Arcosa (ACA) 2 Aug 242024 Q2 Earnings call transcript

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

Second Quarter 2024 Earnings Conference Call. My name is Britney, and I will be your conference call coordinator today.

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

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

we as provide and joining strategic update. quarter everyone, you a earnings will Today, XXXX well morning, second discuss as Good results Arcosa's thank us. for

strategic Gail quarter will brief details discuss and for me Stavola actions additional Antonio Gail Construction questions. guidance. Then With CEO; we acquisition will are results comments portfolio-enhancing Reid and begin Carrillo, results update. Antonio CFO; today some on Materials. second our our Essl, financial and and for before provide on other the yesterday, with Antonio the President Peck, we call open Group will announced President and

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

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

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

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

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

Thank for Erin, everyone. time It's exciting Arcosa. good an and morning, you,

our vision long-term advancement quarter several basis was to events, by steady on our a the the attractive complexity to markets second of and grow cyclicality demonstrate strategic reduce combined business. of Our in highlighted which and

Let's record adjusted start while margins. we X. strong announced and EBITDA expanding revenues results, adjusted posting Slide EBITDA, Yesterday on financial quarterly

the We end XXXX EBITDA raised low full of range. adjusted year also our

healthy the ended quarter sheet. balance with we a Importantly,

value-enhancing accelerate our long-term We actions portfolio announced also to strategy.

into to history. Stavola the We have entered acquire Arcosa's $X.X largest billion, agreement an for in acquisition

As a geographic nation's markets. materials our largest Stavola to footprint with exposure leading and aggregate-centric increased vertically-integrated construction into the expands infrastructure-led MSA, lower-volatility company, end

transaction $XXX for June Products Construction steel sale And We would expand would an also consideration adjusted XX, LTM basis. consolidated total approximately points. Arcosa's of forma XX-month and completed of executed a LTM a our adjusted divest definitive to on million. EBITDA pro represent or business noncore basis last margin EBITDA other forma XXX components Pro for agreement assets the of the of as XX%

As announcements, we our with will strategic X these vision. discuss today hear align important you that major themes

First, our businesses momentum. strong have

let right leverage. our more will how businesses I on that and additional Arcosa to flow our a transformational a Second, we our color the acquisition performing. take visibility and we with strong with later, and cash fundamentals, market is divestitures and acquisition optimize to decisive temporarily increase time discuss actions And detail is enhance taking solid the third, ready the on team, are but of the quality are some our great divestitures give record, in you good a me track announced, earnings. portfolio

X. Turning to Slide

April, operating cyclical our utility business. On of underway in including quarter is in margin progressing acquisitions, the we basis, adjusted Ameron improvements within are year. completed acquired expansion. by was Second the of which structures complementary in and the grew an integration contribution Florida, our with fit XXX well, bolt-ons from strong recent specialty increased we EBITDA in adjusted last EBITDA recoveries led and aggregate augmented The reflecting Texas and and accretive basis businesses existing footprint. XX%, by Pole consolidated Arizona double-digit we points and This generated and Ameron our revenues several which organic we growth, pleased XX%, materials Products, market the

and our of to Also first less performing wind towers the line delivered we note, New with dilutive plant is ramp in deliveries up. as Mexico, margin from in Belen, new which become expectations should

together control, business to elevated to for pricing benefit volume compensated the headwinds particularly with continues aggregates which strong rainfall, in cost Our during momentum from quarter, due disciplined Texas.

has and remain Our very strength with which and of infrastructure-led resilient strong year-to-date in positive. scale benefited second our We're our company, in platforms. businesses trends increased results pleased the demonstrates more the performance our from underlying quarter the very

commitment see, As like you an quarter extremely on in accomplishments like incredible same this these Gail? would Gail great had employees I a second second productive turn all to quarter. time, detail. we results all recognize to our transactions. the everyone I for more to call can while, thank work behind see to transformative the executing to the for want discuss our over quarter and that I fantastic is would at their the to company. delivering

revenues contribution. split Thank on a acquisition freight-adjusted X%, organic Starting increased evenly second revenues everyone. Good growth begin between increased with and X. morning, X% you, year-over-year. with Antonio. Construction basis, Slide I'll quarter Products, On

