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Arcosa Inc (ACA)
NYSE:ACA
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Arcosa
(NYSE:ACA)
67Neutral
Arcosa (ACA) vs. S&P 500 (SPY)
Market Cap
$3.90B
Dividend Yield0.25%
Average Volume (3M)361.25K
Price to Earnings (P/E)41.8
Beta (1Y)1.43
Revenue Growth11.35%
EPS Growth-41.14%
CountryUS
Employees6,250
SectorIndustrials
Sector Strength66
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)1.92
Shares Outstanding48,776,020
10 Day Avg. Volume351,052
30 Day Avg. Volume361,253
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.51
Price to Cash Flow (P/CF)3.90
P/FCF Ratio5.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$108.67Price Target Upside35.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Arcosa Business Overview & Revenue Model
Company DescriptionArcosa, Inc. is a diversified industrial company that provides infrastructure-related products and solutions. Headquartered in Dallas, Texas, the company operates through three primary segments: Construction Products, Engineered Structures, and Transportation Products. Arcosa's offerings include aggregates and specialty materials, utility structures like transmission and distribution poles, wind towers, and barges for inland waterways. The company is focused on serving the construction, energy, and transportation markets.
How the Company Makes MoneyArcosa generates revenue through the sale of its diverse range of infrastructure-related products and services. In the Construction Products segment, Arcosa earns money by providing natural and recycled aggregates, specialty materials, and construction site support services. The Engineered Structures segment contributes to revenue by manufacturing utility structures such as poles for transmission and distribution, telecom structures, and wind towers for the renewable energy sector. In the Transportation Products segment, Arcosa sells barges and barge-related products, serving the inland waterway transportation industry. The company's revenue streams are supported by both long-term contracts and spot sales, with significant partnerships in sectors such as energy and construction, which provide stable demand for its products and services.
Arcosa Financial Statement Overview
Summary
Arcosa exhibits a solid financial position with consistent revenue growth and strong cash flow performance. Despite increased leverage, the company maintains a stable equity base. The construction industry context suggests resilience in Arcosa's financial health, albeit with attention needed on managing rising debt levels.Income Statement
Arcosa's revenue has shown a consistent growth trend, with a noticeable increase from $1.94 billion in 2020 to $2.57 billion in 2024. The gross profit margin has remained relatively stable, but net profit margin has seen some fluctuations, with a decrease in 2024 compared to 2023. EBIT and EBITDA margins have been steady, indicating strong operational performance.75
Positive
Balance Sheet
The company's balance sheet reflects a strong equity base with an equity ratio around 50%. However, debt levels have increased significantly in 2024, leading to a higher debt-to-equity ratio. Return on equity has been variable, suggesting some inconsistency in profitability relative to shareholder equity.70
Positive
Cash Flow
Arcosa has demonstrated robust operating cash flow growth, with free cash flow also showing positive trends, particularly in 2024. The company maintains a healthy operating cash flow to net income ratio, indicating efficient cash generation relative to its earnings.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.57B | 2.31B | 2.24B | 2.04B | 1.94B | Gross Profit |
| 515.20M | 443.80M | 422.80M | 366.20M | 382.00M | EBIT |
| 197.60M | 182.70M | 158.20M | 107.30M | 151.80M | EBITDA |
| 197.60M | 383.50M | 501.30M | 251.30M | 263.30M | Net Income Common Stockholders |
| 93.70M | 159.20M | 245.80M | 69.60M | 106.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 187.30M | 104.80M | 160.40M | 72.90M | 95.80M | Total Assets |
| 4.92B | 3.58B | 3.34B | 3.19B | 2.65B | Total Debt |
| 1.69B | 568.70M | 550.60M | 679.50M | 254.50M | Net Debt |
| 1.50B | 463.90M | 390.20M | 606.60M | 158.70M | Total Liabilities |
| 2.49B | 1.25B | 1.16B | 1.23B | 754.50M | Stockholders Equity |
| 2.43B | 2.33B | 2.18B | 1.95B | 1.89B |
| Cash Flow | Free Cash Flow | |||
| 312.30M | 57.50M | 36.30M | 81.40M | 177.80M | Operating Cash Flow |
| 502.00M | 261.00M | 174.30M | 166.50M | 259.90M | Investing Cash Flow |
| -1.51B | -285.80M | 90.70M | -570.30M | -528.20M | Financing Cash Flow |
| 1.09B | -30.80M | -177.50M | 380.90M | 123.70M |
Arcosa Technical Analysis
Negative
79.97
Price Trends
91.30
Negative
96.99
Negative
92.63
Negative
Market Momentum
-2.81
Negative
38.26
Neutral
52.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACA, the sentiment is Negative. The current price of 79.97 is below the 20-day moving average (MA) of 80.73, below the 50-day MA of 91.30, and below the 200-day MA of 92.63, indicating a bearish trend. The MACD of -2.81 indicates Negative momentum. The RSI at 38.26 is Neutral, neither overbought nor oversold. The STOCH value of 52.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACA.
