Arcosa Inc · Q2 2023 earnings

Briefing

Arcosa's Q2 2023 performance reflected solid growth in construction and transportation businesses, offsetting mix headwinds in utility structures. Disciplined working capital management drove a 47% increase in operating cash flow. The company raised the low end of its full-year 2023 revenue and Adjusted EBITDA guidance.

Arcosa reported solid second-quarter results, with Adjusted EBITDA surpassing the previous year's record when normalizing for the divestiture of the storage tanks business. Strong cash conversion was a highlight, with Free Cash Flow increasing 11% year-over-year.

• Construction Products revenues increased 8%, driven by higher pricing and volume growth in recycled aggregates.
• Engineered Structures saw flat revenues for utility, wind, and related structures, with higher utility structures volumes offsetting lower wind tower volumes.
• Transportation Products revenues increased 28%, with barge revenues up 35% and steel components up 17%.
• The company increased the low end of its revenue guidance range to $2.25 billion from $2.20 billion, resulting in a full year range of $2.25 billion to $2.30 billion.

Headline financials

Revenue & EPS history

Arcosa increased the low end of its revenue guidance range to $2.25 billion from $2.20 billion, resulting in a full year range of $2.25 billion to $2.30 billion. Arcosa increased the low end of its Adjusted EBITDA guidance range to $355 million from $345 million, resulting in a full year range of $355 million to $370 million.