Arcosa Announces ‘Solid’ Third-Quarter Earnings Report
In its third quarter earnings report, released October 30, Arcosa Inc. said its barge business showed strong results.
“Our barge business executed well, generating double-digit revenue and Adjusted Segment EBITDA [earnings before interest, taxes, depreciation and amortization] growth and solid margin expansion in the quarter,” President and CEO Antonio Carrillo said. The barge backlog is up 16 percent year-to-date, reflecting a 1.2 times book-to-bill ratio for the first nine months and providing production visibility for both hopper and tank barges well into 2026. Revenues for its barge business increased 22 percent, the company reported, primarily due to higher tank barge deliveries.
During the third quarter, Arcosa received barge orders totaling approximately $148 million for both hopper and tank barges, reflecting a book-to-bill ratio of 1.5. “With additional orders taken since the end of the quarter, our visibility for both hopper and tank barges extends well into the second half of 2026,” Carrillo said. The company reported barge backlog at the end of the quarter of $325.9 million, up 16 percent from the start of the year. Arcosa said it expects to recognize approximately 30 percent of its current backlog during the remainder of 2025.
Utility Customers
Order activity for Arcosa’s utility structures business “continues to be robust” as our utilities “remain focused on improving and expanding the electricity grid,” Carrillo said. Arcosa ended the third quarter with record backlog for utility and related structures of $461.5 million, up 11 percent from the start of the year. During the third quarter, Arcosa received wind tower orders of $57 million for delivery in 2026 and shifted some deliveries scheduled for 2028 into 2026, which provides additional near-term production visibility.
The backlog for its wind towers business at the end of the quarter was $526.3 million. During October, Arcosa received additional wind tower orders of approximately $60 million for delivery through 2027.
Aggregate Acquisitions
Arcosa’s main growth driver has been its expansion further into the aggregates and construction markets. Arcosa has businesses with leading positions in construction, energy and transportation markets with annual revenues in excess of $1 billion, Carrillo said. Overall, the third quarter showed record performance with a 25 percent year-over-year revenue increase to $797.8 million and a 51 percent increase in adjusted EBITDA.
In January, Arcosa acquired Cherry, a Houston-based producer of natural and recycled aggregates, for $298 million. That move added natural aggregates, recycled aggregates and specialty materials to Arcosa’s construction materials portfolio. In October, Arcosa announced that it is acquiring Strata Materials, a provider of recycled aggregates in the Dallas-Fort Worth area, for around $87 million.
Arcosa had earlier announced the completion of its acquisition of Stavola, an aggregates-led and vertically integrated construction materials company primarily serving the New York-New Jersey Metropolitan Statistical Area, on October 1, for $1.2 billion.
“Our third quarter performance underscores the success of our portfolio transformation,” Carrillo said. “We had record results led by 27 percent revenue growth, roughly 50 percent adjusted EBITDA improvement, and 340 basis points of adjusted EBITDA margin expansion. With strong third quarter cash conversion, we also achieved our stated leverage goal two quarters ahead of schedule and within one year of the transformational $1.2 billion Stavola acquisition.”
“Within Construction Products, Stavola led our significant third quarter growth and was highly accretive to segment margin,” he continued. “In our aggregates business, total volumes increased 18 percent, supported by Stavola and organic expansion, and pricing increased 9 percent, resulting in double-digit unit profitability gains.”
2025 Outlook And Guidance
The company made the following updates to its full year 2025 guidance:
• Consolidated revenues range of $2.86 billion to $2.91 billion, compared to its previous guidance range of $2.85 billion to $2.95 billion.
• Consolidated Adjusted EBITDA range of $575 million to $585 million, compared to its previous guidance range of $555 million to $585 million.
“Our outlook for the remainder of the year remains very positive,” Carrillo said. “Overall demand trends are favorable, and we believe our U.S.-focused operations are well-aligned with long-term infrastructure and secular power market drivers. We have increased the mid-point of our Adjusted EBITDA guidance range and anticipate 32 percent growth in 2025, reflecting strong accretion from Stavola as well as double-digit organic expansion.”
