Arcosa Inc (ACA)
NYSE:ACA
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Arcosa
(NYSE:ACA)
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Rating:72Outperform
Price Target:
$144.00
â–²(25.79% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by solid underlying financial performance (improving profitability and stronger TTM free cash flow) and a positive earnings outlook (guidance raise, strong utility backlog, and improved pro forma balance sheet), supported by constructive technical momentum. These positives are offset by a relatively expensive valuation (high P/E and minimal yield) and operational headwinds noted by management (cost pressures, wind transition year, and tariff risk).
Positive Factors
Strong cash generation
Arcosa's materially improved operating cash flow (~$400M TTM) and FCF (~$225M TTM) provide durable internal funding for capex, bolt‑on M&A and debt paydowns. With FCF covering ~56% of net income, the company has multi‑month flexibility to fund growth and absorb timing swings in working capital.
Negative Factors
Higher absolute debt level
Although leverage metrics remain manageable, the sharp step‑up in nominal debt since 2023 constrains optionality. Higher absolute borrowings limit the firm's capacity to pursue larger organic or inorganic investments and heighten sensitivity to interest costs if the macro or cash conversion deteriorates over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Arcosa's materially improved operating cash flow (~$400M TTM) and FCF (~$225M TTM) provide durable internal funding for capex, bolt‑on M&A and debt paydowns. With FCF covering ~56% of net income, the company has multi‑month flexibility to fund growth and absorb timing swings in working capital.
Read all positive factors
Arcosa (ACA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.90B
Dividend Yield0.18%
Average Volume (3M)311.48K
Price to Earnings (P/E)34.4
Beta (1Y)1.39
Revenue Growth8.44%
EPS Growth183.31%
CountryUS
Employees6,250
SectorIndustrials
Sector Strength72
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)4.54
Shares Outstanding49,096,363
10 Day Avg. Volume266,891
30 Day Avg. Volume311,484
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.98
Price to Sales (P/S)1.80
P/FCF Ratio29.62
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue2.58
Enterprise Value/Gross Profit11.31
Enterprise Value/Ebitda13.07
Forecast
1Y Price Target
$133.33Price Target Upside16.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.38
Revenue Forecast (FY)$2.64B
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call portrayed a predominantly positive outlook: strong Q1 financial results (10% adjusted EBITDA growth), record segment margins in Engineered Structures, record utility backlog (up 28%), improved cash flow and a materially stronger balance sheet post-barge divestiture, plus a guidance raise. Headwinds were highlighted—Construction Products EBITDA softness driven by seasonality and downtime, higher diesel costs (potential 4%–5% unit profit headwind if sustained), a transition-year decline in wind towers, and near-term start-up costs for capacity projects. Management has mitigating actions (pricing discipline, fuel surcharges, contractual tariff pass-throughs) and multi-year demand visibility for utility structures, leading to confidence in delivering improved 2026 results. Overall, positive operational momentum and balance sheet flexibility outweigh the near-term cost and market headwinds.Positive Updates
Q1 Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA from continuing operations grew 10% year-over-year in Q1, with company-wide margin expansion of 100 basis points. Management raised full-year adjusted EBITDA guidance to $565 million at the midpoint, an $22.5 million increase from prior guidance and an 11% year-over-year increase implied at the midpoint.
Negative Updates
Construction Products EBITDA Pressure and Asphalt Seasonality
Construction Products segment revenues increased 5% in Q1 but adjusted segment EBITDA decreased slightly. Weakness was driven by pronounced seasonality in asphalt, lower cost absorption in Specialty Materials (including planned maintenance downtime), and a slow start to the quarter from winter weather.
Read all updates
Q1-2026 Updates
Positive
Negative
Q1 Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA from continuing operations grew 10% year-over-year in Q1, with company-wide margin expansion of 100 basis points. Management raised full-year adjusted EBITDA guidance to $565 million at the midpoint, an $22.5 million increase from prior guidance and an 11% year-over-year increase implied at the midpoint.
