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Mar 31
Arcosa Q1 2025 Earnings Report
Arcosa, Inc. announced its first quarter 2025 results, reporting a 12% increase in revenue excluding divested business, and a 26% growth in Adjusted EBITDA, also excluding divestiture impact.
Key Takeaways
Arcosa, Inc. reported strong first quarter 2025 results with revenues of $632.0 million, a 6% increase year-over-year, and a 12% increase excluding the divested steel components business. Net income decreased by 40% to $23.6 million, while Adjusted EBITDA grew 19% to $109.9 million, expanding its margin by 190 basis points excluding divestiture. The company reaffirmed its full-year 2025 consolidated revenue and Adjusted EBITDA guidance.
Adjusted EBITDA grew 26% (excluding divested steel components), outpacing a 12% revenue increase (excluding divestiture).
Adjusted EBITDA Margin, excluding divestiture, expanded by 190 basis points to 17.4%.
Engineered Structures outperformed expectations with robust demand and operating improvements, while the barge business added to its backlog with a 1.7 book-to-bill ratio.
The company reaffirmed its full-year 2025 consolidated revenue and Adjusted EBITDA guidance, expecting continued growth from infrastructure investments.
Arcosa
Arcosa
Arcosa Revenue by Segment
Revenue by Segment
Engineered Structures Revenue
CapyFin.comTransportation Products Revenue
CapyFin.com Forward Guidance
Arcosa is reaffirming its full-year 2025 guidance, expecting consolidated revenues between $2.8 billion and $3.0 billion, and Consolidated Adjusted EBITDA between $545 million and $595 million.
Positive Outlook
- Consolidated revenues are expected to increase by 17% at the mid-point compared to full year 2024 results (excluding divested business).
- Consolidated Adjusted EBITDA is expected to increase by 30% at the mid-point compared to full year 2024 results (excluding divested business).
- The company is well-positioned for long-term growth, benefiting from continued investments in U.S. infrastructure and the U.S. power market.
- End markets continue to demonstrate resilience despite macro and policy uncertainty.
- Solid backlogs in many businesses provide production visibility for 2025.
Challenges Ahead
- The general backdrop of macro and policy uncertainty could impact future performance.
- Uncertainty surrounding renewable energy policy discussions in Washington D.C. may affect future orders.
- The guidance range includes the direct impact of tariffs, which, while expected to be immaterial, remain a factor.
- The integration of the Stavola acquisition, though progressing well, was dilutive in the seasonally slowest first quarter, implying potential for continued seasonal impacts.
- Ongoing focus on strategic execution and operational excellence is required to maintain and improve performance.