Second-quarter 2020 revenues up at Arcosa

By |  August 3, 2020

Photo:Arcosa, a producer of infrastructure-related products, released its second-quarter results.

Revenues increased 15 percent compared to the same period last year to $498.5 million, while adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased 23 percent to $78.7 million. The company’s net income was $33.3 million for the quarter, with an adjusted net income of $35.6 million.

“Our record second-quarter results show the strong fundamentals of our infrastructure-related portfolio, along with excellent execution during the pandemic,” says Antonio Carillo, president and CEO of Arcosa. “All three of our segments delivered year-over-year growth, and adjusted EBITDA outpaced revenue growth.”

Arcosa’s construction product revenues increased 28 percent to $148.2 million in the second quarter, driven primarily by the acquisition of Cherry Industries, the company says. In aggregate, natural aggregate revenues improved due to an increase in volume that was partially offset by weakness in the company’s plants serving oil and gas markets.

The company’s specialty materials businesses reported lower revenues, largely due to reduced volumes in its lightweight aggregate business, which was affected by coronavirus-related construction delays.

Still, second-quarter adjusted segment EBITDA increased 46 percent to $38.6 million – a 26 percent increase, compared to 22.9 percent during the same period last year. According to Arcosa, the improvement stems from operating efficiencies from higher volumes, reduced maintenance expenses and lower fuel costs.

“Construction products generated record EBITDA in the second quarter, as our strategy to grow this segment has shifted our overall portfolio towards a more stable set of end markets, and our operating teams executed well,” Carillo adds. “We produced these strong results even with softness in our shorting and lightweight aggregates business, both of which were negatively impacted by COVID-related slowdowns.”

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