Slide 1: Moving Infrastructure Forward | March 2024 Investor Presentation
MOVING INFRASTRUCTURE FORWARD | MARCH 2024 INVESTOR PRESENTATION Exhibit 99.2
Slide 2: Forward Looking Statements
2 I MOVING INFRASTRUCTURE FORWARD I 2024 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
Slide 3: Table of Contents
01 03 04 OVERVIEW ESG ACCOMPLISHMENTS 02 RECENT FINANCIAL HIGHLIGHTS TABLE OF CONTENTS 3 I MOVING INFRASTRUCTURE FORWARD I 2024 2024 OUTLOOK
Slide 4: 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 4 I MOVING INFRASTRUCTURE FORWARD I 2024
Slide 5: Overview
OVERVIEW 01
Slide 6: Arcosa's Value Proposition
ARCOSA’S VALUE PROPOSITION HEALTHY 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 prioritie
Slide 7: Arcosa at a Glance
ARCOSA AT A GLANCE Revenue, net income, and Adjusted EBITDA are for the year ended 12/31/2023. See Adjusted EBITDA reconciliation in Appendix Net Income Adjusted EBITDA Infrastructure-related Segments Employees Years of Operating History OUR THREE BUSINESS SEGMENTS Revenues$2.3B $159M $368M ~6,075 8
Slide 8: Business Overview
BUSINESS OVERVIEW ENGINEERED STRUCTURES TRANSPORTATION PRODUCTSCONSTRUCTION PRODUCTS Revenues and Adjusted Segment EBITDA and margin for the year ended 12/31/2023. See Adjusted Segment EBITDA reconciliation in Appendix. NATURAL & RECYCLED AGGREGATES SPECIALTY MATERIALS CONSTRUCTION SITE SUPPORT WIND
Slide 9: Arcosa's Long-Term Vision
ARCOSA’S LONG-TERM VISION Grow in attractive markets where we can achieve sustainable competitive advantages Reduce the complexity and cyclicality of the overall business Improve long-term returns on invested capital Integrate Environmental, Social, and Governance (ESG) initiatives into our long-ter
Slide 10: Strategic Transformation
STRATEGIC TRANSFORMATION Adjusted EBITDA, excluding Corporate ($M) 64 (29%) 82 (38%) 73 (33%) FY 2018 62 (15%) 116 (27%) 245 (58%) FY 2023 219 423 See Adjusted Segment EBITDA reconciliations in the Appendix. Construction Products has Increased to Approximately 60% of Adjusted EBITDA • Divestiture of
Slide 11: Investing in Our Construction Products Platform
11 I MOVING INFRASTRUCTURE FORWARD I 2024 INVESTING IN OUR CONSTRUCTION PRODUCTS PLATFORM We have deployed ~$1.5B on Construction Products acquisitions as we seek to expand our growth platforms Q4 2018 Q1 2020 Q3 2020 Q2 2021 Q3 2021 Q2 2022 Specialty Materials Natural Aggregates Recycled Aggregates
Slide 12: Announced Agreement to Acquire Ameron Pole Products for $180 Million
MARCH 11, 2024 - ANNOUNCED AGREEMENT TO ACQUIRE 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
Slide 13: Infrastructure Spending
INFRASTRUCTURE SPENDING We believe our businesses are well-positioned to benefit from ~$1.4 trillion in expected spending from recent federal stimulus packages Infrastructure Investment and Jobs Act • Reauthorization of the Fixing America’s Surface Transportation Act (FAST Act) at a higher level of
Slide 14: Storage Tanks Divestiture
• Advances our long-term vision to reduce the complexity of Arcosa’s overall portfolio • Proceeds provide capital for allocation to our growth businesses as we continue to shift towards less cyclical, higher-margin opportunities • We prioritized improving the performance of the storage tanks busines
Slide 15: 2024 Outlook
2024 OUTLOOK 02
Slide 16: Poised for Another Strong Year of Growth in 2024
Arcosa is poised for another strong year of growth in 2024 across our businesses (1) For FY-21 and FY-22, margin excludes Storage Tanks. For FY-23, margin excludes the gain on land sale. See full year 2024 Adjusted EBITDA guidance reconciliation in Appendix; Storage Tanks business was divested on Oc
Slide 17: Growth Businesses Outlook
GROWTH BUSINESSES OUTLOOK Demand outlook is attractive with additional tailwinds from increased infrastructure spending Engineered Structures • Infrastructure spending up due to increased federal funding from IIJA and healthy state DOT budgets • Healthy demand for heavy non-residential and multi-fam
Slide 18: Wind Towers Outlook
WIND TOWERS OUTLOOK Long-Term Recovery in Wind Industry Expected in 2024 and Beyond 0 5 10 15 2020 21 22 23 24 25 26 27 28 29 30 31 U.S. Onshore Wind Installations (2020-2031)1 (GW) Forecast 10-year PTC extension, passed in August 2022, is expected to boost capacity in the U.S., after the industry r
