Arcosa (ACA) AI Stock Analysis

• Market Cap: $4.16B
• Dividend Yield: 0.24%
• Average Volume (3M): 284.04K
• Price to Earnings (P/E): 53.4
• Beta (1Y): 1.33
• Revenue Growth: 10.44%
• EPS Growth: -45.30%
• Country: US
• Employees: 6,250
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 1.27
• Shares Outstanding: 48,816,086
• 10 Day Avg. Volume: 282,632
• 30 Day Avg. Volume: 284,041
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 10.16
• Enterprise Value/Ebitda: 13.15
• 1Y Price Target: $112.20
• Price Target Upside: 33.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $97.00 ▲(15.79% Upside)

Arcosa's overall stock score reflects its strong financial performance and positive earnings outlook, driven by robust EBITDA growth and strategic acquisitions. However, valuation concerns and some profitability pressures weigh on the score. The company's technical indicators show a neutral trend, and recent corporate events enhance financial flexibility.

Arcosa Business Overview & Revenue Model

Company Description

Arcosa, Inc. is a provider of infrastructure-related products and solutions with headquarters in Dallas, Texas. The company operates through three primary business segments: Construction Products, Engineered Structures, and Transportation Products. Arcosa's offerings include aggregates, specialty materials, and construction site support, alongside steel structures for electricity transmission and distribution, storage tanks, and barges. The company serves a diverse range of sectors, including energy, transportation, and construction, positioning itself as a key player in infrastructure development and support.

How the Company Makes Money

Arcosa generates revenue through the sale of its wide range of infrastructure-related products and services across its three business segments. In the Construction Products segment, the company earns money by supplying aggregates and specialty materials used in construction and road building. The Engineered Structures segment contributes to revenue through the manufacturing and sale of steel structures for electric utility infrastructure, storage tanks, and wind towers. The Transportation Products segment focuses on the production and sale of barges and rail components, catering to freight and cargo transport needs. Arcosa's earnings are bolstered by its strategic positioning in sectors benefiting from infrastructure investment and development. The company may also engage in strategic partnerships or contracts that enhance its market reach and revenue potential.

Arcosa Financial Statement Overview

Summary

Arcosa exhibits solid financial health with strong revenue growth and efficient cash flow management. While profitability metrics indicate some pressure, the company's stable EBIT and EBITDA margins, along with a strong equity position, provide a cushion against potential risks. The balance sheet is well-managed with moderate leverage, though declining ROE suggests room for improvement in profitability.

Income Statement

Arcosa has demonstrated consistent revenue growth, with a 13.1% increase over the past year and a steady gross profit margin around 20.3%. The TTM net profit margin stands at 3.0%, indicating some profitability pressures. The EBIT margin is stable at 7.3% TTM, while the EBITDA margin is strong at 15.7%, suggesting efficient operating performance.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.69, indicating a balanced leverage position. The return on equity has decreased to 3.2% TTM, reflecting lower profitability. The equity ratio is robust at 49.7%, showcasing a strong equity base relative to total assets.

Cash Flow

Arcosa's free cash flow growth rate is negative, but the operating cash flow to net income ratio of 5.39 TTM demonstrates strong cash generation relative to earnings. The free cash flow to net income ratio of 3.22 TTM underscores solid cash flow management.

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
EBITDA	395.90M	383.50M	501.30M	251.30M	263.30M
Net Income	93.70M	159.20M	245.80M	69.60M	106.60M
Balance Sheet
Total Assets	4.92B	3.58B	3.34B	3.19B	2.65B
Cash, Cash Equivalents and Short-Term Investments	187.30M	104.80M	160.40M	72.90M	95.80M
Total Debt	1.69B	568.70M	550.60M	679.50M	254.50M
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

• Technical Analysis Sentiment: Negative
• Last Price: 83.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 83.77 is below the 20-day moving average (MA) of 88.71, below the 50-day MA of 87.91, and below the 200-day MA of 91.52, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 36.56 is Neutral, neither overbought nor oversold. The STOCH value of 18.01 is Positive, 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
MGRC	82 Outperform	$2.97B	11.75	23.85%	1.60%	8.78%	117.40%
MWA	75 Outperform	$3.95B	26.61	17.33%	1.09%	10.19%	20.71%
GVA	73 Outperform	$4.13B	41.54	12.75%	0.56%	11.42%	247.33%
ACA	71 Outperform	$4.16B	53.41	3.23%	0.24%	10.44%	-45.30%
HRI	64 Neutral	$3.86B	134.68	1.41%	2.38%	11.41%	-92.67%
Sector *	59 Neutral	AU$1.62B	9.94	2.84%	3.53%	9.79%	5.94%
HEES	56 Neutral	$3.47B	38.00	15.74%	1.16%	-3.52%	-46.60%

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.