Arcosa: Fundamentals remain in place for growth

Revenues generated from Arcosa’s construction products business increased 38 percent in the first quarter this year to $211.5 million.

Arcosa says recent acquisitions, higher volumes and elevated pricing in its recycled aggregate and specialty materials businesses were the primary drivers of the increase. Increased volumes and higher steel prices in its shoring products business were also a factor, the company says.

Additionally, Arcosa says revenues in its legacy natural aggregate business were up slightly. Strong pricing gains were partially offset by anticipated volume declines in central Texas, the company says, as certain larger projects rolled off.

The adjusted EBITDA (earnings before interest, tax, depreciation and amortization) within Arcosa’s construction products business increased 26 percent to $41.3 million. That mark represents a 19.5 percent margin compared to 21.5 percent in the prior year.

According to Arcosa, the decrease in margin primarily reflects the addition of StonePoint Materials, with margins below the segment average and operations more exposed to seasonal winter weather in the first quarter.

“Fundamentals for our key growth businesses, construction products and engineered structures, remain favorable and we are managing our cyclical businesses well, with first-quarter performance exceeding our expectations,” says Antonio Carrillo, president and CEO of Arcosa.

“Construction activity remained healthy, and we experienced another quarter of broad pricing gains across our portfolio,” he adds.