Arcosa (ACA) 23 Feb 242023 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Arcosa Fourth Quarter and Full Year 2023 Earnings Conference Call. My name is Todd, and I will be your conference 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,

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

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

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

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

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

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

outlook results few the joining discuss a our to and you XXXX. fourth start us Thank full Erin. for and and year morning, messages. you, XXXX thank Good I key quarter with for will

Arcosa. operational financial for solid of another year and represented XXXX performance

the the tank XXXX, adjusted of revenue outstanding of the growth double-digit the the effective business, talent at success for Arcosa year. beginning outpacing we strategy and dedication storage our generated of Normalizing the and set guidance for reflects Our sale team. the EBITDA our execution of in and

tax credits. drove benefit favorable Transportation our environment, tower we and of operational Products the business adjusted a EBITDA reflecting pricing improvement margin, leverage wind solid in Additionally, increased in

reported helped advance we long-term cash initiatives. XX% flow that our continue Finally, year objectives growth. to portfolio sustainable full our position growth operating key we fund and increase in Strategically, for

the strengthen fourth quarter Following to Products a in of of segment. our proceeds portion business XXXX, redeployed the Construction tank of sale storage divestiture we the the

we completed Consistent bolt-on enhancing acquisitions, expanding approach recycled with Over aggregates disciplined year, key allocation, presence including capabilities and the at natural closed our valuations. in past in these geographic attractive X markets, shoring. trench our to acquisitions Florida, our were strategic capital and

concrete capacity, organic midyear. progressed deliver on our of which Mexico, tower expect included new in in of New Florida initiatives, first its as as our well completion our the We pole facility several wind which will specialty we also important facility build-out plaster expansion of tower the

at proactive inflationary actions our as year XXXX reduced healthy progressed. benefited broadly the performance, and growth Looking pricing market fundamentals, businesses our from pressures

managing upcycle. costs businesses our EBITDA reflecting cyclical of our led outperformed than business, production anticipated by business as achieved for more exclusive performed and Our optimizing our our doubled. and Operationally, Transportation our prepare tax wind on an in well, XXXX Products expectations year, focus EBITDA spreads, where the for adjusted multiyear we profitability tower

shareholders. ample basis sheet and production, adjusted driven to on flexibility year while from and a the utility ended results increased points favorable returning to XX% volume liquidity, grew across invest structures We growth a balance cash tax by Similar XX%. quarter to adjusted results, wind Turning and barge year higher strong in the providing component rail initiatives in from our with impact margin benefiting revenue growth X credits. to EBITDA on gained our fourth Slide year-over-year, all XX. growth quarter Consolidated Fourth segments. of EBITDA full was increases XXX

our I the turn I will outlook. XXXX performance, then our Gail? discuss you and Gail on to over segment update to call now return will to

freight-adjusted our you, XX I'll to begin specialty businesses increased Slide pricing Construction X% primarily Antonio. across In On segment strong in pricing due basis, and Products, higher business. specialty revenues segment increased growth shoring and EBITDA revenues X%, both a well discuss our reflecting Adjusted Thank operational increased organic quarter volume segment acquisition-related year-over-year. materials fourth aggregates to results. gains XX% as in our on business. as materials and improvements

EBITDA pressures. driven sales quarters, from land and by basis and improved points unit both freight-adjusted inflationary segment year-over-year, profitability Excluding segment XX adjusted increased margin EBITDA gains XX% reduced

especially pricing strong freight-adjusted Volumes quarter, Turning with digits was organic double achieved notable on year-over-year compared last our in strength last from single to pricing the led residential to was of basis, in the greenfield favorable year's new year, up low Central growth across uptick an to pricing footprint. Pricing weather natural aggregates. a region, when gains the Average low increased benefited our compared in in Texas. and digits, location Texas by quarter. activity fourth which contribution

expansion. integration achieved Full positioning XXXX. half well pricing offset we us volumes entered natural that as For Florida momentum strong Earlier In roughly the Central in year year continued the increase recycling back smoothly. volume with a small organic strength prior progressing we more mid-teens, in the broad-based is resulting pricing with in a in a product the were offset decline. unit the gains than and decline, pricing profitability volume for and the grew the acquisition, aggregates, half roughly full the recycled XX% year the flat of aggregates market year, in margin quarter, first

