Cover and DEI
Cover and DEI - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 15, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-38494 | |
Entity Registrant Name | Arcosa, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-5339416 | |
Entity Address, Address Line One | 500 N. Akard Street, Suite 400 | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 972 | |
Local Phone Number | 942-6500 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Trading Symbol | ACA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 48,783,999 | |
Entity Central Index Key | 0001739445 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenues | $ 664.7 | $ 584.8 | $ 1,263.3 | $ 1,134 |
Operating costs: | ||||
Cost of revenues | 526.7 | 463.7 | 1,013.7 | 904.3 |
Selling, general, and administrative expenses | 79.5 | 70.7 | 148.6 | 133.2 |
Gains on disposition of property, plant, equipment, and other assets | (2) | (0.6) | (5.9) | (23.2) |
Gain on sale of businesses | (12.5) | 0 | (19.5) | (6.4) |
Impairment charge | 5.8 | 0 | 5.8 | 0 |
Costs and Expenses, Total | 597.5 | 533.8 | 1,142.7 | 1,007.9 |
Total operating profit | 67.2 | 51 | 120.6 | 126.1 |
Interest expense | 11.4 | 7.1 | 19.7 | 14.2 |
Other, net (income) expense | 2.6 | (2.6) | 0.4 | (4.5) |
Income before income taxes | 53.2 | 46.5 | 100.5 | 116.4 |
Provision for income taxes | 7.6 | 5.6 | 15.7 | 19.8 |
Net income | $ 45.6 | $ 40.9 | $ 84.8 | $ 96.6 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.93 | $ 0.84 | $ 1.74 | $ 1.99 |
Diluted (in dollars per share) | $ 0.93 | $ 0.84 | $ 1.74 | $ 1.98 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 48.6 | 48.5 | 48.5 | 48.4 |
Diluted (in shares) | 48.7 | 48.7 | 48.7 | 48.6 |
Dividends declared per common share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 45.6 | $ 40.9 | $ 84.8 | $ 96.6 |
Derivative financial instruments: | ||||
Unrealized gains (losses) arising during the period, net of tax expense (benefit) | 0 | 0.1 | 0 | 0.2 |
Reclassification adjustments for (gains) losses included in net income, net of tax expense (benefit) | 0 | (0.4) | 0 | (0.8) |
Currency translation adjustment: | ||||
Unrealized gains (losses) arising during the period, net of tax expense (benefit) | (0.2) | 0.1 | (0.6) | 0.2 |
Other comprehensive income (loss) | (0.2) | (0.2) | (0.6) | (0.4) |
Comprehensive income | $ 45.4 | $ 40.7 | $ 84.2 | $ 96.2 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) arising during the period, tax expense (benefit) | $ 0 | $ 0.1 | $ 0 | $ 0.1 |
Reclassification adjustments for (gains) losses included in net income, tax expense (benefit) | 0 | 0.1 | 0 | 0.2 |
Unrealized gains (losses) arising during the period, tax expense (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | [1] | Dec. 31, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 103.7 | $ 104.8 | |
Receivables, net of allowance | 442.8 | 357.1 | |
Inventories: | |||
Raw materials and supplies | 184.3 | 210.8 | |
Work in process | 53.3 | 42.7 | |
Finished goods | 168.3 | 148.3 | |
Total inventory | 405.9 | 401.8 | |
Other | 38.5 | 48.3 | |
Total current assets | 990.9 | 912 | |
Property, plant, and equipment, net | 1,415.3 | 1,336.3 | |
Goodwill | 1,023.4 | 990.7 | |
Intangibles, net | 313.1 | 270.7 | |
Deferred income taxes | 6.9 | 6.8 | |
Other assets | 58.3 | 61.4 | |
Total assets | 3,807.9 | 3,577.9 | |
Current liabilities: | |||
Accounts payable | 263.7 | 272.5 | |
Accrued liabilities | 126.9 | 117.4 | |
Advance billings | 32.2 | 34.5 | |
Current portion of long-term debt | 6.6 | 6.8 | |
Total current liabilities | 429.4 | 431.2 | |
Debt | 699.9 | 561.9 | |
Deferred income taxes | 198.1 | 179.6 | |
Other liabilities | 65.5 | 73.2 | |
Total liabilities | 1,392.9 | 1,245.9 | |
Stockholders' equity: | |||
Common stock | $ 0.5 | $ 0.5 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Capital in excess of par value | $ 1,686.5 | $ 1,682.8 | |
Retained earnings | 744.8 | 664.9 | |
Accumulated other comprehensive loss | (16.8) | (16.2) | |
Total stockholders' equity | 2,415 | 2,332 | |
Total liabilities and stockholders' equity | $ 3,807.9 | $ 3,577.9 | |
[1] (unaudited) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Operating activities: | |||
Net income | $ 84.8 | $ 96.6 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion, and amortization | 89.4 | 78.3 | |
Impairment charge | 5.8 | 0 | |
Stock-based compensation expense | 14.1 | 12.6 | |
Provision for deferred income taxes | 14.4 | 12.9 | |
Gains on disposition of property, plant, equipment, and other assets | (5.9) | (23.2) | |
Gain on sale of businesses | (19.5) | (6.4) | |
(Increase) decrease in other assets | (4.2) | (0.3) | |
Increase (decrease) in other liabilities | (9.7) | (3.4) | |
Other | (5.7) | 2.2 | |
Changes in current assets and liabilities: | |||
(Increase) decrease in receivables | (80.6) | (30.7) | |
(Increase) decrease in inventories | 21.9 | (34.6) | |
(Increase) decrease in other current assets | 11.3 | 10.3 | |
Increase (decrease) in accounts payable | (11.3) | 43.4 | |
Increase (decrease) in advance billings | (2.3) | 4 | |
Increase (decrease) in accrued liabilities | 16.3 | (6.8) | |
Net cash provided by operating activities | 118.8 | 154.9 | |
Investing activities: | |||
Proceeds from disposition of property, plant, equipment, and other assets | 7.4 | 24.4 | |
Proceeds from sale of businesses | 33.3 | 2 | |
Capital expenditures | (102) | (96.9) | |
Acquisitions, net of cash acquired | (179.9) | (15.6) | |
Net cash required by investing activities | (241.2) | (86.1) | |
Financing activities: | |||
Payments to retire debt | (63.4) | (5.4) | |
Proceeds from issuance of debt | 200 | 0 | |
Dividends paid to common stockholders | (4.9) | (4.8) | |
Purchase of shares to satisfy employee tax on vested stock | (10.4) | (11.1) | |
Holdback payment from acquisition | 0 | 10 | |
Net cash provided (required) by financing activities | 121.3 | (31.3) | |
Net increase (decrease) in cash and cash equivalents | (1.1) | 37.5 | |
Cash and cash equivalents at beginning of period | 104.8 | 160.4 | |
Cash and cash equivalents at end of period | $ 103.7 | [1] | $ 197.9 |
[1] (unaudited) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock, Common | |
Beginning balance at Dec. 31, 2022 | $ 2,184.4 | $ 0.5 | $ 1,684.1 | $ 515.5 | $ (15.7) | $ 0 | |
Beginning balance, shares at Dec. 31, 2022 | 48.4 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 96.6 | 96.6 | |||||
Other comprehensive income (loss) | (0.4) | (0.4) | |||||
Dividends paid to common stockholders | (4.8) | (4.8) | |||||
Restricted shares, net - shares | 0.5 | (0.1) | |||||
Restricted shares, net - value | 1.5 | 13.1 | $ (11.6) | ||||
Ending balance at Jun. 30, 2023 | 2,277.3 | $ 0.5 | 1,685.6 | 607.3 | (16.1) | $ 0 | |
Ending balance, shares at Jun. 30, 2023 | 48.8 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Retirement of treasury stock - value | 0 | 11.6 | $ 11.6 | ||||
Retirement of treasury stock - shares | 0.1 | 0.1 | |||||
Beginning balance at Mar. 31, 2023 | 2,243.2 | $ 0.5 | 1,690.3 | 568.8 | (15.9) | $ (0.5) | |
Beginning balance, shares at Mar. 31, 2023 | 48.4 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 40.9 | 40.9 | |||||
Other comprehensive income (loss) | (0.2) | (0.2) | |||||
Dividends paid to common stockholders | (2.4) | (2.4) | |||||
Restricted shares, net - shares | 0.5 | (0.1) | |||||
Restricted shares, net - value | (4.2) | 6.9 | $ (11.1) | ||||
Ending balance at Jun. 30, 2023 | 2,277.3 | $ 0.5 | 1,685.6 | 607.3 | (16.1) | $ 0 | |
Ending balance, shares at Jun. 30, 2023 | 48.8 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Retirement of treasury stock - value | 0 | 11.6 | $ 11.6 | ||||
Retirement of treasury stock - shares | 0.1 | 0.1 | |||||
Beginning balance at Dec. 31, 2023 | 2,332 | $ 0.5 | 1,682.8 | 664.9 | (16.2) | $ 0 | |
Beginning balance, shares at Dec. 31, 2023 | 48.6 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 84.8 | 84.8 | |||||
Other comprehensive income (loss) | (0.6) | (0.6) | |||||
Dividends paid to common stockholders | (4.9) | (4.9) | |||||
Restricted shares, net - shares | 0.3 | (0.1) | |||||
Restricted shares, net - value | 3.7 | 14.6 | $ (10.9) | ||||
Ending balance at Jun. 30, 2024 | 2,415 | [1] | $ 0.5 | 1,686.5 | 744.8 | (16.8) | $ 0 |
Ending balance, shares at Jun. 30, 2024 | 48.8 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Retirement of treasury stock - value | 0 | 10.9 | $ 10.9 | ||||
Retirement of treasury stock - shares | 0.1 | 0.1 | |||||
Beginning balance at Mar. 31, 2024 | 2,373.8 | $ 0.5 | 1,689.6 | 701.7 | (16.6) | $ (1.4) | |
Beginning balance, shares at Mar. 31, 2024 | 48.6 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 45.6 | 45.6 | |||||
Other comprehensive income (loss) | (0.2) | (0.2) | |||||
Dividends paid to common stockholders | (2.5) | (2.5) | |||||
Restricted shares, net - shares | 0.3 | (0.1) | |||||
Restricted shares, net - value | (1.7) | 7.8 | $ (9.5) | ||||
Ending balance at Jun. 30, 2024 | 2,415 | [1] | $ 0.5 | 1,686.5 | $ 744.8 | $ (16.8) | $ 0 |
Ending balance, shares at Jun. 30, 2024 | 48.8 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Retirement of treasury stock - value | $ 0 | $ 10.9 | $ 10.9 | ||||
Retirement of treasury stock - shares | 0.1 | 0.1 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
