Slide 1: Investor Presentation August 2021
Investor Presentation August 2021 Exhibit 99.1
Slide 2: Forward-Looking Statements
/ Moving Infrastructure Forward2 Forward-Looking Statements Some statements in this presentation, 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 estimate
Slide 3: How to Find Us
/ How to Find Us 3 INVESTOR CONTACT InvestorResources@arcosa.com NYSE TICKER ACA OUR WEBSITE www.arcosa.com HEADQUARTERS Arcosa, Inc. 500 North Akard Street, Suite 400 Dallas, Tx 75201 Moving Infrastructure Forward
Slide 4: Table of Contents
/4 1 3 4 Company Overview Long-Term Vision and Capital Allocation ESG Update Moving Infrastructure Forward 2 Financial Highlights Table of Contents
Slide 5: Company Overview
/5 1 Company Overview Moving Infrastructure Forward
Slide 6: Arcosa's Value Proposition
/6 Arcosa’s Value Proposition Strong balance sheet and ample liquidity to navigate cycles and pursue strategic growth Experienced management team with history of managing through economic cycles Leading businesses serving critical infrastructure markets Track record of executing on strategic priorit
Slide 7: Arcosa at a Glance
/7 Arcosa at a Glance Revenues, Adjusted EBITDA and Net Income are for the twelve months ended 6/30/2021. See Adjusted EBITDA reconciliation in Appendix. Arcosa spun off from its former parent company in November 2018. $78M Net Income $265M Adjusted EBITDA $1.9B Revenues 3 Infrastructure-related Seg
Slide 8: Business Overview
/ Business Overview 8 Revenues ENGINEERED STRUCTURES TRANSPORTATION CONSTRUCTION Segments Adj.Segment EBITDA & Margin Arcosa’s three segments are made up of leading businesses that serve critical infrastructure markets NATURAL & RECYCLED AGGREGATES SPECIALTY MATERIALS CONSTRUCTION SITE SUPPORT WIND
Slide 9: Track Record of Executing on Stage 1 Priorities
/9 Track Record of Executing on Stage 1 Priorities Building our new Arcosa culture Executing on Stage 1 Priorities introduced at October 2018 Investor Day Grow Construction Products Improve Engineered Structures margins Expand Transportation Products Operate a flat corporate structure We have achiev
Slide 10: $150M Acquisition of Southwest Rock Products
/ $150M Acquisition of Southwest Rock Products Completed in August Moving Infrastructure Forward 10 Leading Arizona pure-play aggregates producer serving the greater Phoenix metro area that will help accelerate the growth of our Construction Products segment $36M Revenue $14M Adjusted EBITDA ~5M Ton
Slide 11: Phoenix AZ is One of the Fastest Growing Megaregions
/ Phoenix AZ is One of the Fastest Growing Megaregions Moving Infrastructure Forward11 Source: Regional Plan Association, U.S. Census Bureau, ArcGIS, Factset, IHS Markit, Wall Street research, press releases Sizable Aggregates Market Demand Large-Scale Capital Investment Needs Favorable Construction
Slide 12: Construction Materials Platform Represents more than 50% of Adjusted EBITDA
/12 Construction Materials Platform Represents more than 50% of Adjusted EBITDA Disciplined capital allocation strategy investing ~$1.3B since spin to grow Construction Products and reduce overall cyclicality of our portfolio Moving Infrastructure Forward 1LTM June 2021, pro forma Adjusted EBITDA in
Slide 13: Financial Highlights
/13 2 Financial Highlights Moving Infrastructure Forward
Slide 14: Recent Financial Results
/14 1,460 1,737 1,936 1,904 20202018 2019 TTM 6/30/2021 +30% Recent Financial Results Strong financial performance since spin with Adjusted EBITDA expansion outpacing revenue growth driven by organic expansion, acquisitions, and operating improvements 187 241 284 265 2018 2019 2020 TTM 6/30/2021 +42
Slide 15: Cash Flow and Balance Sheet
/ Cash Flow and Balance Sheet 15 Moving Infrastructure Forward Net Debt / Adjusted EBITDA1 Ratio at end of quarter Free Cash Flow $M’s 74 273 178 111 Avg. $159M 2018 2019 2020 LTM 6/30 ... has supported significant organic & acquisition investment, while maintaining a healthy balance sheet Focus on
Slide 16: COVID-19 Update
/ COVID-19 Update We prioritize the health and safety of our people The health and safety of our employees, communities, and other stakeholders is our highest priority. We have put safeguard measures in place at our plants and office locations to meet or exceed the standards set forth by CDC guideli
Slide 17: Q2-2021 Financial Results
/ Q2-2021 Financial Results Moving Infrastructure Forward17 498.5 515.1 Q2-20 Q2-21 +3% 78.7 78.9 Q2-20 Q2-21 0% See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix. Revenues and Adjusted EBITDA were in line with last year’s record results as growth in Construction Products was o
Slide 18: Near-Term Outlook
/18 Near-Term Outlook Construction Products and Engineered Structures end markets remain well positioned for growth, with offsetting impacts from barge and wind tower near-term expectations Moving Infrastructure Forward Construction Products Positive Outlook • Strong construction activity in our key
Slide 19: 2021 Outlook
/ 2021 Outlook 2021 on pace to meet or exceed 2020’s strong results, despite cyclically depressed barge and rail components businesses Moving Infrastructure Forward19 See Adjusted EBITDA reconciliation in Appendix. Revenues $M’s Adjusted EBITDA $M’s 1,460 1,737 1,936 2018 2019 2021 Guidance 2020 1,9
Slide 20: Long-Term Vision and Capital Allocation
/20 3 Long-Term Vision and Capital Allocation Moving Infrastructure Forward
