Recent acquisitions boosted second-quarter revenues in Arcosa’s construction products business, but the company says quarterly revenues tied to organic aggregates and specialty materials were somewhat flat.
Second-quarter revenues in Arcosa’s construction products business increased 4 percent to $276.1 million. Still, organic volumes for the company’s aggregates business, which includes natural and recycled products, were impacted by unseasonably wet weather conditions during the quarter.
Higher pricing helped to offset lower organic volumes, the company says.
“In construction products, adjusted segment EBITDA increased 22 percent and margin expanded 360 basis points, led by significant organic growth and the contribution from recent bolt-on acquisitions in Florida, Texas and Arizona,” says Antonio Carrillo, president and CEO of Arcosa. “We continued to benefit from strong pricing momentum, which compensated for volume headwinds in aggregates from elevated rainfall, particularly in Texas.”
“Operating improvements in our specialty materials and trench shoring businesses also contributed to organic growth during the quarter,” Carrillo adds. “Additionally, we took steps to optimize our operations and improve margin by disposing of certain underperforming locations.”
Arcosa also recently revealed that it is acquiring Stavola, an aggregates-led and vertically integrated construction materials company that primarily serves areas of New Jersey and New York.
