Arcosa Reports 11.4% Revenue Growth to $2.57 Billion for Fiscal Year 2024

Arcosa, Inc. reported a revenue increase of 11.4% for the fiscal year ending December 31, 2024, totaling $2.57 billion, compared to $2.31 billion in 2023. The growth was primarily driven by higher revenues in the Engineered Structures and Construction Products segments, which saw increases of 19.9% and 10.4%, respectively. However, the Transportation Products segment experienced a decline in revenue, down 3.7% to $417.6 million, largely due to the divestiture of the steel components business, which generated $87.8 million in revenue in 2024, down from $153.3 million in 2023. Net income for the year was $93.7 million, a decrease from $159.2 million in the previous year, reflecting increased acquisition-related expenses and a prior year gain from the sale of land.

In terms of strategic developments, Arcosa completed several significant acquisitions in 2024, including the $1.2 billion purchase of Stavola Holding Corporation, which expanded its presence in the New York-New Jersey Metropolitan Statistical Area. Additionally, the company acquired Ameron Pole Products for $180 million, enhancing its Engineered Structures segment. The divestiture of the steel components business was also finalized in August 2024, allowing the company to focus on its core operations. These acquisitions and divestitures are part of Arcosa's strategy to capitalize on market trends in infrastructure and renewable energy.

Operationally, Arcosa reported a backlog of $1.47 billion as of December 31, 2024, with $1.19 billion in the Engineered Structures segment and $280.1 million in Transportation Products. Approximately 64% of the backlog in Engineered Structures is expected to be delivered in 2025, indicating strong future revenue visibility. The company employed approximately 6,250 individuals as of year-end, with a notable increase in headcount attributed to recent acquisitions. The Construction Products segment shipped approximately 38 million tons of aggregates and specialty materials in 2024, including 5 million tons of recycled aggregates, reflecting the company's commitment to sustainability.

Looking ahead, Arcosa's management expressed optimism regarding market conditions, particularly in the construction and infrastructure sectors, supported by government spending initiatives. The company anticipates continued demand for its products, particularly in utility structures and wind towers, bolstered by the Inflation Reduction Act's incentives for renewable energy projects. However, challenges such as rising interest rates and housing market fluctuations may impact residential construction demand. Overall, Arcosa remains focused on leveraging its acquisitions and operational efficiencies to drive growth in the coming years.