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Jun 30, 2023
Arcosa Q2 2023 Earnings Report
Arcosa's Q2 2023 performance reflected solid growth in construction and transportation businesses, offsetting mix headwinds in utility structures. Disciplined working capital management drove a 47% increase in operating cash flow. The company raised the low end of its full-year 2023 revenue and Adjusted EBITDA guidance.
Key Takeaways
Arcosa reported solid second-quarter results, with Adjusted EBITDA surpassing the previous year's record when normalizing for the divestiture of the storage tanks business. Strong cash conversion was a highlight, with Free Cash Flow increasing 11% year-over-year.
Construction Products revenues increased 8%, driven by higher pricing and volume growth in recycled aggregates.
Engineered Structures saw flat revenues for utility, wind, and related structures, with higher utility structures volumes offsetting lower wind tower volumes.
Transportation Products revenues increased 28%, with barge revenues up 35% and steel components up 17%.
The company increased the low end of its revenue guidance range to $2.25 billion from $2.20 billion, resulting in a full year range of $2.25 billion to $2.30 billion.
Arcosa
Arcosa
Arcosa Revenue by Segment
Revenue by Segment
Engineered Structures Revenue
CapyFin.comTransportation Products Revenue
CapyFin.com Forward Guidance
Arcosa increased the low end of its revenue guidance range to $2.25 billion from $2.20 billion, resulting in a full year range of $2.25 billion to $2.30 billion. Arcosa increased the low end of its Adjusted EBITDA guidance range to $355 million from $345 million, resulting in a full year range of $355 million to $370 million.
Positive Outlook
- Broad exposure to infrastructure markets.
- Benefit from multi-year tailwinds.
- Committed to expanding margin.
- Generating strong cash flow.
- Allocating capital to build long-term shareholder value.
Revenue & Expenses
Visualization of income flow from segment revenue to net income