[Q2 2025 Financial Highlights](index=1&type=section&id=Arcosa%2C%20Inc.%20Announces%20Record%20Second%20Quarter%202025%20Results) Arcosa achieved record Q2 2025 performance with significant revenue and Adjusted EBITDA growth, driven by strategic acquisitions Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues (millions) | $736.9 | $664.7 | 11% | | Revenues (ex-divestiture, millions) | $736.9 | $626.6 | 18% | | Net Income (millions) | $59.7 | $45.6 | 31% | | Adjusted Net Income (millions) | $62.2 | $44.7 | 39% | | Diluted EPS | $1.22 | $0.93 | 31% | | Adjusted Diluted EPS | $1.27 | $0.91 | 40% | | Adjusted EBITDA (millions) | $154.2 | $112.7 | 37% | | Adjusted EBITDA Margin | 20.9% | 17.0% | +390 bps | | Net cash from operating activities (millions) | $61.2 | $38.3 | 60% | | Free Cash Flow (millions) | $39.2 | $(6.1) | N.M. | - The company achieved record performance, highlighted by an **18% revenue growth** and a **42% Adjusted EBITDA expansion** when excluding the impact of a divested business[4](index=4&type=chunk) - Adjusted EBITDA Margin reached a record **20.9%**, an increase of **360 basis points** year-over-year (excluding divestiture impact)[4](index=4&type=chunk) - Key growth businesses performed well, with a **15% increase in Aggregates cash unit profitability** and a **record backlog in Utility Structures**[4](index=4&type=chunk) [Management Commentary and Outlook](index=2&type=section&id=Management%20Commentary%20and%20Outlook) Management highlights the positive impact of the Stavola acquisition and strong segment performance, leading to tightened full-year guidance [CEO Commentary](index=2&type=section&id=CEO%20Commentary) The CEO attributes record results to the Stavola acquisition, strong Engineered Structures, and healthy barge orders, while prioritizing deleveraging - The Stavola acquisition increased Arcosa's consolidated revenues by **14%** and consolidated Adjusted EBITDA margin by **250 basis points** in the quarter[6](index=6&type=chunk) - Engineered Structures delivered strong results with record top-line and margin, supported by a **record backlog in the utility structures business** due to U.S. grid load growth[7](index=7&type=chunk) - The barge business is performing as expected with a healthy order book, solidifying **2025 production plans** and extending backlog into **2026**[8](index=8&type=chunk) - The company is prioritizing deleveraging and is on track to reach its target **Net Debt to Adjusted EBITDA range of 2.0-2.5 times** within the next three quarters[8](index=8&type=chunk) [2025 Full-Year Guidance](index=2&type=section&id=2025%20Outlook%20and%20Guidance) Arcosa tightened its full-year 2025 guidance for consolidated revenue and Adjusted EBITDA, reflecting increased confidence in its outlook Full Year 2025 Guidance Update | Metric | New Guidance Range | Previous Guidance Range | | :--- | :--- | :--- | | Consolidated Revenues (billions) | $2.85 - $2.95 | $2.8 - $3.0 | | Consolidated Adjusted EBITDA (millions) | $555 - $585 | $545 - $595 | - The guidance includes the direct impact of tariffs, which are expected to be immaterial[10](index=10&type=chunk) [Segment Performance Review](index=3&type=section&id=Segment%20Performance%20Review) Segment performance review highlights strong growth in Construction Products and Engineered Structures, alongside improved barge business visibility [Construction Products](index=3&type=section&id=Construction%20Products) The segment reported record revenue and Adjusted Segment EBITDA, driven by the Stavola acquisition, despite a slight organic revenue decline Construction Products Q2 2025 Performance | Metric | Q2 2025 | % Change YoY | | :--- | :--- | :--- | | Revenues (millions) | $354.5 | 28% | | Adjusted Segment EBITDA (millions) | $100.4 | 44% | | Adjusted Segment EBITDA Margin | 28.3% | +310 bps | - The Stavola acquisition, completed in October 2024, contributed **$90.3 million to revenues** and **$35.2 million to Adjusted Segment EBITDA** during the quarter[15](index=15&type=chunk) - Aggregates Adjusted Cash Gross Profit per Ton grew by **15%**, driven by a **6% increase in total volumes** and an **8% increase in Freight-Adjusted Average Sales Price**[15](index=15&type=chunk) [Engineered Structures](index=3&type=section&id=Engineered%20Structures) This segment achieved significant revenue and Adjusted Segment EBITDA growth, reaching a record margin, fueled by higher volumes and efficiencies Engineered Structures Q2 2025 Performance | Metric | Q2 2025 | % Change YoY | | :--- | :--- | :--- | | Revenues (millions) | $293.0 | 7% | | Adjusted Segment EBITDA (millions) | $54.8 | 31% | | Adjusted Segment EBITDA Margin | 18.7% | +350 bps | - The backlog for utility and related structures reached a **record $450.0 million**, up **9%** from the start of the year, driven by strong demand for grid hardening and reliability[15](index=15&type=chunk) - The wind towers backlog was **$598.6 million** at quarter-end, with increased order inquiry activity following recent legislative developments[15](index=15&type=chunk) [Transportation Products](index=4&type=section&id=Transportation%20Products) Excluding divested steel components, the barge business saw an **18% revenue increase** and **10% Adjusted Segment EBITDA growth**, with improved backlog visibility - Excluding the divested steel components business, barge business revenues increased **18%** and Adjusted Segment EBITDA increased **10% to $13.5 million**[19](index=19&type=chunk) - The barge backlog at quarter-end was **$277.0 million**, with an additional **$122 million in orders** received after the quarter, extending hopper barge backlog into **2026**[19](index=19&type=chunk) [Cash Flow and Liquidity](index=4&type=section&id=Cash%20Flow%20and%20Liquidity) The company generated strong operating and free cash flow, improving Net Debt to Adjusted EBITDA and maintaining robust liquidity Q2 2025 Cash Flow & Liquidity | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Cash Flow (millions) | $61.2 | $38.3 | | Capital Expenditures (millions) | $27.8 | $47.6 | | Free Cash Flow (millions) | $39.2 | $(6.1) | - Net Debt to Adjusted EBITDA for the trailing twelve months was **2.8x**, a slight improvement from **2.9x** at the end of Q1 2025[19](index=19&type=chunk) - Total liquidity at quarter-end was **$889.7 million**, comprising **$189.7 million in cash** and full availability of a **$700 million revolving credit facility**[19](index=19&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section presents detailed financial statements and reconciliations for non-GAAP measures, offering a comprehensive view of the company's financial position [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Arcosa reported increased revenues of **$736.9 million**, with gross profit growing to **$166.1 million** and net income rising **31% to $59.7 million** Q2 2025 Statement of Operations (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $736.9 | $664.7 | | Gross profit | $166.1 | $138.0 | | Operating profit | $94.8 | $67.2 | | Net income | $59.7 | $45.6 | [Condensed Segment Data](index=8&type=section&id=Condensed%20Segment%20Data) This section details revenues and operating profit by segment, highlighting Construction Products as the largest contributor and a record **$450.0 million** utility structures backlog Revenues by Segment - Q2 2025 (in millions) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Construction Products | $354.5 | $276.1 | | Engineered Structures | $293.0 | $274.8 | | Transportation Products | $89.4 | $113.8 | | **Consolidated Total** | **$736.9** | **$664.7** | Backlog as of June 30, 2025 (in millions) | Segment | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Utility and related structures | $450.0 | $414.0 | | Wind towers | $598.6 | $776.8 | | Inland barges | $277.0 | $280.1 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Arcosa's balance sheet shows total assets of **$5.01 billion**, total debt of **$1.68 billion**, and stockholders' equity of **$2.51 billion** Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,116.7 | $954.0 | | Total assets | $5,011.6 | $4,915.5 | | Total current liabilities | $527.5 | $516.0 | | Total debt | $1,683.5 | $1,688.9 | | Total stockholders' equity | $2,508.3 | $2,428.2 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities was **$60.5 million**, a decrease due to working capital changes, while investing activities required less cash Six Months Ended June 30 Cash Flow (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $60.5 | $118.8 | | Net cash required by investing activities | $(33.4) | $(241.2) | | Net cash (required) provided by financing activities | $(24.7) | $121.3 | | Net increase (decrease) in cash | $2.4 | $(1.1) | [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations for various non-GAAP financial measures, including Adjusted Net Income, Adjusted EBITDA, and Free Cash Flow Reconciliation of Net Income to Adjusted EBITDA - Q2 (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income | $59.7 | $45.6 | | Interest expense, net | $27.2 | $10.7 | | Provision for income taxes | $10.1 | $7.6 | | Depreciation, depletion, and amortization | $56.1 | $46.6 | | EBITDA | $153.1 | $110.5 | | Adjustments | $1.1 | $2.2 | | **Adjusted EBITDA** | **$154.2** | **$112.7** | Reconciliation of Free Cash Flow - Q2 (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $61.2 | $38.3 | | Capital expenditures | $(27.8) | $(47.6) | | Proceeds from disposition of property, etc. | $5.8 | $3.2 | | **Free Cash Flow** | **$39.2** | **$(6.1)** |

