Financial Data and Key Metrics Changes - For the full year 2025, the company achieved record revenues of $2.9 billion, up 12% year-over-year, and record Adjusted EBITDA of $583 million, up 30% [4] - The Adjusted EBITDA margin reached 20.2%, an increase of 280 basis points compared to the previous year [4] - Fourth quarter Adjusted EBITDA increased 13%, with margin expanding by 90 basis points [6] Business Line Data and Key Metrics Changes - In construction products, fourth quarter segment revenues decreased by 2%, but excluding freight, revenues increased by 4% [9] - The aggregates business, which represents approximately 60% of construction materials revenues, achieved 10% growth in cash unit profitability in 2025 [5] - Engineered structures segment revenues increased by 15%, led by a 20% increase in utility and related structures [12] Market Data and Key Metrics Changes - The company ended 2025 with a backlog for utility and related structures of $435 million, up 5% from the start of the year [13] - Customer reservations for utility structures remain strong, providing additional confidence in the demand outlook [13] - Wind tower orders received during the fourth quarter amounted to $190 million, primarily for 2027 delivery [14] Company Strategy and Development Direction - The company announced a definitive agreement to sell its Barge business for $450 million, which is expected to close in the second quarter of 2026 [7] - Post-divestiture, the company will focus entirely on construction materials and engineered structures, aligning with long-term infrastructure and power market tailwinds in the U.S. [8] - The company anticipates another record year for its growth businesses in 2026, with combined double-digit Adjusted EBITDA growth and margin uplift [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the wind industry, despite a short-term step down in wind towers expected in 2026 [41] - The company expects solid infrastructure demand to drive roughly 45% of segment revenues in 2026, supported by IIJA funding [22] - Management highlighted the importance of adapting to increased power demand and the need for larger utility poles to meet customer requirements [67] Other Important Information - The company generated $120 million of operating cash flow in the fourth quarter, with free cash flow for the full year amounting to $202 million [15] - The company ended the year with net debt to Adjusted EBITDA of 2.3x, down from 2.9x at the start of the year [17] - For 2026, the company expects capital expenditures to be between $220 million and $250 million [17] Q&A Session Summary Question: Thoughts on redeploying proceeds from the barge sale - Management indicated that there might be some debt reduction in the short term, followed by an active pipeline of M&A opportunities primarily within current markets [35][36] Question: Expectations for utility structures growth - Management confirmed strong underlying demand for utility structures, with expectations for double-digit volume increases and pricing growth in 2026 [46][49] Question: Impact of weather on Q1 performance - Management noted that cold and snowy weather in the Northeast would likely impact Q1 performance, reducing its contribution to annual EBITDA [56] Question: Gross profit per ton expectations for aggregates in 2026 - Management expects solid unit profitability gains for 2026, with mid-single-digit pricing and low single-digit volume growth [58] Question: Transitioning wind tower facility to utility structures - Management stated that the transition would start contributing in the second half of 2026, with a smoother ramp-up expected due to existing skilled labor [51][80]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved record revenues of $2.9 billion, up 12% year-over-year, and record Adjusted EBITDA of $583 million, up 30%, with an Adjusted EBITDA margin of 20.2%, an increase of 280 basis points [4][5] - Fourth quarter Adjusted EBITDA increased 13%, and margin expanded 90 basis points, with all segments contributing [5] Business Line Data and Key Metrics Changes - In construction products, fourth quarter segment revenues decreased 2%, but excluding freight, revenues increased 4% [8] - For aggregates, freight-adjusted revenues increased roughly 8%, driven by 5% pricing growth and 2% volume improvement [9] - Adjusted segment EBITDA for engineered structures increased 22%, with a margin expansion of 100 basis points to 18.5%, driven by strong revenue growth and operating efficiencies [11] Market Data and Key Metrics Changes - The utility structures business saw a 20% revenue increase, while wind tower revenue increased by 3% [11] - The backlog for utility and related structures was $435 million, up 5% from the start of the year, providing solid visibility for 2026 [12] Company Strategy and Development Direction - The company announced a definitive agreement to