Arcosa Risk Analysis
Arcosa disclosed 49 risk factors in its most recent earnings report. Arcosa reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arcosa Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.56B | 7.76 | 19.13% | 1.77% | -0.47% | -34.74% | |
72 Outperform | $30.77B | 34.00 | 11.79% | 0.79% | -4.68% | -1.73% | |
67 Neutral | $3.90B | 41.78 | 3.93% | 0.25% | 11.35% | -41.14% | |
66 Neutral | $8.62B | 9.14 | 8.39% | 1.09% | -5.07% | 417.07% | |
66 Neutral | $7.36B | 15.79 | 33.51% | 0.45% | 0.64% | -1.15% | |
63 Neutral | $29.15B | 14.76 | 22.83% | 0.64% | -3.56% | 70.93% | |
62 Neutral | $8.05B | 13.61 | 3.91% | 3.11% | 3.81% | -13.91% |
* Industrials Sector Average
Performance Comparison
ACA
Arcosa
79.97
-4.03
-4.80%
CX
Cemex SAB
5.66
-3.29
-36.76%
EXP
Eagle Materials
220.97
-47.75
-17.77%
MLM
Martin Marietta Materials
478.00
-122.97
-20.46%
TEX
Terex
38.48
-23.79
-38.20%
VMC
Vulcan Materials
232.94
-34.71
-12.97%
Arcosa Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -12.68% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance in 2024, driven by successful acquisitions, strategic growth initiatives, and robust cash flow. However, challenges such as steel price impacts, organic revenue declines, and seasonal weather effects were noted. The outlook for 2025 remains positive, with expectations for revenue and EBITDA growth.Highlights
Record Full-Year Revenues and Growth
Arcosa, Inc. reported record full-year revenues, adjusted EBITDA, and margin in 2024, with significant contributions from organic and inorganic growth.
Successful Acquisitions and Strategic Initiatives
Acquisition of STAVOLA and Ameren contributed positively to margin expansion and growth. STAVOLA expanded the construction materials business, while Ameren boosted the engineered structures segment.
Strong Cash Flow and Debt Reduction
Arcosa generated $330 million of free cash flow for the full year, enabling full repayment of the revolver and reducing net leverage to 2.9 times.
Construction Products Segment Performance
Fourth-quarter segment revenues increased 31%, and adjusted segment EBITDA grew 52% with 370 basis points of margin expansion, driven by the impacts of STAVOLA.
Positive 2025 Outlook
Arcosa anticipates 2025 revenues to be in the range of $2.8 billion to $3 billion, with adjusted EBITDA growth of 30% at the midpoint, supported by strong demand fundamentals and strategic initiatives.
Lowlights
Challenges with Steel Price Impact
Steel price declines impacted revenues in the engineered structures segment, contributing to a revenue miss of about $25 million below the midpoint of guidance.
Organic Revenue Decline in Construction Products
Organic segment revenues declined 4% due to lower freight revenue and divestiture of underperforming operations, despite strong pricing gains.
Seasonal and Weather Impacts
Cold and wet weather impacted operations in January and February 2025, affecting volume in construction products, with a slow start anticipated for the year.
Company Guidance
During the Arcosa, Inc. conference call discussing the fourth quarter and full year 2024 results, several key metrics and guidance for 2025 were highlighted. The company achieved double-digit organic growth in 2024 and significant margin expansion, with construction products accounting for 62% of adjusted EBITDA. The acquisition of STAVOLA contributed 25% of segment revenues and 34% of adjusted segment EBITDA in Q4, with an overall 370 basis points of margin expansion in the construction products segment. The engineered structures segment saw a 41% increase in adjusted segment EBITDA, with margins expanding by 380 basis points. The transportation products segment experienced a 28% revenue increase, and adjusted segment EBITDA doubled, excluding steel components. For 2025, Arcosa forecasts revenues between $2.8 billion and $3 billion, with adjusted EBITDA expected to grow 30% at the midpoint, driven by double-digit organic and inorganic growth. The company plans to prioritize debt reduction, with a CapEx guidance range of $145 million to $165 million, down from $190 million in 2024.Arcosa Corporate Events
Business Operations and StrategyFinancial Disclosures
Arcosa Unveils Updated Investor Presentation for Growth
Positive
Nov 12, 2024
Arcosa, Inc. has refreshed its investor presentation materials, aiming to provide insights into its strategic priorities and financial performance. The company focuses on expanding margins and cash flow, with a leadership team experienced in navigating economic cycles. Arcosa’s three business segments serve critical infrastructure markets, and it continues to invest in acquisitions to grow in promising areas, reduce portfolio complexity, and enhance profitability. With a disciplined capital allocation strategy, Arcosa aims to maintain a healthy balance sheet while seeking sustainable competitive advantages.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.