Arcosa Inc (ACA)
NYSE:ACA
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Arcosa
(NYSE:ACA)
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Rating:63Neutral
Price Target:
$113.00
â–²(2.63% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by solid multi-year revenue growth and positive operating/free cash flow, tempered by higher leverage and historically volatile margins. Recent technical signals are mixed-to-weak (negative MACD and price below key moving averages), while valuation appears only moderate (P/E ~25 and low yield). The latest earnings call was supportive due to clear 2026 guidance and backlog strength, but near-term headwinds (wind step-down and elevated CapEx) limit upside.
Positive Factors
Consistent multi‑year revenue growth and record 2025 results
Arcosa’s multi‑year revenue build to record 2025 results demonstrates durable demand and improving operational leverage. Sustained top‑line growth and record adjusted EBITDA/margin indicate structural improvements in pricing, mix and cost control that support reinvestment and stronger long‑term cash generation.
Negative Factors
Rising leverage and higher absolute debt
A large step‑up in gross debt increases interest and refinancing risk and limits financial flexibility. Elevated leverage reduces the cushion against cyclical downturns in infrastructure end markets and constrains the company’s ability to absorb weaker cash flow while funding higher near‑term CapEx and strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent multi‑year revenue growth and record 2025 results
Arcosa’s multi‑year revenue build to record 2025 results demonstrates durable demand and improving operational leverage. Sustained top‑line growth and record adjusted EBITDA/margin indicate structural improvements in pricing, mix and cost control that support reinvestment and stronger long‑term cash generation.
Read all positive factors
Arcosa (ACA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.40B
Dividend Yield0.18%
Average Volume (3M)381.27K
Price to Earnings (P/E)25.0
Beta (1Y)1.42
Revenue Growth13.96%
EPS Growth14.86%
CountryUS
Employees6,250
SectorIndustrials
Sector Strength72
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)1.15
Shares Outstanding49,044,020
10 Day Avg. Volume267,683
30 Day Avg. Volume381,274
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.99
Price to Sales (P/S)1.81
P/FCF Ratio29.68
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue2.33
Enterprise Value/Gross Profit10.36
Enterprise Value/Ebitda11.70
Forecast
1Y Price Target
$125.00Price Target Upside13.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)4.8
Revenue Forecast (FY)$3.00B
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 S...
How the Company Makes Money
Arcosa makes money primarily by selling manufactured products and materials to customers in infrastructure end markets and recognizing revenue when it fulfills customer orders (typically through shipment/delivery and/or project completion dependin...
Arcosa Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive picture: record full‑year results (revenues, adjusted EBITDA, margin), improved leverage and liquidity, a strategic divestiture for $450M that simplifies the portfolio, and a clear growth emphasis on Construction Materials and Engineered Structures with strong backlog and planned capacity investments. Offsetting risks include a near‑term step‑down in wind tower volumes (~25% fewer wind revenues in 2026), modest full‑year free cash flow in 2025 ($22M), higher near‑term CapEx, regional profitability headwinds in parts of aggregates, and seasonal/weather impacts to Q1. Taken together, the magnitude and number of positive items (record metrics, debt reduction, strategic sale, clear 2026 guidance and growth initiatives) outweigh the identified lowlights.Positive Updates
Record Full-Year Financial Performance
Full year 2025 record revenues of $2.9B (up 12% year‑over‑year), record adjusted EBITDA of $583M (up 30%), and record adjusted EBITDA margin of 20.2% (up 280 basis points).
Negative Updates
Wind Tower Near‑Term Step‑Down
Wind tower backlog scheduled for 2026 of $260M implies roughly a 25% decrease in anticipated wind tower revenues in 2026 versus 2025. Management expects a short‑term step‑down in wind tower volumes in 2026 and rightsizing of wind tower capacity to two facilities.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Financial Performance
Full year 2025 record revenues of $2.9B (up 12% year‑over‑year), record adjusted EBITDA of $583M (up 30%), and record adjusted EBITDA margin of 20.2% (up 280 basis points).
Read all positive updates
Company Guidance
Management guided 2026 revenues of $2.95–$3.10 billion and adjusted EBITDA of $590–$640 million (excluding barge), and reiterated barge guidance of roughly $410–$430 million of revenue and $70–$75 million of adjusted EBITDA pending the expected 2026 divestiture; they expect combined Construction Materials and Engineered Structures to deliver double‑digit adjusted EBITDA growth and margin uplift, with Construction Products targeted for mid‑ to high‑single‑digit adjusted EBITDA growth. Full‑year capital and expense guidance includes CapEx of $220–$250 million (split $70–$80M growth, $150–$170M maintenance, including ~ $25M for plant moves/IT), depreciation/depletion/amortization of $230–$240 million, net interest of $88–$90 million, and an effective tax rate of 17.5–19.5%. Operational outlook and visibility cited: utility structures backlog of $435 million (up 5% y/y), wind tower backlog of $628 million (with $260 million scheduled for 2026, ~25% decline vs. 2025, and expected recognition of ~42% in 2026 and ~53% in 2027), aggregates expected to see low single‑digit volume growth and mid single‑digit price improvement, and liquidity of $915 million (including full $700 million revolver); net debt to adjusted EBITDA ended 2025 at 2.3x and will be updated when the barge transaction closes.Arcosa Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
60
Neutral
Cash Flow
66
Positive
| 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
Positive
110.10
Price Trends
113.66
Negative
110.96
Negative
101.99
Positive
Market Momentum
-1.44
Negative
53.78
Neutral
69.17
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 110.1 is above the 20-day moving average (MA) of 105.62, below the 50-day MA of 113.66, and above the 200-day MA of 101.99, indicating a neutral trend. The MACD of -1.44 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 69.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACA.
Arcosa Risk Analysis
Arcosa disclosed 52 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $7.36B | 20.35 | 9.35% | 1.61% | -1.01% | -12.13% | |
71 Outperform | $5.82B | 111.03 | 5.80% | 0.56% | 6.44% | 101.24% | |
70 Outperform | $5.48B | 26.09 | 17.58% | 0.45% | 6.87% | 64.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $5.40B | 25.00 | 8.20% | 0.18% | 13.96% | 14.86% | |
47 Neutral | $3.39B | 4,644.29 | 0.06% | 1.79% | 19.40% | -120.47% |
* Industrials Sector Average
ACA
Arcosa
110.10
32.07
41.10%
NPO
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GVA
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125.94
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63.08%
HRI
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101.52
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TKR
Timken Company
105.88
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69.31%
Arcosa Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Arcosa Sells Inland Barge Unit to Refocus Portfolio
Positive
Apr 1, 2026
On April 1, 2026, Arcosa, Inc. announced it had completed the sale of its inland barge business, Arcosa Marine Products, Inc., to private equity firm Wynnchurch Capital, L.P. for $450 million in cash, subject to customary adjustments. The company ...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
Arcosa Sells Marine Unit and Reports Record Results
Positive
Feb 26, 2026
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%...
Business Operations and StrategyM&A Transactions
Arcosa Divests Marine Barge Unit to Wynnchurch Capital
Positive
Feb 25, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.