Arcosa(US:ACA)2025-10-30 21:15Financial Performance - Revenues for Q3 2025 reached $797.8 million, a 25% increase from $640.4 million in Q3 2024[3] - Net income surged to $73.0 million, up 340% from $16.6 million in the prior year[3] - Adjusted EBITDA increased by 53% to $174.2 million, with an Adjusted EBITDA margin expansion of 400 basis points to 21.8%[3][4] - Gross profit for Q3 2025 was $191.9 million, up 40.5% from $136.7 million in Q3 2024[26] - Net income for Q3 2025 was $73.0 million, compared to $16.6 million in Q3 2024, representing a 338.6% increase[26] - Adjusted net income for Q3 2025 was $77.3 million, significantly higher than $44.6 million in Q3 2024[31] - Operating profit for Q3 2025 was $112.3 million, a substantial increase from $33.8 million in Q3 2024[26] - Net income for the nine months ended September 30, 2025, was $156.3 million, up from $101.4 million in 2024, representing a 54.1% increase[34] Revenue Guidance - Full year 2025 revenue guidance is set between $2.86 billion and $2.91 billion, with Adjusted EBITDA guidance between $575 million and $585 million[10][9] - The company provided full-year 2025 revenue guidance between $2,860.0 million and $2,910.0 million[34] Segment Performance - The construction products segment reported a 46% revenue increase to $387.5 million, driven by the acquisition of Stavola[15] - Construction Products segment revenues for the three months ended September 30, 2025, were $387.5 million, up from $265.9 million in 2024, marking a 45.7% increase[36] - Engineered Structures segment revenues increased to $311.0 million for the three months ended September 30, 2025, compared to $279.4 million in 2024, a growth of 11.3%[36] - Transportation Products segment revenues for the three months ended September 30, 2025, were $99.3 million, slightly up from $95.1 million in 2024, a 2.2% increase[36] - Aggregates revenues for Q3 2025 reached $218.1 million, a 28% increase from $170.6 million in Q3 2024[38] - Freight-Adjusted Revenues for Construction Products in Q3 2025 were $352.3 million, up 45% from $243.2 million in Q3 2024[39] Cash Flow and Debt - Operating cash flow for Q3 was $160.6 million, an increase of 19% compared to the prior period[19] - Free Cash Flow for Q3 2025 was $134.0 million, a 25% increase from $107.2 million in Q3 2024[41] - The company ended Q3 with a Net Debt to Adjusted EBITDA ratio of 2.4x, improved from 2.8x at the end of Q2 2025[8][19] - Net Debt as of September 30, 2025, was $1,379.4 million, with a Net Debt to Adjusted EBITDA ratio of 2.4[42] Asset Management - Total current assets increased to $1,172.2 million as of September 30, 2025, compared to $954.0 million at the end of 2024[28] - Cash and cash equivalents rose to $220.0 million at the end of Q3 2025, up from $187.3 million at the end of 2024[28] - The backlog for utility and related structures was $461.5 million as of September 30, 2025, compared to $418.3 million a year earlier[27] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, were $101.4 million, down from $136.4 million in the same period of 2024[29] Orders and Backlog - The barge business experienced a 22% revenue increase, with a backlog up 16% year-to-date, totaling $325.9 million[19] - The company received new wind tower orders totaling approximately $117 million, enhancing visibility for 2026 and 2027[7] Segment Challenges - Steel Components Adjusted EBITDA for Q3 2025 was $(1.3) million, a decline from $8.0 million in Q3 2024, indicating challenges in this segment[43] - Stavola Adjusted EBITDA for Q3 2025 was $44.5 million, consistent with the previous year, reflecting stable performance in this segment[43] Adjusted Metrics - For the three months ended September 30, 2025, diluted EPS increased to $1.48 from $0.34 in 2024, while adjusted diluted EPS rose to $1.56 from $0.91[32] - Adjusted EBITDA for the three months ended September 30, 2025, was $174.2 million, compared to $114.0 million in 2024, reflecting a 53% increase[36] - Adjusted EBITDA margin for the three months ended September 30, 2025, improved to 21.8% from 17.8% in 2024[34] - The adjusted segment EBITDA margin for Construction Products was 29.7% for the three months ended September 30, 2025, compared to 26.7% in 2024[36] Volume and Pricing - The aggregates business saw total volumes increase by 18% and pricing rise by 9%, leading to a 17% growth in Adjusted Cash Gross Profit per Ton[6][15] - Aggregates shipments increased to 9.9 tons in Q3 2025, compared to 8.4 tons in Q3 2024, indicating a growth in volume[38] - The Aggregates Freight-Adjusted Average Sales Price rose to $18.27 per ton in Q3 2025, up from $16.79 per ton in Q3 2024[38]