Arcosa Q2 revenue misses on lower wind tower volumes, heavy Texas rainfall
Arcosa Q2 revenue misses on lower wind tower volumes, heavy Texas rainfall
Overview
US infrastructure products firm's Q2 revenue rose 2% but missed analyst expectations
Adjusted diluted EPS for Q2 rose 5% to $1.13
Strong utility structures offset lower wind tower volumes and weather-hit construction materials
Outlook
Arcosa suspends financial guidance due to pending merger with CRH
Company expects to recognize 71% of utility structures backlog and 28% of wind towers backlog in 2026
Result Drivers
UTILITY STRUCTURES GROWTH - Double-digit Adjusted EBITDA growth in utility structures offset declines elsewhere, driven by higher volumes and pricing
WEATHER IMPACT - Heavy rainfall in Texas reduced volumes in organic aggregates and asphalt businesses
COST MANAGEMENT - Aggregates unit profitability improved 5% due to disciplined cost management despite higher energy costs
Company press release: ID:nBw7G8l4Ca
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $658.70 mln | $687.50 mln (4 Analysts) |
Q2 Net Income |
| $328.50 mln |
|
Q2 Adjusted EBITDA Margin |
| 22.10% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Arcosa, Inc. is $150.00, about 3.3% above its August 4 closing price of $145.22
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 27 three months ago
Reuters Recommended Reads
Aug 4 - Centuri Q2 revenue beats estimates on contract wins
Aug 4 - Knife River Q2 revenue slightly beats estimates, lifts outlook
Aug 3 - Custom Truck One Source Q2 revenue up on utility transmission, distribution markets strength; raises FY outlook
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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Arcosa Q2 revenue misses on lower wind tower volumes, heavy Texas rainfall
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