Arcosa Inc Stock Price, News & Analysis

Arcosa, Inc. (NYSE: ACA) plans a private offering of $400 million senior notes due in 2029 to fund the acquisition of StonePoint Ultimate Holding, LLC. The net proceeds will also be used to repay borrowings from a $150 million credit facility and for general corporate purposes. The offering is targeted at qualified institutional buyers and is not contingent on the acquisition's completion. The Notes will be senior unsecured obligations, guaranteed by Arcosa’s domestic subsidiaries.

Arcosa, Inc. (NYSE: ACA) has signed a definitive agreement to acquire StonePoint Ultimate Holding, LLC for $375 million in cash. StonePoint is among the top 25 aggregates companies in the U.S., producing approximately 9 million tons annually across 20 locations. The acquisition is projected to be accretive to Arcosa's earnings and margins in 2021, with StonePoint expected to generate $117 million in revenue and $28 million in Adjusted EBITDA. The deal is expected to close in April 2021, funded through cash reserves and available credit.

Arcosa, Inc. (NYSE: ACA) has declared a quarterly cash dividend of $0.05 per share on its common stock. This dividend will be payable on April 30, 2021 to stockholders of record as of April 15, 2021. Arcosa specializes in infrastructure-related products and operates through three main segments: Construction Products, Engineered Structures, and Transportation Products. The announcement reflects the company's commitment to returning value to its shareholders.

Arcosa, Inc. (NYSE: ACA) reported fourth-quarter revenue of $458.9 million, up 3% year-over-year, while net income was $10.5 million, impacted by a $4.5 million non-cash impairment. For the full year, revenue increased 11% to $1.94 billion, with an adjusted EBITDA growth of 18% to $283.7 million. The Construction Products segment saw a notable 35% revenue increase. Despite optimistic growth expectations for 2021, challenges persist in the Transportation Products segment, particularly for barge business due to COVID-19 impacts. Outlook for 2021 predicts revenues between $1.78 billion and $1.90 billion.

Arcosa, Inc. (NYSE: ACA) will release its fourth-quarter and full-year results for 2020 on February 24, 2021, after market close. An earnings call will take place on February 25, 2021, at 8:30 a.m. ET, accessible via webcast and phone. The company focuses on infrastructure-related products across key segments: Construction Products, Energy Equipment, and Transportation Products. More details and slide presentations will be available ahead of the call. A recording of the call will be accessible through March 11, 2021.

Crédit Agricole CIB has been appointed as the Green Structuring Advisor for Trinity Industries Leasing Company’s Green Financing Framework. This framework allows TILC to issue green financing instruments, including non-recourse ABS bonds and loans, supported by eco-friendly assets. Over $4 billion of TILC's railcar-related debt qualifies for this designation. The initiative aligns with the Green Bond Principles and has received a Second-Party Opinion from Sustainalytics. TILC is recognized as the first railcar lessor in North America to establish such a framework.

Arcosa, Inc. (NYSE: ACA) has declared a quarterly cash dividend of $0.05 per share, payable on January 29, 2021, to stockholders on record as of January 15, 2021. The Company also renewed its $50 million share repurchase program, effective January 1, 2021, providing flexibility to repurchase shares based on market conditions. Additionally, Arcosa has filed a universal shelf registration statement allowing potential future offerings of securities over the next three years, although there are no immediate plans for such offerings.

Arcosa, Inc. (NYSE: ACA) reported a 10% revenue increase to $490 million for Q3 2020. Net income stood at $31.2 million, with diluted EPS of $0.64. Adjusted EBITDA rose 12% to $73 million.

Free cash flow was impressive at $93.1 million, achieving a conversion rate of 300% of net income. The company maintains strong liquidity with total cash of $189 million and a net debt to Adjusted EBITDA ratio of 0.2X.

Despite challenges from COVID-19 and weather events, key sectors showed resilience and order activity remained positive.

Arcosa has announced the acquisition of Strata Materials for approximately $87 million. Strata, a prominent recycled aggregates provider in the Dallas-Fort Worth area, reported an Adjusted EBITDA of $10.2 million in the last 12 months, with a valuation multiple of ~8.5x. This acquisition is expected to enhance Arcosa's offerings by combining recycled and natural aggregates, driving growth and improving margins, given Strata's similar margins to Arcosa's existing operations. The purchase was funded with cash on hand, maintaining low leverage at ~0.6x debt/Adjusted EBITDA.