Arcosa (ACA) AI Stock Analysis

• Market Cap: $5.31B
• Dividend Yield: 0.18%
• Average Volume (3M): 230.47K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.44
• Revenue Growth: 13.96%
• EPS Growth: 14.86%
• Country: US
• Employees: 6,250
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 1.15
• Shares Outstanding: 49,044,020
• 10 Day Avg. Volume: 313,056
• 30 Day Avg. Volume: 230,472
• PEG Ratio: 0.21
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 29.68
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 10.38
• Enterprise Value/Ebitda: 11.72
• 1Y Price Target: $120.00
• Price Target Upside: 10.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.74
• Revenue Forecast (FY): $3.04B

• Rating: 63 Neutral
• Price Target: $114.00 ▲(5.32% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven mainly by decent-but-not-elite fundamentals (growth and positive cash generation offset by higher leverage and margin volatility) and a constructive earnings call with clear guidance and strategic portfolio actions. These positives are tempered by weak near-term technicals and a premium valuation with minimal dividend support.

Positive Factors

Record 2025 financial performance

Sustained multi‑year revenue growth culminating in record 2025 revenues and substantially higher adjusted EBITDA and margins indicates durable demand across core businesses. This strengthens competitive position, supports reinvestment capacity, and validates the company’s portfolio focus on infrastructure markets.

Portfolio simplification and capital recycling

The planned $450M divestiture crystallizes value, reduces exposure to a cyclical marine business, and reorients capital to higher‑growth Construction Materials and Engineered Structures. This durable shift should improve margin stability and free cash available for growth and debt reduction.

Strategic capacity investments toward utility demand

Targeted plant conversions and a new galvanizing facility reposition manufacturing toward utility structures and improve unit costs. These structural moves align capacity with long‑term utility and infrastructure demand, likely raising long‑run margins and competitive differentiation.

Negative Factors

Rising leverage

A material step‑up in debt increases financial risk and reduces flexibility for cyclic downturns. Even with recent improvement in net debt/EBITDA, higher leverage constrains capital allocation, heightens refinancing risk, and leaves less buffer to fund growth without adding more leverage.

Volatile and weakened free cash flow conversion

Sharp year‑over‑year FCF decline and only moderate cash conversion (FCF roughly half of net income) undermine the firm’s ability to fund rising CapEx guidance and accelerate deleveraging. Persistent FCF volatility raises execution risk for multi‑year investment plans.

Wind tower volume step‑down risks margins

A planned ~25% revenue step‑down and facility consolidation will reduce production volumes and may worsen fixed‑cost absorption, pressuring margins in the wind business. If demand recovery is slow, the unit could face prolonged under‑utilization and margin deterioration.

Arcosa Business Overview & Revenue Model

Company Description

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, energy, and transportation markets in North America. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and trench shields and shoring products for residential and non-residential construction, agriculture, specialty building products, as well as for infrastructure related projects. The Engineered Structures segment provides utility structures, wind towers, traffic and lighting structures, telecommunication structures, storage and distribution tanks for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets, as well as for gas and liquids storage and transportation for residential, commercial, energy, agriculture, and industrial markets. The Transportation Products segment offers inland barges; fiberglass barge covers, winches, and other components; cast components for industrial and mining sectors; and axles, circular forgings, coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.

How the Company Makes Money

Arcosa generates revenue through several key streams, primarily from the sale of its manufactured products and services. The company's major revenue sources include its Construction Products segment, which produces aggregates, concrete, and precast concrete products; the Energy segment, which supplies wind turbine components and offers related services; and the Infrastructure segment, which provides water infrastructure products and solutions. Additionally, Arcosa benefits from significant partnerships with construction firms, energy companies, and government entities, which help secure long-term contracts and project-based revenue. The company's focus on sustainable practices and innovative product offerings also positions it favorably in the growing renewable energy market, contributing to its overall earnings.

Arcosa Financial Statement Overview

Summary

Strong multi-year revenue growth and positive operating/free cash flow support the score, but it is capped by volatile profitability (net margin swings) and a notable rise in leverage (debt up materially into 2025).

Income Statement

Revenue has grown consistently from $1.94B (2020) to $2.88B (2025), with a particularly strong jump in 2025. Profitability, however, has been volatile: net margin peaked in 2022 (~11.0%), compressed sharply in 2024 (~3.6%), and rebounded in 2025 (~7.2%). Gross margin has gradually improved since 2022, which is a positive signal, but the variability in earnings quality and margins keeps the score below top-tier.