[1] (unaudited) |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Overview and Summary of Significant Accounting Policies | Overview and Summary of Significant Accounting Policies Basis of Presentation Arcosa, Inc. and its consolidated subsidiaries (“Arcosa,” the “Company,” “we,” or “our”), headquartered in Dallas, Texas, is a provider of infrastructure-related products and solutions with leading positions in construction, engineered structures, and transportation markets in North America. Arcosa is a Delaware corporation and was incorporated in 2018 as an independent, publicly-traded company, listed on the New York Stock Exchange. The accompanying Consolidated Financial Statements are unaudited and have been prepared from the books and records of Arcosa, Inc. and its consolidated subsidiaries. All normal and recurring adjustments necessary for a fair presentation of the financial position of the Company and the results of operations, comprehensive income/loss, and cash flows have been made in conformity with accounting principles generally accepted in the U.S. (“GAAP”). All significant intercompany accounts and transactions have been eliminated. Because of seasonal and other factors, the financial condition and results of operations for the three and six months ended June 30, 2024 may not be indicative of Arcosa's expected business, financial condition, and results of operations for the year ending December 31, 2024. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited Consolidated Financial Statements of the Company included in its Annual Report on Form 10-K for the year ended December 31, 2023. Stockholders' Equity In December 2022, the Company’s Board of Directors (the “Board") authorized a new $50.0 million share repurchase program effective January 1, 2023 through December 31, 2024 to replace a program of the same amount that expired on December 31, 2022. For the three and six months ended June 30, 2024, the Company did not repurchase any shares. As of June 30, 2024, the Company had a remaining authorization of $36.2 million under the program. Revenue Recognition Revenue is measured based on the allocation of the transaction price in a contract to satisfied performance obligations. The transaction price does not include any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The following is a description of principal activities from which the Company generates its revenue, separated by reportable segments. Payments for our products and services are generally due within normal commercial terms. For a further discussion regarding the Company’s reportable segments, see Note 4 Segment Information. Construction Products The Construction Products segment recognizes substantially all revenue when the customer has accepted the product and legal title of the product has passed to the customer. Engineered Structures Within the Engineered Structures segment, revenue is recognized for wind towers and certain utility structures over time as the products are manufactured using an input approach based on the costs incurred relative to the total estimated costs of production. We recognize revenue over time for these products as they are highly customized to the needs of an individual customer resulting in no alternative use to the Company if not purchased by the customer after the contract is executed. In addition, we have the right to bill the customer for our work performed to date plus at least a reasonable profit margin for work performed. As of June 30, 2024, we had a contract asset of $76.7 million related to these contracts, compared to $66.8 million as of December 31, 2023, which is included in receivables, net of allowance, within the Consolidated Balance Sheets. The increase in the contract asset is attributed to timing of deliveries of finished structures to customers during the period. For all other products, revenue is recognized when the customer has accepted the product and legal title of the product has passed to the customer. Transportation Products The Transportation Products segment recognizes revenue when the customer has accepted the product and legal title of the product has passed to the customer. Unsatisfied Performance Obligations The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially satisfied as of June 30, 2024 and the percentage of the outstanding performance obligations as of June 30, 2024 expected to be delivered during the remainder of 2024: Unsatisfied performance obligations as of June 30, 2024 Total Percent expected to be delivered in 2024 (in millions) Engineered Structures: Utility, wind, and related structures $ 1,338.7 37 % Transportation Products: Inland barges $ 251.5 69 % Of the remaining unsatisfied performance obligations for utility, wind, and related structures, 32% are expected to be delivered during 2025 with the remainder expected to be delivered through 2028. All of the remaining unsatisfied performance obligations for inland barges are expected to be delivered during 2025. Income Taxes The liability method is used to account for income taxes. Deferred income taxes represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. The Company regularly evaluates the likelihood of realization of tax benefits derived from positions it has taken in various federal and state filings after consideration of all relevant facts, circumstances, and available information. For those tax positions that are deemed more likely than not to be sustained, the Company recognizes the benefit it believes is cumulatively greater than 50% likely to be realized. To the extent the Company were to prevail in matters for which accruals have been established or be required to pay amounts in excess of recorded reserves, the effective tax rate in a given financial statement period could be materially impacted. Financial Instruments The Company considers all highly liquid debt instruments to be cash and cash equivalents if purchased with a maturity of three months or less. Financial instruments that potentially subject the Company to a concentration of credit risk are primarily cash investments and receivables. The Company places its cash investments in bank deposits and highly-rated money market funds, and its investment policy limits the amount of credit exposure to any one commercial issuer. We seek to limit concentrations of credit risk with respect to receivables with control procedures that monitor the credit worthiness of customers, together with the large number of customers in the Company's customer base and their dispersion across different industries and geographic areas. As receivables are generally unsecured, the Company maintains an allowance for doubtful accounts based upon the expected credit losses. Receivable balances determined to be uncollectible are charged against the allowance. To accelerate the conversion to cash, the Company may sell a portion of its trade receivables to third parties. The Company has no recourse to these receivables once they are sold but may have continuing involvement related to servicing and collection activities. The impact of these transactions in the Company's Consolidated Statements of Operations for the three and six months ended June 30, 2024 was not significant. The carrying values of cash, receivables, and accounts payable are considered to be representative of their respective fair values. Derivative Instruments The Company may, from time to time, use derivative instruments to mitigate the impact of changes in interest rates, commodity prices, or changes in foreign currency exchange rates. For derivative instruments designated as hedges, the Company formally documents the relationship between the derivative instrument and the hedged item, as well as the risk management objective and strategy for the use of the derivative instrument. This documentation includes linking the derivative to specific assets or liabilities on the balance sheet, commitments, or forecasted transactions. At the time a derivative instrument is entered into, and at least quarterly thereafter, the Company assesses whether the derivative instrument is effective in offsetting the changes in fair value or cash flows of the hedged item. Any change in the fair value of the hedged instrument is recorded in accumulated other comprehensive loss (“AOCL”) as a separate component of stockholders' equity and reclassified into earnings in the period during which the hedged transaction affects earnings. When derivative instruments are in place, the Company monitors its positions and the credit ratings of its counterparties to mitigate the risk of loss due to counterparties' non-performance. Recent Accounting Pronouncements Recently adopted accounting pronouncements Effective January 1, 2024, the Company adopted Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company will adopt additional disclosure requirements within its annual reporting for the year ending December 31, 2024 and its interim reporting for the quarter ending March 31, 2025. Recently issued accounting pronouncements not adopted as of June 30, 2024 In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which is intended to improve the transparency of income tax disclosures by requiring 1) consistent categories and greater disaggregation of information in the rate reconciliation and 2) income taxes paid disaggregated by jurisdiction. The standard also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 will become effective for public companies during annual reporting periods beginning after December 15, 2024, with early adoption permitted. Although ASU 2023-09 only modifies the Company's required income tax disclosures, the Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures 2024 Acquisitions On August 1, 2024, we entered into an agreement to acquire the construction materials business of Stavola Holding Corporation