year-over-year, improvements EBITDA for we and the focus basis throughput increased continue Within lines, healthy operational on margin plaster during roughly particularly continue had to gains by facility. positively our segment plaster which and in see Specialty as Materials, impacting we points quarter. XX solid pricing product demand, lightweight margin improved to our the Adjusted

increase quarter. completed our nicely, shoring Finally, from first trench remained reported contribution the well the Houston order higher expanded levels as as acquisition organic on XX% a business in in Margin and revenues healthy. volumes

structures. and for EBITDA utility, increased these points. basis related for XXX structures volumes to businesses Moving XX%, to our in Slide segment wind XX. businesses Structures margin increased due expanded XX%, largely on Engineered Adjusted utility and Revenues higher

year During end about the guidance AMP additional million, to delivered million quarter, tax $XX.X of allowed by the credits tax in in This of in $X of resulting due by recognition high net full credits million the towers credits, expectations $XX our and issued IRS XXXX December. guidance the we recognized in exceeding in tax XXXX. for started

business Fourth quarter structures utility margin for third our quarter. sequentially from and both the improved year-over-year

of of to customer the backlog with our in XXXX, of for double headwind expect billion, than more first this combined mix on we business. end the We structures in backlog wind and to but enhance year remain continuing the utility, focused remain at We ended half a XXXX. margins $X.X related

by Transportation our water incurred Products up quarter, with in barge to all EBITDA were volumes our business. 'XX Turning increased million, barge and to the low for address orders for additional $XXX planned segment received resulting the And barge substantially despite Revenues business up quarter on year-over-year. XX%, production million increased ended some Slide delivery, levels. capacity fills during backlog river We in which the segment the points, expansion costs Adjusted XX% early across barge the margin the of by XX%. basis year of We XX. of pricing $XX XXX led year.

Slide our comments XX flow position. with balance on and on cash sheet some conclude I'll

of quarter, from working fourth year's up the million net combination $XX the a in quarter, tower tax deficit free last by of generated the earnings requirements, credit. buildup adjusted During we flow, a and $XX driven for of capital of stronger cash million lower wind

$XXX XXXX flow $XX were our the million. For million, in expenditures Capital XX% full increased in year, midpoint of guidance. the free to line with cash annual

to complete significantly Construction across key year, Engineered During several growth initiatives invested the Products. Structures we and organic

Additionally, the made first at the in facility quarter. wind end of substantial Mexico we progress since tower have announcing the the on project New

deploy We to the in CapEx expect additional the approximately $XX to first of half the of complete project. million year

new we structures end our In build-out the costs. commenced facilities to late We the will in quarter, by it a third line be one year. galvanizing the operational of our of also utility optimize in Mexico anticipate of

$XXX we $XX timing $XX million to is CapEx This CapEx first modeling full that to year range see projects. million growth of be XXXX to the on $XXX based For purposes, includes million. half-weighted of of more million expected

approximately in in credits anticipate full projects We the rate and a the taking $XXX full investment of additional of XX%, expense wind at XXXX. business. from consideration year XXXX million midpoint effective reflecting million, up organic AMP impact towers of tax $XX depletion completed be year-over-year of the million expected into We range in in to forecast our range, and to XXXX year XX% to the impact tax depreciation, amortization the $XXX large

sheet credit We $XX borrowed ended Xx at third quarter to up. million from X.Xx, EBITDA net up we adjusted debt with the near-term end a additional million the fund an of ended help to our natural of the available with under of rock in revolving as $XXX liquidity debt with year maturities. December hard Wrapping the in balance XXXX material no We acquisition facility Florida aggregates. strong and

will discussion I back over outlook. to our Antonio the more turn on for call now XXXX

Thank you, Gail.

Turning to Slide XX.

growth. XXXX, our favorable. by we demand environment well continued positioned volumes complemented is portfolio cyclical production to improving The growth in businesses. And for expansion our infrastructure-led ahead continued in remains Looking across Arcosa expect our businesses,

expect we CapEx Gail year a mentioned. investment From another significant of perspective, as

increase acquisitions the our capabilities we tower in that continue to plant expect to in utility line addition wind to margins. galvanizing our our structures, accretive and financially In and Mexico New new pursue strengthen

the midpoint XX% guidance we of summary, up a billion, to In at to our compared XXXX revenue $X.XX XXXX. forecast be

the midpoint EBITDA our guidance implies Our up recognized land basis $XXX XXXX in our the The XX% as XX XX.X%, is to $XX of million, of first EBITDA we approximately sale of adjusted compared XXXX margin up our at further points midpoint of EBITDA adjusted quarter XXXX. million profitability. guidance adjusted optimize excluding an forecast the gain year-over-year,

