Arcosa(US:ACA)2024-10-30 20:20Financial Performance - Revenues for Q3 2024 were $640.4 million, an 8% increase from $591.7 million in Q3 2023[3] - Adjusted EBITDA for Q3 2024 increased by 28% to $114.0 million, with an adjusted EBITDA margin of 17.8%, up 270 basis points from the prior year[3] - Free cash flow for Q3 2024 was $107.2 million, a significant increase from $1.7 million in the prior year[3] - Adjusted net income for Q3 2024 was $44.6 million, a 24% increase from $35.9 million in Q3 2023[3] - Revenues for the three months ended September 30, 2024, increased to $640.4 million, up 8.5% from $591.7 million in the same period of 2023[25] - Net income for the nine months ended September 30, 2024, was $101.4 million, a decrease of 23.2% compared to $132.1 million for the same period in 2023[30] - Operating profit for the three months ended September 30, 2024, was $33.8 million, down 30.2% from $48.4 million in the prior year[27] - Net income for the three months ended September 30, 2024, was $16.6 million, a decrease of 53% from $35.5 million in the same period of 2023[32] - Adjusted net income for the nine months ended September 30, 2024, was $125.3 million, slightly up from $124.9 million in 2023[32] Segment Performance - Revenues for the Construction Products segment increased by 1% to $265.9 million, while adjusted segment EBITDA rose by 21% to $71.0 million[12] - Revenues for the Engineered Structures segment increased by 26% to $279.4 million, with adjusted segment EBITDA growing by 74% to $44.3 million[13] - Construction Products revenues for the three months ended September 30, 2024, were $265.9 million, a slight increase from $262.1 million in the same period of 2023[38] - Total revenues for the Transportation Products segment were $95.1 million for the three months ended September 30, 2024, down from $107.1 million in the same period of 2023[38] - Adjusted Segment EBITDA for Construction Products was $71.0 million for the three months ended September 30, 2024, compared to $58.7 million in the prior year, reflecting a margin increase to 26.7% from 22.4%[38] - Adjusted Segment EBITDA Margin for Transportation Products was 12.2% for the three months ended September 30, 2024, compared to 17.0% in the prior year[40] - The company reported an operating profit of $32.6 million for the Engineered Structures segment for the three months ended September 30, 2024, up from $18.7 million in the same period of 2023[38] Acquisition and Debt - The company completed the $1.2 billion acquisition of Stavola on October 1, 2024, enhancing its portfolio[5] - The company reported a pro forma net debt to adjusted EBITDA ratio of 3.4x following the Stavola acquisition[18] - The company completed the acquisition of Stavola for $1.2 billion, funded through a combination of debt instruments[43] - Net Debt as of September 30, 2024, was $491.9 million, with a Net Debt to Adjusted EBITDA ratio of 1.2, indicating a strong leverage position[43] Cash Flow and Assets - Cash and cash equivalents increased significantly to $756.8 million as of September 30, 2024, compared to $104.8 million at the end of 2023[28] - Total current assets rose to $1,559.7 million as of September 30, 2024, from $912.0 million at the end of 2023[28] - Cash provided by operating activities for the nine months ended September 30, 2024, was $253.8 million, compared to $198.8 million in the same period of 2023[42] - Free Cash Flow for the three months ended September 30, 2024, was $107.2 million, significantly up from $1.7 million in the same period of 2023, resulting in a Free Cash Flow Conversion of 646%[42] Expenses and Impairments - Interest expense for the three months ended September 30, 2024, was $15.8 million, significantly higher than $6.7 million in the same period of 2023[25] - Interest expense for the three months ended September 30, 2024, was $12.0 million, compared to $5.0 million in the same period of 2023[35] - The company recognized a loss of $23.0 million on the sale of its steel components business during the three months ended September 30, 2024[26] - The company reported an impairment charge of $5.8 million related to divestitures during the nine months ended September 30, 2024[38] - The loss on the sale of business contributed $23.0 million to the Adjusted EBITDA for the nine months ended September 30, 2024[44] Guidance - The company raised its full year 2024 adjusted EBITDA guidance to a range of $435 million to $450 million, up from the previous range of $420 million to $440 million[10] - The company provided full-year 2024 revenue guidance of $2,560.0 million to $2,630.0 million[35]