Arcosa released its third-quarter report, noting a modest increase in construction products revenues and a slight decrease in aggregate and specialty materials organic revenue.
Third-quarter revenues in Arcosa’s construction products business increased 1 percent to $265.9 million, primarily due to recent acquisitions. Referencing its decreased organic revenue, Arcosa cites lower volumes, a decrease in freight revenue and a reduction in revenue from recently divested operations as factors leading to the downturn.
Higher pricing partially offset lower organic volumes, Arcosa says.
“We continue to successfully execute on our portfolio optimization strategy and are strengthening the foundation of our business by reducing the complexity and cyclicality while improving our margin profile,” says Antonio Carrillo, president and CEO of Arcosa. “During the third quarter, we completed the divestiture of our steel components business, and on Oct. 1, we closed on the $1.2 billion acquisition of the aggregates-led construction materials business of Stavola, our largest transaction to date.
“Adjusting for the steel components divestiture, our third quarter results tracked well to our expectations, delivering in-line adjusted EBITDA and outperforming on margin,” Carrillo adds. “Our outlook for the remainder of the year remains very positive. We are pleased to increase our adjusted EBITDA guidance to reflect the strategic actions we have taken to optimize our portfolio, specifically, the acquisition of Stavola completed at the beginning of October, with some offset from the divestiture of steel components in August.”
