Segment EBITDA growth due to higher volumes in both barge and steel components[35] Strategic Initiatives & Outlook - Arcosa divested its storage tanks business for $275 million in October 2022[11] - The company has invested approximately $1.4 billion in 5 large acquisitions and several bolt-on acquisitions to expand its Construction Products platform[12] - Since the passage of the Inflation Reduction Act (IRA), Arcosa has received wind tower orders exceeding $1.1 billion for delivery through 2028[54]

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 MARCH 31, 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 1-38494 Arcosa, Inc. (Exact name of registrant as specified in its charter) Delaware 82-5339416 (State or Othe ...

Financial Performance & Strategic Transformation - Arcosa's FY 2022 revenue was $2.2428 billion, a 10% increase compared to FY 2021[31] - Excluding the storage tanks business, FY 2022 revenue increased by 14% to $2.2415 billion[31] - Adjusted EBITDA for FY 2022 was $325.1 million, a 15% increase from FY 2021[31] - Excluding the storage tanks business, Adjusted EBITDA increased by 19% to $324.7 million[31] - The company divested its Storage Tanks business on October 3, 2022, for $275 million in cash[19, 21] - The divestiture resulted in a gain on sale of $189 million ($147 million after-tax) in the fourth quarter[21] Segment Performance (FY 2022) - Construction Products revenue was $924 million with an Adjusted Segment EBITDA of $199 million and a margin of 22%[12] - Engineered Structures revenue was $1.002 billion with an Adjusted Segment EBITDA of $149 million and a margin of 15%[12] - Transportation Products revenue was $317 million with an Adjusted Segment EBITDA of $27 million and a margin of 9%[12] 2023 Outlook - The company expects full year 2023 revenue to be in the range of $2.15 billion to $2.25 billion[66] - Adjusted EBITDA is projected to be between $310 million and $340 million for full year 2023, including ~$22 million gain from expected first quarter land sale in Construction Products[66]

Financial Performance Highlights - Full year 2022 revenue increased by 10% to $2.24 billion[20], excluding the storage tanks business, revenue increased by 14%[20] - Full year 2022 Adjusted EBITDA increased by 15% to $325.1 million[20]; excluding the storage tanks business, Adjusted EBITDA increased by 19% to $271.8 million[20] - Q4 2022 Adjusted EBITDA was $61.7 million[17], a decrease of 6%[17]; excluding the storage tanks business, Adjusted EBITDA increased by 13% to $61.3 million[17] - The sale of the storage tanks business resulted in a gain of $189 million ($147 million after-tax)[5] Segment Results (FY 2022) - Construction Products revenue increased by 16% to $923.5 million, with Adjusted Segment EBITDA of $199.2 million[33] - Engineered Structures revenue increased by 7% to $1.002 billion, with Adjusted Segment EBITDA of $149.1 million[33] - Transportation Products revenue increased by 4% to $317.3 million, with Adjusted Segment EBITDA of $27.3 million[33] Strategic Initiatives and Outlook - The company divested its storage tanks business for $275 million in October 2022[12] - The company invested approximately $1.4 billion on acquisitions to expand the Construction Products platform[12] - The company expects solid revenue and Adjusted EBITDA growth for 2023, normalizing for the sale of storage tanks[5, 38] - Wind tower orders in Q4 2022 reached $371 million for delivery from 2023-2025[56] ESG Accomplishments - Scope 1 and 2 GHG emissions intensity declined by 9% compared to 2020 and 20% compared to 2019[57] - Municipal water intensity reduced by 23% compared to 2020 and 35% compared to 2019[57]

Arcosa, Inc. (NYSE:ACA) Q4 2022 Earnings Conference Call February 24, 2023 8:30 AM ET Company Participants Erin Drabek - Director of Investor Relations Antonio Carrillo - President and Chief Executive Officer. Gail Peck - Chief Financial Officer Conference Call Participants Ian Zaffino - Oppenheimer Brent Thielman - D.A. Davidson Trey Grooms - Stephens Garik Shmois - Loop Capital Markets Julio Romero - Sidoti & Company Stefanos Crist - CJS Securities Operator Good morning ladies and gentlemen, and welcome t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended DECEMBER 31, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-38494 Arcosa, Inc. (Exact name of registrant as specified in its charter) Delaware 82-5339416 (State or other jurisdiction of incorporation or organization) (I.R.S. Emplo ...

Financial Data and Key Metrics Changes - Arcosa reported a revenue increase of 8% in Q3 2022, driven by solid organic growth [15] - Adjusted EBITDA improved by 11%, leading to a margin expansion of 30 basis points despite inflationary pressures [15] - Free cash flow conversion was 120% in Q3 2022, a significant improvement from the previous year [10] Business Line Data and Key Metrics Changes - **Engineered Structures**: This segment saw double-digit revenue and adjusted EBITDA growth, with a margin expansion of 360 basis points due to improved pricing in utility structures and storage tanks [8][23] - **Construction Products**: Revenues increased by 7%, but adjusted segment EBITDA remained flat year-over-year due to inflationary pressures and lower natural aggregates volumes [16][20] - **Transportation Products**: Adjusted segment EBITDA declined by $1 million, with revenues in steel components increasing by 37% driven by higher volumes [27] Market Data and Key Metrics Changes - The backlog for Utility, Wind, and Related Structures was approximately $370 million, down from the start of the year due to a lapse in wind tower orders [26] - The company experienced a deceleration in single-family residential construction activity, impacting natural aggregates volume [20][37] - Demand for electric utility and telecommunication towers remains strong, supported by utility CapEx for grid hardening initiatives [39] Company Strategy and Development Direction - The divestiture of the storage tank business for $275 million is a significant milestone in simplifying the portfolio and enhancing balance sheet flexibility [13][14] - The company aims to focus on building a more aggregate-centric portfolio, maximizing existing strengths while generating higher returns [14] - Strategic transformation includes focused M&A and organic growth initiatives, with a strong emphasis on infrastructure spending driven by federal legislation [12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the fundamentals in infrastructure-driven businesses, despite potential impacts from economic uncertainty and higher interest rates [36] - The company anticipates a transition from residential projects to infrastructure-oriented ones as federal spending increases [38] - There is a positive outlook for utility structures, with strong backlog visibility supporting future growth [39] Other Important Information - The company ended the quarter with a net debt to adjusted EBITDA ratio of 1.8 times, indicating strong balance sheet strength [33] - Capital expenditures were $33 million, a 70% increase compared to the previous year, reflecting progress on growth projects [32] Q&A Session Summary Question: What are the drivers in the Engineered Structures business? - Management noted favorable trends in the Utility Structures business, with expectations for continued improvement as labor constraints are resolved [50][52] Question: What is the impact of the Inflation Reduction Act on wind towers? - The IRA is seen as a significant catalyst for growth, providing long-term production tax credits that will benefit the company [56][60] Question: How are steel input costs affecting the business? - Steel prices have been dropping, and management expects this trend to continue, which should stimulate demand [62][65] Question: What drove the sequential improvement in construction product margins? - The improvement was attributed to better pricing actions and a strong finish in September after a slow start in July [68][69] Question: What is the end market mix for construction products? - The mix is approximately 50% infrastructure, 25% residential, and 25% non-residential, with a focus on reallocating volumes to infrastructure projects [87][89] Question: Is there a widespread cement shortage? - The cement shortage was primarily localized to the Houston area but has since improved, allowing for project progress [90]