the quarter quarter. impact expanded businesses. primarily margin due Second up transuring Freight-adjusted and segment recent and points improvements XXX specialty accretive increased our the EBITDA materials to to XX%, sequentially the year-over-year segment points XX%, EBITDA acquisitions XXX operating basis adjusted basis first in of and from

overall recycled both includes average in the which pricing from digits rainfall remained constrained down digits. with in double to business, low Elevated prices. aggregates, selling contribution second the quarter. were low organic pricing quarter. acquisitions volume volumes mid-single was average The aggregates volumes and accretive our natural single up organic momentum strong were digits and Total to Turning down

has when However, been favorable demand conditions normal. are weather

in resulted specialty freight-adjusted year-over-year. increased revenues low growth modest digits, acquisitions adjusted double approximately strong accretive volume EBITDA low margin higher segment. Operational double-digit business pricing plaster. for gains organic contributed adjusted resulted driven by half and margin higher accompanied and year-over-year in growth, in and The materials, aggregates impact of Within by EBITDA pricing improvement recent higher the and of the improvements lightweight this in in

on Operating business our Revenues in and improvements shoring in higher higher resulted increased expansion. volumes. trench adjusted EBITDA margin

wind during the in the grew Ameron by supplemented volumes and to due basis revenues of X/X XXX utility and in the margin in higher Adjusted tower to accretive XX%, Moving Structures, impact period. increased which about outpacing Engineered Ameron was from points. wind EBITDA the the XX% drove recently business, increase growth organic expanded utility of both towers contribution segment structure structures revenues, increase. and Strong the acquired

points was X in up related Mexico sequentially, year-over-year to and within at margin new and utility and New Florida. XXX due from roughly points basis and Organic basis improved facilities structures ramp-up less our dilutive margin approximately XXX the impact

XX% with billion for new this ended Order year. wind orders to and during deliver the structures backlog utility remains with structures towers, during a have related In activity the remainder we of the in wind active not future quarter, attractive expect discussions continue book quarter healthy margins. $X.X but our utility, any needs. of to We and with on we did customers

segment business. a from $X.X excluded that recognized This from sale has adjusted facility gain a EBITDA. been of million previously the gain supported nonoperating of we divested Finally, a

barge by basis as increased roughly lower XX Segment Turning components revenues to driven Adjusted margin increased mostly offset Transportation were Products. by was EBITDA flat revenues points. barge and hopper higher expanded revenue. X% steel volumes. by Barge revenue X%, higher segment

change As expected, margin first of declined production. to prepared barge sequentially quarter to the as one from over facilities barge tank our

the barges momentum tank representing quarter a we remains continue $XX to demonstrate Orders orders During for third primarily a consecutive million, liquid large barges, of inquiry totaling book-to-bill X.X. for quarter, and received activity approximately solid. for

at quarter large the total to the and of the expect the end million, at $XXX start approximately the we Our deliver during was year, remainder of flat of backlog XXXX. XX% roughly

Year-to-date, $XXX year-over-year of take increased free due requirements higher year-to-date balance receivables sheet flow which This $XXX to our have $XX related capital to flow, the is period. briefly translated cash generated $XX down working prior million, year. down businesses up. cash million, expenditures slightly our of cyclical the Year-to-date were and capital flow into I'll from moment a up we prior million cash $XX to million as position. address operating primarily from million ramp

debt are We I'll our quarter $XXX the year CapEx full of to guidance conclude comments a of with to net X million some with support guidance. of million. maintaining sheet We million. of our $XXX EBITDA X.Xx increased available liquidity adjusted XXXX with to Stavola, ended on balance the Slide on acquisition healthy and $XXX

with year-to-date pleased our very are We results.

and raised EBITDA low performing our our and healthy full XXXX tightened of year revenue range Accordingly, businesses guidance Our we guidance are adjusted end range. well. the

$XXX on sale of The represents new Antonio is expansion. turn midpoint to adjusting land it for announcement. further basis And for of anticipated with million actions. XXX market back yesterday's the adjustment year-over-year, before points XX% newly the guidance this adjusted revised strategic any announced I'll growth now gain EBITDA on for discussions

Thank you, Gail.

