Arcosa Q4 Earnings Call Highlights

27 Feb 2026, 18:48 by Amy Steele · The Cerbat Gem

Arcosa (NYSE:ACA) executives highlighted record full-year results, a major portfolio move, and continued strength in infrastructure- and power-related end markets during the company’s fourth quarter and full-year 2025 earnings call. Management also provided 2026 guidance and discussed expectations for construction materials, utility structures, and wind towers amid shifting near-term dynamics.

Record 2025 performance and segment momentum

President and CEO Antonio Carrillo said 2025 was “an outstanding year” for Arcosa, citing record revenue of $2.9 billion, up 12%, and record Adjusted EBITDA of $583 million, up 30%. Adjusted EBITDA margin reached a record 20.2%, expanding 280 basis points year over year. Carrillo added that the company recorded the lowest annual safety incident rate in its history.

In the fourth quarter, Carrillo said Adjusted EBITDA rose 13% with margin expanding 90 basis points, with contributions from all segments. He also noted that positive cash flow and earnings strength improved the balance sheet and kept the company “comfortably within” its long-term leverage target.

Barge business divestiture and reporting changes

Arcosa announced it entered into a definitive agreement to sell its Barge business for $450 million in cash, with the transaction expected to close in the second quarter of 2026, subject to regulatory approval and customary conditions. Carrillo said Arcosa believes the timing is appropriate given strong backlog providing production visibility “deep into 2026” and market fundamentals supporting a healthy replacement cycle.

According to Carrillo, the sale reduces portfolio complexity and cyclicality while raising the company’s overall margin profile and long-term resiliency. Beginning with first quarter 2026 results, the company expects to eliminate segment reporting for Transportation Products and report the Barge business as discontinued operations.

During the Q&A, management said proceeds may be used for near-term debt reduction and to support an active pipeline of bolt-on acquisition opportunities, primarily within Arcosa’s current footprint and select new metropolitan areas. Carrillo emphasized the company intends to remain disciplined on valuation and capital deployment.

Construction products: aggregates pricing, cautious volume recovery, and weather impacts

CFO Gail Peck said fourth-quarter Construction Products segment revenue declined 2%, though revenue increased 4% excluding freight pass-through. Adjusted segment EBITDA rose 3% and margin expanded 140 basis points; on a freight-adjusted basis, adjusted EBITDA margin was roughly flat. Peck noted the quarter’s performance was organic, as the Stavola acquisition reached its one-year anniversary at the start of the quarter.

In aggregates, freight-adjusted revenues rose about 8% on 5% pricing growth and 2% volume improvement. Peck said two consecutive quarters of volume growth increased management’s optimism for continued volume recovery in 2026. Adjusted cash gross profit increased 6%, and adjusted cash gross profit per ton increased 3%, with strong unit profitability in several regions partially offset by mix and absorption headwinds in the Gulf and West regions.

For specialty materials and asphalt, Peck said revenues decreased 5% primarily due to lower freight revenue for asphalt; excluding freight, revenues were roughly flat, while adjusted EBITDA and margin declined slightly. She also said Trench Shoring posted a double-digit year-over-year increase in revenue and Adjusted EBITDA with strong margin expansion driven by higher volumes and operating leverage.

Looking ahead, Carrillo said Arcosa expects another record year of revenues and Adjusted EBITDA in Construction Products in 2026, with mid- to high-single-digit Adjusted EBITDA growth within the company’s guidance range. For aggregates specifically, management expects low single-digit volume growth and mid-single-digit pricing improvement, with costs generally in line with inflation and “solid gains” in unit profitability.

Management also discussed seasonality and first-quarter weather impacts in the Northeast, saying cold temperatures and significant snowfall could reduce first-quarter contribution as a percentage of full-year segment EBITDA compared to last year.

Engineered structures: utility strength offsets wind tower step-down

Peck said fourth-quarter Engineered Structures segment revenues increased 15%, led by 20% growth in utility and related structures, while wind tower revenue rose 3%. Utility structures volumes increased double digits and pricing rose high single digits, with steel pass-through roughly flat. Adjusted segment EBITDA increased 22% and margin expanded 100 basis points to 18.5%, supported by revenue growth and operating efficiencies. Peck said the utility structures business delivered sequential margin improvement in each quarter of 2025.

Arcosa ended 2025 with utility and related structures backlog of $435 million, up 5% from the start of the year. Peck added that customer reservations not yet reflected in backlog “remain strong.” In wind towers, the company received $190 million of orders in the quarter, primarily for 2027 delivery, and ended the year with backlog of $628 million, with 42% expected to be recognized in 2026 and 53% in 2027.

For 2026, Carrillo said the company expects a “short-term step down” in wind towers before recovering in 2027, citing near-term policy uncertainty. He said the company’s wind tower backlog scheduled for 2026 was $260 million at year-end, indicating a roughly 25% decline in anticipated wind tower revenues, while backlog for 2027 was $330 million, supporting a return to growth.

Management outlined multiple capacity and cost initiatives tied to utility structures demand, including converting an idle wind tower facility in Illinois to produce large utility poles, expected to be operational in the second half of 2026. Carrillo also said Arcosa is preparing for a transition of its Tulsa, Oklahoma facility from wind towers to utility structures over time, with the ability to run both product lines in parallel as wind tower orders are completed. Executives said the shift “right-sizes” wind tower capacity and reallocates resources toward higher-margin utility structures.

During the Q&A, Peck said the company sees a path for utility strength to compensate for wind’s step-down and expects a path to flat to slight growth for the engineered structures segment, while acknowledging wind volume declines could pressure margins due to absorption. Carrillo added that the company expects “the quality” of EBITDA to improve as utility structures growth replaces wind-related tax credit contributions.

Cash flow, leverage, and 2026 guidance

Peck said Arcosa generated $120 million of operating cash flow in the fourth quarter and approximately $60 million of free cash flow, with full-year free cash flow of $202 million. Full-year 2025 capital expenditures were $166 million, above the high end of guidance, due to deposits on long-lead equipment and timing of wind tower plant conversion spending within utility structures.

Arcosa repaid $164 million of term loan debt in 2025 and ended the year with net debt to Adjusted EBITDA of 2.3x, down from 2.9x at the start of the year. Liquidity totaled $915 million, including full availability under a $700 million revolver, and the company said it has no material near-term maturities.

For 2026, Arcosa guided to revenue of $2.95 billion to $3.1 billion and Adjusted EBITDA of $590 million to $640 million, excluding any impact from the barge divestiture. The company’s 2026 outlook for barge, prior to closing, includes full-year revenue of $410 million to $430 million and Adjusted EBITDA of $70 million to $75 million, with guidance to be updated after the divestiture closes.

Arcosa expects 2026 CapEx of $220 million to $250 million, including $70 million to $80 million of growth CapEx and $150 million to $170 million of maintenance CapEx. For modeling, Peck said depreciation, depletion, and amortization is expected to be $230 million to $240 million, net interest expense $88 million to $90 million, and the effective tax rate 17.5% to 19.5%, with the tax outlook to be revisited after the barge sale closes.

About Arcosa (NYSE:ACA)

Arcosa, Inc (NYSE: ACA) is a Dallas‐based industrial company that was formed through the spin‐off of Trinity Industries’ construction products business in 2018. Since its inception, Arcosa has focused on the manufacture and sale of critical infrastructure components, serving a diverse set of end markets including transportation, construction and energy.

The company’s Construction Products segment produces a broad range of highway safety products, such as guardrail systems, sign supports and crash cushions, as well as aggregates and ready‐mix concrete.