and its affiliated entities ("Stavola") for $1.2 billion in cash. Stavola, which will be reported within the Construction Products segment, serves the New York-New Jersey market through its network of five natural aggregates quarries, twelve asphalt plants, and three recycled aggregates sites. The Company has obtained $1.2 billion of committed secured bridge loan financing, as well as a backstop to its existing $600.0 million revolving credit facility. Prior to the transaction close, the Company anticipates accessing the long-term debt capital markets for permanent financing with a mix of secured and unsecured debt. The transaction is expected to close in the fourth quarter. In July 2024, we completed the acquisition of a Phoenix, Arizona based natural aggregates business in our Con struction Products segment, for a total purchase price of $35.0 million . On April 9, 2024, we completed the acquisition of Ameron Pole Products LLC ("Ameron"), a leading manufacturer of highly engineered, premium concrete and steel poles for a broad range of infrastructure applications, including lighting, traffic, electric distribution, and small-cell telecom, for a total purchase price of $180.0 million. With operations in Alabama, California, and Oklahoma, Ameron is included in our Engineered Structures segment. The acquisition was funded with $160.0 million of borrowings under our revolving credit facility and cash on hand. The acquisition was recorded as a business combination based on a preliminary valuation of the assets acquired and liabilities assumed at their acquisition date fair value using unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities ("Level 3" inputs). The preliminary valuation resulted in the recognition of, among others, $55.9 million of property, plant, and equipment, $27.9 million of customer relationships, $18.2 million of inventory, $12.8 million of technology, $12.1 million of accounts receivable, $8.9 million of trademarks and $42.9 million of goodwill in our Engineered Structures segment. The goodwill acquired, which is tax-deductible, primarily relates to Ameron's market position and existing workforce. We expect to complete our purchase price allocation as soon as reasonably possible, not to exceed one year from the acquisition date. Adjustments to the preliminary purchase price allocation could be material, particularly with respect to our preliminary estimates of property, plant, and equipment, customer relationships, and technology. 2023 Acquisitions On December 20, 2023, we completed the acquisition of certain assets and liabilities of Lake Point Holdings, LLC and Lake Point Restoration LLC, (collectively "Lake Point") a Florida based natural aggregates business in our Construction Products segment, for a total purchase price of $65.1 million. The acquisition was funded with $60.0 million of borrowings under our revolving credit facility and cash on hand. The acquisition was recorded as a business combination based on a valuation of the assets acquired and liabilities assumed at their acquisition date fair value using Level 3 inputs. The preliminary valuation resulted in the recognition of, among others, $13.2 million of property, plant, and equipment, $19.1 million of mineral reserves, $11.5 million of permits, and $15.4 million of goodwill in our Construction Products segment. We expect to complete our purchase price allocation as soon as reasonably possible, not to exceed one year from the acquisition date. Adjustments to the preliminary purchase price allocation could be material, particularly with respect to our preliminary estimates of mineral reserves, permits, and property, plant, and equipment. In October 2023, we completed the acquisition of certain assets and liabilities of a Phoenix, Arizona based recycled aggregates business and the acquisition of certain assets and liabilities of a Florida based recycled aggregates business in our Construction Products segment. The purchase prices of these acquisitions were not significant. In September 2023, we completed the acquisition of certain assets and liabilities of a Houston, Texas based stabilized sand producer in our Construction Products segment. The purchase price of the acquisition was not significant. In March 2023, we completed the stock acquisition of a Houston, Texas based shoring, trench, and excavation products business in our Construction Products segment. In February 2023, we completed the acquisition of certain assets and liabilities of a Phoenix, Arizona based recycled aggregates business in our Construction Products segment. The purchase prices of these acquisitions were not significant. Divestitures On August 1, 2024, the Company entered into an agreement to sell its steel components business. The steel components business, reported in the Transportation Products segment, is a leading supplier of railcar coupling devices, railcar axles, and circular forgings. The transaction is expected to close during the third quarter. During the three months ended June 30, 2024, we completed the divestiture of certain assets and liabilities of a single-location asphalt and paving operation in our Construction Products segment and the sale of a non-operating facility in our Engineered Structures segment. The total consideration for these divestitures is expected to be approximately $137.3 million. For the divestitures that closed during the three months ended June 30, 2024, the Company recognized a pre-tax gain of $12.5 million which is reflected in gain on sale of businesses on the Consolidated Statement of Operations. There were no divestitures completed during the three and six months ended June 30, 2023. Other In June 2023, the Company settled a $15.0 million holdback obligation from the 2021 acquisition of Southwest Rock Products, LLC upon the extension of a certain mineral reserve lease. Based on final negotiations with the seller, the holdback was settled for $10.0 million and paid during the three months ended June 30, 2023. The $5.0 million difference between the settlement amount and the amount accrued at the time of acquisition was recorded as a reduction in cost of revenues in the Consolidated Statement of Operations. |
Fair Value Accounting
Fair Value Accounting | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Accounting | Fair Value Accounting Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurement as of June 30, 2024 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents $ 46.0 $ — $ — $ 46.0 Total assets $ 46.0 $ — $ — $ 46.0 Liabilities: Contingent consideration (1) $ — $ — $ 1.4 $ 1.4 Total liabilities $ — $ — $ 1.4 $ 1.4 Fair Value Measurement as of December 31, 2023 Level 1 Level 2 Level 3 Total (in millions) Liabilities: Contingent consideration (1) $ — $ — $ 2.7 $ 2.7 Total liabilities $ — $ — $ 2.7 $ 2.7 (1) Current portion included in accrued liabilities and non-current portion included in other liabilities on the Consolidated Balance Sheets. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. An entity is required to establish a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair values are listed below: Level 1 – This level is defined as quoted prices in active markets for identical assets or liabilities. The Company’s cash equivalents are instruments of the U.S. Treasury or highly-rated money market mutual funds. Level 2 – This level is defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Interest rate hedges are valued at exit prices obtained from each counterparty. See Note 7 Debt. Level 3 – This level is defined as unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Contingent consideration relates to estimated future payments owed to the sellers of businesses previously acquired. We estimate the fair value of the contingent consideration using a discounted cash flow model. The fair value is sensitive to changes in the forecast of sales and changes in discount rates and is reassessed quarterly based on assumptions used in our latest projections. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company reports operating results in three principal business segments: Construction Products. The Construction Products segment primarily produces and sells natural and recycled aggregates, specialty materials, and construction site support equipment, including trench shields and shoring products. Engineered Structures. The Engineered Structures segment primarily manufactures and sells steel and concrete structures for infrastructure businesses, including utility structures for electricity transmission and distribution, structural wind towers, traffic and lighting structures, and telecommunication structures. These products share similar manufacturing competencies and steel sourcing requirements and can be manufactured across our North American footprint. Transportation Products. The Transportation Products segment primarily manufactures and sells inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars and other transportation and industrial equipment. The financial information for these segments is shown in the tables below. We operate principally in North America. Three Months Ended June 30, Revenues Operating Profit (Loss) 2024 2023 2024 2023 (in millions) Aggregates and specialty materials $ 235.5 $ 227.1 Construction site support 40.6 37.7 Construction Products 276.1 264.8 $ 39.4 $ 34.4 Utility, wind, and related structures 274.8 207.0 Engineered Structures 274.8 207.0 35.1 21.7 Inland barges 75.7 72.5 Steel components 38.1 40.5 Transportation Products 113.8 113.0 12.6 11.6 Segment Totals 664.7 584.8 87.1 67.7 Corporate — — (19.9) (16.7) Consolidated Total $ 664.7 $ 584.8 $ 67.2 $ 51.0 Six Months Ended June 30, Revenues Operating Profit (Loss) 2024 2023 2024 2023 (in millions) Aggregates and specialty materials $ 457.2 $ 438.1 Construction site support 70.1 62.8 Construction Products 527.3 500.9 $ 68.2 $ 83.9 Utility, wind, and related structures 506.4 414.7 Engineered Structures 506.4 414.7 61.4 51.6 Inland barges 155.4 140.6 Steel components 74.2 77.8 Transportation Products 229.6 218.4 27.2 21.7 Segment Totals 1,263.3 1,134.0 156.8 157.2 Corporate — — (36.2) (31.1) Consolidated Total $ 1,263.3 $ 1,134.0 $ 120.6 $ 126.1 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment The following table summarizes the components of property, plant, and equipment as of June 30, 2024 and December 31, 2023. June 30, December 31, (in millions) Land $ 146.8 $ 140.2 Mineral reserves 546.4 546.9 Buildings and improvements 381.6 345.6 Machinery and other 1,239.7 1,121.0 Construction in progress 94.7 115.5 2,409.2 2,269.2 Less accumulated depreciation and depletion (993.9) (932.9) $ 1,415.3 $ 1,336.3 The Company recorded an impairment of $5.8 million during the three and six months ended June 30, 2024 related to the closure of the Company's aggregates operations in west Texas in our Construction Products segment. No impairment charges were recognized during the three and six months ended June 30, 2023. