Arcosa delivered a solid fourth quarter and transformed full-year 2024 by advancing a portfolio of higher-margin, infrastructure-led businesses. Q4 2024 revenue of $666.2 million rose 14.4% year over year, while EBITDA reached $106.2 million and margin expanded 408 basis points excluding steel components. The quarter benefited materially from the STAVOLA acquisition, which contributed 25% of Construction Products segment revenue and 34% of adjusted EBITDA, driving meaningful margin expansion. Net income remained negative in Q4 due to mix and year-end dynamics, but free cash flow was robust at approximately $195 million for the quarter and $330 million for the full year, enabling full revolver repayment and driving net debt to adjusted EBITDA down to 2.9x.
Management signaled a deliberate, multi-pronged growth path for 2025: (1) continued contribution from STAVOLA and Ameren, (2) accelerated organic growth in Construction Products and Engineered Structures, aided by wind-tower ramp-up and utility structures, (3) completion and ramping of several long-cycle organic projects (e.g., Florida concrete poles, New Mexico wind towers, recycled aggregates), and (4) a disciplined deleveraging program to target a 2.0â2.5x leverage within 18 months of the STAVOLA closing. 2025 guidance calls for revenue of $2.8â$3.0 billion and adjusted EBITDA of $545â$595 million, implying about 30% mid-point growth, with roughly 40% organic and 60% inorganic contribution (STAVOLA-driven). The company expects capex of $145â$165 million and a more normalized tax rate of 19â20%. This outlook reflects a constructive view on US infrastructure spending, wind energy demand, and engineering-structure recovery, tempered by seasonality and near-term regulatory and macro uncertainties.