How Arcosa performed in the first quarter

Arcosa offered insights about the first-quarter performance of its construction products business, noting that aggregate volumes were down due to the deceleration of new single-family residential construction and adverse weather in certain markets.

Inflationary cost pressures related to higher diesel, cement and process fuels played a role in the quarter, as well, increasing the cost of revenues by about $5 million, or 3 percent, according to Arcosa. Revenue in Arcosa’s construction products business, however, increased 12 percent to $236.1 million, primarily because of strong organic pricing that more than offset volume declines.

Arcosa president and CEO Antonio Carrillo reflected on the company’s first-quarter performance, noting that each business unit was a strong contributor. Carrillo says the construction products business led the way for the company, though.

“Construction products led our performance in the quarter, with adjusted segment EBITDA (earnings before interest, tax, depreciation and amortization) expanding by 85 percent,” Carrillo says. “Strong pricing momentum contributed to healthy organic revenue growth and solid unit profitability gains, overcoming volume headwinds in our natural aggregates business.”