Slide 1: Third Quarter 2024 Earnings Conference Call
THIRD QUARTER 2024 EARNINGS CONFERENCE CALL MOVING INFRASTRUCTURE FORWARD | OCTOBER 31, 2024
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements about Arcosa’s estimates, expectations, beliefs, intentions
Slide 3: How to Find Us
HOW TO FIND US OUR WEBSITE NYSE TICKER www.arcosa.com ACA HEADQUARTERS Arcosa, Inc. INVESTOR CONTACT 500 North Akard Street, Suite 400 InvestorResources@arcosa.com Dallas, TX 75201 3 I MOVING INFRASTRUCTURE FORWARD I 2024
Slide 4: Third Quarter 2024 Highlights
THIRD QUARTER 2024 HIGHLIGHTS TRANSFORMATIONAL EARNINGS GROWTH AND STRONG QUARTERLY PORTFOLIO ACTIONS DRIVE CASH FLOW IMPROVE PERFORMANCE GUIDANCE INCREASE LEVERAGE • Strong Q3 2024 performance • $1.2B acquisition of aggregates- • Operating cash flow of $135 led Stavola closed October 1st million an
Slide 5: Strategic Update
01 STRATEGIC UPDATE
Slide 6: Arcosa's Long-Term Vision
ARCOSA’S LONG-TERM VISION Integrate Grow in attractive Environmental, Social, Maintain a healthy Reduce the complexity Improve long-term markets where we can and Governance (ESG) balance sheet through and cyclicality of the returns on invested achieve sustainable initiatives into our prudent delever
Slide 7: Strategic Transformation
STRATEGIC TRANSFORMATION We have made significant progress advancing our long-term vision % Adjusted EBITDA, excluding corporate costs 2018 Acquisitions LTM PF1 Construction Products Trans. Products 8% Aggregates4 ~67% Engineered Structures Transportation 28% Construction Products Construction Produ
Slide 8: Q3 2024 Results
02 Q3 2024 RESULTS
Slide 9: Q3 2024 Consolidated Results
Q3 2024 CONSOLIDATED RESULTS Robust earnings growth and margin expansion led by Construction Products and Engineered Structures REVENUES ($M) NET INCOME($M) ADJUSTED EBITDA ($M) +8% +28% 640.4 +14% 114.0 591.7 13.6 +24% 39.8 44.6 89.4 +39% 6.3 35.9 0.4 28.0 626.8 115.3 551.9 83.1 35.5 16.6 (1.3) Q3-
Slide 10: Q3 2024 Segment Results: Construction Products
Q3 2024 SEGMENT RESULTS: CONSTRUCTION PRODUCTS Higher organic unit profitability and accretive impact from recent bolt-on acquisitions drove significant margin improvement REVENUES ($M) ADJUSTED SEGMENT EBITDA ($M) +1% +21% 262.1 265.9 71.0 34.3 32.3 58.7 227.8 233.6 Q3-23 Q3-24 Q3-23 Q3-24 EBITDA M
Slide 11: Q3 2024 Segment Results: Engineered Structures
Q3 2024 SEGMENT RESULTS: ENGINEERED STRUCTURES Strong organic Adjusted Segment EBITDA growth enhanced by the accretive impact of the Ameron acquisition that closed in April REVENUES ($M) ADJUSTED SEGMENT EBITDA ($M) +26% +74% 279.4 44.3 222.5 25.4 Q3-23 Q3-24 Q3-23 Q3-24 Margin 11.4% 15.9% Utility,
Slide 12: Q3 2024 Segment Results: Transportation Products
Q3 2024 SEGMENT RESULTS: TRANSPORTATION PRODUCTS Adjusted Segment EBITDA, excluding steel components, increased due to higher tank barge deliveries REVENUES ($M) ADJUSTED SEGMENT EBITDA ($M) -11% -36% 107.1 18.2 95.1 39.8 13.6 6.3 11.6 21% 8% 81.5 11.9 12.9 67.3 -1.3 Q3-23 Q3-24 Q3-23 Q3-24 Barges S
Slide 13: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Committed to maintaining a healthy balance sheet through prudent deleveraging supported by our disciplined ‘cash culture’ NET DEBT / ADJUSTED EBITDA (ratio at end of period) FREE CASH FLOW ($M) 3.4 Long term target of 2.0 - 2.5x +6,206% 2.5 +50% 107.2 141.4 94.1 1.3 1.2 1
Slide 14: 2024 Outlook
03 2024 OUTLOOK
Slide 15: 2024 Guidance Increased
2024 GUIDANCE INCREASED Updated guidance range to reflect the acquisition of Stavola (October 1) and divestiture of steel components (August 16) Revenues ($M) Adjusted EBITDA ($M) +12% +20% 2,600 – 2,720 435 - 450 2,560 – 2,630 420 - 440 8 88 368 +34% 2,308 22 +16% 153 21 2,155 325 FY-23 Previous 20
Slide 16: Market Outlook
MARKET OUTLOOK CONSTRUCTION PRODUCTS ENGINEERED STRUCTURES TRANSPORTATION PRODUCTS • Infrastructure spending up due to • Strong backlog visibility for utility and • Aging fleet and underinvestment in increased federal funding from IIJA traffic structures, driven by grid- replacement support positive
Slide 17: Appendix
APPENDIX
Slide 18: Guidance Summary for 2024
GUIDANCE SUMMARY FOR 2024 COMMENTARY • $2.56B to $2.63B range for full year 2024, including $88M from the divested steel components business REVENUE • 2023 full year revenue was $2.31B, including $153M from the divested steel components business ADJUSTED • $435M to $450M range for full year 2024, in
Slide 19: Non-GAAP Measures
NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our bu
Slide 20: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) Three Months Ended Full Year September 30, 2024 Guidance(3) 2024 2023 Low High Net income $ 16.6 $ 35.5 $ 119.4 $ 123.8 Add: Interest expense, net 12.0 5.0 62.0 64.0 Provision for income taxes 2.5 7.5 22.8 25.4 D
Slide 21: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in millions) (unaudited) Three Months Ended Year Ended Twelve Months Ended September 30, December 31, September 30, 2024 2023 2018 2023 2024 Construction Products Operating Profit $ 40.4 $ 30.3 $ 50.4 $ 138.6 $ 133.0 Add: Depreciation, depletion, and am
Slide 22: Reconciliation of Freight-Adjusted Revenues for Construction Products
Reconciliation of Freight-Adjusted Revenues for Construction Products ($’s in millions) (unaudited) Three Months Ended September 30, 2024 2023 Construction Products Revenues $ 265.9 $ 262.1 Less: Freight revenues 22.7 31.2 Freight-Adjusted Revenues $ 243.2 $ 230.9 Adjusted Segment EBITDA(1) $ 71.0 $
Slide 23: Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow ($’s in millions) (unaudited) As of September 30, December 31, September 30, Pro Forma 2024 2023 2024(1) Stavola(2) Pro Forma Total debt excluding debt issuance costs $ 573.1 $ 1,248.7 $ 600.0 $ 1,848.7 Cash and cash equivalents 104.8
Slide 24: Reconciliation of Stavola and Steel Components Adjusted EBITDA
Reconciliation of Stavola and Steel Components Adjusted EBITDA (in millions) (unaudited) Twelve Months Ended June 30, 2024 Net Income $ 71.8 Add: Interest expense, net 0.8 Provision for income taxes — Depreciation, depletion, and amortization expense 18.9 EBITDA 91.5 Non-recurring adjustments 9.0 St