Read all positive updates
Company Guidance
Arcosa raised full‑year continuing‑operations guidance: at the midpoint it now sees revenues of $2.65 billion (up ~6% y/y) and adjusted EBITDA of $565 million (up $22.5 million vs. prior guide and +11% y/y), with company EBITDA margin expanding to a record ~21.3%; full‑year CapEx is guided to $215–$240 million (slightly reduced), the effective tax rate to 16–18% (down ~1.5 pts), and corporate costs to impact adjusted EBITDA by roughly $60 million at the midpoint (flat with 2025). Segment outlooks include mid‑single‑digit adjusted EBITDA growth for Construction Products (aggregates: low‑single‑digit volume growth, mid‑single‑digit pricing) and roughly 10% segment adjusted EBITDA growth for Engineered Structures driven by utility structures; wind towers are ~10% of company revenues with a $600 million backlog (36% expected in 2026, 59% in 2027) while utility and related structures backlog is $558 million (+28% YTD). The company also highlighted pro forma balance‑sheet metrics after the $450 million barge sale (≈$370 million estimated after‑tax net proceeds): net debt/adjusted EBITDA ~1.9x and pro forma liquidity of ~$1.1 billion (including a $700 million revolver), with $83 million of the proceeds used to prepay term loan debt.Arcosa Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.82B | 2.88B | 2.57B | 2.31B | 2.24B | 2.04B |
| Gross Profit | 642.70M | 647.20M | 515.20M | 443.80M | 411.10M | 355.90M |
| EBITDA | 556.40M | 563.10M | 395.90M | 383.50M | 501.30M | 251.30M |
| Net Income | 222.60M | 208.40M | 93.70M | 159.20M | 245.80M | 69.60M |
Balance Sheet | ||||||
| Total Assets | 4.89B | 4.87B | 4.92B | 3.58B | 3.34B | 3.19B |
| Cash, Cash Equivalents and Short-Term Investments | 153.20M | 214.60M | 187.30M | 104.80M | 160.40M | 72.90M |
| Total Debt | 1.52B | 1.52B | 1.75B | 606.80M | 587.20M | 707.30M |
| Total Liabilities | 2.26B | 2.25B | 2.49B | 1.25B | 1.16B | 1.23B |
| Stockholders Equity | 2.63B | 2.62B | 2.43B | 2.33B | 2.18B | 1.95B |
Cash Flow | ||||||
| Free Cash Flow | 238.60M | 175.50M | 312.30M | 57.50M | 36.30M | 81.40M |
| Operating Cash Flow | 413.70M | 341.10M | 502.00M | 261.00M | 174.30M | 166.50M |
| Investing Cash Flow | -208.30M | -121.40M | -1.51B | -285.80M | 90.70M | -570.30M |
| Financing Cash Flow | -220.10M | -191.60M | 1.09B | -30.80M | -177.50M | 380.90M |
Arcosa Technical Analysis
Neutral
114.48
Price Trends
114.48
Positive
115.19
Positive
106.63
Positive
Market Momentum
2.51
Positive
43.29
Neutral
8.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACA, the sentiment is Neutral. The current price of 114.48 is below the 20-day moving average (MA) of 124.34, above the 50-day MA of 114.48, and above the 200-day MA of 106.63, indicating a neutral trend. The MACD of 2.51 indicates Positive momentum. The RSI at 43.29 is Neutral, neither overbought nor oversold. The STOCH value of 8.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.45B | 48.25 | 2.83% | 0.56% | 10.21% | -48.98% | |
72 Outperform | $5.90B | 34.40 | 8.60% | 0.18% | 8.44% | 183.31% | |
72 Outperform | $5.72B | -31.29 | 16.70% | 0.45% | 14.93% | 49.81% | |
71 Outperform | $8.14B | 17.82 | 9.77% | 1.61% | 3.31% | -5.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $4.43B | -34.53 | -0.26% | 1.79% | 28.39% | -105.83% |
* Industrials Sector Average
ACA
Arcosa
120.24
35.20
41.39%
NPO
Enpro
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GVA
Granite Construction
130.74
44.84
52.19%
HRI
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132.62
9.97
8.13%
TKR
Timken Company
117.20
48.52
70.63%
Arcosa Corporate Events
Executive/Board ChangesShareholder Meetings
Arcosa Shareholders Back Board, Executive Pay and Auditor
Positive
May 15, 2026
At its annual meeting of shareholders held on May 13, 2026, Arcosa investors elected nine directors, including Joseph Alvarado, Rhys J. Best, and Chief Executive Officer Antonio Carrillo, to serve terms expiring at the 2027 annual meeting, signali...
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.