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Arcosa Inc (ACA)
NYSE:ACA
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Arcosa
(NYSE:ACA)
74Outperform
Arcosa (ACA) vs. S&P 500 (SPY)
Market Cap
$4.34B
Dividend Yield0.22%
Average Volume (3M)309.64K
Price to Earnings (P/E)55.8
Beta (1Y)1.25
Revenue Growth10.44%
EPS Growth-45.30%
CountryUS
Employees6,250
SectorIndustrials
Sector Strength91
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)0.49
Shares Outstanding48,816,086
10 Day Avg. Volume323,811
30 Day Avg. Volume309,644
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.60
Price to Sales (P/S)0.00
P/FCF Ratio12.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$112.20Price Target Upside27.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Arcosa Business Overview & Revenue Model
Company DescriptionArcosa, Inc. is a diversified industrial company that provides infrastructure-related products and solutions. Headquartered in Dallas, Texas, the company operates through three primary segments: Construction Products, Engineered Structures, and Transportation Products. Arcosa's offerings include aggregates and specialty materials, utility structures like transmission and distribution poles, wind towers, and barges for inland waterways. The company is focused on serving the construction, energy, and transportation markets.
How the Company Makes MoneyArcosa generates revenue through the sale of its diverse range of infrastructure-related products and services. In the Construction Products segment, Arcosa earns money by providing natural and recycled aggregates, specialty materials, and construction site support services. The Engineered Structures segment contributes to revenue by manufacturing utility structures such as poles for transmission and distribution, telecom structures, and wind towers for the renewable energy sector. In the Transportation Products segment, Arcosa sells barges and barge-related products, serving the inland waterway transportation industry. The company's revenue streams are supported by both long-term contracts and spot sales, with significant partnerships in sectors such as energy and construction, which provide stable demand for its products and services.
Arcosa Financial Statement Overview
Summary
Arcosa exhibits a solid financial position with consistent revenue growth and strong cash flow performance. Despite increased leverage, the company maintains a stable equity base. The construction industry context suggests resilience in Arcosa's financial health, albeit with attention needed on managing rising debt levels.Income Statement
Arcosa's revenue has shown a consistent growth trend, with a noticeable increase from $1.94 billion in 2020 to $2.57 billion in 2024. The gross profit margin has remained relatively stable, but net profit margin has seen some fluctuations, with a decrease in 2024 compared to 2023. EBIT and EBITDA margins have been steady, indicating strong operational performance.75
Positive
Balance Sheet
The company's balance sheet reflects a strong equity base with an equity ratio around 50%. However, debt levels have increased significantly in 2024, leading to a higher debt-to-equity ratio. Return on equity has been variable, suggesting some inconsistency in profitability relative to shareholder equity.70
Positive
Cash Flow
Arcosa has demonstrated robust operating cash flow growth, with free cash flow also showing positive trends, particularly in 2024. The company maintains a healthy operating cash flow to net income ratio, indicating efficient cash generation relative to its earnings.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.57B | 2.31B | 2.24B | 2.04B | 1.94B | Gross Profit |
| 515.20M | 443.80M | 422.80M | 366.20M | 382.00M | EBIT |
| 197.60M | 182.70M | 158.20M | 107.30M | 151.80M | EBITDA |
| 197.60M | 383.50M | 501.30M | 251.30M | 263.30M | Net Income Common Stockholders |
| 93.70M | 159.20M | 245.80M | 69.60M | 106.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 187.30M | 104.80M | 160.40M | 72.90M | 95.80M | Total Assets |
| 4.92B | 3.58B | 3.34B | 3.19B | 2.65B | Total Debt |
| 1.69B | 568.70M | 550.60M | 679.50M | 254.50M | Net Debt |
| 1.50B | 463.90M | 390.20M | 606.60M | 158.70M | Total Liabilities |
| 2.49B | 1.25B | 1.16B | 1.23B | 754.50M | Stockholders Equity |
| 2.43B | 2.33B | 2.18B | 1.95B | 1.89B |
| Cash Flow | Free Cash Flow | |||
| 312.30M | 57.50M | 36.30M | 81.40M | 177.80M | Operating Cash Flow |
| 502.00M | 261.00M | 174.30M | 166.50M | 259.90M | Investing Cash Flow |
| -1.51B | -285.80M | 90.70M | -570.30M | -528.20M | Financing Cash Flow |
| 1.09B | -30.80M | -177.50M | 380.90M | 123.70M |
Arcosa Technical Analysis
Positive
87.86
Price Trends
80.69
Positive
88.39
Negative
91.69
Negative
Market Momentum
2.51
Negative
59.31
Neutral
68.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACA, the sentiment is Positive. The current price of 87.86 is above the 20-day moving average (MA) of 84.14, above the 50-day MA of 80.69, and below the 200-day MA of 91.69, indicating a neutral trend. The MACD of 2.51 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 68.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACA.