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill by segment is as follows: June 30, December 31, (in millions) Construction Products $ 505.8 $ 516.1 Engineered Structures 480.6 437.6 Transportation Products 37.0 37.0 $ 1,023.4 $ 990.7 The decrease in Construction Products goodwill during the six months ended June 30, 2024 is due to measurement period adjustments from the 2023 acquisitions and the divestiture of a single-location asphalt and paving business completed in April 2024. The increase in Engineered Structures goodwill during the six months ended June 30, 2024 is due to the recent acquisition of Ameron. See Note 2 Acquisitions and Divestitures. Intangible Assets Intangibles, net consisted of the following: June 30, December 31, (in millions) Intangibles with indefinite lives - Trademarks $ 43.8 $ 34.9 Intangibles with definite lives: Customer relationships 171.5 142.7 Permits 168.4 166.9 Other 17.7 2.3 357.6 311.9 Less accumulated amortization (88.3) (76.1) 269.3 235.8 Intangible assets, net $ 313.1 $ 270.7 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the components of debt as of June 30, 2024 and December 31, 2023: June 30, December 31, (in millions) Revolving credit facility $ 300.0 $ 160.0 Senior notes 400.0 400.0 Finance leases (see Note 8 Leases) 10.4 13.1 710.4 573.1 Less: unamortized debt issuance costs (3.9) (4.4) Total debt $ 706.5 $ 568.7 Revolving Credit Facility On August 23, 2023, we entered into a Second Amended and Restated Credit Agreement to increase our revolving credit facility from $500.0 million to $600.0 million, extend the maturity date of the revolving credit facility from January 2, 2025 to August 23, 2028, and refinance and repay in full the remaining balance of the term loan then outstanding under our prior credit facility. In April 2024, we borrowed an additional $160.0 million under our revolving credit facility to fund, in part, the acquisition of Ameron, of which $60.0 million was repaid during the three months ended June 30, 2024. As of June 30, 2024, we had $300.0 million of outstanding loans borrowed under the revolving credit facility, and there were approximately $10.7 million of letters of credit issued, leaving $289.3 million available for borrowing. Of the outstanding letters of credit as of June 30, 2024, $10.7 million are expected to expire in 2025. The majority of our letters of credit obligations support the Company’s various insurance programs and generally renew by their terms each year. The interest rates under the revolving credit facility are variable based on the daily simple or term Secured Overnight Financing Rate ("SOFR"), plus a 10-basis point credit spread adjustment, or an alternate base rate, in each case plus a margin for borrowing. A commitment fee accrues on the average daily unused portion of the revolving facility. The margin for borrowing and commitment fee rate are determined based on the Company’s leverage as measured by a consolidated total indebtedness to consolidated EBITDA ratio. The margin for borrowing based on SOFR ranges from 1.25% to 2.00% and was set at 1.50% as of June 30, 2024. The commitment fee rate ranges from 0.20% to 0.35% and was set at 0.25% at June 30, 2024. The Company's revolving credit facility requires the maintenance of certain ratios related to leverage and interest coverage. As of June 30, 2024, we were in compliance with all such financial covenants. Borrowings under the revolving credit facility are guaranteed by certain domestic subsidiaries of the Company. The carrying value of borrowings under our revolving credit approximates fair value because the interest rate adjusts to the market interest rate (Level 3 input). See Note 3 Fair Value Accounting. As of June 30, 2024, the Company had $2.1 million of unamortized debt issuance costs related to the revolving credit facility, which are included in other assets on the Consolidated Balance Sheet. Senior Notes On April 6, 2021, the Company issued $400.0 million aggregate principal amount of 4.375% senior notes (the “Notes”) that mature in April 2029. Interest on the Notes is payable semiannually in April and October. The Notes are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by each of the Company’s domestic subsidiaries that is a guarantor under our revolving credit facility. The terms of the indenture governing the Notes, among other things, limit the ability of the Company and each of its subsidiaries to create liens on assets, enter into sale and leaseback transactions, and consolidate, merge or transfer all or substantially all of its assets and the assets of its subsidiaries. The terms of the indenture also limit the ability of the Company’s non-guarantor subsidiaries to incur certain types of debt. The Company has the option to redeem all or a portion of the Notes at redemption prices set forth in the indenture, plus accrued and unpaid interest to the redemption date. If a Change of Control Triggering Event (as defined in the indenture) occurs, the Company must offer to repurchase the Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest to the date of repurchase. The estimated fair value of the Notes as of June 30, 2024 was $370.3 million based on a quoted market price in a market with little activity (Level 2 input). In connection with the issuance of the Notes, the Company paid $6.6 million of debt issuance costs. The remaining principal payments under existing debt agreements as of June 30, 2024 are as follows: 2024 2025 2026 2027 2028 Thereafter (in millions) Revolving credit facility $ — $ — $ — $ — $ 300.0 $ — Senior notes — — — — — 400.0 Interest rate hedges |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases We have various leases primarily for office space and certain equipment. At inception, we determine if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. For leases that contain options to purchase, terminate, or extend, such options are included in the lease term when it is reasonably certain that the option will be exercised. Some of our lease arrangements contain lease components and non-lease components which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Future minimum lease payments for operating and finance lease obligations as of June 30, 2024 consisted of the following: Operating Leases Finance Leases (in millions) 2024 (remaining) $ 5.0 $ 3.7 2025 9.7 5.3 2026 7.6 1.5 2027 4.3 0.2 2028 2.8 — Thereafter 9.1 — Total undiscounted future minimum lease obligations 38.5 10.7 Less imputed interest (2.6) (0.3) Present value of net minimum lease obligations $ 35.9 $ 10.4 The following table summarizes our operating and finance leases and their classification within the Consolidated Balance Sheet. June 30, December 31, (in millions) Assets Operating - Other assets $ 33.7 $ 36.7 Finance - Property, plant, and equipment, net 14.6 16.5 Total lease assets 48.3 53.2 Liabilities Current Operating - Accrued liabilities 9.1 8.4 Finance - Current portion of long-term debt 6.6 6.8 Non-current Operating - Other liabilities 26.8 29.7 Finance - Debt 3.8 6.3 Total lease liabilities $ 46.3 $ 51.2 |
Other, Net
Other, Net | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other, Net | Other, Net Other, net (income) expense consists of the following items: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in millions) Interest income $ (0.7) $ (1.4) $ (2.4) $ (2.6) Foreign currency exchange transactions 3.3 (1.2) 2.8 (1.7) Other — — — (0.2) Other, net (income) expense $ 2.6 $ (2.6) $ 0.4 $ (4.5) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim income tax reporting, we estimate our annual effective tax rate and apply it to our year-to-date ordinary income (loss). Tax jurisdictions with a projected or year to date loss for which a tax benefit cannot be realized are excluded. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are reported in the interim period in which they occur. We have open tax years from 2014 to 2023 with various significant tax jurisdictions. Our effective tax rates of 14.3% and 15.6% for the three and six months ended June 30, 2024, respectively, differed from the U.S. federal statutory rate of 21.0% due to Advanced Manufacturing Production ("AMP") tax credits, compensation-related items, state income taxes, statutory depletion deductions, and tax effects of foreign currency translations. Our effective tax rates of 12.0% and 17.0% for the three and six months ended June 30, 2023, respectively, differed from the U.S. federal statutory rate of 21.0% due to AMP tax credits, tax effects of foreign currency translations, compensation-related items, state income taxes, and statutory depletion deductions. |
