Arcosa ( (ACA) ) has released its Q3 earnings. Here is a breakdown of the information Arcosa presented to its investors.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Arcosa, Inc., a company based in Dallas, Texas, specializes in infrastructure-related products and solutions across the construction, engineered structures, and transportation markets. The company’s latest earnings report highlights robust third-quarter growth, driven by strategic acquisitions and divestitures, including the significant $1.2 billion acquisition of Stavola and the divestiture of its steel components business.
Arcosa reported an 8% increase in revenues to $640.4 million for the third quarter, with adjusted net income rising by 24% and adjusted EBITDA growing by 28%, indicating strong operational performance. The company’s free cash flow surged to $107.2 million, backed by improved working capital management and reduced capital expenditures.
The construction and engineered structures segments led the financial performance with notable increases in adjusted segment EBITDA and margins. Construction Products saw a 21% increase in adjusted segment EBITDA, while the Engineered Structures segment experienced a 74% EBITDA growth. The transportation segment’s performance was impacted by the divested steel components business, but barge orders boosted overall visibility for 2025 production.
Looking ahead, Arcosa’s management remains confident in its strategic direction, reflected in the raised full-year adjusted EBITDA guidance. The company is optimistic about its portfolio transformation strategy and is well-positioned to achieve its target leverage ratio within the next 18 months, capitalizing on both organic and inorganic growth opportunities.