XX Turning year to businesses. our anticipate growth solid for Products. our outlook for Slide our a to We Construction review

and highway residential activity demand project we from markets. certain heavy and industrial positive well contributions On infrastructure the in construction front, growth multifamily in as expect as

residential growth. will single-family As it's I market not the stabilized, return starts consistent quarter, housing to when noted but clear to appears construction yet last have

expect organic roughly prior construction business, materials our we versus Across to be overall growth year. flat

expected in is first to weigh January results. on weather inclement quarter Importantly,

our acquisitions improvement attractive, margin on expect profitability through contribute overall unit positively We margin. and should XXXX. Pricing continue remains accretive an XXXX driving we be to with focused and

to focus of for CapEx operational the hardening our initiatives forward-looking Utility to traffic XXXX. half transition and poised stronger business spending were levels grid in our structures mix EBITDA infrastructure are product customers' backlog, sources. We our challenges Meanwhile, XXXX, committed customer in progress programs pleased Southeast volume performance energy our Market particularly anticipate the from second half. continued electric half sequential to first remain and ongoing a alternative on in second faster-growing the favorable Overall, utility improvement conditions market. relative continued from building the with spending, expected of growth. stronger XXXX quarter are higher fourth the XXXX. Due related are within margin supportive and with at to structures recovering year utility a benefit to the expected for the -- and in on that we in through should

for a towers which XXXX for in XX. was we Slide transition to Turning in year backlog multiyear upcycle. built our preparation wind a business

backlog provides $X billion visibility of solid current approximately Our production to XXXX.

orders along consumer Mexico remain XXXX book projects projects to the Meanwhile, the production start-up the While additional additional we onshore further as beyond. planning interest move focused backlog. in support wind facility into in the of ramp-up inquiries we stage, high. and any expected New not should remains convert the quarter, did And fourth on during

scales, volume production tower to capabilities to our our to strengthen manufacturing wind flexibility. our enhance plan invest we and continue As

Slide XX. to Turning

as generated positioned Our continues well remain and market to volume as stronger recover. the for XXXX further from pricing barge XXXX lows. cyclical significantly expansion in the XXXX results in We business improved

We operating expect orders, our those generate with to leverage be as scales. selective and that incremental enhance volume prioritizing our profitability

strategic have our remain are quarter. favorably by X.Xx fourth the book-to-bill with Although steel we in prices responded when elevated, evidenced successful customers sourcing,

XXXX. fourth provides Additionally, grew evident which cost roll the in to quarter, orders in doubled quarter. lower-priced XX% the encouraged demand point which liquid for our is year, broadening in flexibility. in not manufacturing barge We're the revenue, the as from quarter the demand ability for but fourth substitute by steel to only market new also trend barges plate nearly that prior year-over-year backlog, our enter manufacturing in coil process also we may a fourth Strengthening customer

year a in substantially As are XXXX, extending filled production barge backlog another business for we higher and volume we strong improvement we with XXXX on XXXX. our focused production our capacity profitability. into have Overall, our result, and expect for further in

be is In components business, our as outlook to positive stable. steel market the remains demand expected

replacement the following environment competitive balanced more copper outcome case favorable against which railcar a has market. freight growth. implications and anticipate remain in business maintenance With both moderate at for positive anticipate the we addition, profitability railcar generate our for to China of levels, In will products deliveries railcar on trade the Mexico, forecast new our gains stable components we American steel North further and revenue

XXXX delivered organically we closing, In strong businesses. enter capital Arcosa momentum. portfolio operational growth with focused both allocation, and optimization remain performance through financial on businesses, we positive XXXX, Across and for and our acquisitions execution, in

healthy We and in our fundamentals from increased while continue drive are our greater to market to cyclical poised solid results operating benefit growth businesses expect leverage. businesses, production to

our objectives across future capture to strategic our advance investing to continue growth while will opportunities We portfolio.

the like open questions. call for Operator, would now I to

from first Our Instructions] [Operator question comes Grooms with Stephens. Trey

finish the a on and Antonio congrats to year. strong Gail,

Thank you, Trey.