Employee Retirement Plans
Employee Retirement Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plans | Employee Retirement Plans Total employee retirement plan expense, which includes related administrative expenses, is as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in millions) Defined contribution plans $ 4.6 $ 4.1 $ 8.6 $ 7.7 Multiemployer plan 0.4 0.4 0.8 0.8 $ 5.0 $ 4.5 $ 9.4 $ 8.5 The Company contributes to a multiemployer defined benefit plan under the terms of a collective-bargaining agreement that covers certain union-represented employees at one of the facilities of Meyer Utility Structures, a subsidiary of Arcosa. The Company contributed $0.4 million and $0.8 million to the multiemployer plan for the three and six months ended June 30, 2024, respectively. The Company contributed $0.3 million and $0.7 million to the multiemployer plan for the three and six months ended June 30, 2023, respectively. Total contributions to the multiemployer plan for 2024 are expected to be approximately $1.7 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the six months ended June 30, 2024 and 2023 are as follows: Currency Unrealized Accumulated (in millions) Balances at December 31, 2022 $ (17.0) $ 1.3 $ (15.7) Other comprehensive income (loss), net of tax, before reclassifications 0.2 0.2 0.4 Amounts reclassified from accumulated other comprehensive loss, net of tax expense (benefit) of $0.0, $0.1, and $0.1 — (0.8) (0.8) Other comprehensive income (loss) 0.2 (0.6) (0.4) Balances at June 30, 2023 $ (16.8) $ 0.7 $ (16.1) Balances at December 31, 2023 $ (16.2) $ — $ (16.2) Other comprehensive income (loss), net of tax, before reclassifications (0.6) — (0.6) Amounts reclassified from accumulated other comprehensive loss, net of tax expense (benefit) of $0.0, $0.0, and $0.0 — — — Other comprehensive income (loss) (0.6) — (0.6) Balances at June 30, 2024 $ (16.8) $ — $ (16.8) |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationStock-based compensation totaled approximately $7.4 million and $14.1 million for the three and six months ended June 30, 2024, respectively. Stock-based compensation totaled approximately $7.1 million and $12.6 million for the three and six months ended June 30, 2023, respectively. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings Per Common Share Basic earnings per common share is computed by dividing net income remaining after allocation to participating unvested restricted shares by the weighted average number of basic common shares outstanding for the period. Except when the effect would be antidilutive, the calculation of diluted earnings per common share includes the weighted average net impact of nonparticipating unvested restricted shares. Total weighted average restricted shares were 1.2 million for the three and six months ended June 30, 2024. Total weighted average restricted shares were 1.3 million and 1.4 million for the three and six months ended June 30, 2023, respectively. The computation of basic and diluted earnings per share follows. Three Months Ended Three Months Ended Income Average EPS Income Average EPS (in millions, except per share amounts) Net income $ 45.6 $ 40.9 Unvested restricted share participation (0.1) (0.2) Net income per common share – basic 45.5 48.6 $ 0.93 40.7 48.5 $ 0.84 Effect of dilutive securities: Nonparticipating unvested restricted shares — 0.1 — 0.2 Net income per common share – diluted $ 45.5 48.7 $ 0.93 $ 40.7 48.7 $ 0.84 Six Months Ended Six Months Ended Income Average EPS Income Average EPS (in millions, except per share amounts) Net income $ 84.8 $ 96.6 Unvested restricted share participation (0.3) (0.4) Net income per common share – basic 84.5 48.5 $ 1.74 96.2 48.4 $ 1.99 Effect of dilutive securities: Nonparticipating unvested restricted shares — 0.2 — 0.2 Net income per common share – diluted $ 84.5 48.7 $ 1.74 $ 96.2 48.6 $ 1.98 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 15. Contingencies The Company is involved in claims and lawsuits incidental to our business arising from various matters including commercial disputes, alleged product defect and/or warranty claims, intellectual property matters, personal injury claims, environmental issues, employment and/or workplace-related matters, and various governmental and environmental regulations. The Company evaluates its exposure to such claims and suits periodically and establishes accruals for these contingencies when probable losses can be reasonably estimated. At June 30, 2024, the reasonably possible losses and any related accruals for such matters were not significant. Estimates of liability arising from future proceedings, assessments, or remediation are inherently imprecise. Accordingly, there can be no assurance that we will not become involved in future litigation or other proceedings, including those related to the environment or, if we are found to be responsible or liable in any such litigation or proceeding, that such costs would not be material to the Company. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 45.6 | $ 40.9 | $ 84.8 | $ 96.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Arcosa, Inc. and its consolidated subsidiaries (“Arcosa,” the “Company,” “we,” or “our”), headquartered in Dallas, Texas, is a provider of infrastructure-related products and solutions with leading positions in construction, engineered structures, and transportation markets in North America. Arcosa is a Delaware corporation and was incorporated in 2018 as an independent, publicly-traded company, listed on the New York Stock Exchange. The accompanying Consolidated Financial Statements are unaudited and have been prepared from the books and records of Arcosa, Inc. and its consolidated subsidiaries. All normal and recurring adjustments necessary for a fair presentation of the financial position of the Company and the results of operations, comprehensive income/loss, and cash flows have been made in conformity with accounting principles generally accepted in the U.S. (“GAAP”). All significant intercompany accounts and transactions have been eliminated. Because of seasonal and other factors, the financial condition and results of operations for the three and six months ended June 30, 2024 may not be indicative of Arcosa's expected business, financial condition, and results of operations for the year ending December 31, 2024. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited Consolidated Financial Statements of the Company included in its Annual Report on Form 10-K for the year ended December 31, 2023. |
Stockholders' Equity | Stockholders' Equity |
Revenue Recognition | Revenue Recognition Revenue is measured based on the allocation of the transaction price in a contract to satisfied performance obligations. The transaction price does not include any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The following is a description of principal activities from which the Company generates its revenue, separated by reportable segments. Payments for our products and services are generally due within normal commercial terms. For a further discussion regarding the Company’s reportable segments, see Note 4 Segment Information. Construction Products The Construction Products segment recognizes substantially all revenue when the customer has accepted the product and legal title of the product has passed to the customer. Engineered Structures Within the Engineered Structures segment, revenue is recognized for wind towers and certain utility structures over time as the products are manufactured using an input approach based on the costs incurred relative to the total estimated costs of production. We recognize revenue over time for these products as they are highly customized to the needs of an individual customer resulting in no alternative use to the Company if not purchased by the customer after the contract is executed. In addition, we have the right to bill the customer for our work performed to date plus at least a reasonable profit margin for work performed. As of June 30, 2024, we had a contract asset of $76.7 million related to these contracts, compared to $66.8 million as of December 31, 2023, which is included in receivables, net of allowance, within the Consolidated Balance Sheets. The increase in the contract asset is attributed to timing of deliveries of finished structures to customers during the period. For all other products, revenue is recognized when the customer has accepted the product and legal title of the product has passed to the customer. Transportation Products The Transportation Products segment recognizes revenue when the customer has accepted the product and legal title of the product has passed to the customer. Unsatisfied Performance Obligations The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially satisfied as of June 30, 2024 and the percentage of the outstanding performance obligations as of June 30, 2024 expected to be delivered during the remainder of 2024: Unsatisfied performance obligations as of June 30, 2024 Total Percent expected to be delivered in 2024 (in millions) Engineered Structures: Utility, wind, and related structures $ 1,338.7 37 % Transportation Products: Inland barges $ 251.5 69 % Of the remaining unsatisfied performance obligations for utility, wind, and related structures, 32% |
