NYSE$ACA

Arcosa Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$500M

Previous: $522M-4.1%
EPS (adj)

$0.24

Previous: $0.40-40.0%
Utility Structures Backlog

$671M

Previous: $438M+53.4%
Inland Barges Backlog

$225M

Previous: $92.7M+142.8%
Capital Expenditures

$52.1M

Previous: $24.3M+114.4%
Free Cash Flow

-$60.4M

Previous: $65.4M-192.4%
Net Income

$155M

Previous: $9.2M+1580.4%
Operating Income

$208M

Previous: $15.6M+1234.0%
Gross Profit

$85.2M

Previous: $89.2M-4.5%
Cash & Equivalents

$160M

Previous: $72.9M+120.0%
Total Assets

$3.34B

Previous: $3.19B+4.8%
Stock-Based Comp

$3.6M

Previous: $5.2M-30.8%

Revenue & EPS history

Arcosa · Revenue · Quarterly

$500M

Q4 2022-4.1%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Arcosa · $243M total across 2 segments · Q4 2022

  • Engineered Structures
    $205M+18.3%
  • Inland Barges
    $38.2M-24.2%

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

Tailwinds

  • 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.

Headwinds

  • 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.

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 2022

Historical avgQ4 2022

+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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