Arcosa (ACA) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with 10% Adjusted EBITDA growth, 4–4.4% revenue growth, and record margins and backlog in utility structures, reflecting operational strength and disciplined execution after portfolio streamlining.

• Completed $450 million barge business divestiture, simplifying the portfolio to focus on Construction Products and Engineered Structures, and reducing cyclicality.

• Enhanced balance sheet strength and financial flexibility, supporting investments in core growth platforms, debt reduction, and share repurchases.

• Raised full-year 2026 guidance for continuing operations, reflecting improved outlook and robust segment performance.

• Strategic transformation milestones reached, including a $60 million Florida aggregates acquisition and active M&A pipeline.

Financial highlights

• Q1 2026 revenue from continuing operations rose 4–4.4% year-over-year to $571.7 million; Adjusted EBITDA increased 10% to $102.9 million with margin up 100 bps to 18.0%.

• Net income from continuing operations more than doubled to $23.3 million; reported net income was $37.8 million, up from $23.6 million year-over-year.

• Free cash flow from continuing operations was $21.2 million, a significant improvement from negative $49.1 million in Q1 2025.

• Aggregates pricing increased 2% and volume rose 4%, driving a 7% expansion in cash unit profitability.

• EPS (diluted) was $0.77, up from $0.48 year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $2.6–$2.7 billion (up 6% year-over-year); Adjusted EBITDA guidance increased to $545–$585 million (up 11% year-over-year).

• Margin expected to expand to a record 21.3%.

• CapEx guidance for 2026 is $215–$240 million, with $70–$80 million for growth projects.

• Effective tax rate for 2026 projected at 16–18%; Q1 effective tax rate was 5.3% due to a one-time state tax benefit.