Arcosa (ACA) 4 Aug 232023 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Arcosa, Inc.

Second Quarter 2023 Earnings Conference Call. My name is Shelby, and I will be your conference call coordinator today.

As a reminder, today's call is being recorded.

Now I would like to turn the call over to your host, Erin Drabek, Director of Investor Relations for Arcosa. Ms. begin. may you Drabek,

session and Call. for Antonio With and A and everyone, prepared Quarter Carrillo, Arcosa's XXXX CEO; question-and-answer CFO. Peck, Earnings me Gail follow thank morning, their joining remarks. you Second President will Good today are

of replay and the yesterday's the will press available of website morning's today's the for A slide replay for tab. Relations number News Investor next release are on for the posted call are weeks. our press will X replay and Instructions website, copy for webcast in presentation of this accessing the X A call included year ir.arcosa.com. A under Events release. be available on our be the

been measures accordance non-GAAP the Today's Reconciliations of the prepared to appendix GAAP. presentation. comments are presentation have in of contain and with included financial slides GAAP financial closest measure measures slide in the not that

forward-looking Securities of defined conference today's as by statements addition, Private the XXXX. call In Act Reform contains Litigation

are Form subject from such Forward-looking including release materially be yesterday that company's to and Please refer these information actual statements. later SEC to our risks we differ to the cause press on uncertainties statements and uncertainties, for to forward-looking XX-Q more results risks expected the and filings filed filed could today.

like over I to Antonio. to call now turn the would

quarter and updated outlook our Thank you, Erin. discuss Good morning, and thank results to our for you for joining second us XXXX.

with messages. a to key start turn I few will Please Slide X.

in Structures, production while natural Our from this solid in leverage offset with were Products aggregates a Products of projects favorable segment. These strong Construction improvement unit recycled operating volumes. Transportation from growth Products second mix expectations, Engineered less Transportation and quarter by booked structures and performance results Products expected in utility significant financial was segment from consistent in XXXX. Construction partially the by higher our softness benefited performance reflecting highlighted driven profitability

of first pleased year. I the through performance with the our half am

quarter This and leverage proactive revenue actions, Products. margins in profitability Transportation double-digit sale. land points, tanks achieved adjusted We first operating have storage effective that and expanded basis reflects EBITDA strengthened improved in XXX the approximately for growth management normalizing cost pricing excluding

working disciplined XX%. in XXXX set cash our initiatives. our especially in cash notable of strength driving broad quarter free flow capital cash Through management, expanded up CapEx conversion The growth generation strong, a free flow that was is second organic given includes program

year As we our look businesses driven improved growth are ahead, volume. production for next and poised cyclical accelerated profitability by

Products doubled. has tripled the Our Transportation more has more Engineered our Structures than than over backlog backlog year, while last

inquiries order have rolled recent cargo strong, remain dry the hot barges Additionally, for and coil retreated prices highs. steel from

geographic we continue our over Construction Products, remain and to in increasing expanding by volume, unit The favorable overall to aided inflationary to focusing demand profitability committed conditions pricing prioritizing proactively work environment value and supportive, remains In on we mitigate margins. markets, pressures.

half our improved and first has our performance the visibility for solid financial Our outlook. half confidence businesses in second cyclical increased

and XXXX. result, ends our we're the for adjusted revenue both ranges EBITDA low a As of guidance raising

I will and Gail to outlook. quarter, our Gail? return the provide will on our results detail for discuss financial now second updated

in contribution Slide by driven aggregates by XX as natural were increased Revenues growth well in materials higher second specialty acquisition-related higher lower volumes roughly I'll pricing Construction with and trench Antonio. offset recycled to organic in you, Starting shoring. Thank Products. flat aggregates our as volumes. on was results. segment X% and growth pricing begin and quarter primarily discuss as Revenues

inefficiencies expansion basis businesses. points and offset as cost gains declined X% year-over-year. Strong other specialty increased inflationary in in margins segment drove materials EBITDA unit EBITDA reduced higher in pressures aggregates margin businesses. segment profitability operating our pricing Adjusted Adjusted our XX

natural to aggregates. Turning

led basis, the pricing from quarters. organic strength decline experience an were to over a pricing region. pace digits, by couple the aggregates our Natural across up improvement West our markets, average continued with last mid-teens of of We down freight-adjusted broad volumes on mid-single

pricing unit profitability with solid Continued momentum, pressures, and margin year-over-year particularly costs, expansion. higher coupled in an inflationary lower resulted diesel easing in

aggregates, our particularly for in lightweight organic markets, resulted aggregates about specialty significant low to demand, materials, our up remained product continue X quarter. particularly and in the double The with demand see aggregates the margin recycled Houston In strong overall healthy, Within DFW lines. digits. plaster of we combination and pricing XX% up and second for in volumes expansion drivers recycled