to which our enhance earnings. of the Let's strategic our quality now announcements, yesterday's move optimize and portfolio

and products The $X.X our position XX, core Slide we leading with high-margin York, the platform asphalt billion New Stavola, MSA. Jersey vertically-integrated provider materials are New acquisition of largest construction markets, strong to operations. announce aggregates excited on its the with of enhances First, in a a construction nation's acquisition

in we cash With be in Stavola's have neutral per benefits. and acquisition purchase we LTM EPS to to and XXXX. XX.Xx will Based adjusted the expected transaction EBITDA anticipate quarter. to multiple, free million, expect net the the HSR and been net including XXXX, price represents in cash to financial regulatory fourth share, close attributes, tax multiple flow and gross $XXX cash of approvals accretive EPS obtained, accretive XXx immediately the on

and we with FOB to Turning of is XX% Aggregates acquisition an Stavola prioritize provide which XX. aggregates-led, operations are that its integrated adjusted EBITDA, hard highly in attribute Slide asphalt the an quarries. screening. rock is

products basis overall, business the has accretive The Construction company for that FOB XX% and industry-leading tons annually. They part, located deliver estimated on built advantage. of adjusted a also X and margin recycled X the close reserves. tons X.X years company plant. hard to to XX demonstrating strong most costs a facilities of million million has to Stavola's approximately the been Products their segment EBITDA competitive for rock network is XX highly aggregates have approximately an rock of in which, has LTM roughly plants, strategic The our asphalt XXX hard produce and strategically quarries

continue Stavola look talented forward brings run company, to to who family. will them Arcosa the to welcoming and management a the team and experienced we

announced ways. has our steel the sale also of pillar Management. cyclicality industry, and our XX. complexity the portfolio American cyclical long-term We're Turning that we to to of inception. Slide strategy railcar our our since Stellex businesses of optimizing a Reducing our primarily in one of Capital portfolio North serves Yesterday, components, other been the

business revenues small $XXX core XXXX our LTM was million, of the With Steel to about and Arcosa. Components not

COVID as expected to market the profitability -- EBITDA and the close in business to XXXX the Arcosa and third business dilutive conditions EBITDA quarter. improve, Transportation XXXX levels at to in downturn, overall. adjusted to Products The margin Following breakeven the LTM both ran segment is returned can roughly with transaction

years. new the I they the of will Pennsylvania, you owner support the on able At a personally our look a in over missed get same to they to for this many the and incredible found forward Steel great have goals Components employees thank rail team. things I the know privilege had will I the the by will many to our of business. to be in all time, achieve the seeing to have want business Arcosa be with of employees all who we done future. market, the work focus

to second Steel In portfolio we the our business, the continued in addition pruning selling Components quarter.

nonoperating sold in facility Structures. First, Engineered a we

debt. sold $XXX a operating which used the business, X loss. for asphalt to consideration divestitures subscale a million, also and reduce We at was be was Total will

equipment the focusing we also on aggregate our small other As margin, quarter, a West underperforming the Texas in and we operations to closed redeployed locations. during continue

in of to for rationale of footprint, terms transactions. strategy strategic geographic us acquisition, for terms in The this a XX, of Turning service attractive and in of MSA in which It's closing positioned color country. is with approximately include XX% presence is Stavola New sizable growing not the in infrastructure-led transformative me company fit also market largest some located Jersey's on overall Slide the ideally facilities population. the will well to upon but markets. scale stable our let in key additional a only add to an a the excellent our

Additionally, while a that portfolio premium attractive higher earnings our demonstrate our to aggregates-led opportunities business we reduce platform higher transactions for financial attributes. Products to Construction optimizing commitment acquisition increasing and believe earnings this will scaled simplifying provide for an These with -- future a to higher growth and valuation value-add to exposure produce the profitability. represent

geographic Arcosa's expanded XX shows including footprint, Slide Stavola.

We the up only will of top from now XX in X XX in operate MSAs, XXXX.

