Arcosa, Inc.

Arcosa said first-quarter adjusted EBITDA from continuing operations grew 10% year over year, with margin expanding 100 basis points. Management did not state consolidated first-quarter revenue or EPS on the call, but it did say full-year 2026 midpoint revenue guidance is $2.65 billion, up 6% year over year, and full-year adjusted EBITDA guidance is $565 million, up 11% year over year. Segment results included Construction Products revenues up 5% and Engineered Structures revenues up 4%; Engineered Structures adjusted segment EBITDA rose 21%, with segment margin at a record 21.1% and utility structures revenue up north of 15%. Cash flow from continuing operations was $58 million, free cash flow from continuing operations was $21 million, capex was $44 million, and pro forma net debt-to-adjusted EBITDA was 1.9x after the barge sale. Full-year guidance now calls for capex of $215 million to $240 million and an effective tax rate of 16% to 18%, while full-year corporate cost impact to adjusted EBITDA is expected to be about $60 million at the midpoint.

Antonio Carrillo framed the quarter as a strong start to the year, emphasizing execution, a successful portfolio simplification, and a more focused company after the barge divestiture. He repeatedly pointed to utility structures as the key growth engine, saying demand is supported by grid modernization, higher electricity consumption, data centers, and utility capital commitments. His tone was confident and constructive, with a clear message that Arcosa has a long demand runway and is well positioned to create value through disciplined capital deployment and organic expansion.

Gail Peck focused on the financial bridge from earnings to cash and on the updated full-year assumptions tied to continuing operations. She said operating cash flow from continuing operations was $58 million versus a $21 million use of cash a year ago, free cash flow was $21 million versus negative $49 million, and capex rose to $44 million from $33 million due to investment in core growth platforms. She also said the company expects full-year capex of $215 million to $240 million, an effective tax rate of 16% to 18%, and pro forma leverage of 1.9x, with $1.1 billion of estimated liquidity including full revolver availability.

Analysts pressed on the sustainability of record Engineered Structures margins, and management said the outperformance was mainly driven by utility structures, while start-up costs from plant conversions and the galvanizer should peak in Q2 before easing later in the year. Management also addressed utility structures reservations, saying they tend to move in parallel with backlog and remain very strong, and clarified that its main capacity projects are the Illinois and Tulsa conversions plus the Mexico galvanizing facility, alongside smaller throughput and efficiency projects. On costs, Arcosa said it is actively offsetting higher diesel prices with surcharges and fees, and estimated that if elevated diesel prices persist, the headwind could be about 4% to 5% to cash unit profitability for 2026, before mitigation.