Arcosa Inc, a provider of infrastructure-related products and solutions, announced results for the fourth quarter and full year ended Dec. 31, 2023. The company reported full-year free cash flow of $94 million, up 37%.
“2023 was a significant year for growth across our businesses as revenues and Adjusted EBITDA increased double-digits, normalizing for the storage tanks divestiture [in October 2022],” said Antonio Carrillo, president and chief executive officer. “We generated $94 million of free cash flow even as we invested significantly to advance several key organic growth initiatives. Our results speak to the effective execution of our strategy and the talent and dedication of our outstanding team.”
Carrillo noted that the Construction Products segment increased revenues by 8% last year, with Adjusted Segment EBITDA up 23%. “Key growth drivers included infrastructure and heavy manufacturing projects, as well as improved second-half fundamentals in single-family residential within our footprint,” he said.
Both natural and recycled aggregates saw strong unit profitability gains for the full-year 2023 despite roughly flat full-year volumes amid continued cost pressures.
In the fourth quarter, Construction Products revenues increased 7% to $238.3 million driven by higher pricing across the aggregates and specialty materials businesses. Volumes for natural aggregates increased slightly while recycled aggregate and specialty materials volumes were down compared to the prior-year period. The trench shoring business benefited from both organic volume growth and acquisition-related contribution.
“Arcosa is poised for another strong year in 2024, reflecting multi-year tailwinds from infrastructure spending across our diversified portfolio of businesses. With a healthy commercial environment, we remain focused on driving strong operational execution and increasing our profitability,” said Carrillo.
“Over the past few years, we have significantly enhanced our resiliency while reducing the cyclicality and complexity of our business. As we enter 2024, we remain committed to building on this progress by continuing to advance our strategic objectives and investing to further position our portfolio for sustainable long-term growth,” he concluded.