XX. Moving to Slide

demand can asphalt, both infrastructure -- providing demand, You company drivers. the aggregates The or see of breakdown to and Stavola over-indexed stable in in demand. is

points XX.X%. adjusted Slide XX mix our margin a LTM of EBITDA acquisition to accounting -- our enhances how segment by for pro products expands Construction has Construction The forma aggregates-based Products XX% pro basis, shows nearly basis the portfolio aggregates portfolio. the and revenues. Products EBITDA segment's forma adjusted XXX On

long-term Stavola drive the our will roughly This At as on X/X the important on account This expected execution of Slide Pro our in strategic these of marks accelerate growth. Arcosa point as and for time of of of shown Components the Steel business strong Construction adjusted XX. Steel total Products our taking about Construction of total actions to sustainable an Products accounted XXXX, divestiture underscores the X/X actions our We're this that Slide and EBITDA. EBITDA. for separation the in Components, acquisition XX. inflection strategic for acquisition sale are shown forma vision

we have added fifth a strategy. our pillar to Today,

prudent near be priority Our balance commitment deleveraging. term. to will a sheet the healthy in This through our

sustainable over and years, we the Construction expand terms X in of the business, our product strategically XX, regions, attracted past market geographic to the fragmented lines have shown fundamentals, both Slide structure. and industry competitive to are on invested As we Products advantages because long-term

To date, on $X.X billion we aggregates-led focused opportunities. have invested approximately

our that beyond transformational price investment targeted This have our acquisition $X.X leverage in term. Construction Products. nearly of increase the Stavola near doubles range We purchase billion, in will

a this right on to I take take few minutes Arcosa why time So to increase temporarily discuss to and leverage. acquisition like would for is the this our

results and recent healthy spending. is each our our demonstrate, our performing market of The as bright increased well. businesses for First, infrastructure with one businesses outlook growth are fundamentals

multiyear positive are up both cyclical our current for barges, market and we visibility. seeing Furthermore, by and cycle businesses supported wind indicators, our a anticipate backlog towers

us increase confidence take Taken cash flow together, which we financing. sight have on of generation, good additional to line to gives

we expenditures. in end are X capital projects Most complete be Second, have of years, for track investments or the to these by past made year. on sizable growth completed the of the

plants growth cash these ramp organic they up, will to As contributing incremental provide flow. our and start

plan the time, near focus term CapEx At the debt. same on reducing we and to growth in reduce

reductions. opportunities We to on working by also cash capital focusing generate have

completed we successfully years. Third, have past X over many the acquisitions

position Arcosa integration. We of have financial to take size that effective our come an platform. healthy team and opportunity this and systems experienced does allow improved advantage for not often around and in An grow a is

in cash, and paid will be The we purchase place. in have for Stavola price committed financing

a is focused forma sheet. For plan leverage tap basis, the we are delevering to X.Xx, debt and straight On market. ratio our balance the pro we permanent long-term financing, on

of We following have debt track you a XX. see as record down proven quickly acquisitions, on paying of Slide can execution

financially within date. disciplined balance sheet. to With as ratio capital leverage of a return priority, goal committed X reduction maintaining closing and net allocation the X.Xx We're is debt a of to acquisition to months targeted our XX healthy firmly our near-term to

which Arcosa focus In call and strategy that Before made significant X return working, me is sustainable my Q&A, on our profitable growth. opening primary almost has and progress. to for we years, the continue to let message, is

additional to results half we and for stakeholders. are our our all with XXXX, positioned of value for create the well pleased are long-term first We

for how As about potential we the questions. and I take been ready reflect initiatives am come on now have we've I most the excited and far underway XXXX the ever Arcosa. We're your of I beyond, to Operator? future have

Ian [Operator with Instructions] Zaffino question take from first Oppenheimer. our We'll

is a around around on medium do to large all of acquisition, location, a as know as far that kind ask it's in I about going into opportunity everything to markets, getting further little term wanted I [ this but to consolidate portfolio? have market some on there maybe Congratulations so? ] the here. a be the we do know I term. think into the to this to market? the But how and how longer platform you it Is do deleveraging fits you,

you period opportunities over I'll time, look It's at a This a stable give Ian. years. very, very high Yes, but done the other financials to York, good company expanding only consolidate market. you When long several some of market has very are And margins, it. around very New main stable are market. with color, in the the have New a of a they last area, there great job over Jersey quarries not the also

there are So opportunities.

very the thing region, the have We the you future. interesting But opportunities that's of also big many guys larger compete peers. we of some like. competitors One to like which against is bolt-on at the when are there something it, look for smaller around you in some the

As implement our right is priority to our grow and I other cetera. before, improve efficiency, now focus. are actions opportunities et that's said there to And deleveraging, going and some organically to be

from has them, company learn there and done we things from but job also company. to things This to this a fantastic we are also there But can them. learn can are bring

it. about So very excited

order order book Okay. And the on the as sides. as both far inquiries and then just backlog in

