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]

SECOND QUARTER 2025 EARNINGS CONFERENCE CALL MOVING INFRASTRUCTURE FORWARD | AUGUST 8, 2025 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," "expects," "inten ...

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 Data and Key Metrics Changes - In 2024, the company achieved record full-year revenues, adjusted EBITDA, and margin, with significant margin expansion driven by higher-margin business acquisitions and organic improvements [10][11] - The company generated robust free cash flow of nearly $200 million in Q4, enabling full repayment of its revolver, resulting in net leverage of 2.9 times [11][19] - Full-year 2024 free cash flow was $330 million, up from $94 million in the previous year [19] Business Line Data and Key Metrics Changes - Construction Products segment revenues increased by 31% in Q4, with adjusted segment EBITDA growing by 52%, largely due to the acquisition of Stavola [13] - Engineered Structures revenues increased by 11%, driven by higher wind tower volumes and the contribution from Ameron, with adjusted segment EBITDA increasing by 41% [16][17] - Transportation Products revenues were up 28%, with adjusted segment EBITDA doubling, primarily due to higher tank barge volumes and improved efficiencies [17] Market Data and Key Metrics Changes - The company noted strong underlying demand fundamentals in its growth businesses, particularly in Construction Materials and Utility Structures [25][27] - The backlog for Utility Wind and related structures was $1.2 billion, with expectations to deliver 64% during 2025 [17] - The inland river barge fleet is experiencing pent-up replacement needs due to underinvestment, positioning the company well for 2025 [32] Company Strategy and Development Direction - The company is focused on growing in the U.S. market, supported by long-term infrastructure-led investments, with a strategy of optimizing its portfolio and reducing complexity [22][25] - The company anticipates growth from four sources in 2025: growth businesses, cyclical business backlogs, completed organic projects, and acquisitions [25][26] - The company plans to prioritize debt reduction and finish ongoing organic projects to prepare for continued growth [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for renewables, particularly wind energy, and the need for infrastructure investment in the U.S. [48][49] - The company is monitoring trade policies and potential regulatory changes that could impact operations, but remains confident in its positioning [23][24] - Management expects significant adjusted EBITDA growth in 2025, with a mix of organic and inorganic growth drivers [26][28] Other Important Information - The company completed the sale of its steel components business and focused on pruning underperforming assets during 2024 [9][10] - The company expects depreciation, depletion, and amortization expenses to range from $230 million to $235 million for 2025, primarily due to recent acquisitions [21][80] Q&A Session Summary Question: Impact of steel prices on revenues - Management indicated that the decline in steel prices impacted revenues, particularly in the Engineered Structures segment, with a revenue miss of about $25 million attributed to steel prices [38][39] Question: Wind outlook and customer sentiment - Management noted that customer demand for wind remains strong, with optimism about future growth despite regulatory uncertainties [48][50] Question: Construction Products volume outlook - Management expects organic volumes in Construction Products to be flattish to slightly up in 2025, with strong double-digit growth anticipated overall [60][65] Question: CapEx expectations - Management confirmed a decrease in CapEx for 2025 to between $145 million and $165 million, focusing on maintenance and completing ongoing projects [66][68] Question: Contribution of organic projects - Management highlighted that organic projects completed in 2024, such as the concrete pulp factory and wind tower plant, are expected to contribute positively to performance in 2025 [69][70]