Income Tax | Income Taxes The liability method is used to account for income taxes. Deferred income taxes represent the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. The Company regularly evaluates the likelihood of realization of tax benefits derived from positions it has taken in various federal and state filings after consideration of all relevant facts, circumstances, and available information. For those tax positions that are deemed more likely than not to be sustained, the Company recognizes the benefit it believes is cumulatively greater than 50% likely to be realized. To the extent the Company were to prevail in matters for which accruals have been established or be required to pay amounts in excess of recorded reserves, the effective tax rate in a given financial statement period could be materially impacted. |
Cash and Cash Equivalents | Financial Instruments |
Concentration of Credit Risk | Financial instruments that potentially subject the Company to a concentration of credit risk are primarily cash investments and receivables. The Company places its cash investments in bank deposits and highly-rated money market funds, and its investment policy limits the amount of credit exposure to any one commercial issuer. We seek to limit concentrations of credit risk with respect to receivables with control procedures that monitor the credit worthiness of customers, together with the large number of customers in the Company's customer base and their dispersion across different industries and geographic areas. As receivables are generally unsecured, the Company maintains an allowance for doubtful accounts based upon the expected credit losses. Receivable balances determined to be uncollectible are charged against the allowance. To accelerate the conversion to cash, the Company may sell a portion of its trade receivables to third parties. The Company has no recourse to these receivables once they are sold but may have continuing involvement related to servicing and collection activities. The impact of these transactions in the Company's Consolidated Statements of Operations for the three and six months ended June 30, 2024 was not significant. The carrying values of cash, receivables, and accounts payable are considered to be representative of their respective fair values. |
Derivative Instruments | Derivative Instruments |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently adopted accounting pronouncements Effective January 1, 2024, the Company adopted Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company will adopt additional disclosure requirements within its annual reporting for the year ending December 31, 2024 and its interim reporting for the quarter ending March 31, 2025. Recently issued accounting pronouncements not adopted as of June 30, 2024 In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which is intended to improve the transparency of income tax disclosures by requiring 1) consistent categories and greater disaggregation of information in the rate reconciliation and 2) income taxes paid disaggregated by jurisdiction. The standard also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 will become effective for public companies during annual reporting periods beginning after December 15, 2024, with early adoption permitted. Although ASU 2023-09 only modifies the Company's required income tax disclosures, the Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements. |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Unsatisfied Performance Obligations | Unsatisfied Performance Obligations The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially satisfied as of June 30, 2024 and the percentage of the outstanding performance obligations as of June 30, 2024 expected to be delivered during the remainder of 2024: Unsatisfied performance obligations as of June 30, 2024 Total Percent expected to be delivered in 2024 (in millions) Engineered Structures: Utility, wind, and related structures $ 1,338.7 37 % Transportation Products: Inland barges $ 251.5 69 % Of the remaining unsatisfied performance obligations for utility, wind, and related structures, 32% |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurement as of June 30, 2024 Level 1 Level 2 Level 3 Total (in millions) Assets: Cash equivalents $ 46.0 $ — $ — $ 46.0 Total assets $ 46.0 $ — $ — $ 46.0 Liabilities: Contingent consideration (1) $ — $ — $ 1.4 $ 1.4 Total liabilities $ — $ — $ 1.4 $ 1.4 Fair Value Measurement as of December 31, 2023 Level 1 Level 2 Level 3 Total (in millions) Liabilities: Contingent consideration (1) $ — $ — $ 2.7 $ 2.7 Total liabilities $ — $ — $ 2.7 $ 2.7 (1) Current portion included in accrued liabilities and non-current portion included in other liabilities on the Consolidated Balance Sheets. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Financial information for segments | The financial information for these segments is shown in the tables below. We operate principally in North America. Three Months Ended June 30, Revenues Operating Profit (Loss) 2024 2023 2024 2023 (in millions) Aggregates and specialty materials $ 235.5 $ 227.1 Construction site support 40.6 37.7 Construction Products 276.1 264.8 $ 39.4 $ 34.4 Utility, wind, and related structures 274.8 207.0 Engineered Structures 274.8 207.0 35.1 21.7 Inland barges 75.7 72.5 Steel components 38.1 40.5 Transportation Products 113.8 113.0 12.6 11.6 Segment Totals 664.7 584.8 87.1 67.7 Corporate — — (19.9) (16.7) Consolidated Total $ 664.7 $ 584.8 $ 67.2 $ 51.0 Six Months Ended June 30, Revenues Operating Profit (Loss) 2024 2023 2024 2023 (in millions) Aggregates and specialty materials $ 457.2 $ 438.1 Construction site support 70.1 62.8 Construction Products 527.3 500.9 $ 68.2 $ 83.9 Utility, wind, and related structures 506.4 414.7 Engineered Structures 506.4 414.7 61.4 51.6 Inland barges 155.4 140.6 Steel components 74.2 77.8 Transportation Products 229.6 218.4 27.2 21.7 Segment Totals 1,263.3 1,134.0 156.8 157.2 Corporate — — (36.2) (31.1) Consolidated Total $ 1,263.3 $ 1,134.0 $ 120.6 $ 126.1 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant, and equipment | The following table summarizes the components of property, plant, and equipment as of June 30, 2024 and December 31, 2023. June 30, December 31, (in millions) Land $ 146.8 $ 140.2 Mineral reserves 546.4 546.9 Buildings and improvements 381.6 345.6 Machinery and other 1,239.7 1,121.0 Construction in progress 94.7 115.5 2,409.2 2,269.2 Less accumulated depreciation and depletion (993.9) (932.9) $ 1,415.3 $ 1,336.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by segment | Goodwill by segment is as follows: June 30, December 31, (in millions) Construction Products $ 505.8 $ 516.1 Engineered Structures 480.6 437.6 Transportation Products 37.0 37.0 $ 1,023.4 $ 990.7 |
Intangibles, net | Intangibles, net consisted of the following: June 30, December 31, (in millions) Intangibles with indefinite lives - Trademarks $ 43.8 $ 34.9 Intangibles with definite lives: Customer relationships 171.5 142.7 Permits 168.4 166.9 Other 17.7 2.3 357.6 311.9 Less accumulated amortization (88.3) (76.1) 269.3 235.8 Intangible assets, net $ 313.1 $ 270.7 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Components of debt | The following table summarizes the components of debt as of June 30, 2024 and December 31, 2023: June 30, December 31, (in millions) Revolving credit facility $ 300.0 $ 160.0 Senior notes 400.0 400.0 Finance leases (see Note 8 Leases) 10.4 13.1 710.4 573.1 Less: unamortized debt issuance costs (3.9) (4.4) Total debt $ 706.5 $ 568.7 |
Remaining principal payments under debt agreement | The remaining principal payments under existing debt agreements as of June 30, 2024 are as follows: 2024 2025 2026 2027 2028 Thereafter (in millions) Revolving credit facility $ — $ — $ — $ — $ 300.0 $ — Senior notes — — — — — 400.0 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Future minimum lease payments | Future minimum lease payments for operating and finance lease obligations as of June 30, 2024 consisted of the following: Operating Leases Finance Leases (in millions) 2024 (remaining) $ 5.0 $ 3.7 2025 9.7 5.3 2026 7.6 1.5 2027 4.3 0.2 2028 2.8 — Thereafter 9.1 — Total undiscounted future minimum lease obligations 38.5 10.7 Less imputed interest (2.6) (0.3) Present value of net minimum lease obligations $ 35.9 $ 10.4 |
Balance sheet classification | The following table summarizes our operating and finance leases and their classification within the Consolidated Balance Sheet. June 30, December 31, (in millions) Assets Operating - Other assets $ 33.7 $ 36.7 Finance - Property, plant, and equipment, net 14.6 16.5 Total lease assets 48.3 53.2 Liabilities Current Operating - Accrued liabilities 9.1 8.4 Finance - Current portion of long-term debt 6.6 6.8 Non-current Operating - Other liabilities 26.8 29.7 Finance - Debt 3.8 6.3 Total lease liabilities $ 46.3 $ 51.2 |
Other, Net (Tables)
