Arcosa Inc. announced results for the third quarter ended Sept. 30, reporting that Construction Products revenues increased 1% to $265.9 million primarily due to recent acquisitions.
Organic revenues in its aggregates and specialty materials businesses were down slightly as lower volumes, a decrease in freight revenue and a reduction in revenue from recently divested operations were partially offset by higher pricing.
- Revenues for utility, wind and related structures increased 26% to $279.4 million primarily due to higher volumes in its wind towers business and the contribution from the Ameron Pole Products business that was acquired in April 2024.
- Revenues for its trench shoring business decreased 6% primarily due to lower steel prices and reduced volumes.
- Revenues for utility structures increased slightly as higher volumes and improved product mix were mostly offset by lower steel prices.
- Results for the Transportation Products segment were impacted by the divestiture of the steel components business.
- Revenues for its barge business increased 21% primarily due to higher tank barge deliveries.
Antonio Carrillo, president and chief executive officer, noted, “We continue to successfully execute on our portfolio optimization strategy and are strengthening the foundation of our business by reducing the complexity and cyclicality while improving our margin profile. During the third quarter, we completed the divestiture of our steel components business and on October 1 we closed on the $1.2 billion acquisition of the aggregates-led construction materials business of Stavola, our largest transaction to date.
“Our progress is reflected in our third quarter financial results with 39% Adjusted EBITDA growth outpacing revenue growth resulting in 330 basis points of margin expansion, normalizing for the divestiture of steel components, with strong organic and inorganic growth in both Construction Products and Engineered Structures.
“Order levels during the quarter remained healthy for our utility structures business while conversations with our customers for additional wind tower orders are focused on delivery in 2026 and beyond. For barge, we received orders for both tank and hopper barges representing a book-to-bill of 0.9 and providing increased production visibility for 2025.
“Severe weather has been a recurring event, with two hurricanes in the quarter and a third in early October, impacting areas where we have operations. We are thankful our people are safe and our plants were not significantly impacted, although we did experience some production interruptions as a result.”