Balance Sheet

The balance sheet shows rising leverage over time: debt increased materially from ~$0.61B (2023) to ~$1.52B (2025), and debt relative to equity moved higher versus the 2020–2022 range. Equity has grown as well, but returns on equity are only moderate (~7.9% in 2025) and have been inconsistent across the period. Overall, the company appears adequately capitalized, but the step-up in leverage is a key risk factor.

Cash Flow

Operating cash flow is solid in absolute terms ($341M in 2025), and free cash flow remained positive ($176M in 2025). That said, free cash flow fell sharply in 2025 (down ~44% year over year), and cash conversion is only moderate, with free cash flow at roughly half of net income in 2025. The cash flow profile is healthy but shows meaningful year-to-year volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.88B	2.57B	2.31B	2.24B	2.04B
Gross Profit	647.20M	515.20M	443.80M	411.10M	355.90M
EBITDA	573.10M	395.90M	383.50M	501.30M	251.30M
Net Income	208.40M	93.70M	159.20M	245.80M	69.60M
Balance Sheet
Total Assets	4.87B	4.92B	3.58B	3.34B	3.19B
Cash, Cash Equivalents and Short-Term Investments	214.60M	187.30M	104.80M	160.40M	72.90M
Total Debt	1.52B	1.75B	606.80M	587.20M	707.30M
Total Liabilities	2.25B	2.49B	1.25B	1.16B	1.23B
Stockholders Equity	2.62B	2.43B	2.33B	2.18B	1.95B
Cash Flow
Free Cash Flow	175.50M	312.30M	57.50M	36.30M	81.40M
Operating Cash Flow	341.10M	502.00M	261.00M	174.30M	166.50M
Investing Cash Flow	-121.40M	-1.51B	-285.80M	90.70M	-570.30M
Financing Cash Flow	-191.60M	1.09B	-30.80M	-177.50M	380.90M

Arcosa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 108.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 108.24 is below the 20-day moving average (MA) of 119.44, below the 50-day MA of 115.90, and above the 200-day MA of 100.13, indicating a neutral trend. The MACD of -2.51 indicates Positive momentum. The RSI at 37.07 is Neutral, neither overbought nor oversold. The STOCH value of 27.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACA.

Arcosa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKR	72 Outperform	$7.11B	20.35	9.35%	1.61%	-1.01%	-12.13%
NPO	71 Outperform	$5.41B	111.03	5.80%	0.56%	6.44%	101.24%
GVA	70 Outperform	$5.41B	26.09	17.58%	0.45%	6.87%	64.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACA	63 Neutral	$5.31B	25.00	8.21%	0.18%	13.96%	14.86%
HRI	58 Neutral	$3.83B	4,644.29	0.06%	1.79%	19.40%	-120.47%

Arcosa Corporate Events

Arcosa Sells Marine Unit and Reports Record Results

Arcosa reported on February 26, 2026, that it delivered record full-year 2025 revenues of $2.88 billion, up 12% year-on-year, and a 30% increase in adjusted EBITDA to $583.3 million, with margin rising to 20.2%. Fourth-quarter 2025 revenue grew 8% to $716.7 million, while adjusted net income more than doubled, reflecting strong performance from construction products, utility structures, and increased wind tower production, despite lower free cash flow versus 2024.

The company continued reshaping its portfolio with the February 24, 2026 agreement to sell its Arcosa Marine barge business to Wynnchurch Capital for $450 million in cash, further concentrating on higher-growth infrastructure segments and strengthening its balance sheet. In parallel, Arcosa disclosed that Group President Jesse E. Collins Jr., who oversaw wind towers and construction site support, notified the company on February 23, 2026 of his planned retirement effective April 3, 2026, with no disagreements cited over company operations or policies.

The most recent analyst rating on (ACA) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Arcosa stock, see the ACA Stock Forecast page.

Arcosa Divests Marine Barge Unit to Wynnchurch Capital

On February 24, 2026, Arcosa agreed to sell its Arcosa Marine barge business, a leading U.S. inland barge and marine hardware manufacturer with 2025 revenue of $383 million and Adjusted Segment EBITDA of $68 million, to an affiliate of Wynnchurch Capital for about $450 million in cash, subject to customary adjustments. The divestiture, expected to close in the second quarter of 2026 pending regulatory approvals, will allow Arcosa to sharpen its focus on its higher-growth construction materials and engineered structures businesses, reduce portfolio cyclicality, improve its margin profile, and use net proceeds to fund growth investments and pay down debt, enhancing financial flexibility for shareholders and other stakeholders.

The most recent analyst rating on (ACA) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Arcosa stock, see the ACA Stock Forecast page.