Arcosa(US:ACA)2025-02-27 21:21Revenue Performance - Fourth quarter 2024 revenues increased by 14% to $666.2 million compared to $582.2 million in Q4 2023, with a 22% increase when excluding the impact of divested business[4] - Full year 2024 revenues reached $2.569 billion, an 11% increase from $2.308 billion in 2023, with adjusted EBITDA growing by 22% to $447 million[5] - Revenues for the year ended December 31, 2024, increased to $2,569.9 million, up 11.3% from $2,307.9 million in 2023[30] - Total revenues for the year ended December 31, 2024, were $1,105.1 million, compared to $1,001.3 million in 2023, an increase of 10.4%[32] - Revenues from Construction Products segment increased to $311.9 million, up from $238.3 million year-over-year[23] - Construction Products segment revenues increased to $311.9 million in Q4 2024 from $238.3 million in Q4 2023, representing a growth of 30.9%[32] - Engineered Structures segment revenues rose to $261.5 million in Q4 2024 compared to $236.3 million in Q4 2023, marking an increase of 10.7%[32] Profitability and Income - Net income for Q4 2024 was $(7.7) million, a decrease of 128% from $27.1 million in Q4 2023, while adjusted net income decreased by 32% to $22.6 million[4] - Net income for the year ended December 31, 2024, was $93.7 million, a decrease of 41.2% compared to $159.2 million in 2023[25] - Adjusted Net Income for the year ended December 31, 2024, was $147.9 million, compared to $158.1 million in 2023, reflecting a decline of 6.9%[27] - Diluted EPS for the year ended December 31, 2024, was $1.91, down from $3.26 in 2023, reflecting a decrease of 41.0%[28] Cash Flow and Liquidity - Free cash flow for Q4 2024 was $199 million, a significant increase of 1892% from $10 million in Q4 2023[4] - Operating cash flow for the fourth quarter was $248.2 million, an increase of $186.0 million year-over-year, driven by a reduction in working capital[19] - Free Cash Flow for the quarter was $199.2 million, significantly up from $10.0 million in the prior year[19] - Net cash provided by operating activities for the year ended December 31, 2024, was $502.0 million, significantly higher than $261.0 million in 2023[25] - Free Cash Flow for the year ended December 31, 2024, was $330.6 million, significantly up from $94.1 million in 2023[36] - The company ended the quarter with total liquidity of $886.6 million, including $187.3 million in cash and cash equivalents[19] Capital Expenditures and Investments - Capital expenditures in the fourth quarter were $53.3 million, down from $58.7 million in the previous year[19] - Capital expenditures for the year ended December 31, 2024, were $189.7 million, a decrease from $203.5 million in 2023[25] - The company reported a net cash required by investing activities of $1,508.9 million for the year ended December 31, 2024, compared to $285.8 million in 2023[25] Acquisitions and Strategic Initiatives - The acquisition of Stavola for $1.2 billion was completed on October 1, 2024, enhancing exposure to infrastructure-driven end markets[3] - The acquisition of Stavola was completed for $1.2 billion, funded by $600 million in senior unsecured notes and $700 million in borrowings[19] - The company made acquisitions in 2024, including Ameron and Stavola, which are expected to positively impact future Adjusted EBITDA[37] Future Guidance and Expectations - The company expects a 30% increase in adjusted EBITDA for full year 2025, with approximately 40% of growth anticipated from double-digit organic increases[8] - The company provided guidance for 2025 revenues between $2,800.0 million and $3,000.0 million, indicating expected growth[30] Backlog and Market Position - The combined backlog for utility, wind, and related structures at the end of Q4 2024 was $1.190 billion, down from $1.368 billion at the end of Q4 2023[15] - The company aims to reduce leverage to 2.0-2.5x within 18 months following the Stavola acquisition, ending 2024 with a net debt to adjusted EBITDA ratio of 2.9x[6] - Net Debt as of December 31, 2024, was $1,519.8 million, with a Net Debt to Adjusted EBITDA ratio of 2.9[37] Tax and Regulatory - The effective tax rate in Q4 2024 was 43.5%, up from 25.8% in the prior year, primarily due to higher state tax true-ups[15] Segment Performance - Adjusted EBITDA for the year ended December 31, 2024, was $447.0 million, representing a 21.6% increase from $367.6 million in 2023[30] - Adjusted EBITDA margin for full year 2024 improved to 17.4%, up 150 basis points from 15.9% in 2023[5] - Adjusted Segment EBITDA for Construction Products reached $80.8 million in Q4 2024, up from $53.0 million in Q4 2023, reflecting a 52.8% increase[34] - Adjusted Segment EBITDA for Engineered Structures improved to $45.7 million in Q4 2024 from $32.3 million in Q4 2023, a growth of 41.5%[32] - Adjusted EBITDA Margin for the year ended December 31, 2024, was 17.4%, compared to 15.9% in 2023, showing an improvement of 1.5 percentage points[30]