The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Ian Zaffino - Oppenheimer & Co. Inc. - Analyst
: All right, great. Thank you very much and thanks for all the colors. Appreciate that. Question on steel components, how much did the decline in
steel prices impact revenues? And then maybe help us understand the volume decline, what drove that? Thanks.
Question: Ian Zaffino - Oppenheimer & Co. Inc. - Analyst
: Okay, and just to be clear, that decline in steel prices is pretty much 100% pass through, so there's really no profit impact. And just add another
question, I'm just on general and steel, are you seeing any type of like pre-buy activity, maybe concerned that steel prices might go up and then
maybe they could lock in now or build something now at a lower steel price? Thanks.
Question: Ian Zaffino - Oppenheimer & Co. Inc. - Analyst
: Okay, thank you very much for the color.
Question: Ethan Roberts - Stephens Inc. - Analyst
: Hey, good morning, everyone. This is Ethan on for Trey. Thanks for taking the question. I just wanted to elaborate quickly on the wind outlook.
What are you hearing from customers? Curious on how the current administration has impacted customer sentiment. And we know previously
you've pointed to 2026 as being the year where wind kind of really picks up. I'm just curious if that's still the case.
Question: Ethan Roberts - Stephens Inc. - Analyst
: Okay, awesome, yeah, that's really encouraging. And then secondly, just switching gears to construction products, just curious on your outlook.
You gave some good end market commentary and the mid-single digits on pricing was really helpful. Just curious on how you're thinking about
unit profitability in 2025 and how that might compare to 2024?
And similarly within the guidance you mentioned, a certain portion being tied of the implied EBITDA increase within the 2025 guidance, a certain
portion of that to be tied to organic growth. So just wondering which segments you're thinking about that that might be most heavily concentrated
towards? Thanks.
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FEBRUARY 28, 2025 / 1:30PM, ACA.N - Q4 2024 Arcosa Inc Earnings Call
Question: Ethan Roberts - Stephens Inc. - Analyst
: Got it. That's super helpful. Thank you so much for the color. I'll pass it on.
Question: Garik Shmois - Loop Capital Markets - Analyst
: Oh, hi, thank you. Just wanted to follow up on construction products. I was hoping you could provide some more color on what you're expecting
for volumes recognizing. You're coming off of a softer year in '24, you've had some weather delays both in the fourth quarter and in the start of
this year. Just wondering how you're thinking, more on an organic basis, how you expect construction products and specifically aggregates demand
to progress this year?
Question: Garik Shmois - Loop Capital Markets - Analyst
: Yeah, and that message has certainly been conveyed by others. I wanted to follow up just on CapEx. It looks like it's taking a step down this year.
Just wanted to confirm that to $145 million or $165 million. And then also, I think in the prepared marks you talked about some projects that you
wrapped up in '24, you expect them to contribute in '25.
Just wondering if you could go into a little bit more detail around those projects and the level of earnings contribution or accretion you expect
this year from the capital projects that were completed last year?
Question: Garik Shmois - Loop Capital Markets - Analyst
: Sounds good. I appreciate all the color. Nice quarter and best of luck.
Question: Justin Mechetti - Sidoti & Company, LLC - Analyst
: Good morning. This is Justin on for Julio. Thank you for taking questions. So on Stavola, you mentioned the seasonality impact on Stavola performance
expected. So I guess, do you expect the organic recycled aggregate facilities to help offset the seasonality and how might these facilities contribute
to overall performance in the first half of 2025?
Question: Justin Mechetti - Sidoti & Company, LLC - Analyst
: Great, thanks for the color there. And then on guidance, we saw the updated depreciation, depletion, and amortization expense guide of $230
million to $235 million. It's meaningfully higher than our expectations. So how much of this increase is directly attributable to Stavola and how
should we consider this as the normal run rate when modeling for 2026 and beyond?
Question: Justin Mechetti - Sidoti & Company, LLC - Analyst
: Great, thank you. That's all for me.
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