Arcosa has praised the “solid execution” of its strategy as the key driver behind its first quarter results of 2025.
In its construction products segment, the company recorded a five per cent increase of its revenues to $262.8 million. The revenue was driven by Stavola Holding Corporation and its affiliated entities which added $26.4 to revenues during the quarter.
Stavola was acquired by Arcosa in October 2024. Depreciation, depletion, and amortisation expense increased $8.5 million, or 28 per cent, primarily due to the acquisition of Stavola. On an organic basis, Adjusted Segment EBITDA decreased 2% primarily due to lower volumes impacted by wet and abnormally cold weather at the beginning of the quarter.
“Construction Products faced unfavourable weather conditions, but our legacy business was able to expand margins even with lower volumes. The integration of the $1.2 billion Stavola acquisition, completed in October 2024, continues to progress very well and operations are ramping for the spring construction season in the Northeast. As expected, Stavola’s contribution was dilutive to our first quarter results in its seasonally slowest quarter,” Arcosa president and chief executive officer Antonio Carrillo said.
“Our first quarter results demonstrate solid execution of our strategic vision, driven by transformative actions undertaken over the past several years. Our strong results were driven by double-digit Adjusted EBITDA growth and approximately 275 basis points of organic margin expansion.
“Engineered Structures outperformed our expectations due to robust demand and operating improvements in utility structures, higher wind tower volumes, and the accretive impact of Ameron. The barge business also performed well during the quarter and continued to add to our backlog with a 1.7 book-to-bill.”
After the release of its first quarter results, Arcosa has reaffirmed its financial guidance to investors for the remained of 2025.
“Arcosa had a strong start to 2025, and we remain well positioned for long-term growth. With operations primarily in the US, we expect to benefit from continued investments in the nation’s aging infrastructure and a new era of growth for the US power market,” Carrillo said.
“Against the current backdrop of macro and policy uncertainty, most of our end markets continue to demonstrate resilience. Our teams are focused on strategic execution and operational excellence, while delivering on the solid backlogs in many of our businesses. We are encouraged by our first quarter results and are reaffirming our 2025 consolidated revenues and Adjusted EBITDA guidance.”
