Arcosa Increases FY24 Consolidated Revenues From $2.46B-$2.72B To $2.58B-$2.78B Vs $2.56B Est.
2024 Outlook and Guidance
The Company raised its 2024 full year guidance to incorporate the acquisition of Ameron Pole Products LLC ("Ameron"), a leading manufacturer of highly engineered, premium concrete and steel poles for a broad range of infrastructure applications, which closed on April 9, 2024. The increased guidance also reflects better than expected first quarter results.
- Increased full year 2024 consolidated revenues to a range of $2.58 billion to $2.78 billion, from the prior guidance range of $2.46 billion to $2.72 billion. This compares to 2023 consolidated revenues of $2.31 billion.
- Increased full year 2024 consolidated Adjusted EBITDA guidance to a range of $410 million to $440 million, from the prior guidance range of $380 million to $420 million. This compares to 2023 consolidated Adjusted EBITDA of $367.6 million, including $21.8 million from a land sale gain in the first quarter of 2023.
Commenting on the outlook, Carrillo noted, "The recent Ameron acquisition is an excellent strategic fit for Arcosa, expanding our product offerings in traffic and telecom structures and establishing our foothold in the attractive concrete and steel lighting pole market. We have updated our 2024 guidance to incorporate Ameron and our strong start to the year. Normalizing for 2023's land sale gain, we anticipate Adjusted EBITDA growth of 23% and margin improvement of 90 basis points at the mid-point of our guidance range.
"We generated strong operating cash flow of $81 million in the first quarter, up 195% from last year, which helped fund significant investment in organic growth projects. Our balance sheet and liquidity remain solid and Net Debt to Adjusted EBITDA, pro forma for the Ameron acquisition, remains below our long-term target.
"Importantly, Ameron accelerates Arcosa's long-term growth profile, while underscoring our disciplined acquisition strategy. Over the last 12 months, we have deployed nearly $300 million in margin accretive acquisitions at attractive valuation multiples, expanding our growth platforms in Construction Products and Engineered Structures."