Arcosa, Inc. reported significant financial results for the third quarter and the first nine months of 2024, reflecting both revenue growth and challenges in profitability. For the three months ended September 30, 2024, revenues increased by 8.2% to $640.4 million, compared to $591.7 million in the same period of 2023. For the nine months, revenues rose 10.3% to $1,903.7 million from $1,725.7 million in 2023. This growth was primarily driven by strong performance in the Engineered Structures and Construction Products segments.
Despite the revenue increase, total operating profit for the third quarter fell to $33.8 million, down 30.2% from $48.4 million in 2023. The decline was attributed to a $23.0 million loss on the sale of the steel components business, which was divested in August 2024. Excluding this loss, operating profit would have increased by $8.4 million. For the nine months, operating profit decreased to $154.4 million from $174.5 million in 2023.
Net income for the third quarter was $16.6 million, a decrease from $35.5 million in the prior year, while net income for the nine months was $101.4 million, down from $132.1 million in 2023. Earnings per share for the third quarter were $0.34, compared to $0.73 in 2023, and for the nine months, earnings per share were $2.08, down from $2.71.
The company’s cash position improved significantly, with cash and cash equivalents rising to $756.8 million as of September 30, 2024, compared to $104.8 million at the end of 2023. Total current assets also increased to $1,559.7 million, while current liabilities, including debt, rose to $1,232.8 million.
Arcosa has been active in acquisitions, completing the purchase of Ameron Pole Products for $180.0 million in April 2024 and the acquisition of Stavola Holding Corporation for $1.2 billion in October 2024. The latter was financed through a combination of senior unsecured notes and a secured term loan. The company also divested its steel components business for $110.0 million, resulting in a recognized loss.
The company’s effective tax rate decreased to 13.1% for the third quarter and 15.2% for the nine months, down from 17.4% and 17.1%, respectively, in the prior year. Selling, general, and administrative expenses increased significantly, reflecting costs associated with recent acquisitions and higher compensation-related expenses.
Overall, Arcosa's performance in 2024 highlights a mix of revenue growth and profitability challenges, influenced by strategic acquisitions and divestitures.
About Arcosa, Inc.
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