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Dec 31, 2020
Arcosa Q4 2020 Earnings Report
Arcosa's Q4 2020 earnings were announced, demonstrating resilience with a 3% increase in revenue and a 6% rise in adjusted EBITDA, driven by strong performance in the Construction Products segment.
Key Takeaways
Arcosa reported a 3% increase in revenue to $458.9 million and a 6% increase in Adjusted EBITDA to $56.4 million. The Construction Products segment was a key driver of the company's strong financial results. The company is optimistic about the underlying health of most of its markets.
Revenues increased 3% to $458.9 million.
Net income was $10.5 million, and Adjusted Net Income reached $16.5 million.
Diluted EPS stood at $0.21, with Adjusted Diluted EPS at $0.33.
Adjusted EBITDA increased 6% to $56.4 million.
Arcosa
Arcosa
Arcosa Revenue by Segment
Revenue by Segment
Engineered Structures Revenue
CapyFin.comTransportation Products Revenue
CapyFin.com Forward Guidance
The Company expects full year 2021 revenues of $1.78 billion to $1.90 billion, and Adjusted EBITDA of $250 million to $270 million.
Positive Outlook
- Construction activity remains robust, particularly in key states like Texas, and could see additional upside from new state and federal infrastructure spending.
- We continue to see healthy activity in infrastructure and residential markets, while non-residential markets have performed better than expected, led by increased demand for distribution and data centers.
- Our Engineered Structures product lines continue to experience healthy demand led by increased spending on electrical transmission, telecom, and traffic infrastructure
- Dry barge demand is fundamentally strong, and a recovering agricultural economy drove our barge business to a 1.0 book-to-bill in Q4 2020.
- Industry analysts expect a recovery in new railcar deliveries in the second half of 2021 and into 2022.
Challenges Ahead
- We expect lower production for wind towers in 2021.
- The largest year-over-year challenge in 2021 will be in our Transportation Products segment, as the barge business continues to be impacted by the effects of COVID-19.
- Dry barge orders have recently been deferred by the rapid acceleration in steel prices since December 2020, driven by steel capacity that was idled during COVID.
- Liquid barge demand remains depressed by reduced demand for refined products and petrochemicals, which began declining during the COVID pandemic and has not recovered to pre-pandemic levels.
- The February 2021 winter storm in Texas and the broader Southern United States will impact our Q1 performance, as we lost more than one week of production across a significant part of our operating footprint.
Revenue & Expenses
Visualization of income flow from segment revenue to net income