Arcosa misses Q4 estimates, shares dip slightly

Published 27/02/2025, 22:46
Arcosa misses Q4 estimates, shares dip slightly

DALLAS - Arcosa , Inc. (NYSE:ACA) reported fourth quarter earnings that fell short of analyst expectations, sending shares down 1.9% in after-hours trading.

The infrastructure products provider posted adjusted earnings per share of $0.46, missing the consensus estimate of $0.81. Revenue came in at $666.2 million, below analyst projections of $692.68 million but up 14% YoY.

Arcosa’s fourth quarter results were impacted by higher depreciation and amortization expenses related to recent acquisitions, as well as an elevated tax rate. These factors reduced adjusted EPS by $0.40 in the quarter.

Despite the earnings miss, Arcosa reported strong cash flow generation, with operating cash flow of $248.2 million and free cash flow of $199.2 million in Q4. This allowed the company to pay down debt and reduce its leverage ratio to 2.9x net debt to adjusted EBITDA by year-end.

"2024 was a transformative year for Arcosa as we undertook strategic actions to enhance our growth businesses, reduce cyclicality, and drive margin expansion across the organization," said Antonio Carrillo, President and CEO.

For the full year 2025, Arcosa forecasts revenue between $2.8 billion and $3.0 billion, compared to $2.5 billion in 2024 excluding divested businesses. The midpoint of guidance implies about 16% year-over-year growth.

The company expects continued benefits from infrastructure-driven demand and recent acquisitions like Stavola in 2025, targeting 30% adjusted EBITDA growth at the midpoint of its outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.