Arcosa reported financial gains in its construction products business in the third quarter, detailing that revenues tied to aggregates and specialty materials were up 5 percent.
Combined with construction site support revenues, revenues in Arcosa’s construction products business were up 7 percent to $262.1 million. Elevated pricing of aggregates and specialty materials, plus volume growth in the natural aggregates business, drove the gains for Arcosa.
“In construction products, pricing remained strong across our portfolio,” says Antonio Carrillo, president and CEO of Arcosa. “Natural aggregates benefited from a recovery in overall volumes, particularly in our Texas and Gulf Coast regions. In specialty materials, margins increased significantly from the second quarter, reflecting solid execution on our operational improvement plan.”
Arcosa’s construction products business also achieved an adjusted segment EBITDA of $58.7 million – a mark that’s up 9 percent and reflects pricing gains and reduced inflationary cost pressures.
Additionally, Arcosa says it expanded its construction products business in the third quarter with acquisitions.
“We also advanced our strategic objectives, investing $41 million to complete three bolt-on acquisitions in September and October,” Carrillo says. “While relatively small in size, these acquisitions expand our footprint within both existing and new geographies at attractive valuations.”
According to Carrillo, Arcosa is confident as it looks to the rest of 2023 and the year to come.
“As we look ahead to next year, Arcosa is well-positioned for continued growth,” he says. “Backlogs in our cyclical businesses provide visibility for stronger performance, and the fundamentals in our growth businesses are favorable.”