is through nice Antonio, the overall continue there Clearly, making guys assets filling tank there. continue strategic simplify execute that as focus acquisitions. simplify the business well the construction progress out asset and on And have and You to the story, you know well. -- of is made guys products, selling a to strides part portfolio large I to and are on storage

But in thought to just are please? your you improve that start cyclical with you update where given that kind we of to update of thoughts more process? And on are on where on or are thoughts, the starting those and there where businesses can kind us --

picture. Sure, Trey, me and you let the give big

the I described you're it. think right, absolutely you way

and business. to continue have -- into our we We to allocate growth capital want

We our and see Engineered small good strengthening capital. that growth pipeline, Construction We're building continue have segment as the internally. As the to opportunities Structures. our group you redeploy know, very a nice to M&A, define we a we businesses

on capital. continue want redeployment. That's So we to to our deploy expand to capabilities the

it a be simplification, priority continues the On for us. to

in I've it the own. life of when As before, right needs when to when It ready, said is time. happen, the are M&A the happens has its businesses a market

to can of And construction we reallocation simplification. So tell will we pursue continue will what I in capital, both Structures. is Engineered continue you that pursue to the and

Board in mind So and our for the of top it's for for and us company. everyone

All if maybe could right. across was trends -- some seeing that Antonio, to there. you maybe the But if little see just touch a gears demand you residential, switching just improvement you There on maybe you're starting also bit. could -- mentioned in nonres trends markets what about particularly and Could in maybe construction, your as well touch also we of the of touch you 'XX? demand on in end look that as the kind parts business, infrastructure. talk the those you're seeing into

Sure.

the As demand. we've of seen residential I mentioned side, on a stabilization the

volumes year our mentioned, second the half of Gail than half As year. last better in were the first the

we've we same So and I very the infrastructure progress very And kind a of seen the from time, good side. demand bottom. see think at strong

the the the side. revolution developed going more to to AI We a -- of country, that whole trend, a industrial, be see expect on industrialization but also only see of infrastructure nice there's you also the there. industrial needs significant and heavy think, not very There's be I across we lot when on a heavy the country happening,

on power plants a of -- side, lot sorts and the all of energy-related There's energy infrastructure.

the very on am on -- that And regional in is the better than I thing, the side and places multifamily So part were others. of equation. trends seeing optimistic a then industrial

news we've more spun, the So grown our good footprint. little it's spotty. a is since we But

more lot exposure a than So have now we Texas. just

time, are acquisitions course, some that of we the are very done, creates we're getting think variability. that with very, markets at But same I we've the into So -- attractive.

Perfect.

-- my comment, just -- no, example, closed of rock. we hard in the acquisition to we the an As finish

the quarter, Florida in recycled we If you remember third aggregates in announced also. the

a going we to proves setting and that opportunities coming then and somewhere, to our foot us, start So method our build of around want to is continue footprint. that what

Our & next question comes Company. Sidoti from Julio Romero with

Curious progress the the Alex a the versus seasonal year. to Can My is cadence is and to as of you expected traditional perspective on sequential guidance terms for on expected which are through pardon This segment -- from seasonality? from follow what's they Julio. ramp a versus of more first question units seasonality. in me, guidance business speak a

Gail. Alex, I'll this that. is That's good a question. take

XXXX, as more second As look things in to that we've few the there's our see a we said comments, we And are driving EBITDA half-weighted. that.

certainly did is you're seasonally them. that's of questioning We did our face seasonality, for have scripts -- slow on QX January. one commented most As we weather construction. the in tough some normally quarter we in that

in portfolio temperatures QX But with push weather impact seasonality weather through sure, the we So we that for freezing along we given pretty with was felt construction We'll our will where in our in downtime headwind in business. we'll outdoor and -- manufacturing had some of actually fight normal have that. broadly nature that across that the that. But rain the facilities.

So you QX. typical have with seasonality the

transparent I had large think pretty that sale the last with QX we've in we land been year.

