Arcosa Inc., a provider of infrastructure-related products and solutions, announced results for the fourth quarter and full year ended Dec. 31, 2018.
Fourth quarter highlights include:
- Revenues were $374.4 million, up 8 percent.
- Net income was $27.7 million, up 17 percent; excluding non-routine items, adjusted net income was $19.8 million, up 14 percent.
Full-year 2018 highlights include:
- Revenues were $1,460.4 million, essentially flat with 2017.
- Net income was $75.7 million, down 16 percent; excluding non-routine items, adjusted net income was $89.1 million, up 7 percent.
Commenting on the results, Antonio Carrillo, president and chief executive officer, noted, “Arcosa made significant progress on a number of key strategic initiatives in the fourth quarter, our first as an independent, publicly-held company, which we believe has set the stage for a return to growth in 2019. We successfully completed the separation from Trinity Industries Inc. on Nov. 1, 2018, executed the acquisition of ACG Materials in our Construction Products Group, reopened a previously-idled barge facility in Transportation Products responding to the ongoing market recovery, and advanced the roll-out of our continuous improvement program to expand margins across our Energy Equipment businesses.
“The benefits of our broad infrastructure market exposure were clear in the fourth quarter, as contributions from our Transportation and Energy Equipment segments offset the effect of record rainfall in Texas which hampered our aggregates business,” Carrillo said.
“Order trends were positive in the fourth quarter, setting the stage for future growth. We were pleased to add to our wind tower backlog with an order we received for $38 million in December; our book to bill ratio for inland barges continued to be strong, and we received several railcar components orders from new customers,” Carrillo noted.
The company’s 2019 guidance reflects the acquisition of ACG Materials, a producer of specialty materials and aggregates, which closed on Dec. 5, 2018.
Commenting on the outlook for 2019, Carrillo noted, “We see positive revenue and earnings momentum across all of our operating segments in 2019. The mid-point of our adjusted 2019 EBITDA guidance range reflects 18 percent year-over-year growth, after absorbing additional standalone company costs and initial pricing on a long-term components contract. We remain focused on our stage-one priorities: growing our Construction Products business, improving margins in Energy Equipment, expanding our Transportation Products business as markets continue to recover, and operating a lean corporate structure.
“The ACG Materials acquisition significantly strengthened our presence in attractive specialty materials and aggregates markets in our Construction Products business,” Carrillo concluded. “The acquisition also brought with it a robust pipeline of bolt-on acquisitions and organic investment opportunities that are expected to improve our long-term return on invested capital.