On November 1, 2023, Arcosa Inc (ACA, Financial), a provider of infrastructure-related products and solutions, announced its financial results for the third quarter ended September 30, 2023. The company reported an 11% increase in net income, reaching $35.5 million, up from $32.0 million in the same period in 2022. Adjusted net income also saw a 7% increase, from $33.7 million to $35.9 million.
Financial Highlights
Despite a 2% decrease in revenues to $591.7 million, revenues excluding the impact from the divested business grew by 10%. The diluted EPS increased by 9% to $0.72, while the adjusted diluted EPS grew by 4% to $0.73. Adjusted EBITDA, excluding the impact from the divested business, saw a significant increase of 24%, reaching $89.4 million.
Arcosa delivered double-digit revenue and Adjusted EBITDA growth in the third quarter, normalizing for the sale of the storage tanks business," said Antonio Carrillo, President and Chief Executive Officer.
Segment Performance
Strong results in Construction and Transportation Products more than compensated for a decline in Engineered Structures. In the Construction Products segment, revenues increased by 7% to $262.1 million, driven by higher pricing across aggregates and specialty materials businesses and volume growth in natural aggregates business. Adjusted Segment EBITDA increased by 9% to $58.7 million.
Engineered Structures saw a decrease in Adjusted Segment EBITDA by 6% to $25.4 million, primarily due to lower margins in the utility structures business. However, the Transportation Products segment saw a significant increase in revenues by 30% to $107.1 million, with Adjusted Segment EBITDA increasing by 271% to $18.2 million.
Outlook and Guidance
For the full year 2023, Arcosa Inc (ACA, Financial) maintains its guidance with consolidated revenue expected to be between $2.25 billion to $2.30 billion and consolidated Adjusted EBITDA of $355 million to $370 million.
We are pleased with our strong year-to-date results and remain confident in our 2023 outlook. As we look ahead to next year, Arcosa is well-positioned for continued growth," concluded Carrillo.
Explore the complete 8-K earnings release (here) from Arcosa Inc for further details.