QX. excluding impacts So sale. guidance that won't in And our repeat we've the given land

those things, half a mentioned about driving another the I So kind utility Maybe there's to And of the engineered where think so even say that. is than to apart as one the the second as be towards weighted go few second more businesses, is stronger structures from half. the segment we broad things would first half. I going typical

see based Still that First than the timing and business, structures a for cadence mix mix the how it robust in out plays project is the our on drivers, better backlog that's way we utility have today. but and strong demand at the in the first of we visibility as second look customer very the that, fact the half. we half outlook

both facilities, the on first Mexico be the for I half. tower Belen, half impact out -- contributing will EBITDA, would the That in second a call second new segment, our the start-up facility. about half think you wind of drag to When the other New

as the to the facility in in new as going virtually impactful cadence well December within to we that's be finished that last utility structures, of concrete year. pole -- So

that, segment to ramp-up overall well. be as that in the going fourth positive quarter, climb of associated a there's see we So to will the the with contributions accretive from but

slight see other to think the But see be first general think here where might it only XXXX. the continue view the I would a for second world barge the I are business. ramp we of in we you up place maybe as February as to those step half in half

Gail already as mentioned that a are XXXX, XXXX the of to plate, up through me entered concrete ramping start we think of closed you mentioned, we in I through just plant. -- lot I roll the XXXX, of the strong. want I We plate, of ramping Let Berlin. year complement it, We're to but -- have first we building employees amount until they Arcosa think producing. well their as something up But we're if They're in into we tremendous a half plate. go starting cold cost plant [indiscernible]

And efficiency once is they start very climbing. producing, slow

ramp-up plant, concrete have of the So you have the both new plant, Berlin barge you the pole in plants. you have

in ramp-up tower wind another a plant. have You

up build year we and capacity costs for is we ready as And up. all the inefficiencies building expect. a as that Arcosa and through upcycle very exit those manufacturing go strong So carrying capacity should XXXX, we we the as we have and

that segment. about and me you And content the on one question guidance on finalized. customer Curious follow-up trend demand Antonio, XX% the expect after bonus. great just orders around domestic context. for how guidelines overall general is final final sentiment Curious Engineered hesitation or to the and Structures

really don't heard of at our from the moment. lot pushback a of expect -- not customers we any We have

with to to expect guidance any new don't impact backlogs we or So this our guidance. our

we're about it. not concerned So

all the guess to anticipated. just -- the I out to And the played Most wind we IRA. as really would of the Alex, have impacts way related Yes. add, it virtually relates I

things rolled we're out the that So way pleased side. with have on

we -- of manufacturing, most focused focus. And are if the plants Yes. U.S., with been U.S. our and we manufacturing remember, so on X in you of our exception that's the very

Jean next Ramirez Davidson. D.A. with Our comes from question Instructions] [Operator

the look? from How looking feedback Just going delivery the the proposed customer and to that project, forward? at regarding does plans legal what's challenges that schedules [indiscernible]

heard We haven't anything.

any we anything from else. feedback from -- the are or don't haven't we -- customer So heard we

going. keep we So

Okay. towers. any treasury for the And so just around the inputs that question, previous piggybacking the from expectations the off credits the -- -- additional changing

changes your you're utilizing So there's at guidance looking there's not into your you're -- no your XXXX, expecting any how guidance then? -- for tax for so credits

that, Alex. take I'll So

similar we very for So account credits, XXXX. recognize how tax our and to

cost We in rolling a those as sales. of of reduction are

we about So revenues think no to tower, expect that. to profitability. holistically change really along in the credit, and grow with about and X-section wind to equal. we to the of that. total all there EBITDA ramp the is else But credit. credit line generally, things, the wind And generally, business the we tower I've as things in grow being as regard as those in talked total we for turbine, the size can you tower, the growth, manage would impact are expect tax Probably tax I see before, or aside, the wattage it X-section think tax that in revenue expect we Certainly, of but with grow a credit

impactful overall grow but in because not that our to going XXXX. it's to line it's going revenue, in to add growth EBITDA certainly to with So margin

just one more Perfect. for me. And

guys -- price any You Is increases? for going midyear considering XXXX would price talk into about are momentum aggregates. you

increase price a year. of the middle the do we Normally, in

we expect So can. we to continue prices yes, to raise wherever

it's would guidance, in Alex, juncture, approach. into And year, the very roll so taking given our just certainly this price-disciplined but I early we don't those say, at a

Loop Markets. with next Shmois comes question Capital from Our Garik

quarter. end and the would the What low end offered? range could revenue the happen on that have hoping, go was within first, high to if of X% reach your to you variance to Congrats the I XX% over you've guidance. the

some can I lot if of for you of apart I'll you. pull a know. as that, parts, take moving There's it See Garik.

