Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (May 2025)
37 slides from Arcosa's investor presentation, May 14, 2025
Slide 1: Moving Infrastructure Forward | May 2025 Investor Presentation
MOVING INFRASTRUCTURE FORWARD | MAY 2025 INVESTOR PRESENTATION Exhibit 99.1
Slide 2: Forward Looking Statements
2 I MOVING INFRASTRUCTURE FORWARD I 2025 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 esti
Slide 3: How to Find Us
HOW TO FIND US OUR WEBSITE www.arcosa.com NYSE TICKER ACA HEADQUARTERS Arcosa, Inc. 500 North Akard Street, Suite 400 Dallas, TX 75201 INVESTOR CONTACT InvestorResources@arcosa.com 3 I MOVING INFRASTRUCTURE FORWARD I 2025
Slide 4: Table of Contents
01 03 04 OVERVIEW FINANCIAL HIGHLIGHTS 02 OUTLOOK TABLE OF CONTENTS 4 I MOVING INFRASTRUCTURE FORWARD I 2025 STRATEGIC TRANSFORMATION
Slide 5: Overview
OVERVIEW 01
Slide 6: Arcosa's Value Proposition
ARCOSA’S VALUE PROPOSITION FOCUSED on margin expansion and cash flow generation EXPERIENCED management team with history of managing through economic cycles LEADING businesses serving critical infrastructure markets TRACK RECORD of executing on strategic priorities DISCIPLINED CAPITAL allocation pro
Slide 7: Arcosa at a Glance
ARCOSA AT A GLANCE Revenues, Adjusted Net Income, and Adjusted EBITDA are for the twelve months ended 03/31/2025. See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix. Headcount is as of 12/31/2024. Arcosa completed the divestiture of its Steel Components business on August 16, 20
Slide 8: Business Overview
BUSINESS OVERVIEW ENGINEERED STRUCTURES TRANSPORTATION PRODUCTS(1)CONSTRUCTION PRODUCTS (1) Arcosa completed the divestiture of its Steel Components business on August 16, 2024. Financial results for the business are included in continuing operations to date of sale. Revenues and Adjusted Segment EB
Slide 9: Strategic Transformation
STRATEGIC TRANSFORMATION 02
Slide 10: Arcosa's Long-Term Vision
10 I MOVING INFRASTRUCTURE FORWARD I 2025 ARCOSA’S LONG-TERM VISION Reduce the complexity and cyclicality of the overall business Integrate sustainability initiatives into our long-term strategy Improve long-term returns on invested capital Grow in attractive markets where we can achieve sustainable
Slide 11: Significant progress advancing our long-term vision
Construction Products 33% Engineered Structures 38% Transportation Products 29% We have made significant progress advancing our long-term vision 11 I MOVING INFRASTRUCTURE FORWARD I 2025 % Adjusted EBITDA, excluding corporate costs 2025 PF(1)2018 Acquisitions Construction Products Engineered Structu
Slide 12: Ongoing Investment in Construction Products Platform
~$2.7 billion of investment in Construction Products acquisitions as we seek to expand our growth platforms 12 I MOVING INFRASTRUCTURE FORWARD I 2025 ONGOING INVESTMENT IN OUR CONSTRUCTION PRODUCTS PLATFORM Q4 2024Q2 2022Q3 2021Q2 2021Q3 2020Q1 2020Q4 2018KEY ACQUISITIONS Natural Aggregates Recycled
Slide 13: Completed Acquisition of Stavola and Sale of Steel Components
Enhances Arcosa’s overall profitability and financial profile Extends footprint into the nation’s largest MSA with a scaled and vertically integrated aggregates and FOB asphalt operation FY 2024: COMPLETED THE ACQUISITION OF STAVOLA (OCTOBER 1) AND SALE OF STEEL COMPONENTS (AUGUST 16) 13 I MOVING IN
Slide 14: $1.2B Acquisition of Stavola
