Arcosa Construction Products Revenues Up 7%

Arcosa Inc. announced results for the third quarter ended Sept. 30, reporting revenues of $591.7 million versus $603.9 million during the same period in 2022, a 2% decrease.

Construction Products revenues increased 7% to $262.1 million driven by higher pricing across aggregates and specialty materials businesses and volume growth in its natural aggregates business. The company’s trench-shoring business benefited from both organic volume growth and acquisition-related contribution. 

Margin in its specialty materials business increased sequentially reflecting progress on plans to address labor and maintenance challenges, but declined year-over-year.

On Oct. 3, 2022, the company completed the divestiture of its storage tanks business. Financial results for the storage tanks business were historically included in the Engineered Structures segment as part of continuing operations until the date of sale. 

“Arcosa delivered double-digit revenue and Adjusted EBITDA growth in the third quarter, normalizing for the sale of the storage tanks business,” said Antonio Carrillo, president and chief executive officer. “Strong results in Construction and Transportation Products more than compensated for a decline in Engineered Structures, underscoring the resiliency of our diversified portfolio.

“In Construction Products, pricing remained strong across our portfolio,” Carrillo said. “Natural aggregates benefited from a recovery in overall volumes, particularly in our Texas and Gulf Coast regions. In specialty materials, margins increased significantly from the second quarter, reflecting solid execution on our operational improvement plan. We also advanced our strategic objectives, investing $41 million to complete three bolt-on acquisitions in September and October. While relatively small in size, these acquisitions expand our footprint within both existing and new geographies at attractive valuations.

Carrillo concluded, “Our balance sheet and liquidity position remain strong, providing ample flexibility for strategic capital allocation. We are making solid progress on our organic growth initiatives within Construction Products and Engineered Structures and look forward to the related contribution in 2024 and beyond.” 

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