sell its barge business for $450 million, which is expected to close in the second quarter of 2026, allowing the company to focus on construction materials and engineered structures [6][7] - The divestiture is aimed at reducing portfolio complexity and cyclicality, enhancing the overall margin profile and long-term resiliency of the company [6][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for utility structures and the infrastructure market, supported by IIJA funding and strong state fiscal health [20][21] - The company anticipates revenues for 2026 to be in the range of $2.95 billion to $3.1 billion, with Adjusted EBITDA expected to be between $590 million and $640 million, excluding any impact from the barge divestiture [19] Other Important Information - The company generated $120 million of operating cash flow during the quarter, with free cash flow for the full year amounting to $202 million [15] - The company ended the year with net debt to Adjusted EBITDA of 2.3 times, down from 2.9 times at the start of the year, and liquidity remains strong at $915 million [16] Q&A Session Summary Question: How are proceeds from the barge sale being redeployed? - Management indicated that there might be some short-term debt reduction, followed by an active pipeline of M&A opportunities primarily within current markets and a few new ones [34][35] Question: What should be expected regarding the cyclical nature of the business? - Management acknowledged that the wind tower business remains cyclical but expressed optimism about future demand due to real power demand increases [41] Question: Can utility structures offset expected lower volume and profit in wind for 2026? - Management confirmed strong underlying strength in utility structures, with expectations for double-digit growth compensating for the step down in wind [46][47] Question: What is the expected impact of transitioning the wind tower facility to utility structures? - Management stated that the transition would start contributing in the second half of 2026, with a smoother ramp-up due to existing trained personnel [52][81]

FOURTH QUARTER & FULL YEAR 2025 EARNINGS CONFERENCE CALL MOVING INFRASTRUCTURE FORWARD | FEBRUARY 27, 2026 FORWARD LOOKING STATEMENTS Some statements in this release, which are not historical facts, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements about Arcosa's estimates, expectations, beliefs, intentions or strategies for the future. Arcosa uses the words "anticipates," "assumes," "believes," "estimates," "e ...

Q3 2025 Performance Highlights - Adjusted EBITDA grew 51% outpacing revenue growth of 27%[9] - Record consolidated Adjusted EBITDA Margin of 21.8%, up 340 basis points[9] - Aggregates pricing up 9% and volume increase of 18% leading to 17% cash unit profitability gain[9] - Q3 operating cash flow up 19% and Free Cash Flow up 25%[9] Strategic Transformation - Construction Products Adjusted EBITDA decreased from 56% in 2018 to 34% in Q3 2025, while Engineered Structures increased from 33% to 38% and Transportation Products decreased from 29% to 10%[15] Q3 2025 Consolidated Results - Revenues increased by 27% from $626.8 million to $797.8 million[19] - Adjusted EBITDA increased by 53% from $114.0 million to $174.2 million[19] - Net income increased by 340% from $16.6 million to $73.0 million[19] 2025 Outlook - Revenue is projected to increase by 16% to a range of $2.86 billion to $2.91 billion[9, 37] - Adjusted EBITDA is projected to increase by 32% to a range of $575 million to $585 million[9, 38] - Adjusted EBITDA Margin expansion of 240 basis points[9]

Financial Data and Key Metrics Changes - Company reported a record quarter with an 18% increase in revenue and a 42% growth in adjusted EBITDA year over year, excluding the divested Steel Components business [6][9] - Adjusted EBITDA margin reached a record 20.9%, up 360 basis points [7] - Operating cash flow improved to $61 million, with free cash flow for the quarter at $39 million [20][21] Business Line Data and Key Metrics Changes - Construction Products segment saw a 28% increase in revenues and a 44% increase in adjusted segment EBITDA, driven by the Stivola acquisition [10] - Aggregates business reported a 15% increase in freight adjusted revenues and a 21% increase in adjusted cash gross profit, with total volumes up 6% [12] - Engineered Structures segment revenue increased by 7%, with adjusted segment EBITDA rising 31% and margin expanding to 18.7% [15][16] - Transportation Products revenues were up 18%, with adjusted segment EBITDA increasing by 10% [18] Market Data and Key Metrics Changes - The company noted strong pricing gains in the aggregates business, driving a 15% increase in adjusted cash gross profit per ton [7] - The backlog for utility and related structures reached a record $450 million, up 9% from the start of the year [16] - Wind tower backlog was reported at