However, resulting impacted second lower EBITDA quarter margins. several by items, was and profitability in business unit

to a at locations few availability specific be a challenge. labor continued Skilled

are retention. on also downtime times certain by We have and address to steps parts. hiring and and which production impacted volumes, was lead repair long limited seeing improved taken Unplanned maintenance further

at to time. on plant expansion on be our plaster budget Our continues and

As expected, process early in operating occur we as up production. the inefficiencies ramp

ahead. focused quarters the business We are on profitability improving in unit

Finally, Houston and acquisition trench customer as higher Margins more than during quarter. also and remain levels acquisition costs. first our revenues integration inquiry in from as contribution the shoring closed of Overall that is strong, XXXX. backlog XX% offsetting in our grew organic supportive well business the on confidence expanded, volumes growth

XX Engineered storage impact XXXX of the Slide to October in shows tanks the period on was sold prior the results. Moving business Structures. that

as segment mix utility towers. primarily utility on year-over-year, and for volumes lower Adjusted structures During and favorable were utility the EBITDA related second in by volumes decreased margin and structures flat structures. quarter, higher wind offset less wind in revenues were product

structures volumes. Reduction to the lower this expect half impacted wind impact positively the the for the from in tax of was year. of credits in which $X.X million net utility Inflation offset tower normalize benefit Act, than from AMP second by in more margin margin provided Segment We

and utility levels shipments. order pace to related continued healthy and kept for with structures activity be Order

were structures for tower utility from quarter wind first interest. While the strong quarter. no inquiries backlog the indicate unchanged ended orders and this $X.X quarter, new booked with billion, related of win combined customer We

segment and doubled, and improved solid pricing in significant EBITDA XX. in inherent growth Adjusted Turning XX%, volume over on Slide XXX steel to and than driven expanded barge the reflecting Transportation Products revenues both more up these were basis leverage margins businesses. points, our components businesses. operating Segment by

which $XX XX% We orders predominantly of we for about million, the of our of barge and We extended during kept into $XXX expect flat backlog to deliver ended barge XXXX. hopper approximately million, barges, total received quarter which mid-XXXX. with visibility backlog

I'll in Slide position. by up conclude XX% on driven cash on XX balance generated quarter, of million sheet comments We cash free the with flow cash nearly XX%, flow. and a increase operating some $XX flow during our

$XX for the of use quarter's management cash capital working resulted most $XX the in of million source Solid first million a recover helping to of quarter, cash.

working cyclical use slight we the to be expect continue cash a our our capital As to businesses growth recover, businesses and of for expand year.

almost the Our generation expenditures prior more cash level. the flow all year double second quarter considering capital $XX is million, were free impressive

to organic projects make on Construction continue progress underway Products in Structures. We and the Engineered

which $XXX million liquidity As is $XXX million a Xx CapEx debt-to-adjusted EBITDA and reminder, $XXX million, million. of CapEx includes our net $XX ended to $XXX to of in with available of guidance growth XXXX. We million full year the quarter

healthy liquidity balance to and to pursue sheet allocation. Our continue disciplined provide flexibility capital ample

now on Antonio an update turn for back the I'll over our outlook. to call

businesses outperformed growth XX. the first businesses Please We're Gail. through cyclical have the to pleased of our start our relative expectations and performance our you, as our half have XXXX Slide the turn performed year. at well, with Thank to of

midpoint $X.XX low previously. guidance as range range, we our the XX% of XXXX. forecast billion from revenue growth to revenue the our raising we're result, end compared billion $X.X At a to revised of now As XXXX

revised of our IRS. of the EBITDA approximately end million from raising guidance, as guidance Consistent range midpoint the also and high million. our the represents wind-related range. our range await million adjusted $XXX our final we We're prior to million credits low maintaining of of a at the This the growth year-over-year $XXX end adjusted forecast XXXX assumes EBITDA by XX% EBITDA $XX adjusted clarification with tax $XX at