Other, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other, net (income) expense | Other, net (income) expense consists of the following items: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in millions) Interest income $ (0.7) $ (1.4) $ (2.4) $ (2.6) Foreign currency exchange transactions 3.3 (1.2) 2.8 (1.7) Other — — — (0.2) Other, net (income) expense $ 2.6 $ (2.6) $ 0.4 $ (4.5) |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Retirement plan expense | Total employee retirement plan expense, which includes related administrative expenses, is as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in millions) Defined contribution plans $ 4.6 $ 4.1 $ 8.6 $ 7.7 Multiemployer plan 0.4 0.4 0.8 0.8 $ 5.0 $ 4.5 $ 9.4 $ 8.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss for the six months ended June 30, 2024 and 2023 are as follows: Currency Unrealized Accumulated (in millions) Balances at December 31, 2022 $ (17.0) $ 1.3 $ (15.7) Other comprehensive income (loss), net of tax, before reclassifications 0.2 0.2 0.4 Amounts reclassified from accumulated other comprehensive loss, net of tax expense (benefit) of $0.0, $0.1, and $0.1 — (0.8) (0.8) Other comprehensive income (loss) 0.2 (0.6) (0.4) Balances at June 30, 2023 $ (16.8) $ 0.7 $ (16.1) Balances at December 31, 2023 $ (16.2) $ — $ (16.2) Other comprehensive income (loss), net of tax, before reclassifications (0.6) — (0.6) Amounts reclassified from accumulated other comprehensive loss, net of tax expense (benefit) of $0.0, $0.0, and $0.0 — — — Other comprehensive income (loss) (0.6) — (0.6) Balances at June 30, 2024 $ (16.8) $ — $ (16.8) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The computation of basic and diluted earnings per share follows. Three Months Ended Three Months Ended Income Average EPS Income Average EPS (in millions, except per share amounts) Net income $ 45.6 $ 40.9 Unvested restricted share participation (0.1) (0.2) Net income per common share – basic 45.5 48.6 $ 0.93 40.7 48.5 $ 0.84 Effect of dilutive securities: Nonparticipating unvested restricted shares — 0.1 — 0.2 Net income per common share – diluted $ 45.5 48.7 $ 0.93 $ 40.7 48.7 $ 0.84 Six Months Ended Six Months Ended Income Average EPS Income Average EPS (in millions, except per share amounts) Net income $ 84.8 $ 96.6 Unvested restricted share participation (0.3) (0.4) Net income per common share – basic 84.5 48.5 $ 1.74 96.2 48.4 $ 1.99 Effect of dilutive securities: Nonparticipating unvested restricted shares — 0.2 — 0.2 Net income per common share – diluted $ 84.5 48.7 $ 1.74 $ 96.2 48.6 $ 1.98 |
Overview and Summary of Signi_4
Overview and Summary of Significant Accounting Policies - Stockholders' Equity (Details) | Jun. 30, 2024 USD ($) |
Accounting Policies [Abstract] | |
Authorized stock repurchase amount | $ 50,000,000 |
Remaining authorized repurchase amount | $ 36,200,000 |
Overview and Summary of Signi_5
Overview and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Contract asset with customer | $ 76.7 | $ 66.8 |
Overview and Summary of Signi_6
Overview and Summary of Significant Accounting Policies - Unsatisfied Performance Obligation (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Engineered Structures | Utility, wind, and related structures | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations, Amount | $ 1,338.7 |
Revenue, remaining performance obligation expected to be delivered in current year | 37% |
Revenue Remaining Performance Obligation Percentage Year 2 | 32% |
Transportation Products | Inland barges | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations, Amount | $ 251.5 |
Revenue, remaining performance obligation expected to be delivered in current year | 69% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Aug. 01, 2024 USD ($) | Jul. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) businesses_divested | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) businesses_divested | Dec. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | Jan. 02, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ 664.7 | $ 584.8 | $ 1,263.3 | $ 1,134 | |||||
Operating profit (loss) | 67.2 | 51 | 120.6 | 126.1 | |||||
Gain on sale of businesses | 12.5 | $ 0 | 19.5 | 6.4 | |||||
Proceeds from sale of businesses | 33.3 | $ 2 | |||||||
Number of Divestitures | businesses_divested | 0 | 0 | |||||||
Holdback payment from acquisition | 0 | $ (10) | |||||||
Difference between holdback settlement and amount accrued at acquisition | $ 5 | ||||||||
Subsequent Event | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Pre-tax net cash proceeds received at closing | $ 137.3 | ||||||||
Subsequent Event | Bridge Loan | Secured Debt | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Committed secured bridge loan financing | 1,200 | ||||||||
Revolving credit facility | Revolving Credit Facility | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 600 | 600 | $ 500 | ||||||
Borrowings under revolving credit facility | 160 | $ 60 | |||||||
Ameron | Engineered Structures | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Acquisition price | 180 | ||||||||
Property, plant, and equipment acquired | 55.9 | 55.9 | |||||||
Inventory | 18.2 | 18.2 | |||||||
Goodwill acquired | 42.9 | ||||||||
Accounts receivable | 12.1 | 12.1 | |||||||
Ameron | Engineered Structures | Trademarks | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Indefinite-lived intangibles | 8.9 | 8.9 | |||||||
Ameron | Engineered Structures | Customer relationships | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Finite-lived intangibles | 27.9 | 27.9 | |||||||
Ameron | Engineered Structures | Technology | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Finite-lived intangibles | 12.8 | 12.8 | |||||||
Lake Point | Construction Products | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Acquisition price | 65.1 | ||||||||
Property, plant, and equipment acquired | 13.2 | 13.2 | |||||||
Goodwill acquired | 15.4 | ||||||||
Mineral reserves | 19.1 | 19.1 | |||||||
Lake Point | Construction Products | Permits | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Finite-lived intangibles | $ 11.5 | $ 11.5 | |||||||
Stavola | Construction Products | Subsequent Event | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Agreed purchase price, cash | $ 1,200 | ||||||||
Southwest Rock | Construction Products | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Acquisition holdback payable | $ 15 | ||||||||
Aggregates, Phoenix | Construction Products | Subsequent Event | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Acquisition price | $ 35 |
Fair Value Accounting - Assets
Fair Value Accounting - Assets and liabilities measured at fair value on recurring basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets: | |||
Cash equivalents | $ 46 | ||
Total assets | 46 | ||
Liabilities: | |||
Contingent consideration liability | 1.4 | $ 2.7 | |
Total liabilities | 1.4 | 2.7 | |
Level 1 | |||
Assets: | |||
Cash equivalents | 46 | ||
Total assets | 46 | ||
Liabilities: | |||
Contingent consideration liability | [1] | 0 | 0 |
Total liabilities | 0 | 0 | |
Level 2 | |||
Assets: | |||
Cash equivalents | 0 | ||
Total assets | 0 | ||
Liabilities: | |||
Contingent consideration liability | [1] | 0 | 0 |
Total liabilities | 0 | 0 | |
Level 3 | |||
Assets: | |||
Cash equivalents | 0 | ||
Total assets | 0 | ||
Liabilities: | |||
Contingent consideration liability | [1] | 1.4 | 2.7 |
Total liabilities | $ 1.4 | $ 2.7 | |
[1]Current portion included in accrued liabilities and non-current portion included in other liabilities on the Consolidated Balance Sheets |
Segment Information - Financial
Segment Information - Financial information for segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 664.7 | $ 584.8 | $ 1,263.3 | $ 1,134 |
Operating profit (loss) | 67.2 | 51 | 120.6 | 126.1 |
Total | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 664.7 | 584.8 | 1,263.3 | 1,134 |
Operating profit (loss) | 87.1 | 67.7 | 156.8 | 157.2 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating profit (loss) | (19.9) | (16.7) | (36.2) | (31.1) |
Construction Products | Total | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 276.1 | 264.8 | 527.3 | 500.9 |
Operating profit (loss) | 39.4 | 34.4 | 68.2 | 83.9 |
Engineered Structures | Total | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 274.8 | 207 | 506.4 | 414.7 |
Operating profit (loss) | 35.1 | 21.7 | 61.4 | 51.6 |
Transportation Products | Total | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 113.8 | 113 | 229.6 | 218.4 |
Operating profit (loss) | 12.6 | 11.6 | 27.2 | 21.7 |
Aggregates and specialty materials | Construction Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 235.5 | 227.1 | 457.2 | 438.1 |
Construction site support | Construction Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 40.6 | 37.7 | 70.1 | 62.8 |
Utility, wind, and related structures | Engineered Structures | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 274.8 | 207 | 506.4 | 414.7 |
Inland barges | Transportation Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 75.7 | 72.5 | 155.4 | 140.6 |
Steel components | Transportation Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 38.1 | $ 40.5 | $ 74.2 | $ 77.8 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of principal business segments of Company | 3 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Components of property, plant, and equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |||
Components of property, plant, and equipment | |||||||
Property, plant and equipment, at cost | $ 2,409.2 | $ 2,409.2 | $ 2,269.2 | ||||
Less accumulated depreciation | (993.9) | (993.9) | (932.9) | ||||
Property, plant, and equipment, net | 1,415.3 | [1] | 1,415.3 | [1] | 1,336.3 | ||
Impairment charge | 5.8 | $ 0 | 5.8 | $ 0 | |||
Land | |||||||
Components of property, plant, and equipment | |||||||
Property, plant and equipment, at cost | 146.8 | 146.8 | 140.2 | ||||
Mineral reserves | |||||||
