Arcosa (ACA) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 revenues of $2.9 billion (up 12%–16% year-over-year), record Adjusted EBITDA of $583 million (up 30%–33%), and margin improvement to 20.2% (up 250–280 bps), driven by organic growth, Stavola acquisition, and strong performance in construction materials and engineered structures.

• Double-digit organic Adjusted EBITDA growth led by utility structures and aggregates; lowest annual safety incident rate in company history.

• Announced sale of Barge business for $450 million in cash, expected to close in Q2 2026, to focus on core growth businesses and reduce portfolio complexity.

• Portfolio transformation continues, with focus on construction materials and engineered structures.

Financial highlights

• FY 2025 revenues increased to $2.88–$2.9 billion; Adjusted EBITDA rose to $583 million; net income up 122% to $208 million; Adjusted EBITDA margin expanded to 20.2%.

• Q4 2025 Adjusted EBITDA up 13% to $145 million; all segments contributed to double-digit revenue and Adjusted EBITDA growth.

• Free cash flow for FY 2025 was $202 million; net debt to Adjusted EBITDA improved to 1.3x–2.3x at year-end.

• Achieved leverage goal two quarters ahead of schedule.

Outlook and guidance

• 2026 revenue guidance: $2.95–$3.1 billion; Adjusted EBITDA: $590–$640 million, excluding barge divestiture.

• Double-digit Adjusted EBITDA growth and margin uplift expected from core businesses, offsetting a temporary wind tower slowdown in 2026 with recovery in 2027.

• CapEx for 2026 expected at $220–$250 million, with $70–$80 million for growth; net interest expense at $88–$90 million; effective tax rate at 17.5%–19.5%.