Increased review turn our to continued for outlook and spending both please the federal support the businesses. to local Slide levels outlook infrastructure at construction Now products. positive for XX growth

While on infrastructure translate and We're organic volumes. into end the offset market, the pressure are than in has by pickup beginning that and by more markets. stabilization starts from nonresidential of residential we to multifamily encouraged the permits have seen single-family been volume and this public robust and single-family in demand solid pricing see recent some

from infrastructure as a well benefit that are our performance. Construction Act Inflation Products tailwind deal continue as Reduction providing for business healthy and state budgets our Pendings we to the expect to

to actively pursue potential continue acquisitions. We

Our current would footprint. M&A opportunities that bolt-on includes several pipeline our expand attractive complement geographic and

orders booked current the continue to The instead their well market Structures, strength their remains XXXX. to step-down that to as expand to but our to Engineered strengthen heavily electrical our of sources the invest new conditions, indicative was to In as structures the customer in renewable energy Utilities reaffirms related resilience specific and was backlog demand view not grid connect of networks. second solid. of quarter pricing profitability in utility infrastructure

Looking expect ongoing of at margins an benefiting demand service support from towers of to to XG improved project the the investment. telecom increased continued transportation second mix. and We're utility networks, for seeing structures buildout is we year, half traffic the reflect

cyclical improved we Shifting a XX. our sustained glimpse businesses already impact time deliver an of outlook be upcycle. drives into the believe enter cyclical multiyear on scales a businesses financial production these now Slide leverage. as will to of can exciting is and for what volume our seeing as This businesses Arcosa the We're operating

poised to to increase our invested generate XXXX, cash growth margins in further expect are we and As capital. rates strong improved production leading businesses in flow, cyclical our returns on to revenue,

remains our that towers, this year. we relatively low, positive anticipated capacity the with utilization for wind demand In current consistent

business above of breakeven driving on towers before focus credits. continued efficiencies, net expect our through the perform we in to tax wind now However, XXXX operating benefits considering

we're mid-XXXX. should million currently start which $XX wind our in delivering facility, towers New know, you in As approximately Mexico investing

As steady production improving should profitability. we New see and ramps Mexico in other up facilities,

taking expect Order quarter, for market in active, a grown sustained order levels our is fulfillment past substantially to the market wind is complex, expansion. every very but negotiate. as interest backlog Even do and that to wind the orders year, period is view we not new Therefore, expect has remains over a poised trend of do time strong announce customer reinforcing we to this higher.

Although with minimal have with to capacity market operational to utilization improving we low in demand continue CapEx. XXXX, to we to expect operate meet flexibility our increase relatively throughput the

to we in Please midterm near turn With backlog Slide increasingly nearly are outlook million, this large confident the for XX. to business. $XXX having our reached

driving extends scales. be the -- efficient now visibility We're volume focused profitability on production we operating to the as to leverage cost well orders more pursue. XXXX, through of allowing generating respect into selective Our with improvement profitability management, margin with us

couple in for conditions market prices barges prices have steel prices the hot months, This plate last elevated. with create is made of remain coil attractive while to declined Over rolled difference steel starting coil.

products. we and fleet, tight Given to remain expect high these the capacity interest aging customer for

despite well low level at perform to continues business operating a components steel Our of capacity. relatively

While are remainder forecast in not the anticipate several strengthening a we for promising. market do for year, the demand the meaningful this years the of next

products One of components main our of steel railcar are coppers. business the

profitability of pressured produced from establishment recent this and Mexico. market XXX% in China. of led government cost has coppers of than in by Our the coppers from been on the duties federal more imported China Trade to remedy investigations railcar

