Arcosa grows earnings ahead of CRH acquisition - Aggregates Business
Image: ArcosaArcosa improved its aggregate profitability in the second quarter despite heavy rainfall affecting volumes, as the company progresses towards its acquisition by CRH. Arcosa improved profitability. . .
Image: ArcosaArcosa improved its aggregate profitability in the second quarter despite heavy rainfall affecting volumes, as the company progresses towards its acquisition by CRH. Arcosa improved profitability in its aggregates business during the second quarter of 2026 despite heavy rainfall that affected construction materials volumes, particularly in its Texas operations. The US infrastructure products company reported second-quarter revenue of $US658. 7 million, up 2 per cent from $US647. 5 million in the prior corresponding period. Adjusted EBITDA from continuing operations increased 5 per cent to $US145. 9 million, while the adjusted EBITDA margin expanded 60 basis points to 22. 1 per cent. Arcosa president and chief executive officer Antonio Carrillo said operational improvements helped offset challenging conditions across the company’s construction materials operations. “Our aggregates business continued to improve unit profitability, which grew 5 per cent, through disciplined cost management despite disruptive weather and higher energy costs year-over-year,”he said. Arcosa’s construction products business reported revenue of $US357 million, a 1 per cent increase, with contributions from recent aggregates acquisitions and higher trench shoring volumes offsetting lower revenue from its organic aggregates and asphalt businesses. Freight-adjusted aggregates revenue declined slightly as volumes fell 2 per cent. Organic aggregates volumes decreased by mid-single digits, primarily because of increased rainfall in Texas, while freight-adjusted average selling prices increased 1 per cent. Despite lower volumes, aggregates’ adjusted cash gross profit margin increased by 190 basis points to 48. 1 per cent, while adjusted cash gross profit per tonne rose by 5 per cent. Arcosa attributed the improvement to a 3 per cent reduction in unit costs despite higher energy costs. Construction Products adjusted EBITDA was broadly unchanged at $US100. 2 million, with improved aggregates profitability and higher contributions from trench shoring offset by lower asphalt volumes and project mix within the company’s asphalt paving operations. Arcosa also continued to reshape its construction materials portfolio during the quarter, completing two acquisitions for a combined $US24. 9 million. The transactions added recycled aggregates operations in New Jersey and expanded the company’s presence into Colorado. Arcosa’s latest results come as the company progresses towards itsproposed acquisition by CRH. The two companies entered into a definitive agreement in June under which CRH will acquire Arcosa for $US150 per share in cash. The transaction is expected to close in the first quarter of 2027, subject to Arcosa shareholder approval, regulatory clearance and other customary closing conditions. “We continue to work toward completing this value-creating combination while staying focused on delivering on our business priorities for the benefit of our customers and stockholders,” Carrillo said.