I'll good there. as and businesses, backlog got we start We've cyclical think visibility. I our think maybe about

plans, We've XXXX. million said for think business, substantially have $XXX order and we're production for barge you that when XXXX. So We our is we backlog end at about delivery. of inquiries XXXX taking our filled of all the

the you marine we ramp, backlog. where So look in at revenue our at we XXXX, finish components have addition to you our look

close So the barge be growth in you approaching revenue XX% could to business.

With is Likewise, about solidified, the have that. we we comfortable wind, backlog for XXXX. pretty good feel that visibility in

So if upside additional to the wind see orders. I we don't potentially any backlog. take risk There's

focus us I for on for think really beyond. orders and is the 'XX

there up. I a risk upside, wrap I'd with associated lot the somewhat potentially on businesses. of say some Utility, growth wind when But comment limited Antonio thing. in more not for 'XX with barge same 'XX downside but or those let I'll on and

We have a good backlog.

We have a shadow utility comfortable. backlog that we single-digit don't include growth -- in revenue feels is reportable backlog. in High structures

on We Antonio the will a we We've got construction. confident start the used said, with outlook, some very weather. outlook, then And inorganic to XXXX. demand feel see contributions that. that as in in rough We're

think next in in XXXX. you the in get year. drivers piece more had in have X% XXXX revenue Maybe we inorganic points way could we confident think a top single-digit growth larger is expect of to the backlog. we maybe pretty we basis close top area to is last a But That strongly year. in or about I high one that tailwinds that in from in maybe the line was line so don't infrastructure XXX slightly inorganic, construction rolling see feel to construction the demand growth and of that the revenue for we where business

happen, going the people, mean need the a do that a There's we up would to it to things good up constantly the But a know but other I year. facilities, is The lift to heavy it, only it's and the year to thing can I products. for produce thing be we always think, we perform and how side. have we news, well is it's we of be it's side Gail's everything And because that demand there. always do successful. risk. to train need And I for And lot people. ramping comment a the need hire to the us It's to always add to is demand we risk. to

I on just appreciate opportunities. I That's up follow want growth great inorganic that. color. to the

that I in was fourth just clear, off, that fourth first recently think the in stronger the guess be one. in announced assumes the in Products, acquisitions South growth inorganic to and the both well the Florida. quarter as quarter I Construction

just doesn't to I acquisitions. confirm include new want that, and any it So

opposed just are be as as you markets Are follow-up acquisitions to looks new maybe about the to expand that want just Maybe then Construction XXXX. speak And to just that about thinking in you more Products? how regions to talk And other are in in Or you a within now? to that you that, platforms. want how broadly bolt-ons in? there

any guidance not the from Last The first previous correct. had does on coming You're acquisitions. little slide inorganic include EBITDA new acquisitions. we year, very

more costs things. made the to end this it at integration year, them So of because and little we the these year. expect a some And acquisitions, we There's takes time integrate them.

to start accretive expect in do takes our for being XXXX. them we to little a be accretive, time but to them it normally, margins So

see ones. acquisitions. time. of course, the in I like interested bigger, would before, On said we'll Of bigger bigger we but ones? future I've we something most that. we in be When it They're say available it's -- -- the not do -- like

of good are one As we ones, that of buying at are allocation. capital the things seen generate investors. the multiples is some for the that you've acquisitions we're larger buying paid and believe value our we multiples these we being in believe for believe And in disciplined

continue to we'll acquisitions. look So for

presence. platforms other have And regions. are We regions a a find additional at On for looking in we're can still in also the we interested we bolt-on do prices. them side, still several if reasonable not have larger where we

only ago Tennessee. Texas, we in lot can had X we years a along have in -- opportunities but Coast, it to capital so redeploy more today, Florida, in in Gulf we than Texas. in the And in we Arizona, Today, with California, redeploy when were

we we So expand. nice small are at can prices. platform a And get to that good we these need reasonable building at buying opportunities

inorganically, see and need Structures. product gaps There's fill. capital of in We do in both the to portfolio that we're organically sides also our equation. redeploy to can or We opportunities we Engineered it working

you'll on the think continue us I So market. be M&A active to see

this no participation. time. Fourth further Arcosa for at conclude your We you This Full Earnings Year the thank have will Call. XXXX We Conference and questions Quarter

You time. may any disconnect at