Arcosa (ACA) Investor presentation summary

Strategic transformation and portfolio focus

• Divested barge business for $450M, reducing complexity and cyclicality while focusing on Construction Products and Engineered Structures segments.

• Proceeds from divestiture support core growth investments and debt reduction.

• Strategic simplification aims to improve long-term returns and integrate sustainability initiatives.

• Series of acquisitions in Construction Products expanded geographic reach and product offerings.

• Engineered Structures segment benefits from strong backlog and utility structure demand.

Financial performance and outlook

• 2025 revenues from continuing operations were $2.5B, with adjusted EBITDA of $510M and net income of $166M.

• 2026 guidance raised: revenues expected at $2.6B–$2.7B (+6% YoY), adjusted EBITDA at $545M–$585M (+11% YoY).

• Q1 2026 saw 10% adjusted EBITDA growth and record utility structures backlog.

• Aggregates pricing up 2% and volume up 4% in Q1 2026, driving 7% cash unit profitability expansion.

• Targeting net debt/adjusted EBITDA ratio of 2.0–2.5x, with strong free cash flow supporting rapid deleveraging.

Market and operational highlights

• Construction Products segment expects mid-single digit pricing growth and low-single digit volume improvement in 2026.

• Infrastructure spending supported by federal IIJA funds and healthy state DOT budgets.

• Engineered Structures backlog up 28% YTD, driven by grid hardening and renewable energy connections.

• Conversion of Illinois wind tower facility to utility structures ahead of schedule, with deliveries expected by end of Q2 2026.

• Wind volumes expected to dip in 2026, returning to 2025 levels in 2027.