Slide 19: Inland Barge Outlook
INLAND BARGE OUTLOOK 19 I MOVING INFRASTRUCTURE FORWARD I 2024 84 90 17 18 81 16 55 49 13 105 35 48 134 122 81 21 86 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 16.3 17.0 2021 2022 +4% Hopper Barge Fleet Age1 (in Years) 0 600 1,200 2005 6 7 8 9 10 11 12 13 14
Slide 20: Recent Financial Highlights
RECENT FINANCIAL HIGHLIGHTS 03
Slide 21: FY 2023 Consolidated Results
FY 2023 CONSOLIDATED RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix; Storage Tanks business was divested on October 3, 2022 and results were historically included as part of continuing operations until the date of sale. REVENUES ($M) ADJUSTED EBITDA ($M) 2,054 189 FY
Slide 22: Q4 2023 Consolidated Results
Q4 2023 CONSOLIDATED RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix; Storage Tanks business was divested on October 3, 2022 and results were historically included as part of continuing operations until the date of sale. N.M. – Not meaningful for the period REVENUES (
Slide 23: Cash Flow and Balance Sheet
CASH FLOW AND BALANCE SHEET Disciplined ‘cash culture’ and increased balance sheet flexibility post storage tanks divesture to support expansion through organic growth initiatives and opportunistic acquisitions (1.2) 0.5 (0.6) 0.5 2.1 1.2 1.3 Pro Forma at Spin YE-18 YE-19 YE-20 YE-21 YE-22 YE-23 Net
Slide 24: ESG Accomplishments
ESG ACCOMPLISHMENTS 04
Slide 25: ESG Accomplishments
ESG ACCOMPLISHMENTS Our 2022 Sustainability Report details the initiatives in place to integrate ESG into our long-term strategy 25 I MOVING INFRASTRUCTURE FORWARD I 2024 PEOPLE Community Impact Employee Health and Safety Inclusion and Diversity Talent Development PRODUCTS Product Quality and Safety
Slide 26: Employee Health and Safety
26 I MOVING INFRASTRUCTURE FORWARD I 2024 EMPLOYEE HEALTH AND SAFETY 72% reduction in our TRIR since 2019 Total Recordable Incident Rate (TRIR) Continuous Improvement Initiatives: • Front-line supervisor training • Employee safety mentorship • Enhanced near miss reporting • Hand and eye injury reduc
Slide 27: Greenhouse Gas (GHG) Emissions
27 I MOVING INFRASTRUCTURE FORWARD I 2024 GREENHOUSE GAS (GHG) EMMISSIONS We are tracking ahead of our 2026 GHG emissions intensity reduction goal of 10% compared to 2020 levels 371 327 296 264 2020 20222019 2021 -19% GHG EMISSIONS INTENISITY2 117 113 120 101 468 452 442 491 2019 592 2020 2021 2022
Slide 28: Appendix
APPENDIX
Slide 29: Guidance Summary for 2024
GUIDANCE SUMMARY FOR 2024 ADJUSTED EBITDA COMMENTARY CAPITAL EXPENDITURES OTHER • $380M to $420M range for full year 2024 • 2023 full year Adjusted EBITDA was $368M, including $22M from the land sale gain in the first quarter • Full year 2024 capex of $175-190M, including $55-60M for growth projects
Slide 30: Non-GAAP Measures
NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our bu
Slide 31: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) 31 I MOVING INFRASTRUCTURE FORWARD I 2024 Three Months Ended December 31, Year Ended December 31, Full Year 2024 Guidance 2023 2022 2023 2022 Low High Net income $ 27.1 $ 154.6 $ 159.2 $ 245.8 $ 144.8 $ 170.2 Add
Slide 32: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in millions) (unaudited) 32 I MOVING INFRASTRUCTURE FORWARD I 2024 (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions and divestitures, i
Slide 33: Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow ($’s in millions) (unaudited) 33 I MOVING INFRASTRUCTURE FORWARD I 2024 (1) These periods include pro forma adjustments for acquisitions completed during the period, as previously disclosed. As of Pro Forma September 30, 2018(1) Decemb
Slide 34: Reconciliation of Historical Adjusted EBITDA for Storage Tanks and Ameron Pro Forma
(1) Expenses associated with acquisitions and divestitures, including the cost impact of the fair value markup of acquired inventory, advisory and professional fees, integration, separation, and other transaction costs. (2) Pass through entity and not subject to federal income taxes Reconciliation o
Slide 35: 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