Slide 21: Our Long-Term Vision
/21 Our Long-Term Vision Grow in attractive markets where we can achieve sustainable competitive advantages Reduce the complexity and cyclicality of the overall business Improve long-term returns on invested capital Integrate Environmental, Social, and Governance initiatives (ESG) into our long-term
Slide 22: Repositioning Arcosa Around More Stable Infrastructure Products
/22 Repositioning Arcosa Around More Stable Infrastructure Products Construction Products 2018 LTM June 2021 Our performance highlights our progress in creating a more stable base of revenue and profit, anchored around core infrastructure products Moving Infrastructure Forward Natural aggregates o
Slide 23: Attractive Fundamentals of Aggregates and Specialty Materials
/ Attractive markets with long-term pricing and volume growth; less cyclical than other Arcosa businesses Sustainable competitive advantages, through reserve positions, product portfolio, proprietary processing capabilities, and deep market knowledge Fragmented industry structure with ability
Slide 24: StonePoint Materials Highlights
/ StonePoint Materials Highlights Moving Infrastructure Forward 24 We completed the acquisition on April 9 and are now focused on integration and continuing to grow our expanded aggregates platform ~$125M Projected 2021 Net Revenues1 ~$30M Projected 2021 Adj. EBITDA 9M+ Tons Produced Annually 40+ Ye
Slide 25: Engineered Structures Acquisitions
/25 Traffic structures March 2020 acquisition of HSI, a leading traffic structures manufacturer October 2020 acquisition of Premier Fabricators 2 plants in Florida; serve Southeast and opportunity to expand into other states DESCRIPTION Telecom structures Transmission and Distribution structur
Slide 26: Engineered Structures
/26 Moving Infrastructure Forward Engineered Structures With our acquisitions, we have expanded our product offering in the $3B transmission and distribution markets, as well as entered new large markets tied to infrastructure growth Transmission & Distribution Structures Wind Towers Traffic Structu
Slide 27: ESG Update
/27 4 ESG Update Moving Infrastructure Forward
Slide 28: Arcosa Sustainability
/ Arcosa Sustainability Moving Infrastructure Forward28 We continue to integrate ESG into our business through our strategic planning process, ESG-focused initiatives, and innovative continuous improvement projects Our 2020 Sustainability Report published on April 19, 2021 highlights a number of the
Slide 29: Long-term Vision: ESG Update
/29 We are committed to developing reportable metrics and establishing meaningful goals in areas important to our stakeholders Our Materiality Assessment was based primarily on SASB standards, with additional input from stakeholders and other sustainability standards, including TCFD Employee Health
Slide 30: Long-term Vision: ESG Update
/ Long-term Vision: ESG Update Moving Infrastructure Forward30 As we integrate ESG initiatives into our long-term strategy, our operations teams have taken an active role in pursuing initiatives that promote environmental responsibility We provide more detail regarding our goals and initiatives in o
Slide 31: Our products are used in important, environmentally friendly industries
/31 Our products are used in important, environmentally friendly industries Arcosa operates in multiple industries which contribute to environmental protection Arcosa Wind Towers produces steel towers to support our customers’ advancement of America’s wind energy infrastructure. Arcosa Marine builds
Slide 32: Appendix
Appendix
Slide 33: Additional Financial Guidance for 2021
/33 Additional Financial Guidance for 2021 Corporate costs Commentary Moving Infrastructure Forward Capital expenditures Working capital ~$13-14M per quarter in Q3 and Q4, excluding non-recurring items related to acquisitions and integration ~$2M per quarter in Q3 and Q4 of acquisition and integ
Slide 34: Non-GAAP Measures
/ Non-GAAP Measures 34 Moving Infrastructure Forward “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our business. GAAP does not defi
Slide 35: Reconciliation of Adjusted EBITDA and Adjusted Net Income
/ Reconciliation of Adjusted EBITDA and Adjusted Net Income 35 Moving Infrastructure Forward (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions, including the cost impact of the fair v
Slide 36: Reconciliation of Adjusted Segment EBITDA
/ Reconciliation of Adjusted Segment EBITDA 36 Moving Infrastructure Forward ($’s in millions) (unaudited) (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions, including the cost impact
Slide 37: Reconciliation of Free Cash Flow and Net Debt to Adjusted EBITDA
/ Reconciliation of Free Cash Flow and Net Debt to Adjusted EBITDA 37 Moving Infrastructure Forward ($’s in millions) (unaudited) (1) These periods include pro forma adjustments for acquisitions completed during the period, as previously disclosed. (2) Adjusted EBITDA includes a 3 month pro forma ad
Slide 38: Reconciliation of Southwest Rock and StonePoint Pro Forma Adjusted EBITDA
/ Reconciliation of Southwest Rock and StonePoint Pro Forma Adjusted EBITDA 38 Moving Infrastructure Forward (in millions) (unaudited) (1) Pass through entity and not subject to federal income taxes (2)Includes Paycheck Protection Program loan forgiveness, partially offset by management compensation