In imported business also for steel efficiencies. duties the to Mexico and make and expected government second higher Mexico. components potential from improved to is drive the final our volumes half field this enable level trade the -- of coppers remedies year, playing help for These generate terminations should on

effectively our navigate to the our of XXXX testament a challenging closing, of first we conditions. team results talented half quality market are as In

outlook the about optimistic believe to businesses. well our our remains we and Arcosa broad we're exposure will markets ahead, given both from tailwinds. that multiyear infrastructure cyclical for positioned growth Looking benefit

continue sheet We long-term we as remain to value. strong flexibility pursue cash provides expanding Our allocating opportunities. to organic balance inorganic flow to build attractive and margins, and generating committed capital strong shareholder ample

would for the questions. to I like open Now call

Noah Instructions]. we'll take from Merkousko our Stephens. [Operator question And first with

the It volume strong. some ease. to wanted that there, to how back to there's headwinds the I Products the And but also and you're is expectation granted First, thinking like be talk half about cost some in half of segment Construction the very the back the for sounds of about I think year. continues pricing

trying just you're how I'm expansion. figure to ultimately, we the see back half So and thinking about margins out if in should year-on-year

Sure.

color. some you give me Let

I start some to pickup start year year, the from think expected year, since is seeing the housing we beginning second the of even last the half volume recovering. to of as expected

about So recovery the half. starting in sometime housing we're the optimistic second

our some in pricing aggregates. continue recovers We as to strength, ideally, keeps strong momentum and pricing volume its see we business. margin in continue should natural to And expansion aggregates and recycled see

Specialty the our which in of Materials, margins is the the half year in quarter. And second our to goal second improve hit for us hard

So I think we're optimistic.

are fundamental market think aspects I the the strong. of

of second expect do the year. we a strong half So

course, like summer people some been et down creates stay extremely those hot. shutting projects that's That we're healthy, going temporary sure are things. to a but Of are through make early issues cetera,

the should overall, and help the in quarter. volume think us environment the I pricing recovery second

Got makes sense... That it.

sorry. half, second The

half. Second

in And to wind gears towers delivering Yes. demand, another In was my then way, the Yes. for once or for in you wind wind we like? maybe margins be on prior look margins cycles, there Or tower the orders? EBIT thinking for just put business. this more segment did much how switching towers about follow-up, -- EBITDA increase when what should start that

passage than more we're the billion that. in almost ago. take we the a I'll certainly taken, Act Reduction ramp-up. orders Gail. is This of a as year you're wind the since of about the business, We've as Inflation Yes, $X aware, think

is So our backlog strong.

for We for wind backlog of long-term we Most our of being that utility. business have don't $X.X for backlog is wind book billion utilities.

a in we're strong position. So

look of that 'XX. about XXXX, I in As backlog to coming XX% is out

plants, have today, aren't on backlog full we that utilization. Our at certainly based the

is increase So Reduction improvements our our Reduction help see Inflation our year. over in with to to from will larger script, to this Act our a anticipation course mentioned And credit. of in margin push his is next Antonio margins the certainly potentially the perspective, margin Inflation as regardless we and tax have up, volumes additional would the Act expect, of orders wind

business we've of in certainly think credit top range. additive past, they're about would wind seen the tax that on margins we of that normalized XX%-plus in the for kind healthy The When be that.

So our margins improve, as our builds, we to continue improve. wind volume as efficiencies our would expect to see

when you or or number, wind To margins. peak less, cycle on more higher million is as the at of give probably previous we around sense, $XX around somewhere highest were we I think, little reported and number with the a a that EBITDA

it's a very sensitive it's volume. to very So -- a business that's

So we're about that's in volume excited why business. this

We'll Ian with Zaffino take our question next from Oppenheimer.

So see of also up the you question. follow sharing and I you're on We're maybe what's side. discussions when actually about kind on wanted on thinking those that time? mechanism discussions are tax to wind about into will hit that talking of tax the credits? the just then typically lead the the credits it wind, How deeper we And the backlog?

