Arcosa offered a glimpse at the first-quarter performance of its construction products business, noting that revenues were up along with aggregate volumes.
Revenue in Arcosa’s construction products business increased 6.4 percent to $251.2 million. Arcosa says recent acquisitions drove revenues upward by 4.5 percent while organic revenues increased due to higher pricing of aggregates and specialty material, as well as higher volumes in trench shoring that were partially offset by lower freight revenues.
Volumes of natural and recycled aggregates were both up slightly at Arcosa. The company says added volumes from recent acquisitions offset lower organic volumes.
“In construction products, we continued to benefit from strong pricing momentum, offsetting a modest decline in overall aggregates volume,” says Antonio Carrillo, president and CEO of Arcosa. “The acquisitions that we completed in 2023 to strategically expand in Florida, Arizona and Texas also contributed to the segment growth and were margin accretive. We were pleased to report another quarter with higher year-over-year performance in specialty materials.
“With favorable market tailwinds, a stabilized workforce and improved plant reliability, this business is well-positioned to deliver better results in 2024,” Carrillo adds.
Companywide details
Companywide, first-quarter revenue was up 9 percent at Arcosa while net income was down 30 percent.
“Our first-quarter results were better than expected as we recovered from broad-based weather impacts in January, highlighting the earnings power of our portfolio of businesses,” Carrillo says. “On an organic basis, we achieved double-digit adjusted EBITDA growth and higher overall margin in the balance of the quarter.”