Arcosa Risk Analysis
Arcosa disclosed 49 risk factors in its most recent earnings report. Arcosa reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arcosa Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.85B | 12.00 | 22.80% | 1.65% | 7.31% | 91.99% | |
76 Outperform | $4.01B | 27.99 | 17.68% | 1.02% | 10.96% | 43.44% | |
74 Outperform | $4.34B | 55.83 | 3.23% | 0.22% | 10.44% | -45.30% | |
72 Outperform | $3.81B | 38.25 | 12.75% | 0.60% | 11.42% | 247.33% | |
68 Neutral | $3.89B | 30.61 | 9.60% | 1.96% | 8.34% | -63.02% | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% | |
56 Neutral | $3.52B | 38.66 | 15.74% | 1.14% | -3.52% | -46.60% |
* Industrials Sector Average
Performance Comparison
ACA
Arcosa
87.86
1.88
2.19%
GVA
Granite Construction
86.78
24.88
40.19%
HEES
H&E Equipment Services
96.11
48.47
101.74%
HRI
Herc Holdings
136.64
-15.57
-10.23%
MGRC
Mcgrath Rentcorp
115.77
5.38
4.87%
MWA
Mueller Water Products
25.58
6.70
35.49%
Arcosa Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 2.20%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Arcosa showed strong financial performance with significant EBITDA growth and successful integration of acquisitions, despite challenges from weather impacts and a temporary dilutive effect from the Stavola acquisition. Positive demand indicators and strong segment performances provide confidence moving forward.Q1-2025 Updates
Positive Updates
Strong Adjusted EBITDA Growth
Arcosa delivered consolidated adjusted EBITDA growth of 26%, outpacing 12% revenue growth in the first quarter, and expanded their margin by 190 basis points.
Successful Integration of Stavola Acquisition
The $1.2 billion Stavola acquisition completed in October 2024 is progressing well, and operations are ramping up for the spring construction season.
Engineered Structures Segment Success
The engineered structures segment saw revenues increase 23% due to higher wind tower volumes and the impact of the Ameron acquisition. Adjusted segment EBITDA increased 90% and margin expanded 650 basis points.
Barge Business Performance and Backlog
The barge business performed better than expected with new orders extending the backlog to $334 million, up 19% from the start of the year.
Positive Demand Indicators
Strong demand in utility structures and good performance in engineered structures indicate a sustained period of demand growth.
Negative Updates
Weather Impact on Construction Products
Unseasonably cold and wet weather in January and February impacted construction products, causing a 6% decline in organic revenues.
Dilutive Impact of Stavola in First Quarter
The Stavola acquisition diluted adjusted segment EBITDA by $2 million and margin by 320 basis points in its seasonally slowest quarter.
Free Cash Flow Challenges
Free cash flow for the quarter was negative $30 million, although improvement is expected in the second half of the year.
Company Guidance
During Arcosa Inc.'s first quarter 2025 earnings call, the company provided a strong outlook for the year, maintaining its revenue guidance at $2.9 billion, a 17% increase from the previous year, and adjusted EBITDA guidance at $570 million, up 30% excluding divested operations. The call highlighted a 26% growth in consolidated adjusted EBITDA, with a 190 basis point margin expansion, driven by robust performance in engineered structures and transportation products. The Stavola acquisition, though initially dilutive, is expected to contribute positively in Q2 as the construction season advances. Arcosa aims to achieve a leverage ratio between 2 to 2.5 times over the next 12 months, down from 2.9 times at quarter-end. Despite macroeconomic uncertainties, the company remains optimistic about infrastructure investments and the U.S. power market, projecting high single-digit organic growth in construction products and maintaining a positive outlook across its segments.Arcosa Corporate Events
M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
Arcosa Holds Annual Shareholders Meeting and Updates Strategy
Neutral
May 14, 2025
On May 14, 2025, Arcosa, Inc. held its Annual Meeting of Shareholders where key proposals were voted upon, including the election of directors and the approval of executive compensation. The shareholders also ratified Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025. Additionally, Arcosa has updated its investor presentation materials to reflect its ongoing strategic transformation, focusing on margin expansion, cash flow generation, and growth in attractive markets. The company has made significant investments in its construction products platform, including the acquisition of Stavola, to enhance its market positioning and reduce business complexity.
The most recent analyst rating on (ACA) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Arcosa stock, see the ACA Stock Forecast page.
Spark’s Take on ACA Stock
According to Spark, TipRanks’ AI Analyst, ACA is a Outperform.
Arcosa receives an overall score of 70, reflecting its strong financial performance and optimistic earnings call outlook. However, the overvaluation concerns and mixed technical indicators slightly temper the score. The company’s ability to manage rising debt levels and leverage its acquisitions effectively will be key to maintaining its financial health.
To see Spark’s full report on ACA stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.