almost $600 million, down 23% from the start of the year [17] Company Strategy and Development Direction - Company is focused on strengthening growth businesses, streamlining the portfolio, and reducing cyclicality while expanding margins [5] - The strategic transformation of the portfolio is aimed at creating a more focused and resilient platform for long-term growth [23] - The company plans to convert a facility from wind towers to utility structures to meet increasing demand in the power market [28][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong long-term prospects for the construction business despite recent weather-related challenges [26] - The company anticipates a 30% growth in EBITDA for 2025, excluding the divested Rail Components business [9][24] - Management highlighted the positive sentiment from customers regarding upcoming projects and the overall market environment [71] Other Important Information - The company is on track to reach a target leverage range of 2 to 2.5 times within the next three quarters [21] - The anticipated capital expenditures for the full year are now projected to be between $145 million and $155 million [20] Q&A Session Summary Question: Discussion on updated guidance range and segment basis - Management indicated strong growth expectations for 2025, maintaining the midpoint of guidance and tightening the range [35][36] Question: Drivers of raised aggregates ASP guidance - Management noted an 8% growth in ASP for the quarter, leading to a year-to-date growth of about 10% [40][41] Question: Wind tower business capacity for new orders - Management confirmed that three plants are operating at about 60% capacity, with the ability to increase production if needed [48] Question: Aggregates gross profit per ton growth expectations - Management expects continued good gross profit per ton growth in the second half, benefiting from the Stivola acquisition [54] Question: Acquisition pipeline and opportunities - Management stated there is a solid pipeline of bolt-on acquisitions and plans to deploy capital as leverage ratios improve [56][58] Question: Policy clarity and its impact on wind tower business - Management emphasized the importance of clarity in policy for the wind industry, which has led to increased customer confidence [62][66] Question: Customer-driven delays due to funding - Management clarified that the weakness in organic growth was primarily due to weather, not project delays [70] Question: Geographies showing multifamily demand improvement - Management highlighted improvements in Texas and New Jersey for multifamily demand [73]

Financial Performance Highlights - Arcosa's Adjusted EBITDA grew by 42%, outpacing revenue growth of 18%[9] - The company achieved a record consolidated Adjusted EBITDA Margin of 20.9%, an increase of 360 basis points[9] - Pricing in aggregates increased by 8%, leading to a 15% gain in cash unit profitability[9] - Q2 2025 revenues increased by 18% from $626.6 million to $736.9 million[20] - Adjusted EBITDA increased by 37% from $112.7 million to $154.2 million[20] Strategic Initiatives and Outlook - Arcosa is targeting a long-term net leverage ratio of 2.0-2.5x within the next three quarters[9] - The company maintains full-year revenue guidance, anticipating a 17% increase[9] - Adjusted EBITDA is expected to increase by 30%[9] - The company expects Adjusted EBITDA growth to be roughly 40% organic and 60% inorganic[9] Segment Performance - Construction Products' Adjusted Segment EBITDA increased by 44% from $69.7 million to $100.4 million[23] - Engineered Structures' Adjusted Segment EBITDA increased by 31% from $41.7 million to $54.8 million[26] - Transportation Products' revenues increased by 18%[28]

Core Insights - Arcosa reported a record non-GAAP EPS of $1.27, exceeding analyst expectations of $1.05, while GAAP revenue was $736.9 million, below the consensus estimate of $754.2 million [1][2] - The company achieved a non-GAAP Adjusted EBITDA margin of 20.9%, reflecting successful integration of the Stavola acquisition and operational improvements [1][9] - Despite strong earnings growth, organic sales growth showed softness in certain areas, particularly in construction products [1][5] Financial Performance - Non-GAAP EPS increased by 39.6% year-over-year from $0.91 in Q2 2024 [2] - GAAP revenue grew by 10.9% year-over-year from $664.7 million in Q2 2024 [2] - Adjusted EBITDA rose to $154.2 million, a 36.8% increase from $112.7 million in Q2 2024 [2] - Free cash flow turned positive at $39.2 million, compared to a negative $6.1 million in Q2 2024 [2] - Adjusted EBITDA margin improved by 3.9 percentage points from 17.0% in Q2 2024 [2] Business Overview - Arcosa operates in construction materials, engineered structures, and transportation products, with a focus on infrastructure markets [3] - The company has significant positions in natural and