Slide 1: Fourth Quarter & Full Year 2024 Earnings Conference Call
FOURTH QUARTER & FULL YEAR 2024 EARNINGS CONFERENCE CALL MOVING INFRASTRUCTURE FORWARD | FEBRUARY 28, 2025
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 2025
Slide 4: 2024 Financial Results and 2025 Outlook Highlights
2024 FINANCIAL RESULTS AND 2025 OUTLOOK HIGHLIGHTS 2024 REPRESENTS A EARNINGS GROWTH AND CASH DOUBLE-DIGIT GROWTH TRANSFORMATIONAL YEAR FLOW IMPROVE LEVERAGE EXPECTED IN 2025 • Advanced portfolio optimization • Fourth quarter Operating Cash • Mid-point of full year 2025 strategy by expanding growth
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 2024 PF(1) Construction Products Transportation. Products 10% Aggregates4 ~67% Engineered Structures Construction Transportation Products Construct
Slide 8: Q4 & FY 2024 Results
02 Q4 & FY 2024 RESULTS
Slide 9: FY 2024 Consolidated Results
FY 2024 CONSOLIDATED RESULTS Double-digit revenue and Adjusted EBITDA growth results in margin expansion of 260 basis points, balanced between organic and inorganic contributions REVENUES ($M) NET INCOME ($M) ADJUSTED EBITDA ($M) +11% REPORTED ADJUSTED +22% 2,569.9 N.M. -6% 447.0 87.8 8.0 2,307.9 15
Slide 10: Q4 2024 Consolidated Results
Q4 2024 CONSOLIDATED RESULTS Robust Adjusted EBITDA growth outpaced revenue growth resulting in significant margin expansion, helped in part by the accretive impact of the Stavola acquisition that closed on October 1, 2024 REVENUES ($M) NET INCOME ($M) ADJUSTED EBITDA ($M) +14% REPORTED ADJUSTED(1)
Slide 11: Q4 2024 Segment Results: Construction Products
Q4 2024 SEGMENT RESULTS: CONSTRUCTION PRODUCTS Segment growth driven by the accretive impact of Stavola REVENUES ($M) ADJUSTED SEGMENT EBITDA ($M) +31% +52% 311.9 80.8 24.8 238.3 24.3 53.0 287.1 214.0 Q4-23 Q4-24 Q4-23 Q4-24 Margin: Aggregates & Specialty Materials Construction Site Support Adjusted
Slide 12: Q4 2024 Segment Results: Engineered Structures
Q4 2024 SEGMENT RESULTS: ENGINEERED STRUCTURES Strong segment performance driven by higher wind tower volumes and the accretive impact of Ameron, which closed in April 2024 REVENUES ($M) ADJUSTED SEGMENT EBITDA ($M) +11% +41% 261.5 45.7 236.3 32.3 Q4-23 Q4-24 Q4-23 Q4-24 Margin 13.7% 17.5% Utility,
Slide 13: Q4 2024 Segment Results: Transportation Products
Q4 2024 SEGMENT RESULTS: TRANSPORTATION PRODUCTS Higher tank barge deliveries and improved efficiencies led to significant growth for the barge business REVENUES ($M) ADJUSTED SEGMENT EBITDA ($M) -14% +26% 108.0 17.5 92.9 35.7 13.9 28% 103% 5.3 72.3 8.6 Q4-23 Q4-24 Q4-23 Q4-24 Barges Steel Component
Slide 14: FY 2024 Segment Results
FY 2024 SEGMENT RESULTS, $’S in M’S CONSTRUCTION PRODUCTS ENGINEERED STRUCTURES TRANSPORTATION PRODUCTS REVENUES ADJUSTED SEGMENT REVENUES ADJUSTED SEGMENT REVENUES ADJUSTED SEGMENT EBITDA EBITDA EBITDA +10% +15% +20% +37% +4% -4% 1,105.1 281.6 1,047.3 158.9 433.5 64.4 417.6 61.8 1,001.3 127.2 245.3
Slide 15: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Reduced pro forma Net Debt to Adjusted EBITDA by 0.5x in the fourth quarter, highlighting commitment to de-levering the balance sheet NET DEBT / ADJUSTED EBITDA (ratio at end of period) FREE CASH FLOW ($M) 3.4 2.9 +1,892% +251% 2.5 199.2 330.6 Target of 2.0 - 2.5x 1.3 94.
Slide 16: 2025 Outlook
03 2025 OUTLOOK
Slide 17: 2025 Guidance
2025 GUIDANCE We expect double-digit revenue and Adjusted EBITDA growth in 2025, split ~ 60/40 between inorganic and organic contributions Revenues ($M) Adjusted EBITDA ($M) +13% +28% 2,800 – 3,000 545 - 595 2,570 +17% +30% 88 447 8 2,482 439 FY-24 2025 Guidance FY-24 2025 Guidance Margin, excl. 17.
Slide 18: 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 expected increase in federal funding traffic structures, driven by grid- replacement support positiv
Slide 19: Appendix
APPENDIX
Slide 20: Guidance Summary for 2025
GUIDANCE SUMMARY FOR 2025 COMMENTARY • $2.8B to $3.0B range for full year 2025 REVENUE • 2024 full year revenue was $2.48B, excluding $88M from the divested steel components business ADJUSTED • $545M to $595M range for full year 2025 EBITDA • 2024 full year Adjusted EBITDA was $439M, excluding $8M f
Slide 21: Non-GAAP Measures
NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our bu
Slide 22: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) Three Months Ended Year Ended Full Year December 31, December 31, 2025 Guidance 2024 2023 2024 2023 Low High Net income (loss) $ (7.7) $ 27.1 $ 93.7 $ 159.2 $ 170.9 $ 202.4 Add: Interest expense, net 34.1 6.8 63.
Slide 23: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in millions) (unaudited) Three Months Ended Year Ended December 31, December 31, 2024 2023 2018 2023 2024 Construction Products Operating Profit $ 25.3 $ 24.4 $ 50.4 $ 138.6 $ 133.9 Add: Depreciation, depletion, and amortization expense(1) 45.0 28.6 21.
Slide 24: Reconciliation of Freight-Adjusted Revenues for Construction Products
Reconciliation of Freight-Adjusted Revenues for Construction Products ($’s in millions) (unaudited) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Construction Products Revenues $ 311.9 $ 238.3 $ 1,105.1 $ 1,001.3 Less: Freight revenues 26.3 29.1 100.0 119.3 Freight-Adju
Slide 25: 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, 2024 December 31, 2023 Pro Forma 2024 Total debt excluding debt issuance costs $ 573.1 $ 1,848.7 $ 1,707.1 Cash and cash equivalents 104.8 129.1 187.3 Net Debt $ 468.3 $ 1,
Slide 26: Reconciliation of Steel Components Adjusted EBITDA
Reconciliation of Steel Components Adjusted EBITDA (in millions) (unaudited) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Steel components business: Operating Profit $ 1.4 $ 2.9 $ (19.5) $ 11.0 Add: Depreciation and amortization expense — 2.4 5.9 9.7 Steel components E