Yes.

the before It's we a the are tax have, credits, smaller, start mentioned that the backlog ideally in tax give credits me forward, keeping did the So of with mean tax let portion customers. current our majority but tax credits. of the becomes a we The the negotiations. we of number part I of spreads. -- smaller the we to going portion

to the I tax should way credits, an markets. our see the is enhancement it, So it be

quarter. at better. margins at start the add results And much it you you cycles, rates this tax look you'll if this even it should looking be the in So previous when or the see time,

question, first you are at if the quarter, you these second get your look larger we order got the when orders. in To -- orders

mentioned negotiate. I in they take remarks to why my that's that So prepared time

built towers And these negotiating not manufacturing. company for and we're not You're normally that has -- towers like we -- very a that. XX we're of of good X repetitive at historically

So what longer-term is orders. we like

would year it if start we of sometime guess so year, it or this if in let's long would backlog sometime quarter, look be is around say, my And quarter to take, that. production give you next how at mid-next for first

but to delivering an So X we order. order backlog. And remember, from it a really have you start least takes on the time -- at months already that receive

imply we et people, to So cetera, we people, have cetera. hire any that et train would receive order

to get ramp up a takes there. us it So

Okay.

and, incremental So could clarify, roughly just probably say, just margins like. take we per seems speaking, guess to I let's it historical an $XX,XXX tower,

that significantly businesses then and now also, it really well. new doing are optimization seems now this And Okay. you're like portfolio thinking environment you How the seeing of most fundamentals? recovering in are improved very about

Absolutely.

to rate the size answer to Remember, of your tax tower. $XX,XXX. on is relative the So comment the just the first

the It's size of based or of of can the on of that the terminal less the the be on $XX,XXX on depending more. tower. -- So top tower, the power

should that will And in less a or think more there $XX,XXX range. is be I vary. So range, but

I potential Products so the this To believe they This happens question is. really is and is -- -- that question, we Construction changed. because our your And strategy the is Engineered it's the business to where that changed. what has company, to capital that's a we're just our for the more improve, growth to has good become -- second continue reality think I not not because we strategy valuable and think us going as of most allocate Structures

is We continue Products. towards this company to and Construction moving believe that Engineered Structures

that intentionally We are way. moving

And to can in My the portfolio as analyst. be and improve, our goal business not an your simplify easier or as make we might focus to story even optimize the decide shorter might would term. that so life we continue to the

complex. our complex we're a story, are and for too We size,

we'll our Capital with Markets. from Garik take next And question Loop Shmois

was I Aggregates a the was of the hoping the in can How Specialty impact much inefficiencies of you quarter? in business. margin it quantify the specifically drag

release some natural number recycled business. one. shoring as as that will basis take the the or down our meaningful segment, that. didn't as in press comment know, were that margin we put our on comments points within I margins a Garik, expansion well year-over-year, I'll despite our you XX in aggregate

of for meaningful the on So time a challenges impact the quarter. some we some because spent there performance overall the they the talking of had through segment

it's number, X/X Materials our around and ballpark. in business, exact Specialty that an of the revenue, So about

a XX had -- it performance for the the XX were a we So point decline in and basis not with happy segment. margin year-over-year, resulted

Okay.

some expansion of the to on Construction the given back of the steps and second part half second anticipate will the inefficiencies broader and some year half in in the the the pricing that quarter, the would margins second of the segment year? the in Looking just still that and margin you're of half, Or lower remedy in the do business? to you you the of improving costs be that challenged the volumes Products seeing you're anticipate hopefully taking

already strength. I'd the regard certainly our some back performance the favorable. with We're quickly to the some half. half. dynamics summarize comps challenges second optimistic about very We guess made Antonio in potential market the have second of tough I about some in pricing in Construction's half. comments Well, are maybe The We've talked with

pricing we're against the second think I probably increases, ones select half. high teens July price comping August we're that we've for But some had announced.

So I well. costs think feel perspective. we continuing a pricing We're manage good pretty to from

And we taking Specialty, regard said, with to we're address. to as steps

taken steps, in is ahead. have see quarters We expectation we'll our and a the of number profitability improve

half optimistic we're Construction. So the very about back in

follow-up My Great. to Engineered is Okay. question related Structures.

