Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 6th:Arcosa, Inc. (ACA) : This provider of construction and infrastructure related products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.5% over the last 60 days.Arcosa has a price-to-earnings ratio (P/E) of 24.49, compared with 27.00 for the industry. The company possesses a Value Score  of B.Reliance, Inc. (RS) : This diversified me ...

For Immediate Release Chicago, IL – May 22, 2024 – Today, Zacks Equity Research discusses Owens Corning (OC) , Armstrong World Industries, Inc. (AWI) , Knife River Corp. (KNF) , Arcosa, Inc. (ACA) and Frontdoor, Inc. (FTDR) . Industry: Building Products Link: https://www.zacks.com/commentary/2276533/top-5-stocks-to-buy-in-the-flourishing-building-productsindustry Increased government infrastructure spending is bolstering companies in the Zacks Building Products - Miscellaneous industry. Although potential c ...

Increased government infrastructure spending is bolstering companies in the Zacks Building Products - Miscellaneous industry. Although potential challenges like macroeconomic uncertainties, high rates, low consumer confidence, new product investments, and rising raw material costs could squeeze margins, firms such as Owens Corning (OC) , Armstrong World Industries, Inc. (AWI) , Knife River Corporation (KNF) , Arcosa, Inc. (ACA) and Frontdoor, Inc. (FTDR) stand to gain from improved residential market, opera ...

One stock that might be an intriguing choice for investors right now is Arcosa, Inc. (ACA) . This is because this security in the Building Products - Miscellaneous space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in t ...

Have you been paying attention to shares of Arcosa (ACA) ? Shares have been on the move with the stock up 5.1% over the past month. The stock hit a new 52-week high of $89.17 in the previous session. Arcosa has gained 6.3% since the start of the year compared to the 10.5% move for the Zacks Construction sector and the 11.1% return for the Zacks Building Products - Miscellaneous industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed o ...

Arcosa (ACA) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual inve ...

Financial Data and Key Metrics Changes - Total first quarter revenues increased by 9% year-over-year, reflecting solid organic performance across all business segments and contributions from recent acquisitions [6][10] - Consolidated adjusted EBITDA increased by 7%, normalizing for a $22 million land sale gain in the same period last year [6][10] - Operating cash flow significantly increased, generating $81 million for the quarter, up $53 million year-over-year [17] Business Segment Data and Key Metrics Changes - **Construction Products**: Revenues increased by 6% year-over-year, with freight-adjusted revenues up 9%. Adjusted segment EBITDA increased by 10% year-over-year, driven by acquisitions and operating improvements [11][12] - **Specialty Materials**: Revenues increased significantly due to double-digit price increases and higher volumes in plaster. Adjusted EBITDA improved with roughly 40 basis points of margin improvement [13] - **Engineered Structures**: Revenues increased by 12% due to higher utility structure and wind tower volumes, but adjusted segment EBITDA decreased by 10% due to lower margins from product mix [14][15] - **Transportation Products**: Revenues increased by 10%, with adjusted segment EBITDA rising by 32% and margin expanding by 270 basis points to 16.1% [16] Market Data and Key Metrics Changes - The demand outlook for construction products is driven by increased infrastructure spending, heavy manufacturing, and multifamily housing construction, while single-family housing demand remains weak [20] - The wind tower business is expected to enter a multiyear upcycle, with a healthy backlog of nearly $1 billion [21] - Inland barge demand is improving, with a 16% increase in backlog from the beginning of the year [22] Company Strategy and Development Direction - The acquisition of Ameron Pole Products is seen as a strategic fit, expanding the portfolio in traffic and telecom structures and enhancing margins in engineered structures [9][19] - The company is focused on operational execution, portfolio optimization, and capital allocation to growth businesses, both organically and through acquisitions [25] - Sustainability initiatives include a 17% reduction in greenhouse gas emission intensity compared to the 2020 baseline [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum from the first quarter and expects healthy market fundamentals to continue driving solid results [19][25] - The company anticipates that the second half of the year will see improved margins and growth in utility structures, despite some short-term challenges [42] - Management remains confident that infrastructure spending will be necessary regardless of political changes, supporting long-term growth [68] Other Important Information - The company revised its full-year CapEx guidance to $190 million to $205 million, reflecting increased spending related to Ameron and ongoing projects [17] - The net debt to adjusted EBITDA ratio is 1.2 times, with pro forma net debt to adjusted EBITDA following the Ameron acquisition at 1.7 times, below the long-term target range [18] Q&A Session Summary Question: Updates on New Mexico facility and profitability timeline - Management confirmed that the New Mexico plant is on schedule and expects to become profitable by the fourth quarter of this year [28] Question: Impact of antidumping ruling on rail components - Management noted positive developments in the maintenance market for rail components and expects continued improvement as inventory issues are resolved [32] Question: Plans for Ameron pole products business - Management indicated that Ameron complements existing products and will receive capital allocation to support growth [36][39] Question: Growth outlook for Utility Structures - Management expressed optimism about long-term growth in the Utility Structures segment, despite current margin pressures due to product mix [41][42] Question: Changes in guidance outlook - Management stated that the outlook remains consistent with initial expectations, with positive momentum observed in February and March [45] Question: Production shift in barge business - Management acknowledged potential short-term headwinds due to production realignment but emphasized the positive long-term outlook for tank barge orders [46][49] Question: Demand expectations in Construction Products - Management noted that larger infrastructure projects are finally being awarded, contributing to a positive demand outlook [53]

