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Dec 31, 2024
Arcosa Q4 2024 Earnings Report
Arcosa reported strong revenue growth in Q4 2024, driven by acquisitions and increased demand in key segments, despite a net loss.
Key Takeaways
Arcosa, Inc. delivered a solid Q4 2024 performance, with revenue increasing by 14% to $666.2 million. However, the company posted a net loss of $7.7 million due to acquisition-related expenses and higher depreciation costs. Adjusted EBITDA rose by 52% to $128.3 million, driven by improved margins and strong performance in key segments. Free cash flow surged to $199.2 million, reflecting a significant increase in operating cash flow.
Revenue grew 14% year-over-year to $666.2 million, driven by acquisitions and organic growth.
Net loss of $7.7 million primarily due to acquisition costs and higher depreciation.
Adjusted EBITDA increased by 52% to $128.3 million, with a margin expansion of 480 basis points.
Free cash flow improved significantly to $199.2 million, supporting debt repayment and liquidity.
Revenue by Segment
Forward Guidance
Arcosa expects continued growth in 2025, driven by strategic acquisitions and strong demand in infrastructure markets. The company anticipates improved margins and increased cash flow.
Positive Outlook
- Projected revenue growth to $2.8-$3.0 billion in 2025.
- Expected Adjusted EBITDA increase by 30%, reaching $545-$595 million.
- Strong demand for infrastructure-related products supports long-term growth.
- Continued integration of Stavola acquisition for expanded market reach.
- Planned debt reduction and improved balance sheet leverage.
Challenges Ahead
- Potential market volatility impacting steel and construction costs.
- Higher interest expenses due to recent acquisitions and debt financing.
- Uncertainty in government infrastructure spending levels.
- Possible supply chain disruptions affecting production timelines.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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