- Arcosa delivered a record second quarter (Q2 2025) with consolidated revenue of $736.9 million and adjusted EBITDA of $154.4 million, representing an adjusted EBITDA margin of 20.9%. Management attributes the margin expansion to the Stavola acquisition and ongoing pricing discipline, even as weather-related headwinds constrained legacy Construction Products volumes. The result shows a resilient, diversified platform across Construction Products, Aggregates, Engineered Structures, and Transportation Products.
- Stavola integration acted as a primary growth engine, lifting consolidated revenues by about 14% and expanding EBITDA margin by ~250 basis points, while Aggregates delivered price gains and margin expansion (shipping-adjusted gross profit per ton up 15%). Engineered Structures posted a record EBITDA margin (18.7%), driven by Wind Towers and Utility/Related Structures. The wind tower ramp in New Mexico is margin-accretive, and capacity exists to support higher volumes should policy clarity sustain demand.
- Arcosa tightened its full-year 2025 guidance range on revenues and Adjusted EBITDA, signaling stronger confidence in second-half execution and deleveraging progress toward a target net leverage of 2.0–2.5x within the next three quarters. The company highlighted solid backlog visibility, with Utility/Related Structures backlog at $450 million and Wind Towers backlog near $600 million, alongside meaningful barge backlog extending into 2026. While weather impacted organic volumes, management noted that dry weather periods in June–July supported higher activity and implied a favorable trajectory for the back half.
- The investment thesis remains constructive: continued deleveraging, a diversified growth portfolio aligned to grid modernization and power infrastructure, and an M&A pipeline that could further bolster scale in strategic end-markets. Investors should monitor weather normalization, order flow in the transmission-structure conversion, and the pace of backlog conversions into 2026 and beyond.