recycled aggregates and engineered steel structures for power delivery and renewable energy [3] Strategic Focus - Recent strategic initiatives include acquisitions to accelerate growth, alignment with infrastructure spending, and managing raw material price volatility [4] - The $1.2 billion Stavola acquisition has been pivotal in expanding Arcosa's aggregates platform, particularly in the northeast U.S. [4] Segment Performance - The Construction Products segment saw a revenue increase of 28%, with the Stavola acquisition contributing $90.3 million [6] - Engineered Structures revenue grew by 7%, driven by demand for electric grid infrastructure and wind energy [7] - The Transportation Products segment reported an 18% revenue increase, supported by higher tank barge deliveries [8] Future Outlook - Management revised FY2025 revenue guidance to between $2.85 and $2.95 billion, and adjusted EBITDA to range from $555 to $585 million [10] - The company aims to reduce its net debt to adjusted EBITDA ratio below 2.5x within the next three quarters [10] - Strong backlog in utility structures supports visibility for the engineered structures segment, while federal infrastructure spending underpins demand for aggregates [11]

Arcosa (ACA) Conference Summary - June 12, 2025 Company Overview - Arcosa is a Dallas-based company with LTM March revenues of approximately $2.6 billion and adjusted EBITDA of about $465 million [5][6] - The company operates in three segments: construction products, engineered structures, and transportation products [5][6] - Arcosa has over 140 locations, primarily in the US, with only one mine in Canada and two manufacturing plants in Mexico [6] Financial Performance - Adjusted EBITDA has increased from $185 million at the time of spin-off to $530 million LTM March, driven by organic initiatives and $3 billion in core infrastructure acquisitions [7] - Construction products segment accounts for 43% of revenues and 59% of adjusted EBITDA, with a 25% adjusted EBITDA margin [7][8] - Engineered structures segment contributes 42% of revenues and 31% of adjusted EBITDA, with a 17% adjusted EBITDA margin [9] - Transportation products segment is the smallest, accounting for less than 15% of revenues and about 10% of adjusted EBITDA, with mid-teen margins [9][10] Strategic Initiatives - The company aims to grow in attractive markets while reducing cyclicality and complexity, improving return on invested capital, and maintaining a healthy balance sheet [12] - The $1.2 billion acquisition of Stivola expanded Arcosa's aggregates footprint into the New York-New Jersey MSA, enhancing exposure to less cyclical infrastructure-led markets [12][13] - The company expects revenue growth of 17% and adjusted EBITDA growth of 30% in 2025, supported by both acquisitions and organic operations [13][14] Market Dynamics - Arcosa has minimal direct tariff impacts due to its US-centric operations, with most revenues sourced domestically [17][18] - The company is monitoring indirect impacts from agricultural tariffs and steel prices, which could affect customer sentiment [20][21] Segment Insights Construction Products Segment - The integration of Stivola is progressing well, with no negative surprises reported [24][25] - Stivola's seasonality affects EBITDA, with Q1 typically being breakeven or slightly negative due to winter weather impacting asphalt work [28][30] - Pricing trends in aggregates are healthy, with Stivola contributing positively to average selling prices (ASP) due to higher prices in the New Jersey area [33][34] Engineered Structures Segment - The segment has shown strong performance, driven by utility structures and wind towers, with double-digit unit growth reported [46][51] - Demand is supported by grid hardening and increased electrification, with expectations for load growth over the next decade [52][53] Policy and Regulatory Environment - The company is optimistic about the wind business, with a positive demand outlook linked to the Inflation Reduction Act and potential policy clarity from the government [61][62] - Arcosa is focused on maintaining a stable policy environment to support growth in renewable energy sectors [60][63] Deleveraging Strategy - Following the Stivola acquisition, Arcosa aims to reduce leverage from a pro forma 3.7 times net debt to EBITDA to a target of 2 to 2.5 times within 18 months [65][66] - The company ended the year at 2.9 times and expects further deleveraging in the latter half of the year [66] Future Outlook - Arcosa's strategy remains consistent, focusing on simplifying its portfolio and growing in segments with strong long-term growth drivers [71][72] - The company aims to increase the share of construction products in its adjusted EBITDA, potentially evolving into a two-segment company in the future [72][73]

