Arcosa (ACA) AI Stock Analysis

• Market Cap: $4.79B
• Dividend Yield: 0.2%
• Average Volume (3M): 293.40K
• Price to Earnings (P/E): 52.0
• Beta (1Y): 1.41
• Revenue Growth: 9.78%
• EPS Growth: -37.71%
• Country: US
• Employees: 6,250
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 1.27
• Shares Outstanding: 49,044,907
• 10 Day Avg. Volume: 232,215
• 30 Day Avg. Volume: 293,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 10.42
• Enterprise Value/Ebitda: 12.84
• 1Y Price Target: $108.00
• Price Target Upside: 10.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: $110.00 ▲(12.66% Upside)

Arcosa's overall stock score reflects a solid financial performance and strong earnings call results, indicating robust growth potential. However, high valuation metrics and technical indicators suggest caution due to potential overvaluation and overbought conditions.

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 primarily through the sale of its infrastructure products and services across its different segments. The Construction Products segment contributes significantly to revenue by selling concrete and aggregates for construction projects. The Energy segment earns income from manufacturing components for renewable energy projects, particularly wind energy, which has seen increased demand due to the shift towards sustainable energy sources. The Transportation segment provides logistics and transportation services, further diversifying revenue streams. The company also benefits from strategic partnerships with construction firms and renewable energy companies, which enhance its market presence and facilitate large-scale projects, thereby boosting earnings.

Arcosa Financial Statement Overview

Summary

Arcosa demonstrates stable financial performance with consistent revenue growth and improved operational efficiency. However, challenges remain in maintaining profitability margins and managing increasing leverage. Cash flow generation is positive, but the conversion of income to cash could be improved.

Income Statement

Arcosa's income statement shows a consistent revenue growth trend with a TTM revenue growth rate of 2.77%. The gross profit margin has improved slightly to 20.82% in the TTM period, indicating efficient cost management. However, the net profit margin has decreased to 3.45%, suggesting increased expenses or other financial pressures. EBIT and EBITDA margins have shown improvement, reflecting better operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.68, which is manageable but has increased over the years, suggesting rising leverage. Return on equity is relatively low at 3.77%, indicating limited profitability from equity. The equity ratio stands at 50.61%, showing a balanced capital structure but with room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 16.98% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio has decreased to 0.84, suggesting potential challenges in converting income to cash. The free cash flow to net income ratio is strong at 0.66, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.57B	2.31B	2.24B	2.04B	1.94B
Gross Profit	557.10M	515.20M	443.80M	411.10M	355.90M	382.00M
EBITDA	451.80M	395.90M	383.50M	501.30M	251.30M	263.30M
Net Income	92.20M	93.70M	159.20M	245.80M	69.60M	106.60M
Balance Sheet
Total Assets	4.89B	4.92B	3.58B	3.34B	3.19B	2.65B
Cash, Cash Equivalents and Short-Term Investments	189.70M	187.30M	104.80M	160.40M	72.90M	95.80M
Total Debt	1.68B	1.75B	606.80M	587.20M	679.50M	254.50M
Total Liabilities	2.41B	2.49B	1.25B	1.16B	1.23B	754.50M
Stockholders Equity	2.47B	2.43B	2.33B	2.18B	1.95B	1.89B
Cash Flow
Free Cash Flow	294.20M	312.30M	57.50M	36.30M	81.40M	177.80M
Operating Cash Flow	443.70M	502.00M	261.00M	174.30M	166.50M	259.90M
Investing Cash Flow	-1.30B	-1.51B	-285.80M	90.70M	-570.30M	-528.20M
Financing Cash Flow	943.40M	1.09B	-30.80M	-177.50M	380.90M	123.70M

Arcosa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.64
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 97.64 is above the 20-day moving average (MA) of 97.56, above the 50-day MA of 91.99, and above the 200-day MA of 91.35, indicating a bullish trend. The MACD of 1.86 indicates Positive momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 51.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACA.

Arcosa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GVA	74 Outperform	$4.73B	36.14	15.89%	0.48%	7.18%	77.84%
TKR	72 Outperform	$5.42B	17.69	10.52%	1.77%	-2.01%	-9.95%
NPO	71 Outperform	$4.62B	54.92	5.78%	0.56%	4.99%	169.24%
ACA	70 Outperform	$4.79B	52.05	3.74%	0.20%	9.78%	-37.71%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
HRI	61 Neutral	$4.60B	160.51	1.41%	2.00%	11.41%	-92.67%
SPR	51 Neutral	$4.80B	―	81.63%	―	-2.60%	-94.76%

Arcosa Corporate Events

Arcosa Amends Credit Agreement for New Term Loans

On June 17, 2025, Arcosa, Inc. amended its existing credit agreement to establish a new class of term loans totaling $698,250,000. This refinancing effort allows Arcosa to prepay its previous term loan and offers a slightly reduced interest rate, enhancing its financial flexibility. The amendment includes provisions for prepayment premiums within six months if certain conditions are met, but otherwise allows prepayment without penalty.

The most recent analyst rating on (ACA) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Arcosa stock, see the ACA Stock Forecast page.

Arcosa Holds Annual Shareholders Meeting and Updates Strategy

On May 14, 2025, Arcosa, Inc. held its Annual Meeting of Shareholders where key proposals were voted upon, including the election of directors and the approval of executive compensation. The shareholders also ratified Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025. Additionally, Arcosa has updated its investor presentation materials to reflect its ongoing strategic transformation, focusing on margin expansion, cash flow generation, and growth in attractive markets. The company has made significant investments in its construction products platform, including the acquisition of Stavola, to enhance its market positioning and reduce business complexity.

The most recent analyst rating on (ACA) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Arcosa stock, see the ACA Stock Forecast page.