Arcosa Exceeds Q1 2024 Expectations with Double-Digit Growth

Arcosa Inc. announces strong Q1 2024 results, surpassing expectations with 9% revenue growth and 7% Adjusted EBITDA increase. The company raises full-year 2024 guidance following its acquisition of Ameron Pole Products LLC.

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Arcosa Exceeds Q1 2024 Expectations with Double-Digit Growth

Arcosa Exceeds Q1 2024 Expectations with Double-Digit Growth

Arcosa Inc. (NYSE: ACA) has announced its first, quarter 2024 results, surpassing expectations with double-digit Adjusted EBITDA growth. The company's strong performance was fueled by a 9% increase in revenue to $598 million, with all three segments contributing to this growth. Arcosa also achieved a 7% rise in Adjusted EBITDA after normalizing for the $22 million land sale gain in 2023.

Why this matters: The strong performance of Arcosa, a leading provider of infrastructure-related products and services, has significant implications for the overall health of the construction and transportation industries. The strong performance of Arcosa, a leading provider of infrastructure-related products and services, has significant implications for the overall health of the construction and transportation industries. The company's continued growth and expansion of its offerings will likely have a positive impact on the broader economy and create new opportunities for job creation and economic development.

Key highlights of Arcosa's Q1 2024 results include a 32% increase in Transportation Products, driven by higher barge revenues and a 270 basis point improvement in margins. The earnings, snapshot also demonstrated strong pricing momentum, offsetting a modest decline in overall aggregates volume.

CEO Antonio Carrillo expressed satisfaction with the company's performance, stating,"Our first quarter results were better than expected... On an organic basis, we achieved double-digit Adjusted EBITDA growth and higher overall margin in the balance of the quarter. "Carrillo also emphasized Arcosa's commitment to sustainability, noting,"We continue to make measurable progress advancing our sustainability initiatives at Arcosa... With business-focused sustainability efforts, we believe we can translate daily actions into long-term success for our Company and its constituents.

In light of the better-than-expected Q1 results and the April 9, 2024 acquisition of Ameron Pole Products LLC, Arcosa has raised its full-year 2024 guidance. The company now anticipates consolidated revenues of $2.58 billion to $2.78 billion, up from the previous range of $2.46 billion to $2.72 billion. Consolidated Adjusted EBITDA is now projected to be between $410 million and $440 million, an increase from the prior guidance range of $380 million to $420 million.

Carrillo expressed optimism about the Ameron acquisition, stating, "The recent Ameron acquisition is an excellent strategic fit for Arcosa... We have updated our 2024 guidance to incorporate Ameron and our strong start to the year. Normalizing for 2023's land sale gain, we anticipate Adjusted EBITDA growth of 23% and margin improvement of 90 basis points at the midpoint of our guidance range."

Arcosa's strong Q1 2024 performance and raised full-year guidance reflect the company's ability to overcome obstacles and capitalize on opportunities in its key markets. With a focus on strategic acquisitions and sustainability initiatives, Arcosa is well-positioned for continued growth and success in the coming years.

Key Takeaways

  • Arcosa's Q1 2024 revenue increases 9% to $598 million.
  • Adjusted EBITDA grows 7% after normalizing for 2023's land sale gain.
  • Transportation Products segment sees 32% growth, driven by barge revenues.
  • Arcosa raises full-year 2024 guidance, anticipating $2.58-2.78 billion in revenue.
  • Company expects 23% Adjusted EBITDA growth and 90 basis point margin improvement.