Fourth-quarter revenues increased significantly in Arcosa’s construction products business following recent acquisitions that include Stavola. The construction products business’s organic revenues, however, decreased 4 percent.
Arcosa attributes the decline primarily to lower freight revenue and the divestiture of several small, underperforming operations.
Organic product sales revenue in the Arcosa construction products business increased in the fourth quarter, though, as higher pricing offset lower overall volumes in aggregates and specialty materials.
Additionally, the construction products business’s adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased 52 percent to $80.8 million due to recent acquisitions. Arcosa says the Stavola acquisition contributed $27.1 million to EBITDA.
“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,” says Antonio Carrillo, president and CEO of Arcosa. “Notably, the acquisition of aggregates-led Stavola, which we completed at the start of the fourth quarter, provided entry into the nation’s largest MSA (metropolitan statistical area) with increased exposure to lower volatility, infrastructure-driven end markets.”
Carrillo says he is optimistic about Arcosa’s prospects in 2025 and beyond.
“As a predominantly U.S.-centric company, we are encouraged by the pro-growth agenda of the new administration,” Carrillo says. “While the potential impacts of both tariffs and renewable energy policy changes are unknown, we maintain an optimistic outlook that broadly policies will support the rebuilding, strengthening and advancement of America’s infrastructure.”
Related: CRH characterizes 2024 as ‘strong year’