Core Insights - Crédit Agricole Group reported strong financial results for Q2 2025, with net income group share increasing by 30.1% to €2,638 million, driven by high revenues and a controlled cost of risk [18][34][48] - The group achieved revenues of €9,808 million, up 3.2% year-on-year, with a stable cost/income ratio of 59.9% [19][48] - The bank's CET1 capital ratio remains robust at 17.6%, indicating strong solvency [3] Financial Performance - Revenues for Crédit Agricole S.A. reached €7,006 million, a 3.1% increase compared to Q2 2024 [35][48] - Operating expenses rose by 2.2% to €3,700 million, leading to a gross operating income of €3,306 million, up 4.1% year-on-year [37][48] - The cost of risk was reported at -€441 million, an increase of 4.2% compared to the previous year [40][48] Business Segments - The Asset Gathering division saw assets under management grow to €2,905 billion, up 5.2% year-on-year, with strong inflows in asset management and insurance [12][49] - In the insurance sector, revenues reached €12.7 billion, a 17.9% increase from Q2 2024, driven by growth in savings and retirement products [50][62] - The Corporate and Investment Banking (CIB) segment reported record revenues, supported by strong capital markets activity [14][19] Customer Growth and Market Position - The group captured 493,000 new customers in retail banking during Q2 2025, with total on-balance sheet deposits reaching €838 billion, a 0.6% increase year-on-year [10][29] - Crédit Agricole's credit market share remained stable at 22.6%, with loan production up 18.8% compared to Q2 2024, particularly in housing loans [29][30] Strategic Developments - The group is actively pursuing strategic operations, including partnerships and acquisitions, with notable transactions in the U.S. and Europe [5][6] - Crédit Agricole continues to support the transition to low-carbon energy, with investments in sustainable finance recognized by Euromoney as the World's Best Bank for Sustainable Finance [15][17]