PART I - Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Arcosa reported Q1 2024 revenues of $598.6 million (up 9.0%), net income of $39.2 million (down from $55.7 million due to a prior-year gain), and improved operating cash flow to $80.5 million Consolidated Statements of Operations (Q1 2024 vs Q1 2023) | Financial Metric | Three Months Ended March 31, 2024 (Millions USD) | Three Months Ended March 31, 2023 (Millions USD) | | :--- | :--- | :--- | | **Revenues** | $598.6 | $549.2 | | **Operating Profit** | $53.4 | $75.1 | | **Net Income** | $39.2 | $55.7 | | **Diluted EPS** | $0.80 | $1.14 | | **Dividends per Share** | $0.05 | $0.05 | Consolidated Balance Sheet Highlights | Balance Sheet Item | March 31, 2024 (Millions USD) | December 31, 2023 (Millions USD) | | :--- | :--- | :--- | | **Total Current Assets** | $993.7 | $912.0 | | **Total Assets** | $3,668.1 | $3,577.9 | | **Total Current Liabilities** | $434.9 | $431.2 | | **Total Debt** | $600.6 | $561.9 | | **Total Stockholders' Equity** | $2,373.8 | $2,332.0 | Consolidated Statements of Cash Flows (Q1 2024 vs Q1 2023) | Cash Flow Activity | Three Months Ended March 31, 2024 (Millions USD) | Three Months Ended March 31, 2023 (Millions USD) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $80.5 | $27.3 | | **Net Cash required by Investing Activities** | ($43.5) | ($34.1) | | **Net Cash provided (required) by Financing Activities** | $34.7 | ($4.4) | | **Net Increase (Decrease) in Cash** | $71.7 | ($11.2) | - In April 2024, the company acquired Ameron Pole Products LLC for **$180.0 million**, funded by borrowings and cash, integrating it into the Engineered Structures segment[28](index=28&type=chunk) - The effective tax rate for Q1 2024 was **17.1%**, a decrease from **20.3%** in Q1 2023, primarily due to AMP tax credits and lower state income taxes[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2024 revenues grew 9.0% to $598.6 million, but operating profit decreased to $53.4 million due to a prior-year land sale gain, with a positive market outlook and strategic acquisition [Market Outlook](index=20&type=section&id=Market%20Outlook) The company maintains a positive market outlook across segments, driven by infrastructure spending and the Inflation Reduction Act - The market outlook is positive, with healthy Construction Products demand, Engineered Structures benefiting from the IRA with over **$1.1 billion** in new wind tower orders, and a strong Transportation Products backlog extending into 2025[68](index=68&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Consolidated revenues rose 9.0% to $598.6 million, with all segments growing, while operating profit decreased 28.9% to $53.4 million, primarily due to a prior-year land sale gain Revenues by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Revenues (Millions USD) | Q1 2023 Revenues (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | Construction Products | $251.2 | $236.1 | 6.4% | | Engineered Structures | $231.6 | $207.7 | 11.5% | | Transportation Products | $115.8 | $105.4 | 9.9% | | **Consolidated Total** | **$598.6** | **$549.2** | **9.0%** | Operating Profit by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Operating Profit (Millions USD) | Q1 2023 Operating Profit (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | Construction Products | $28.8 | $49.5 | (41.8)% | | Engineered Structures | $26.3 | $29.9 | (12.0)% | | Transportation Products | $14.6 | $10.1 | 44.6% | | **Segment Totals** | **$69.7** | **$89.5** | **(22.1)%** | | Corporate | ($16.3) | ($14.4) | 13.2% | | **Consolidated Total** | **$53.4** | **$75.1** | **(28.9)%** | - The decrease in Construction Products' operating profit was primarily due to a **$21.8 million** gain on land sale in the prior-year period; excluding this, profit increased **4.0%**[83](index=83&type=chunk) - Engineered Structures' operating profit declined due to lower utility structures margins from project mix and new facility startup costs[86](index=86&type=chunk) [Unsatisfied Performance Obligations (Backlog)](index=21&type=section&id=Unsatisfied%20Performance%20Obligations%20(Backlog)) The company's backlog for inland barges increased sequentially, with deliveries extending into 2025, while Engineered Structures backlog remained substantial Backlog