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Dec 31, 2022
Arcosa Q4 2022 Earnings Report
Arcosa's Q4 2022 performance was marked by revenue of $500.3 million and net income of $154.6 million, with strategic divestitures and acquisitions shaping segment results.
Key Takeaways
Arcosa reported Q4 2022 results with a revenue of $500.3 million and a net income of $154.6 million. The company experienced growth in Construction Products, offset by declines in Transportation Products. Strategic actions, including the divestiture of the storage tanks business and acquisitions, influenced segment performance.
Fourth Quarter Adjusted EBITDA grew by 13%, normalized for the divestiture of the Storage Tanks Business.
Strong Fourth Quarter Pricing Gains within Construction Products Offset Volume Declines.
Booked Orders of $371 Million for Wind Towers and $134 Million for Barge During the Quarter.
Net Debt to Adjusted EBITDA of 1.2x at Year End Provides Balance Sheet Flexibility For Disciplined Capital Allocation.
Arcosa
Arcosa
Arcosa Revenue by Segment
Revenue by Segment
Engineered Structures Revenue
CapyFin.comTransportation Products Revenue
CapyFin.com Forward Guidance
Arcosa announced the following total Company guidance for full year 2023: •Consolidated revenues of $2.15 billion to $2.25 billion, compared to $2.05 billion in 2022, excluding $188.9 million from the storage tanks business •Consolidated Adjusted EBITDA of $310 million to $340 million, compared to $278.2 million in 2022, excluding $46.9 million from the storage tanks business •Adjusted EBITDA guidance includes an approximate $22 million gain on the sale of land with depleted reserves within our Construction Products segment that will be recognized in the first quarter
Positive Outlook
- Strong pricing gains in Construction Products from 2022 will carry forward into 2023.
- Increased funding for infrastructure projects is expected to positively impact the business.
- Healthy demand for multi-family and non-residential construction is anticipated.
- Recent orders in wind tower and barge businesses are encouraging.
- Additional wind tower orders of approximately $45 million received in January 2023.
Challenges Ahead
- Affordability-driven weakness in single-family housing starts is expected to have an impact.
- 2023 is anticipated to be a transition year for the wind industry supply chain.
- The wind industry supply chain will take time to ramp up following the passage of the Inflation Reduction Act.
- Ramping up manufacturing capacity to prepare for the expected multi-year recovery in 2024 and beyond will require investment.
- Macro-economic uncertainty could impact the company's performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income