I barge about a that And understand the expecting steel so, well. you there? then we pretty before there customers, business? as that mid-cycle we us million. be EBITDA million or can they as do $XX we to get side, order with you've large reach to deal? And in seal thrown if that where prices? discussions how On now And of how do EBITDA in where side, maybe that talking of as we get business, $XX north Are on the level mid-cycle are guys process a how number in way? $XX a at million for barge Or wind are out something coming we think maybe are far help Maybe now your

Sure.

few said we wind here business consolidated million start to is very expect with get million $XX a don't I've times, and $XX It's a me this that a there. wind. Let market. but

players the smaller in X really in of and some there's customers. players big So U.S. terms

And passed the of years that orders the a we're Inflation because it's time I people and the takes couple get for specific large have built ago, think specific develop with was a towers, projects just for about talking, time when region, to for think Reduction orders it country. there. order And we a get New and general, But normally, specific get -- developed. a that there's part for for we -- of these a not spending being you Act other if wind farms to in we for projects, And developers certain project. is many blank a Mexico order time

it's we it -- quarter, quarter continue is in not is production. -- as expect get or might -- think in it with they their more of be them, to amount said discussions clarity Gail but projects ramping size her and the this plan script. on et book And our projects, of build we're I our So customers going our the cetera, as up to and next

we before, operate said relatively I've low still. a As capacity

see we into you or expectation additional year good now, backlog so, I year. over the to that's over us Right XXXX. the get very backlog. think And So visibility have additional should next next get our

to be away So a we give to spot really don't we the good capacity. to want are in able --

to customers have negotiate think the agreements year. very good next I a our over with position we nice

how barge robust mentioned When to and dry on more very lot the the you liquid we Gail liquid demand. barge barges, a is barges, age the same quality they cargo. On demanding see liquid barges. continue look customers fleet their are at the -- on And for the as keep latest about normally, report, up specifically, liquid very, barge

weeks, of we City, have things. our that, seeing we're the as first cargo So couple mentioned, cargo. in Ashland to launched dry in XXk really Gail transitioned last our in good liquid We plant from

be both in are So products our the plants they sweet need of their of making. to spot

it's mid-cycle mid-cycle, we're the or come previous in for think replacement the terms age about very the of of so the you on, focused EBITDA, that's needed. bar the high I And seeing again, million to $XXX because fleet so, see that's of the million with something utilization going of what $XX demand when fleet, the business right high. around the and now, the

focus What at to and down our margins Steel come prices lot. is prices and helping. sell have nice to it want on a a able capacity conserve place. be Steel we are

market those gaining to So -- on I think converging we the margin backlog. and are continue us -- things for on are pricing to gaining focus

worried that had book-to-bill I'm not a low quarter. this So we

we're think I spot. good a in

think for And have I we when margin get really we we're XXXX. is we focused what orders, the that right good get sure into them. visibility on making

We'll Company. take question with our Julio next Sidoti Romero from &

on the on is Congrats Julio. This for quarter. Alex

On simplification? the portfolio you about acquisition, think have would further us how

Well, Alex, I to part of company. our as reduce -- and the as think of is the strategy, cyclicality mentioned, it's simplify always I

for always think I opportunities simplification. there's

the said it it life selling its sometimes I As own, times. I've both the before, takes of mentioned several M&A and a buying on side,

want -- not it sometimes available. you when things buy appear does to you you nowhere, that Sometimes want out or of it's something,

be when right. thing the We to to business sold, you buyers to we've right conditions place. Same the in The want -- have need every to be sell. have

tank So to to committed, company. I that as But sold -- we we sold And far are Two we going show our as simplify will Steel time. show think just continue Components. business. years it's you ago some we to the take

move we'll way. continue So that to

it right at the we to have quarter did If and to when we capital time, but allocation. move business, in the have the we continue also portfolio we same as on company, sold the direction. to it we simplify this also, places depends the And put our have,

it's is but strategy I I -- say, working. would think So it's the fine-tuning,

some clear to move I towards But to way. time. have think that take going continuing some it's we path

Okay.

to guess deleveraging? post-closing are but I So you further focused the going M&A, allocation, be or simplification ruling capital you're summarize, on not out to

Yes.