by Segment | Segment & Product Line | March 31, 2024 (Millions USD) | December 31, 2023 (Millions USD) | March 31, 2023 (Millions USD) | | :--- | :--- | :--- | :--- | | **Engineered Structures:** | | | | | Utility, wind, and related structures | $1,366.7 | $1,367.5 | $1,531.4 | | **Transportation Products:** | | | | | Inland barges | $294.4 | $253.7 | $279.0 | - The inland barges backlog increased **16%** sequentially from December 31, 2023, with deliveries extending into 2025[68](index=68&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Strong liquidity is maintained with Q1 2024 operating cash flow at $80.5 million and $378.0 million available under the revolving credit facility, sufficient for future operations and capital expenditures - Full-year 2024 capital expenditures are projected to be between **$190 million** and **$205 million**, driven by growth projects in Construction Products and Engineered Structures[96](index=96&type=chunk) - As of March 31, 2024, the company had **$200.0 million** outstanding on its revolving credit facility and **$400.0 million** in senior notes due 2029[98](index=98&type=chunk) - A quarterly cash dividend of **$0.05 per share** was declared, with no share repurchases during the quarter and **$36.2 million** remaining authorized under the program[99](index=99&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risks have occurred since the disclosures in the 2023 Annual Report on Form 10-K - No material change in the company's market risks has occurred since December 31, 2023[105](index=105&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO confirmed effective disclosure controls and procedures, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024[107](index=107&type=chunk) - No material changes to internal control over financial reporting occurred during Q1 2024[108](index=108&type=chunk) PART II - Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company has accrued $1.5 million for legal contingencies, with an estimated additional possible loss of $1.2 million, deemed immaterial to its financial position - Details on legal proceedings are provided in Note 15 of the Consolidated Financial Statements[110](index=110&type=chunk) - As of March 31, 2024, **$1.5 million** has been accrued for legal contingencies, with an estimated additional possible loss of approximately **$1.2 million**[64](index=64&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to the 2023 Annual Report on Form 10-K - No material changes in risk factors were reported compared to the 2023 Annual Report on Form 10-K[111](index=111&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No open market share repurchases occurred in Q1 2024, with $36.2 million remaining authorized under the program, though shares were acquired for tax withholding - No open market share repurchases occurred during Q1 2024, with **$36.2 million** remaining authorized under the repurchase program[113](index=113&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section details exhibits filed with the Form 10-Q, including the Ameron acquisition agreement and CEO/CFO certifications - Key exhibits include the Membership Interest Purchase Agreement for the Ameron acquisition and CEO/CFO certifications[116](index=116&type=chunk)

Exhibit 99.1 News Release FOR IMMEDIATE RELEASE Arcosa, Inc. Announces First Quarter 2024 Results and Raises Full Year 2024 Guidance – First Quarter Revenues Up 9%, with Contribution From All Three Segments – Adjusted EBITDA Growth of 7%, Normalizing for the $22 Million Land Sale Gain in 2023 – Operating Cash Flow of $81 Million, Up 195% – Full Year 2024 Adjusted EBITDA Guidance Range Increased to $410 Million to $440 Million, Reflecting Recently Completed Ameron Acquisition and Solid First Quarter Results ...

Arcosa, Inc. (ACA) , a prominent provider of infrastructure solutions, has finalized the acquisition of Ameron Pole Products LLC from NOV Inc. (NOV) for $180 million. Ameron's acquisition enhances Arcosa's product offerings in traffic and telecom structures, marking the company's entry into the concrete and steel lighting pole market. Buyout Synergies Ameron, established in 1970, specializes in manufacturing concrete and steel poles for various infrastructure applications. With four strategically located ma ...