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Mar 31, 2021
Arcosa Q1 2021 Earnings Report
Arcosa's Q1 2021 results exceeded expectations due to strong construction products performance.
Key Takeaways
Arcosa reported Q1 2021 results ahead of expectations, driven by strong performance in the Construction Products businesses. The company's portfolio demonstrated resilience, with construction activity being robust, particularly in key Texas markets. Arcosa also raised its full year 2021 guidance following the StonePoint Materials acquisition.
Revenues decreased by 10% to $440.4 million.
Net income was $15.9 million, with a diluted EPS of $0.32.
Adjusted EBITDA decreased by 25% to $56.5 million.
The combined backlog for utility, wind, and related structures increased to $379.5 million from $334.0 million at the end of 2020.
Arcosa
Arcosa
Arcosa Revenue by Segment
Revenue by Segment
Engineered Structures Revenue
CapyFin.comTransportation Products Revenue
CapyFin.com Forward Guidance
Arcosa raised its full year 2021 guidance to incorporate the acquisition of StonePoint Materials. Full year 2021 revenue guidance increased to a range of $1.88 billion to $2.00 billion, from prior guidance range of $1.78 billion to $1.90 billion. Adjusted EBITDA guidance increased to a range of $270 million to $290 million, from prior guidance range of $250 million to $270 million.
Positive Outlook
- Key growth businesses, Construction Products and Engineered Structures, are positioned well for the future.
- Optimistic on a recovery in barge and rail components businesses once steel prices moderate.
- The StonePoint acquisition is an outstanding strategic fit for Arcosa, aligning with the strategy to expand the Aggregates business.
- Updated 2021 Adjusted EBITDA guidance puts the company on a path to meet or exceed 2020’s strong results.
- Balance sheet and liquidity remain solid, and expect to supplement this with another year of healthy free cash flow.
Challenges Ahead
- Steel-related businesses are expected to continue to experience the impact of inflationary pressures.
- High steel prices continue to impact conversion of inquiries to new orders in the barge business.
- Planned idling of one of three barge manufacturing plants to match operating footprint to industry demand.
- Winter Storm Uri negatively impacted the first quarter performance, with an estimated decline in operating profit of $4.0 to $5.0 million.
- Corporate expenses are expected to increase due to acquisition-related transaction and integration costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income