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Jun 30, 2025
Arcosa Q2 2025 Earnings Report
Arcosa, Inc. announced record second quarter 2025 results, driven by strong revenue growth and significant Adjusted EBITDA expansion.
Key Takeaways
Arcosa, Inc. reported a record second quarter in 2025, with revenues increasing by 11% to $736.9 million and Adjusted EBITDA expanding by 37% to $154.2 million. Excluding the impact of divested businesses, Adjusted EBITDA grew by 42%. The company achieved a record Adjusted EBITDA Margin of 20.9%, up 390 basis points, and saw strong performance in its key strategic growth businesses, including a 15% cash unit profitability growth in Aggregates and record backlog in Utility Structures.
Revenues increased 11% to $736.9 million, and 18% excluding the impact of divested businesses, highlighting successful portfolio transformation.
Adjusted EBITDA grew 37% to $154.2 million, with a record Adjusted EBITDA Margin of 20.9%, up 390 basis points.
Aggregates business saw a 15% improvement in Adjusted Cash Gross Profit per Ton, and Utility Structures achieved a record backlog of $450.0 million.
Operating cash flow increased 60% to $61.2 million, and Free Cash Flow improved significantly to $39.2 million from a negative value in the prior year.
Revenue by Segment
Forward Guidance
Arcosa is tightening its full-year 2025 guidance range, maintaining the mid-point for consolidated revenue and Adjusted EBITDA, reflecting increased confidence in its overall outlook.
Positive Outlook
- Consolidated revenues are projected to be between $2.85 billion and $2.95 billion.
- Consolidated Adjusted EBITDA is expected to range from $555 million to $585 million.
- The company remains on track for strong growth in 2025.
- U.S.-focused operations are well-aligned with long-term infrastructure and power market tailwinds.
- Healthy overall demand in growth businesses and solid backlog visibility in cyclical businesses contribute to increased confidence.
Challenges Ahead
- Guidance range includes the direct impact of tariffs, which is expected to be immaterial, but still a factor.
- No specific negative factors were highlighted in the forward guidance summary, indicating a generally positive outlook.
- The tightening of the guidance range, while positive for confidence, also implies less upside potential compared to a wider range.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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