Financial Data and Key Metrics Changes - The company reported a consolidated adjusted EBITDA growth of 26%, outpacing a 12% revenue growth in the first quarter of 2025, with a margin expansion of 190 basis points [6][21] - The net debt to adjusted EBITDA ratio was maintained at 2.9 times, with expectations to reduce leverage to a target of 2 to 2.5 times over the next twelve months [7][19] Business Line Data and Key Metrics Changes - **Construction Products**: Revenues increased by 5%, driven by the Stabola acquisition, but organic revenues declined by 6% due to lower freight revenues and divestitures [11][12] - **Engineered Structures**: Revenues increased by 23%, largely due to higher wind tower volumes and the inorganic impact from the Amaron acquisition, with adjusted segment EBITDA increasing by 90% [15][16] - **Transportation Products**: Revenues were up 6%, with adjusted segment EBITDA increasing by 13%, driven by higher tank barge volumes [17] Market Data and Key Metrics Changes - The aggregates business represented 69% of construction materials revenues, with average organic pricing up 7% year-over-year and total pricing up 10% due to the Stabola acquisition [10][12] - The company expects continued investment in U.S. infrastructure to benefit operations, with strong demand conditions in various end markets [8][9] Company Strategy and Development Direction - The company is focused on executing its strategic vision, with a commitment to reducing leverage and enhancing operational efficiency [5][7] - The integration of the Stabola acquisition is expected to contribute positively in the second quarter, with a strong outlook for construction products and engineered structures [20][23] - The company anticipates sustained demand growth in utility structures due to increased electrification and renewable energy needs [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving macroeconomic environment, citing strong demand in most end markets and solid visibility from backlogs [8][9] - The company expects a strong 2025, reiterating full-year guidance with anticipated revenue of $2.9 billion and adjusted EBITDA of $570 million, reflecting a 17% and 30% increase, respectively [21][22] Other Important Information - The company reaffirmed its capital expenditure guidance of $145 to $165 million for the full year, with a focus on maintenance CapEx [20] - Free cash flow for the quarter was negative $30 million, but management expects improvement in the second half of the year [20] Q&A Session Summary Question: Can you elaborate on the wind tower contribution to sales and profit dollars in the quarter? - Management highlighted strong demand and volume growth in utility structures, with the wind tower facility ramping up effectively, contributing positively to margins [36][38] Question: What are the expectations for the construction products business moving forward? - Management indicated no surprises in the Stabola operations, with good demand and orders expected to improve significantly in the second quarter [66][71] Question: How is the company managing pricing versus volume declines in aggregates? - The company is focusing on margin rather than volume, with local decision-making to balance cost absorption and pricing strategies [92][93] Question: What is the outlook for the housing market and its impact on the business? - Management expects stabilization and a potential recovery in the housing market in the second half of the year, although not a booming market [104][105]

Financial Performance & Strategic Goals - Arcosa's Q1 2025 adjusted EBITDA grew by 26% while revenue grew by 12%, excluding the divested Steel Components business[9] - The company reaffirms its 2025 revenue guidance, expecting a 17% increase[8, 9] - Adjusted EBITDA for 2025 is projected to increase by 30%, with approximately 60% from inorganic sources and 40% from organic growth[9] - Arcosa aims to reduce net leverage to a target range of 20-25x over the next twelve months[9] - The company is focused on growing in attractive markets, reducing business complexity, improving returns on invested capital, integrating sustainability, and maintaining a healthy balance sheet[13] Segment Results - Engineered Structures saw a 90% increase in adjusted segment EBITDA, driven by higher wind tower volumes and the Ameron acquisition[26] - Transportation Products experienced a 13% earnings growth in the barge business due to increased tank barge deliveries[28, 29] - Construction Products' revenue increased by 5% to $2628 million, but adjusted segment EBITDA decreased by 2% to $589 million due to the dilutive impact of the Stavola acquisition[22, 23] Balance Sheet & Outlook - Liquidity remains strong at $868 million, including full availability under the revolver[9] - Full year 2025 adjusted EBITDA is expected to be in the range of $545 million to $595 million[48] - Full year 2025 capital expenditures are projected to be between $145 million and $165 million[46]