Components of property, plant, and equipment | |||||||
Property, plant and equipment, at cost | 546.4 | 546.4 | 546.9 | ||||
Buildings and improvements | |||||||
Components of property, plant, and equipment | |||||||
Property, plant and equipment, at cost | 381.6 | 381.6 | 345.6 | ||||
Machinery and other | |||||||
Components of property, plant, and equipment | |||||||
Property, plant and equipment, at cost | 1,239.7 | 1,239.7 | 1,121 | ||||
Construction in progress | |||||||
Components of property, plant, and equipment | |||||||
Property, plant and equipment, at cost | $ 94.7 | $ 94.7 | $ 115.5 | ||||
[1] (unaudited) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Goodwill [Line Items] | |||
Goodwill | $ 1,023.4 | [1] | $ 990.7 |
Construction Products | |||
Goodwill [Line Items] | |||
Goodwill | 505.8 | 516.1 | |
Engineered Structures | |||
Goodwill [Line Items] | |||
Goodwill | 480.6 | 437.6 | |
Transportation Products | |||
Goodwill [Line Items] | |||
Goodwill | $ 37 | $ 37 | |
[1] (unaudited) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Intangible Assets [Line Items] | |||
Intangibles with indefinite lives - Trademarks | $ 43.8 | $ 34.9 | |
Intangibles with definite lives | 357.6 | 311.9 | |
Less accumulated amortization | (88.3) | (76.1) | |
Intangibles with definite lives, net | 269.3 | 235.8 | |
Intangibles, net | 313.1 | [1] | 270.7 |
Customer relationships | |||
Intangible Assets [Line Items] | |||
Intangibles with definite lives | 171.5 | 142.7 | |
Permits | |||
Intangible Assets [Line Items] | |||
Intangibles with definite lives | 168.4 | 166.9 | |
Other | |||
Intangible Assets [Line Items] | |||
Intangibles with definite lives | $ 17.7 | $ 2.3 | |
[1] (unaudited) |
Debt - Components of debt (Deta
Debt - Components of debt (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | Apr. 06, 2021 | |
Debt Instrument [Line Items] | |||
Finance leases | $ 10.4 | $ 13.1 | |
Total debt, gross | 710.4 | 573.1 | |
Less: unamortized debt issuance costs | (3.9) | (4.4) | |
Total debt | 706.5 | 568.7 | |
Senior notes | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Term loan | 400 | 400 | $ 400 |
Revolving Credit Facility | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Repayments of Lines of Credit | 60 | ||
Revolving credit facility | 300 | $ 160 | |
Less: unamortized debt issuance costs | $ (2.1) |
Debt - Remaining principal paym
Debt - Remaining principal payments under debt agreement (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Senior notes | Unsecured Debt | |
Debt Instrument [Line Items] | |
2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 400 |
Revolving Credit Facility | Revolving credit facility | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 300 |
Thereafter | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 06, 2021 | Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Jan. 02, 2020 | |
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 3.9 | $ 3.9 | $ 4.4 | ||
Senior notes | |||||
Debt Instrument [Line Items] | |||||
Estimated fair value | 370.3 | 370.3 | |||
Debt issuance costs | $ 6.6 | ||||
Senior notes | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Term loan | $ 400 | 400 | 400 | 400 | |
Interest rate | 4.375% | ||||
Revolving Credit Facility | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 600 | 600 | $ 500 | ||
Revolving credit facility | 300 | 300 | 160 | ||
Line of credit facility, remaining borrowing capacity | 289.3 | $ 289.3 | |||
SOFR variable rate spread | 1.50% | ||||
Line of credit facility, unused commitment fee percent | 0.25% | ||||
Unamortized debt issuance costs | 2.1 | $ 2.1 | |||
Borrowings under revolving credit facility | 160 | $ 60 | |||
Revolving Credit Facility | Revolving credit facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
SOFR variable rate spread | 1.25% | ||||
Line of credit facility, unused commitment fee percent | 0.20% | ||||
Revolving Credit Facility | Revolving credit facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
SOFR variable rate spread | 2% | ||||
Line of credit facility, unused commitment fee percent | 0.35% | ||||
Letter of Credit | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding, amount | 10.7 | $ 10.7 | |||
Designated as Hedging Instrument | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Derivative, notional amount | $ 100 | $ 100 | |||
Derivative, fixed interest rate | 2.71% | 2.71% |
Leases - Minimum lease payments
Leases - Minimum lease payments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease payments, 2024 (remaining) | $ 5 | |
Operating lease payments, 2025 | 9.7 | |
Operating lease payments, 2026 | 7.6 | |
Operating lease payments, 2027 | 4.3 | |
Operating lease payments, 2028 | 2.8 | |
Operating lease payments, thereafter | 9.1 | |
Operating lease payments | 38.5 | |
Operating lease payments, imputed interest | (2.6) | |
Operating lease payments, present value | 35.9 | |
Finance lease payments, 2024 (remaining) | 3.7 | |
Finance lease payments, 2025 | 5.3 | |
Finance lease payments, 2026 | 1.5 | |
Finance lease payments, 2027 | 0.2 | |
Finance lease payments, 2028 | 0 | |
Finance lease payments, thereafter | 0 | |
Finance lease payments | 10.7 | |
Finance lease liability, imputed interest | (0.3) | |
Finance leases | $ 10.4 | $ 13.1 |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Right of use asset, Operating | $ 33.7 | $ 36.7 |
Right of use asset, Operating | Other assets | Other assets |
Right of use asset, Finance | $ 14.6 | $ 16.5 |
Right of use asset, Finance | Property, plant, and equipment, net | Property, plant, and equipment, net |
Right of use asset, Total | $ 48.3 | $ 53.2 |
Lease liability, Current, Operating | $ 9.1 | $ 8.4 |
Lease liability, Current, Operating | Accrued liabilities | Accrued liabilities |
Lease liability, Current, Finance | $ 6.6 | $ 6.8 |
Lease liability, Current, Finance | Current portion of long-term debt | Current portion of long-term debt |
Lease liability, Non-current, Operating | $ 26.8 | $ 29.7 |
Lease liability, Non-current, Operating | Other liabilities | Other liabilities |
Lease liability, Non-current, Finance | $ 3.8 | $ 6.3 |
Lease liability, Non-current, Finance | Debt | Debt |
Lease liability, Total | $ 46.3 | $ 51.2 |
Other, Net - Summary of other,
Other, Net - Summary of other, net (income) expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other, net (income) expense | ||||
Interest income | $ (0.7) | $ (1.4) | $ (2.4) | $ (2.6) |
Foreign currency exchange transactions | 3.3 | (1.2) | 2.8 | (1.7) |
Other | 0 | 0 | 0 | (0.2) |
Other, net (income) expense | $ 2.6 | $ (2.6) | $ 0.4 | $ (4.5) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 14.30% | 12% | 15.60% | 17% |
Statutory rate | 21% | 21% |
Employee Retirement Plans - Ret
Employee Retirement Plans - Retirement plan expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||||
Defined contribution plans | $ 4.6 | $ 4.1 | $ 8.6 | $ 7.7 |
Multiemployer plan | 0.4 | 0.4 | 0.8 | 0.8 |
Retirement expense | $ 5 | $ 4.5 | $ 9.4 | $ 8.5 |
Employee Retirement Plans - Nar
Employee Retirement Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||||
Contributions to the multiemployer plan | $ 0.4 | $ 0.3 | $ 0.8 | $ 0.7 |
Expected full year contributions by the employer to the multiemployer plan | $ 1.7 | $ 1.7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in accumulated other comprehensive loss (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Equity beginning balance | $ (16.2) | $ (17) |
Other comprehensive income (loss), net of tax, before reclassifications | (0.6) | 0.2 |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 | 0 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 |
Other comprehensive income (loss) | (0.6) | 0.2 |
Equity ending balance | (16.8) | (16.8) |
Unrealized gain (loss) on derivative financial instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Equity beginning balance | 0 | 1.3 |
Other comprehensive income (loss), net of tax, before reclassifications | 0 | 0.2 |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 | (0.8) |
Reclassification from AOCI, Current Period, Tax | 0 | 0.1 |
Other comprehensive income (loss) | 0 | (0.6) |
Equity ending balance | 0 | 0.7 |
Accumulated other comprehensive loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Equity beginning balance | (16.2) | (15.7) |
Other comprehensive income (loss), net of tax, before reclassifications | (0.6) | 0.4 |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 | (0.8) |
Reclassification from AOCI, Current Period, Tax | 0 | 0.1 |
Other comprehensive income (loss) | (0.6) | (0.4) |
Equity ending balance | $ (16.8) | $ (16.1) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation | $ 7.4 | $ 7.1 | $ 14.1 | $ 12.6 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income | $ 45.6 | $ 40.9 | $ 84.8 | $ 96.6 |
Unvested restricted share participation | (0.1) | (0.2) | (0.3) | (0.4) |
Net income per common share – basic | $ 45.5 | $ 40.7 | $ 84.5 | $ 96.2 |
Net income - basic (shares) | 48.6 | 48.5 | 48.5 | 48.4 |
Net income - basic (EPS) | $ 0.93 | $ 0.84 | $ 1.74 | $ 1.99 |
Effect of dilutive securities: | ||||
Nonparticipating unvested restricted shares | $ 0 | $ 0 | $ 0 | $ 0 |
Nonparticipating unvested restricted shares (shares) | 0.1 | 0.2 | 0.2 | 0.2 |
Net income per common share – diluted | $ 45.5 | $ 40.7 | $ 84.5 | $ 96.2 |
Net income - diluted (shares) | 48.7 | 48.7 | 48.7 | 48.6 |
Net income - diluted (EPS) | $ 0.93 | $ 0.84 | $ 1.74 | $ 1.98 |
Total weighted average restricted shares and antidilutive stock options | 1.2 | 1.3 | 1.2 | 1.4 |