$1.2B ACQUISTION OF STAVOLA, A LEADING PROVIDER OF CONSTRUCTION MATERIALS OPERATING IN THE NORTHEAST BY THE NUMBERS COMPANY HIGHLIGHTS Operates third largest quarry in production in the region, allowing it to serve both external customers and internal asphalt demand Founded in 1948 with over 75 year
Slide 15: Stavola Expands Construction Products' Geographic Footprint
15 I MOVING INFRASTRUCTURE FORWARD I 2025 STAVOLA EXPANDS AND DIVERSIFIES CONSTRUCTION PRODUCTS’ GEOGRAPHIC FOOTPRINT Our Aggregates Business Now Serves 13 of the 50 Largest MSAs Natural Aggregates Recycled Aggregates Asphalt Stavola Locations Incremental Presence from Stavola Construction Products
Slide 16: Stavola Extends Footprint into Nation's Largest MSA
STAVOLA EXTENDS ARCOSA’S FOOTPRINT INTO THE NATION’S LARGEST MSA 16 I MOVING INFRASTRUCTURE FORWARD I 2025 Infrastructure 75–85% Residential 10–20% Non-residential 5–15% Aggregates Demand Asphalt Demand Infrastructure 80–90% Residential 5–10% Non-residential 5–10% Stavola’s Core Markets Are Over-Ind
Slide 17: Stavola Enhances Scale and Margin of Construction Products
Construction Products Pro Forma for Stavola2 Legacy Construction Products1 LTM REVENUE LTM ADJUSTED EBITDA LTM ADJ. EBITDA MARGIN EXPANDS CONSTRUCTION PRODUCTS WITH HIGH VALUE-ADDED AGGREGATES AND A VERTICALLY INTEGRATED AND COMPLEMENTARY ASPHALT OPERATION Acquisition of Stavola enhances scale and m
Slide 18: Completed Acquisition of Ameron Pole Products for $180 Million
APRIL 2024: COMPLETED ACQUISITION OF AMERON POLE PRODUCTS FOR $180 MILLION • Provides entry into the complementary steel and concrete lighting pole market • Expands product offerings in traffic and telecom structures businesses • Margin accretive to both Engineered Structures segment and Arcosa over
Slide 19: Other Strategic Portfolio Actions in 2024
OTHER STRATEGIC PORTFOLIO ACTIONS IN 2024 19 I MOVING INFRASTRUCTURE FORWARD I 2025 Completed the sale of our Steel Components business to Stellex Capital Management on August 16 Steel Components operates under the brands McConway & Torley, Standard Forged Products, and McKees Rocks Forgings R
Slide 20: Outlook
OUTLOOK 03
Slide 21: Reaffirm 2025 Guidance
See Adjusted EBITDA reconciliation in Appendix. MAY 7, 2025: REAFFIRM 2025 GUIDANCE 439 8 FY-24 2025 Guidance 447 545 - 595 +30% +28% Adjusted EBITDA ($M) 21 I MOVING INFRASTRUCTURE FORWARD I 2025 Margin, excl. Steel Components 17.7% 2,482 88 FY-24 2025 Guidance 2,570 2,800 – 3,000 +17% +13% Revenue
Slide 22: Market Outlook
MARKET OUTLOOK CONSTRUCTION PRODUCTS ENGINEERED STRUCTURES TRANSPORTATION PRODUCTS 22 I MOVING INFRASTRUCTURE FORWARD I 2025 • Strong pricing gains in 2024 support continued price momentum for 2025 • Stavola will contribute to revenue growth and margin expansion • Infrastructure spending supported b
Slide 23: Construction Products Market Outlook
CONSTRUCTION PRODUCTS MARKET OUTLOOK 23 I MOVING INFRASTRUCTURE FORWARD I 2025 Source: USGS – National Minerals Information Center Aggregates industry has positive fundamentals and beneficial pricing dynamics Texas is an important market for aggregatesAggregates pricing is consistently positive ■ In
Slide 24: Engineered Structures Market Outlook
ENGINEERED STRUCTURES MARKET OUTLOOK 24 I MOVING INFRASTRUCTURE FORWARD I 2025 (1) The C Three Group (August 2024); (2) U.S. Energy Information Administration, Annual Energy Outlook 2023 (AEO2023) The outlook for utility transmission and wind towers remains positive with the anticipated increase in