I should We're see all not we've reduce I to think maintenance to these focus CapEx. CapEx, reduce growth We're -- our going building. on you mentioned. We're going We're CapEx plants deleveraging. reducing fees. that us as finishing our been

goal will reduce the be our And able that, to we And leverage. our with do strategy. M&A continue to be once we'll

Great. any on bit. Yes. this just an you impact give and starting little And switching a IIJA, gears whether Could you're or us at point? update to feel that

Well, don't is anecdotally, I've bidding specific But and it's, anecdotally, seeing know as we of said, the -- where many letting from. our in that get states. projects you we exactly coming more and money we're more

say projects would it's more we being larger than think see I and I slower awarded. expected. by little little, But So more been

So had of this a I you volume when it at I is is portions think do how I can tell reduction much seeing the we're coming. quarter, look cannot of weather. lot exactly it. to you you tell what with But

weather her be we business and in script, the momentum demand see the demand continue strong to continues our is in As board good, mentioned pricing Gail across good. And when to strong. is

So we're happy what overall, seeing. with

Grooms our Inc. take next Trey with Stephens, question We'll from

Trey It's Grooms.

Stavola sure. of for on as a guys the First look kind acquisition. It you great off, -- like looks congrats and fit we

us give models? of the kind seasonality your there of at about could as in we business our So change we that kind of as you look think Stavola, could somewhat. Any guessing I'm color layering

certainly that. our a It's with business. seasonality We're in Northeast so Yes, our construction is Trey, seasonal being the seasonality brings little operating point. bit to [indiscernible] low it to today accustomed Gail. as take I'll more

impact think looked to as we've it's about the and few our margin impact. absolutely as our basis. maybe the maybe basis full years, you in of pronounced. I'd say it But segment, some points XXX at exposure larger see year QX pronounced is a average the probably peers QX margin. segment accretive of little weather, relative more last but impact, step-down seasonal our the as not colder as Maybe you over about But looked we have on year on But have will XX%, full it will to that an see bit that a on dilutive

Yes.

outside I the helpful. another for guess last business? legacy night, going the guys as Gail, the one kind portfolio guide? of Clearly, Okay. half with maybe on lot for back as That's a the half the super the the us announcements you we on give guidance. to you portfolio. of Any updated should anything Also, aware could cadence the for it have color be there the think on updated But we the relates of about back and cadence on

Yes.

year, we've of said half. half as at think to start always first I stronger the than the our our second going was be

very a if our with first see are We look half. at pleased the you at results. But slight the implied, EBITDA tick-up half you midpoint in for the back

than said, year we've cadence the as a bit little during the is run we've a ramping within and be Engineered perspective, I been rate from may would more visible say what Structures. just,

in Florida Belen, the seeing So the our you're plant. concrete our and ramp-up in New seeing you're ramp-up Mexico, pole

in I the of patterns quarterly more fairly Otherwise, consistent Structures. Engineered second see our would relative cadence. I to half it's So think improvement

Stavola, operate and few York the of over last market New We've Perfect. kind circling markets the Kind like last for Jersey the New just to in. of look of And at me. pricing that heard one historically? back dynamics Okay. What that looking they is maybe pricing has several might these there, compare pricing how of that in with these well, in hands anything years some to markets to any add maybe legacy that really over market. improved, color? years But business, of or the assets kind changing last the

Trey, is This I'll that one. Yes, Reid. take

of last the years over improved market. in has pricing right, couple that You're

in up volumes hard volumes rock As of are reminder, a the majority these market. that

in in So from portfolio. some with hard we opposed or expected line locations be rock, our would see what attributes elevated legacy as pricing to would

a in as the I'd experiencing have, line other year. But couple say, our price of performed market a increases overall, well and has markets

expect we'll continue that, and that going We to well. support forward as

going So portfolio, to of forward. these expect adding rock the seen the increases. mix, those couple that with last And definitely, our we hard have pricing locations years over would

it peers our forward. up there you've like as competitive of but remarks market in consolidation bode in some market landscape. of that some well, think going competition seen mentioned not the with for Disciplined acquisition, well. some his well recently as that market, larger Antonio We other in this will which that we only

our take Shmois with Garik We'll Capital. question Loop next from

on everything. Congratulations

Stavola, or are the if should we the either on on Just wondering any anticipate side side. synergies cost commercial there on

