Arcosa Inc

Latest Results (20.11.2025):

Arcosa, Inc. reported strong record results for the third quarter of 2025 (Q3 2025). Consolidated revenue was $797.8 million (up 25% vs. Q3 2024; +27% excluding a divested business), adjusted EBITDA rose to $174.2 million (up 53%) with a 21.8% margin (up 400 bps), net income was $73.0 million, and adjusted diluted EPS was $1.56. The company generated $160.6 million of operating cash flow and $134.0 million of free cash flow, reduced acquisition debt by $100 million, and ended the quarter with Net Debt to Adjusted EBITDA of 2.4x — inside its 2.0–2.5x long-term target two quarters ahead of plan.

Top-line and profitability

Q3 2025 revenue: $797.8M (+25% year-over-year; +27% excluding the divested steel components business). Adjusted EBITDA: $174.2M (+53%), adjusted EBITDA margin 21.8% (up 400 bps). Adjusted net income was $77.3M (+73%) and adjusted diluted EPS was $1.56 (+71%).

Cash flow and leverage

Operating cash flow was $160.6M and free cash flow $134.0M in Q3 2025. Arcosa paid down $100M of the acquisition term loan during the quarter and reported Net Debt to Adjusted EBITDA of 2.4x (improved from 2.8x at Q2 end), reaching its stated leverage target ahead of schedule.

Guidance update

Arcosa tightened full-year 2025 revenue guidance to $2.86–2.91B and raised consolidated Adjusted EBITDA guidance to $575–585M (vs. prior $555–585M), increasing the midpoint and reflecting expected 32% adjusted EBITDA growth for the year driven by the Stavola acquisition and organic expansion.

Construction Products (Stavola impact)

Construction Products revenue hit a record $387.5M (up 46%), with Stavola contributing $102.6M of revenue and $44.5M of Adjusted Segment EBITDA. Segment Adjusted EBITDA was $115.2M (+62%) and margin expanded to 29.7% (up 300 bps). Organic revenue grew ~7%.

Aggregates performance

Aggregates volumes increased 18% in Q3 2025, pricing rose 9%, and Aggregates adjusted cash gross profit per ton improved 17%. Some legacy aggregates locations experienced downtime that weighed on cost absorption, partially offsetting Stavola’s accretive margin benefits.

Engineered Structures

Engineered Structures revenue was $311.0M (up 11%) with Adjusted Segment EBITDA of $57.0M (+29%) and margin expanding to 18.3% (up 240 bps). Utility and related structures backlog reached a record $461.5M (+11% YTD); wind tower backlog was $526.3M, and the business received $57M of wind orders in Q3 plus ~$60M of additional orders in October.

Transportation Products (barge)

Barge revenues rose 22% driven by higher tank barge deliveries. Excluding the divested steel components business, Adjusted Segment EBITDA was $17.6M (+36%) and margin improved to 17.7%. Barge backlog was $325.9M (up 16% YTD) with recent book-to-bill strength and production visibility into 2026.

Corporate items, interest and tax

Corporate expenses (ex-acquisition/divestiture costs) increased to $16.0M from $13.4M, interest expense rose to $27.1M (up $11.3M) reflecting acquisition financing, and the Q3 effective tax rate was 16.2% (vs. 13.1% prior year) due mainly to state taxes and foreign adjustments.