Group 1 - Crédit Agricole Santé & Territoires has completed the acquisition of Petits-fils, the leading provider of at-home services for seniors in France, for an equity value of approximately 243 million euros [4] - The acquisition enhances Crédit Agricole's service offerings aimed at supporting the aging population and promoting aging-in-place solutions across France [3][5] - Petits-fils operates a nationwide franchise network with over 290 branches and employs more than 11,000 care workers, providing services to nearly 39,000 individuals in 2024 [5] Group 2 - The acquisition aligns with Crédit Agricole's strategy to address the demographic transition and the growing needs related to the aging population in France [3] - Crédit Agricole Santé & Territoires aims to improve access to healthcare and support the aging population through both at-home services and non-medical housing solutions [7]

Core Insights - Benefits Reimagined has launched an innovative ACA application aimed at streamlining compliance processes for organizations of all sizes, leveraging AI technology and the SAP Business Technology Platform [1][4][5] Company Overview - Benefits Reimagined is an AI-powered employee benefits platform designed to transform how organizations manage benefits, built on technologies such as SAP HANA, Node.js, and SAP UI5 [8] - The platform offers features like personalized benefits administration, advanced analytics, and intelligent tools like Athena, the AI chatbot, enhancing user experience and engagement [8][9] Product Features - The ACA application automates and simplifies compliance tasks, ensuring accuracy and reducing administrative burdens, while providing real-time insights and comprehensive reporting capabilities [4][6] - It integrates seamlessly with existing enterprise systems, including SAP SuccessFactors, and features advanced analytics powered by ElasticSearch and Kibana for deep insights into compliance status [5][6] - The application is designed to be cost-effective, hyper-personalized, and future-ready, redefining compliance management standards in the industry [7][9]

Industry Overview - Renewable energy is increasingly recognized for its significant role in combating climate change, reducing carbon emissions, and enhancing global energy security [1] - Wind power has emerged as a key driver of the clean energy transition, with substantial growth in capacity and output [1] Wind Power Capacity Growth - U.S. wind power capacity has grown from 2.4 gigawatts (GW) in 2000 to over 153 GW in 2024, with wind power output increasing by 6.4% year over year in 2024 [2] - Wind power accounted for approximately 27% of capacity additions to the U.S. power system since 2010 [3] Future Projections - The U.S. grid is projected to add 7.7 GW of wind generation capacity in 2025, an increase from 5.1 GW added in the previous year [4] - Major offshore wind projects, such as the 800-megawatt Vineyard Wind 1 and the 715-MW Revolution Wind, will support this increase [5] Investment Opportunities - Leading wind energy companies like Dominion Energy, DTE Energy, Brookfield Renewable Partners, and Arcosa present compelling investment opportunities due to their strong market positions and growth potential [6][10] - Arcosa's Engineered Structures business has seen robust demand, with $1.1 billion in new orders since the Inflation Reduction Act [9] Company-Specific Insights - Dominion Energy plans to invest $10.8 billion in 2025 and $50 billion from 2025 to 2029 to strengthen its infrastructure and increase renewable energy capacity by over 15% annually [13] - Brookfield Renewable Partners aims for an $8-$9 billion investment over the next five years, with a strong development pipeline of 200 GW worth of projects [16][17] - DTE Energy plans to invest over $10 billion in clean energy over the next decade and aims to add more than 1,000 MW of new clean energy projects by 2026 [18][20]