Just little there margin the a clarity want as on more bit well. outlook

that expect that to mentioned the Is Or to of broader segment? return is to margins year. also second you I that in to related half think the you related normalized specifically? the wind

Antonio. This is

-- structures. and called Just had needs, so backlog quarter second current during with quarter. produced products, segment in year, Last their was market our of customers we what's the second and conditions this bid utility not -- what market, we in of to had lower-margin that's the the fill holes the to the in reflective some profitability when we

more our with let's customers. and orders the we quarter, say, our, gone, return entered profitable to those traditional third we backlog are As

wind business, And so tower production to improve the continues accelerate. and in profitability utility and structures we our expect improved

business And efficiencies, above for we the As year. as be they improved credit, mentioned, now improve we and we see you -- that proving add half help for that's margins the tax the second of Structures. should Engineered if year, their should to expect the breakeven that

our Sidoti. question Romero take we'll Julio And from with next

future? Julio. first inquiries helps Antonio near into whether the and Transportation prices question of seeing the fence, on Products. on that Gail. for steel is the you're what's convert inquiries lower, you This that in business? in is orders around the your With Could My trending sense about talk barge

Sure.

the inquiries side. high, dry especially cargo So yes, the on are

been has cargo. right But know, the going liquid now you there's mostly different As and are quiet. inquiries markets, Liquid dry some and liquid we have dry, for dry seeing cargo Most also. different for we on. And liquid. more of dry dynamics there's both X orders but are

well barges you On the fleet rate low needed high. to below just extremely, extremely several as replacement know, keep is the of both markets, we've it years be. to utilization where very, And for had very needs the production,

the it So out we demand, in perceive it's there, and we'll it, see inquiries.

those I have and remarks this that months mentioned prices continue few As a high, prices starting last prepared to steel barges the prices bit and come between bidding start create that is and should converting down that plate my with and us over oil come down, wider the help quite in into rod X prices to and gap plate, allows that us inquiries coal producing orders. on

want the focused mentioned, At the that barges we time, mid-XXXX. demand coming. a margin. until backlog is there I as give And strong on have we are to believe don't same We We away.

And very for in So way are being for we facilities those ramp-up planning we're the pricing about and improve we that can delivery. a our use efficiency. disciplined in the we a timing

in orders. becoming I conditions, pricing think market good be convert able steel our to So to a beneficial and on inquiries into more position the the backlog capitalize that's to current really we're

that follow-up leverage? are quick function a performance other you're margin the Or seeing or And Is strong solely with tailwinds segment on Noted. the the you're there seeing of efficiencies transportation. that segment operating in margins?

in do I operating leverage. think with has only barge. it to not It's mostly

us still I ramp The our quarters. relatively at several next our as we that China as look up, over operating been margins improve right a even though, you If have and the they're capacity. should mentioned trade nice. I very margins, help volumes at case it's the components, against mentioned, now, low And

it move trend take significant in these a the operating to doesn't businesses. much volumes -- market. it's not leverage there's up, as So And

increase lot thing margins, that The with also of this require is a CapEx. other you they are business don't happens they --

So very is their very, cash good. profile flow

in these amount. significant businesses the capital should on So by be recovery helped by a return

How segment, the in And talk you Got project you utility to what the Structures, does compared customers bid quarter quarter? Engineered in can about structures? in second of looking third mix the the at component it. another realized

We don't that customers have call customer that on agreement guidance type for our of a period this a majority orders so with the backlog specific of are give But way what alliance -- works customers. to group historically, go of customers. our we the the And certain towers type a of you defined, what have an of of a it's amount is building. for not you're certain don't But you definition time. of

delivering. That But backlog deliver. that's we and consider it design into actual pole is going don't large. an actual backlog. what it pretty we on the the we're report pole type our of converts produce And And of the backlog until That's to clarity majority we we we bid be portion a smaller market. -- every to certain that quarter, of once we also number will have

second the the larger than portion specifically, bid In quarter of market normal. the was much

should expect we I So second margins, and half, the normalize, the should that let's quarter that stronger much mentioned, third quarter, as the be second say. starting than

Very around $XXX alliance of should is which allocation higher next helpful I capital typically than that think balance context what sheet. around holding quarters? first few you we million the cash, carry. My How you're about last noticed over the is question somewhat around bid.

and since then, towards has very capital. strength certainly And allocated balance of as allocators a been, of of great the active capital track of record that's acquisition Yes, been sheet, our strength organic we've investments. I our pleased think position. the our question. you've liquidity seen in We're Most with our

same So that's to see $XX where focus. repurchase. million share the we maintain time, we a the continue At

