Arcosa (ACA) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with revenue up 18% and adjusted EBITDA up 42% year-over-year, driven by the Stavola acquisition and strong organic growth, excluding divestitures.

• Adjusted EBITDA margin reached a record 20.9%, up 360 basis points, with organic margin expansion and strong cash generation.

• Portfolio transformation, including the Stavola acquisition and divestiture of steel components, streamlined operations and expanded margins.

• Maintained strong liquidity at $890 million and made progress on deleveraging, with net debt to adjusted EBITDA at 2.8x.

• Strategic growth businesses excelled, with record backlog in utility structures and significant accretion in revenue and margin.

Financial highlights

• Q2 2025 revenues were $736.9 million, up 18% year-over-year; adjusted EBITDA increased 42% to $154.2 million; adjusted net income was $62.2 million.

• Adjusted EBITDA margin improved to 20.9% from 17.3% year-over-year.

• Construction Products segment revenues rose 28% to $354.5 million and adjusted segment EBITDA increased 44% to $100.4 million, with margin up to 28.3%.

• Aggregates business saw 15% increase in cash unit profitability, with volumes up 6% and average sales price per ton up 8% to $17.83.

• Free cash flow for Q2 2025 was $39.2 million, a turnaround from negative $6.1 million in Q2 2024.

Outlook and guidance

• 2025 full-year revenue guidance narrowed to $2.85–$2.95 billion (up 17%) and adjusted EBITDA to $555–$585 million (up 30%), with margin expected to expand by 200 basis points.

• Expecting high single-digit pricing and double-digit volume growth in aggregates for the year.

• Construction Products segment forecasted for high single-digit organic growth in the second half, supported by improved weather.

• Engineered Structures to benefit from grid expansion, electrification, and strong utility CapEx trends.

• Transportation Products backlog extends into 2026, with strong order activity and pent-up demand for barges.