Core Viewpoint - LCL and Crédit Agricole Assurances are entering exclusive negotiations with AnaCap for the joint acquisition of Milleis Group, a significant player in private banking and wealth management in France [1][2]. Group 1: Acquisition Details - The acquisition involves LCL purchasing the entire Milleis Group, which includes Milleis Banque and its subsidiaries Milleis Vie and Cholet Dupont Oudart, followed by the sale of Milleis Vie to Crédit Agricole Assurances [2]. - The transaction is expected to be completed in the first half of 2026, pending employee consultations and regulatory approvals [4]. Group 2: Strategic Implications - This acquisition will enhance LCL's position in the French wealth management market and create synergies [3]. - Crédit Agricole Assurances aims to strengthen its subsidiary Spirica's positioning in the high net worth segment and expand its distribution channels [3]. Group 3: Financial Impact - The transaction aligns with the Group's return on investment objectives, with a limited impact on the CET1 ratio of Crédit Agricole S.A., the parent company of both Crédit Agricole Assurances and LCL [5]. Group 4: Company Backgrounds - LCL is one of the largest retail banks in France, serving 6 million individual clients, including 220,000 private banking clients, and operates 1,400 branches [6]. - Crédit Agricole Assurances is France's leading insurer, offering a wide range of insurance products and services, distributed through Crédit Agricole's banks in France and internationally [7]. - Milleis Group manages €12.6 billion in assets and generated €150 million in net banking income in 2024, employing nearly 700 people [8].

Core Viewpoint - Arcosa (ACA) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][6]. Implications of the Upgrade - The upgrade for Arcosa suggests an improvement in the company's underlying business, which could lead to increased buying pressure and a rise in stock price [5][10]. - Over the past three months, the Zacks Consensus Estimate for Arcosa has increased by 1.5%, with expected earnings of $3.83 per share for the fiscal year ending December 2025, unchanged from the previous year [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - Crédit Agricole S.A. plans to seek authorization from the ECB to increase its stake in Banco BPM S.p.A. to just above 20%, which would allow it to qualify for "significant influence" over the bank [1][2][3]. Group 1 - The Board of Directors of Crédit Agricole S.A. has approved the filing of an authorization request with the ECB to exceed a 20% stake in Banco BPM S.p.A. [2] - Currently, Crédit Agricole S.A. holds 19.8% of the share capital in Banco BPM and intends to acquire additional shares to surpass the 20% threshold [3]. - This move is aimed at allowing Crédit Agricole S.A. to account for its investment in Banco BPM using the equity method, reinforcing its position as a long-term shareholder and industrial partner [3]. Group 2 - Crédit Agricole S.A. has clarified that it does not intend to acquire or exercise control over Banco BPM and will keep its stake below the mandatory tender offer threshold [4].

Group 1 - Crédit Agricole S.A. has completed the acquisition of Santander's 30.5% stake in CACEIS, bringing its ownership to 100% [1] - This acquisition strengthens Crédit Agricole's position in CACEIS, a significant player in the European asset servicing market, and supports the group's strategic development in this business [2] - The transaction aligns with Crédit Agricole Group's investment return targets but will negatively impact the fully-loaded CET1 ratio by approximately 30 basis points [3]

Group 1 - Crédit Agricole S.A. has announced the launch of its annual capital increase reserved for employees globally [1] - The liquidity contract with Kepler Cheuvreux was initially set at €50 million to create an active market for Crédit Agricole S.A. shares on Euronext Paris [2] - A redemption of €5 million was made to the liquidity account on June 27, 2025, to readjust the amount available for the contract [3] Group 2 - Following the redemption, the position as of June 27, 2025, amounts to €30,394,424.67 and includes 1,133,877 shares [5] - The redemption was conducted in compliance with various regulations including MAR Regulation (EU No. 596/2014) and French Financial Market Authority guidelines [4]