Reid Garik, again. Yes,

geography-wise, we're again, of up extension is the these no come the current So saying, about to an really locations. our there businesses, but we've plant adding management excited excited really It this footprint acquisition. expect currently efficiencies obviously, been all do with We from as MSA. overlap current operational about our some is And largest into there. portfolio truly team, the

to So incremental volume really our and business. incremental benefit

are growth last in that that business some looking there is up in touched forward opportunities since again, we've earlier that to expect and experience additional recycling we are Arcosa, expansion to. a some X we call been on the opportunities, the space. very to There in there years and active as are over The business becoming X

newer in stages locations aggregate I'd their the as in market, facilities. the of there's aggregate the ramp-up of early facilities and well, Some X say are

hit future, then in the Antonio consolidation some So in looking opportunities And forward potential locations greenfield the and those as then growth to again future areas. potentially on.

some the synergies Northeast up So footprint as But do leveraging extension really some efficiencies we this overall benefit to businesses together. expect and market. overall, bring in the we say, operational our I'd potential,

Okay. that's No, helpful.

Stavola. more Just follow-up one on

more As legacy service, it focused any is it a fairly far infrastructure legacy that than comparable is or operations, different end-markets to Arcosa? business it the is as little bit the

heavy XX% of markets. in at you side as and asphalt more There's slide asphalt emphasis on look as XX%, aggregates on well noted Same the the deck, demand the additional business. replacement end-markets the but when infrastructure,

with but up different similar again, projects that So market. more infrastructure-led in

One not is the that's in are hired we market, the -- -- when did, thing One shape a this it's thing review Antonio. of many in to look interesting places. all the you analysis at the we and about go roads market, the consultants great

is of a which do maintenance, something that So attracted it has lot with us. to

And replacement. That recycling as then material are mentioned piece, that also is and is -- the for very There in the attractive. Reid is also recycling infrastructure demolition raw the large region recycling very projects happening.

So replacement, opportunity for in as also. to the piece a region recycling good of requires grow that we there's believe a us lot

think fits I it very, So well. very overall,

in Okay. question, Products. then maintenance No, quarter. last on strong in to the thanks. just region? certainly margin the I And Construction expansion just the Very can needs attest

Just wondering sustainability and to to if back how XQ, the drivers year? half you benefited the the can maybe speak in some the that that about and think of of

very year-over-year in take I'll with the Sure. sequential really a segment, both margin Garik that, basis. pleased the on and performance

some It's the of half really about and challenges good that a year. that We comments, labor my some in in improvement been came in Materials, some said the demand been experienced we've year-over-year last turning challenges operating I inefficiencies. never around from production doing work Specialty had As we from business aspect.

pleased with the business. -- have as these within our there some improvements take we We're very Specialty opportunity as Materials stride that hold. fully we additional Likely

as well. business in improvement similar We saw shoring products vein. our also saw, We a good

the so little If you ago, and over seeing inorganic point. acquired recall, between we're operations manufacturer there. a a integration we efficiencies really, a But this at year the the not Houston

And aggregates business, of biggest then obviously, very segment, the the performed that piece well.

I dry be be think having weather. it would consistently the there opportunity

pleased with optimistic very quarter. was very strong and we're very a what So

We'll Ramirez next D.A. take Davidson. with question Jean our from

Reid color you XX% and years? going regarding versus on provide of around Congrats Stavola, give or And just you of forward? the some expect sustainability the the color some EBITDA last couple quarter on you anyone, the the margin also, acquisition. could what could

been -- that. when business to the low last as take XX% the margin I'll you the of The for has whole. a over back couple mid-XXs that Sure. in years, look

that this And remain what's forward, we're balance LTM the for go and expected the only the with margins today but performance looking relatively market also forward we seeing of year those in would not so to expect what consistent. into and future,

and it's side So has past. a And the again, volatility of business it. what experienced and the yes, attracts replacement as that's us repair lower market to been that well that in what drives as us

little of have those We to and visibility continue. a then fundamentals because would bit that additional expect

color. more for been financials company little of year than We we've slower a while. also some XXXX, when with they see in this expected. -- in you talks was And a a give you the I'll saw little the the company

