Arcosa Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Julio Romero - Sidoti & Company, LLC - Analyst : Great, thanks. Good morning, Antonio and Gail. Thanks for taking questions. So very nice performance in the engineered structures segment. I wanted to dig into the moving pieces there in the quarter, understanding there is some noise on the margin percentage in the segment due to the steel prices on the utility side. Can you elaborate on what the wind tower contribution was to sales and profit dollars in the quarter?

Question: Julio Romero - Sidoti & Company, LLC - Analyst : Okay, great. Thanks for all the color there, and I guess that's helpful. I guess just maybe, I'm just trying to get a sense of the wind profit jump, because the year-over-year profit jump in the quarter was really significant. I mean on a dollar basis, so I guess maybe asking another way, would you say that the volume improvement in utility structures was a bigger, maybe a surprise to you in the quarter, than the wind. Then the wind jumped on a profit dollar.

Question: Julio Romero - Sidoti & Company, LLC - Analyst : Really helpful there. Last one for me would be just, maybe staying on that a little bit longer, just a quick refresher on what the economics of the wind power business are at just given the years of continuous improvement, I think maybe even decades that you guys have done in wind tower manufacturing, if you could just kind of contrast, the economics of that business now, even if, any incentives would go away, maybe compared to last cycle.

Question: Julio Romero - Sidoti & Company, LLC - Analyst : Great, thanks for the call. I'll pass it on.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Hey, thanks. Good morning. One more on engineered structures if I could, maybe to approach it a different way. Is there any reason, you shouldn't continue to be producing it sort of 18%-plus margins absent the fact that I know you're selling these tax credits and then Gail, is there any way to kind of handicap with that tax credit sale will due to margins less than 100 basis points just wanted to kind of level set there.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Okay, and then. I guess a question just on, the construction products business, maybe if you could just speak to, I guess the things that dying out in the Northeast, how Stavola is ramping up and maybe just a level set on the cadence of the contributions you're expecting through the course of the the rest of the year, that would be helpful.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Okay, that's great, Antonio, let me just the last one. I mean, nice order activity in the barge business this quarter. You understand your your comments. A lot's happened I guess towards the end of the quarter and after the quarter, your sense on how customers are responding to all that kind of noise in the market post liberation day and it does seem like steel prices have at least flattened out so. Yeah, what's your, what's sort of your expectation for orders in the short term and we kind of work through the rest of the year just based on, customer dialogue you're having.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Good thank you.

Question: Garik Shmois - Loop Capital Mortgage - Analyst : Thanks. Good morning. Congrats on the results. Two questions on construction products. I guess first on aggregate pricing. I think I heard you correct pricing was up 7% organic in the quarter, but it was up more, overall. The stable I think it was a 10%. So just wondering how to think about that moving forward is, maybe that 300 basis points difference, between organic and kind of all in with stable, a good way to think about your aggregates pricing through the rest of the year.

Question: Garik Shmois - Loop Capital Mortgage - Analyst : No, that that makes sense. Thank you. And then I guess the follow up question is just on the on the segment margins, a number of moving parts, you just spoke to pricing. It looks like oil-based costs are starting to come down, which could be positive for aggregates operations and you know maybe potentially for asphalt inputs at least in the near term. I was wondering if you're thinking on the segment margins has changed, since we last heard from you and you know maybe a little bit more. A hand holding on what we should expect for margin progression the rest of the year. Okay.

Question: Garik Shmois - Loop Capital Mortgage - Analyst : Okay, great, thank you very much.

Question: Ian Zaffino - Oppenheimer & Co, - Analyst : Hi, great, thank you very much. Just building on the the pricing on the aggregate side, or material side, how are you thinking about pushing price versus, any type of volume declines that you might see, or that you have seen. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 12:30PM, ACA.N - Q1 2025 Arcosa Inc Earnings Call

Question: Ian Zaffino - Oppenheimer & Co, - Analyst : Okay thanks and then I I guess we're almost in kind of mid May here what do you need to see potentially to put through another letter on the on the material side, a mid-year increase, you know what would you need to see and then also can you maybe just comment on kind of what geographies you're seeing the most strength in, and where you're maybe seeing some softness thanks.

Question: Ian Zaffino - Oppenheimer & Co, - Analyst : Okay, thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 12:30PM, ACA.N - Q1 2025 Arcosa Inc Earnings Call

Question: Trey Grooms - Stephens Inc - Analyst : Hey, good morning, everyone. Real quick, just Following up, I guess, on maybe some of the comments, kind of as we were heading through April, Antonio, you mentioned. Some of the, or touched on some of the trends in Stavola, which sound like they're picking up seasonally and you're seeing, you're happy with what you're seeing there. Any color on April, demand trends and the rest of the legacy construction products business that you could share with us?

Question: Trey Grooms - Stephens Inc - Analyst : Okay, great. Thanks for that. You mentioned, residential is slow, that's been the case for you guys for a while, for most. I believe the guide had assumed kind of a back half single family or maybe back end of '25 single family pickup, is that still kind of the way you're thinking about it, or, is that what's still kind of in the guide, that's what you need to see, or how are you thinking about that as we kind of look further out into the year?

Question: Trey Grooms - Stephens Inc - Analyst : Okay. And Gail, you brought up, stabilized sand. I just, I know you guys, you buy a lot of cement in the, in those markets. I think specifically kind of Dallas, Fort Worth, Houston, maybe some others. Can you talk about what you're seeing on the input side there? It sounds like, some of the increases from April got moved around, but, it does seem kind of very, to vary market by market. So just any comment you can give us on that.

Question: Trey Grooms - Stephens Inc - Analyst : Okay. Thanks a lot for answering my questions. Have a great day.