So we'll be there. opportunistic

that our got underway and number bolt-on We've of something is we growth. liquidity Construction in the on have know mentioned, as acquisitions we'll active Engineered as towards to pipeline have Antonio acquisition and we of and the view an asset, that opportunities And But a capital an we're we projects organic large considering. side allocate Structures. continue organic you

our from Jean last with Ramirez question And D.A. Davidson. we'll take

is Thielman. I'll This for a Jean question. start Brent X-part with

growth in housing? volume? do versus to what constrained Texas was when quarter, in aggregates So inflection weather other looking at like degree see this factors by an you to And expect

In Yes, pleased our Texas, digits. specifically, that's to closer probably a were a flat. question. for for with say down Overall, how quarter. saw were I'd mid-single the we volumes we were we little Texas, we aggregates, good

we're So encouraged what Texas. seeing with in

all we're the We're I'd the little heat I encouraged beginning still it a we relates infrastructure in health can about on of pace the say overall, housing, now good bit lettings as to by at to in And perspective, see wetness, think but but did a then side. some the some Texas, we From weather of continuing starting Texas. quarter, right of guess, is stabilization. see commercial to have

unlike So favor our comps, volume second bit the half. in our little price in on the side, a they're

for continue say over continue second focus So and we're on performed to focus that optimistic. overall, in price the But I'd also well on quarter. to us we value volume. But the market Texas

so just evenly the volume, is like heavily is half, see where second fourth that it you regarding towards quarter? more weighted it growth? a So throughout which gradual Or then --

little about approaching mean, the seasonally the you seasonality, quarter weather months. Yes. a just as little cooler -- with getting a fourth Well, think just I can in be winter bit slower

single-family are you see got But relates you've infrastructure some So you going and QX in better the would momentum some QX. I side. the didn't as on same and generally, in the time, it volumes year stabilization to at have on lettings say that earlier

based you that mention year? been Got do XXXX questions But your don't towers think you in just on it. we expect wind I many I just about you I want XXXX in what wind, production. production, little about but to know a And finish ballpark, you there's know bit to a touch produce. how of of lot levels produced

-- think we talked we've relative the up barge our orders backlog the XXXX about, we the Does up year of production orders as way would wind a sure that of we're we I now, those businesses, to have I similarly and at right the XXXX. want perspective that as exit think to the volume our make And that level ramping from I answer... is and at we've about be that looking capacity in wind expect in had beginning we higher booked to XXXX with a businesses. in with

based -- just in a to I I guess it there had, was Yes. at -- wind commentary least a you good on for wanted was was year because the towers. notion a XXXX, that there

what just look of like how produced... does to I that wanted towers XXXX of the to So you in XXXX wind compared see terms many end and

some Let you color 'XX 'XX. me give comparing and

So July until of... XXXX

For XXXX...

'XX? 'XX or

Yes.

wanted Sorry, XXXX to... versus I XXXX. That's what

business pretty since at still -- year, we in that spun, to It's there's less at the XX% EBITDA. we you will be coming than close when page look cyclical of businesses was drastic they down. XX%. a our so this wind downward curve. And -- our our XXXX we been in were presentation spun and When shows a has XXXX

is wind within our So businesses. cyclical considered

barge, rail been has had middle. Segment the wind, our spike But small components, really So a Arcosa through Construction and in the Engineered in barge overall, Structures. growth

a So for cliff since it's dive wind really spun. been we

way for it But come to for going a top get As to more Inflation steep, other back is let's the it. orders. steep the touch we are not stick. we now, kicked say, we XXXX in, hockey and backlog the additional you're as orders going foundation see Reduction on Act of building the Right supported pretty

why that's business. the about we're So excited

Structures, is benefit the Engineered now the mix of Or margins more be regarding rest stable right the we're And it. should for the of that a Got are year? floor? seeing a

reflective not the healthier. The much the mix current second of margins. half for quarter is mentioned, is I project second the As

the improved credit. the improved utility margins see margins. structures. of year ramp-up And Ideally, stronger second plus So tax in in we should the wind should the with you see with the towers, half some

your That participation. for Thank Thank you teleconference. today's concludes you.

and a disconnect, wonderful have day. You may now