Slide 25: Transportation Products Market Outlook
Total U.S. and Canada Electric Transmission: Reported CAPEX ($B) TRANSPORTATION PRODUCTS MARKET OUTLOOK 25 I MOVING INFRASTRUCTURE FORWARD I 2025 (1) The Waterways Journal: Mississippi River System Barge Fleet Survey, 2024 Positive outlook as fleet replacement needs sustain market recovery for barge
Slide 26: Financial Highlights
04 Xo FINANCIAL HIGHLIGHTS
Slide 27: Strong Track Record of Growth and Margin Expansion
STRONG TRACK RECORD OF GROWTH AND MARGIN EXPANSION WHILE TRANSFORMING PORTFOLIO (1)Margin excludes the gain on land sale in 2023. See Adjusted EBITDA and Adjusted Segment EBITDA reconciliations in Appendix. 27 I MOVING INFRASTRUCTURE FORWARD I 2025 73 92 138 180 199 223 282 278 82 129 116 125 149 15
Slide 28: Q1 2025 Consolidated Results
Q1 2025 CONSOLIDATED RESULTS 28 I MOVING INFRASTRUCTURE FORWARD I 2025 Adjusted EBITDA growth outpaced revenue growth resulting in significant margin expansion, led by Engineered Structures See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix. Steel Components business was diveste
Slide 29: Disciplined Cash Culture and Track Record of Deleveraging
29 I MOVING INFRASTRUCTURE FORWARD I 2025 $M’s Ratio at year end Spun debt free with $200M of cash Sale of Storage Tanks for $275M 6 construction bolt-ons totaling ~$120M, including expansion in Florida DISCIPLINED ‘CASH CULTURE’ AND TRACK RECORD OF DELEVERAGING FOLLOWING PAST ACQUISITIONS Free Cash
Slide 30: Appendix
APPENDIX
Slide 31: Guidance Summary for 2025
GUIDANCE SUMMARY FOR 2025 ADJUSTED EBITDA COMMENTARY CAPITAL EXPENDITURES OTHER • $545M to $595M range for full year 2025 • 2024 full year Adjusted EBITDA was $439M, excluding $8M from the divested steel components business • Full year 2025 capex of $145M to $165M TAX RATE • Full year 2025 effective
Slide 32: Non-GAAP Measures
NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our bu
Slide 33: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income 33 Moving Infrastructure Forward (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions and divestitures, including the cost impac
Slide 34: Reconciliation of Adjusted Segment EBITDA
34 Moving Infrastructure ForwardI MOVING INFRASTRUCTURE FORWARD I 2025 Reconciliation of Adjusted Segment EBITDA (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions and divestitures, in
Slide 35: Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow
35 Moving Infrastructure ForwardI MOVING INFRASTRUCTURE FORWARD I 2025 Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow ($’s in millions) (unaudited) (1) These periods include pro forma adjustments for acquisitions completed during the period, as previously disclosed. (2) Adjusted EB
Slide 36: Reconciliation of Stavola, Ameron, and Steel Components Adjusted EBITDA
36 Moving Infrastructure ForwardI MOVING INFRASTRUCTURE FORWARD I 2025 Reconciliation of Stavola, Ameron, and Steel Components Adjusted EBITDA (in millions) (unaudited) Twelve Months Ended June 30, 2024 $ 71.8Net Income Add: 0.8Interest expense, net —Provision for income taxes 18.9Depreciation, depl
Slide 37: N. Akard Street, Suite Dallas, Texas 75201 (972) -6500 ir.arcosa.com
500 N. Akard Street, Suite 400 Dallas, Texas 75201 (972) 942-6500 ir.arcosa.com