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Sep 30, 2024
Arcosa Q3 2024 Earnings Report
Arcosa's Q3 2024 earnings were driven by strong growth and margin expansion in Construction Products and Engineered Structures, along with robust operating cash flow.
Key Takeaways
Arcosa reported strong third-quarter results, marked by a 39% increase in Adjusted EBITDA, outpacing revenue growth and resulting in 330 basis points of margin expansion, normalizing for the divestiture of steel components. The company successfully executed its portfolio optimization strategy, closing the Stavola acquisition and divesting its steel components business.
Completed the divestiture of the steel components business and acquired the aggregates-led construction materials business of Stavola.
Adjusted EBITDA grew by 39%, with margin expansion driven by Construction Products and Engineered Structures.
Generated $107 million of free cash flow due to strong working capital management and reduced capital expenditures.
Order levels remained healthy for utility structures, with barge orders providing increased production visibility for 2025.
Arcosa
Arcosa
Arcosa Revenue by Segment
Revenue by Segment
Engineered Structures Revenue
CapyFin.comTransportation Products Revenue
CapyFin.com Forward Guidance
Arcosa adjusted its full-year 2024 revenue guidance to $2.56 billion to $2.63 billion and increased its Adjusted EBITDA guidance to $435 million to $450 million to reflect strategic portfolio actions.
Positive Outlook
- Strategic actions taken to optimize portfolio
- Acquisition of Stavola completed at the beginning of October
- Delivering in-line Adjusted EBITDA
- Outperforming on margin
- Outlook for the remainder of the year remains very positive
Challenges Ahead
- Some offset from the divestiture of steel components in August
Revenue & Expenses
Visualization of income flow from segment revenue to net income