NYSE$ACA

Arcosa Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$459M

Previous: $447M+2.7%
EPS (adj)

$0.33

Previous: $0.43-23.3%
Utility Structures Backlog

$334M

Previous: $597M-44.0%
Inland Barges Backlog

$176M

Previous: $347M-49.4%
Capital Expenditures

$25.2M

Previous: $24.4M+3.3%
Free Cash Flow

$8M

Previous: $115M-93.1%
Net Income

$10.5M

Previous: $21.1M-50.2%
Operating Income

$16.8M

Previous: $30.5M-44.9%
Gross Profit

$83.7M

Previous: $77.6M+7.9%
Cash & Equivalents

$95.8M

Previous: $240M-60.1%
Total Assets

$2.65B

Previous: $2.3B+14.9%
Stock-Based Comp

$6M

Previous: $3.5M+71.4%

Revenue & EPS history

Arcosa · Revenue · Quarterly

$459M

Q4 2020+2.7%vs Q4 2019
Beat estimate in 11 of 12 quarters(92%)
ActualEstimate

Revenue by segment

Arcosa · $243M total across 2 segments · Q4 2020

  • Engineered Structures
    $160M+2.8%
  • Inland Barges
    $82.9M-17.8%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2020

Historical avgQ4 2020

+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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