Q3 2024 Arcosa Inc Earnings Call Transcript
Key Points
- Arcosa Inc (ACA) reported strong third-quarter performance with significant margin expansion and a 39% increase in adjusted EBITDA.
- The company generated $107 million in free cash flow, emphasizing effective working capital management.
- Arcosa Inc (ACA) completed the divestiture of its steel components business and acquired Stavola, marking the largest purchase in its history.
- The acquisition of Stavola is expected to enhance Arcosa Inc (ACA)'s aggregates footprint and contribute to growth and margin expansion.
- The company increased its adjusted EBITDA guidance for 2024, reflecting a 34% year-over-year increase when normalizing for divestitures and land sales.
- Construction activity was stable, but overall volumes were lower than expected, partly due to uncertainty regarding interest rates and US elections.
- The transportation products segment was impacted by the divestiture of the steel components business, resulting in a $1 million adjusted EBITDA loss.
- Weather events caused disruptions in several regions, affecting operations and leading to temporary plant shutdowns.
- Interest expenses are expected to increase significantly in the fourth quarter due to the Stavola acquisition.
- Organic volumes in the aggregates business were down high single digits in the third quarter, reflecting challenges in the market.
Good morning, ladies and gentlemen and welcome to the Arcosa Inc third quarter, 2024 earnings conference call. My name is Jim and I will be your conference operator today as a reminder, today's conference is being recorded and now I would like to turn the call over to your host, Erin Dreck, Director of Investor Relations for Arcosa Inc, Miss Erin Dreck. You may begin.
Good morning everyone and thank you for joining Arcosa Inc third quarter 2024 earnings call with me today are Antonio Carrillo, President and CEO, Gail M, Peck CFO. A question and answer session will follow their prepared remarks.
A copy of the press release issued yesterday and the slide presentation for this morning's call are posted on our investor relations website, Ir.Arcosa.com.
A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website under the news and events
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