NYSE$ACA

Arcosa Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Arcosa's Q2 2021 performance demonstrated resilience with revenues and Adjusted EBITDA in line with the previous year's record results, driven by growth in Construction Products and strategic acquisitions.

Arcosa reported a 3% increase in revenues to $515.1 million. Net income was $20.8 million, with an adjusted EBITDA of $78.9 million, matching the previous year's performance. The company also announced the acquisition of Southwest Rock Products for $150 million, expanding its presence in the aggregates market.

  • Revenues increased by 3% to $515.1 million.
  • Net income reached $20.8 million, with Adjusted Net Income at $29.1 million.
  • Adjusted EBITDA was $78.9 million, consistent with the prior year.
  • Acquired Southwest Rock Products for $150 million, enhancing the Construction Products segment.

Headline financials

Total Revenue

$515M

Previous: $499M+3.3%
EPS (adj)

$0.60

Previous: $0.73-17.8%
Utility Structures Backlog

$349M

Previous: $352M-1.1%
Inland Barges Backlog

$139M

Previous: $259M-46.1%
Capital Expenditures

-$41.5M

Previous: -$43.6M+4.8%
Free Cash Flow

-$20.7M

Previous: -$10.3M-101.0%
Net Income

$20.8M

Previous: $33.3M-37.5%
Operating Income

$31.3M

Previous: $47.8M-34.5%
Gross Profit

$97.7M

Previous: $102M-3.9%
Cash & Equivalents

$100M

Previous: $148M-32.4%
Total Assets

$3.09B

Previous: $2.56B+20.7%
Stock-Based Comp

$4.1M

Previous: $5.1M-19.6%

Revenue & EPS history

Arcosa · Revenue · Quarterly

$515M

Q2 2021+3.3%vs Q2 2020
Beat estimate in 13 of 14 quarters(93%)
ActualEstimate

Revenue by segment

Arcosa · $445M total across 3 segments · Q2 2021

  • Construction Products
    $205M
  • Engineered Structures
    $192M-14.0%
  • Inland Barges
    $49M-61.8%

Forward guidance

The Company maintained its 2021 full year Adjusted EBITDA guidance range of $270 million to $290 million. The guidance range incorporates Southwest Rock’s expected results from the date of acquisition. Full year 2021 Transportation Products Adjusted EBITDA guidance revised to approximately $25 million from prior guidance range of $35 to $40 million due to lower production expectations for our barge business as high steel prices continued to escalate in the second quarter suppressing new order activity and profitability on the orders received.

Tailwinds

  • 2021 Adjusted EBITDA guidance keeps us on a path to meet or exceed 2020’s strong results.
  • Key growth businesses, Construction Products and Engineered Structures, remain positioned well for the future.
  • Acquisition of Southwest Rock is expected to contribute to future results.
  • Order activity for utility and traffic structures was strong.
  • Improving fundamentals in the North American railcar market.

Headwinds

  • High steel pricing has curtailed order activity for some of our business lines
  • Transportation Products Adjusted EBITDA guidance revised to approximately $25 million from prior guidance range of $35 to $40 million.
  • Lower production expectations for our barge business.
  • High steel prices continued to escalate in the second quarter suppressing new order activity and profitability on the orders received.
  • Excessive rainfall during the quarter impacted sales volumes, especially our operations in Texas and along the Gulf Coast.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.5%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+1.3%

Avg return

30 days after

50%

18 / 36 earnings

Positive

+24.2%

Q1 2018

Best reaction

-16.3%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%+3.9%+0.2%
Q4 2025-16.3%-11.7%-19.3%
Q3 2025-1.1%+7.6%+14.3%
Q1 2025-4.5%+5.3%+4.2%
Q4 2024-8.4%-10.1%-12.7%
Q3 2024-0.7%+1.5%+15.2%
Q2 2024-14.8%-16.4%-1.5%
Q1 2024+11.7%+15.0%+15.1%
Q4 2023-0.0%+0.9%+4.0%
Q3 2023-5.7%-1.6%+9.1%
Q2 2023+2.5%+0.2%+3.6%
Q1 2023+15.8%+18.8%+15.3%
Q4 2022+10.3%+6.2%+6.3%
Q3 2022-2.7%-8.5%-2.8%
Q2 2022+13.8%+19.5%+8.9%
Q1 2022+1.8%+4.3%+3.6%
Q4 2021+5.4%+12.8%+24.5%
Q3 2021-3.0%+3.7%-0.7%
Q2 2021-4.5%-6.6%-6.0%
Q1 2021-5.0%+1.6%+0.1%
Q4 2020-12.1%+5.6%+3.1%
Q3 2020-1.1%+1.9%+18.2%
Q2 2020-1.8%-0.1%+8.1%
Q1 2020-3.3%-10.5%-2.7%
Q4 2019+3.7%+7.0%-11.3%
Q3 2019+3.8%+6.0%+6.0%
Q2 2019-6.2%-8.1%-13.4%
Q1 2018+24.2%+19.8%+11.9%
Q1 2019+20.7%+18.0%+9.3%
Q4 2016+6.4%+8.7%-4.2%
Q2 2018+6.4%+8.7%-4.2%
Q2 2017+6.4%+8.7%-4.2%
Q1 2017+6.4%+8.7%-4.2%
Q4 2018+6.1%+10.6%-3.2%
Q3 2017+1.5%-1.9%-21.1%
Q3 2018+1.5%-1.9%-21.1%

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