Arcosa Inc. announced results for the second quarter ended June 30. The company is reporting revenues of $602.8 million, up 17%; and net income of $39.0 million.
“We delivered record second quarter revenues and Adjusted EBITDA, led by strong performance in our Engineered Structures and Construction Products segments as well as year-over-year growth in Transportation Products,” said Antonio Carrillo, president and chief executive officer. “Favorable demand conditions in our growth businesses, coupled with proactive pricing actions to combat rising input costs and solid execution in our manufacturing businesses, led to a 120 basis point increase in overall Adjusted EBITDA margin to a record 16.5%.
“During the quarter, construction activity within our markets remained very healthy. Driven by strong volume and pricing growth in natural and recycled aggregates, we generated a 21% increase in Segment Adjusted EBITDA and maintained margins while effectively managing significant inflationary pressures,” Carrillo continued.
“Engineered Structures exceeded our expectations during the quarter. Robust utility structures demand, combined with enhanced operating leverage, contributed to a 30% increase in Segment Adjusted EBITDA. Within our cyclical businesses, we continued to navigate challenging near-term demand conditions in our barge and wind towers businesses while generating improved profitability in our steel components businesses serving the North American railcar market. In addition, we secured competitive steel pricing that helped spur $35 million of new barge orders, enhancing our production visibility for 2023,” Carrillo said.
Carrillo continued, “Our recent strategic deployments of capital accelerate the expansion of our growth businesses. In May, we completed the $75 million acquisition of RAMCO, a leading producer of recycled aggregates, extending our recycled aggregates presence into the southern California market at an attractive valuation and complementing our existing platforms in Dallas-Fort Worth and Houston, Texas. Additionally, we are making solid progress on the organic growth projects we have underway in Construction Products and Engineered Structures and look forward to their positive contributions in 2023 and beyond. We are advancing toward an expected second-half close of the divestiture of our storage tanks business. The proceeds will help fund organic initiatives and provide flexibility as we evaluate additional acquisition opportunities.”
On May 23, the company acquired Recycled Aggregate Materials Co. Inc. for approximately $75 million. Headquartered in Simi Valley, Calif., RAMCO is an independent producer of recycled aggregates serving the greater Los Angeles metro area from four strategic locations. RAMCO accepts concrete, asphalt and sand at its locations for a fee and then recycles and sells the recycled aggregate products to a wide variety of customers serving construction and infrastructure applications.