XXXX a hired we reason to than we So make was normal. little for sure understood the consultants that slower

in lettings DOT, And it the had issuing the was and slow for to DOT, do the for, very with COVID, projects, the the local region.

of So backlog and demand the that held up, bit. little things huge a had held were they that down a

So stayed bit but okay, the margins because of the down volumes came a quite that.

out last exactly came back XXXX very in that It soon of happening. towards been think months proved the strongly cleared, and see And up. proved -- until checked a you produced as can And telling of you those volumes consultant us $XXX came see that the they as levels. million DOT this I have that what's on back that bottleneck business June, we they the with So the things. XX all when

you I time, the see think of the very consistent. period So when long business over it's

significant expectations in the half? And staying for had there Texas within seems It be the what adverse like through Products, half. demand weather second first pent-up Construction your some we are should the given

follow-up a does volumes potential materially? increases just through then any are how second seeing up -- What to And XXXX? impact of you you And that half are price the that.

said Well, build the not can like the many they we road past in it's faster. projects, times, what

half, additional was some see demand gets that here up in the you it held weather Dallas, wet. first very sometimes by very, in especially So

good how But underway. year. there are normal So -- pent-up it's is the along the we're demand and sure demand seeing I'm are demand. is very volumes and versus not we needed as projects projects the much move

tell because not project up up faster easy just So a to And normal it's demand. much do you and with ramp hard we to really it it's versus how rain. were demand held pent-up just

the and the rain you of One So plants, also shut I would you But has is down remember, X costs. course. impacts. when on -- projects, say have increased

You the it of plant have down it shut to cost carry because you the have rain. of while

us. the think are things of should both I help -- So combination

we kind in year saw single the guess low second and the we at as quarters, start about I'd first weather. both had of down outlook, the had think those as full we volume I'd said our in we year say I volumes quarter. some we mid-single say, the of quarter And flat organically And volumes.

as us, likely is compared down mean low would we started So for flat the year now that really we balance, full I probably see what think single to the where year. on digits

to really echo of put that kind comments and And Antonio's volume constraining related. weather

the for course, with for volumes total quarter, the we the on Of here in the Stavola basis, volume did up we total contributions announced half of see a back year. X the year, from acquisitions

little does context, Are with regarding second -- you pricing? impact the a conversations how that add to just for And half? more your clients that any having that

still have having those definitely of of price and many increases like on We're continue those X. January July is, are gone feedback always to year. X stickiness receiving the next expected still are conversations pricing. year that out the ongoing, them, had on But increases everybody as of understand with look and into customers pricing to we'll We've conversations

very 'XX, set will Yes. into to up said for strong, so that low I and healthy gains we And basis, double-digit ourselves QX saw organically, year-over-year was as on as echo in we translate comments, increases. remarks, my Reid's XXXX. a price momentum for pricing

some would barges prices one more about just barges barge for Perfect. you forward seem are It steel that going activity orders. customers. move with the how that I thinking And for are motivate -- into given that down, outlook could should if Yes, environment?

before. have as I X converging, I think are mentioned that things you

X is the by also, replacement There is think of has going barges last are for the the business. positive and is happened overall, several some level one that's lumpy. being think really complemented refurbished. But scrapping. age barge I of And of when barge that low, are environment high The that the fleet X smaller over I that the when you I It's other the capacity, the piece about is low very not the years. everyone the backlog market But think share quarter. We're lumpy. of about going be our getting to think when there's think market down gets to every you pie. goes the or be book-to-bills is a market, orders because getting players and

becomes the capacity. the company are more a that has most market little robust, As we the

more, market. as replacement good the a I So conditions the for good believe let's getting market is say, are

be to is maintain really and goal disciplined sell biggest good capacity taking. margins and able order our be at Our our it to around a

So demand we're and we if coming we with going orders. to -- think be we're are steel get good good drivers, have I But prices really patient, to down patient.

in not visibility. hurry. have a And good we We're

We have good visibility. really

continue to XXXX business. So we're in the position good grow a really able for to to be

program in the Drabek to any further I'll over at additional closing turn for no the have We queue back time. remarks. questions or this Erin

today. for attention we forward support and have is Arcosa We work an time time and your exciting of lot to you your us. for you Thank look a next and of update. continued for thank our It ahead

This does conclude program. today's your Thank for you participation.

at disconnect a day. any You and have wonderful may time,