ACA - Earnings call transcript Q2 2022

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Operator

Good morning, ladies and gentlemen, and welcome to Arcosa, Incorporated Second Quarter 2022 Earnings Conference Call. My name is Bobby and I will be your conference call coordinator today.

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

Now I would like to turn the call over to your host, Gail Peck, CFO for Arcosa. Ms. begin. may you Peck,

Gail Peck

that follow remarks. A our turn News weeks. for for and in I'm on available for Events presentation the session available been will of next presentation. Carrillo, joined of replay non-GAAP begin reminders and CEO. everyone website financial for Today's question tab. of slides Antonio. two A Quarter not ir.arcosa.com. release and webcast the the accordance of President Arcosa's A Earnings GAAP. Instructions I'll and one few a GAAP in Call. today measures with Investor year are closest yesterday's over press today's thank morning the included to replay be posted will the joining financial and contain release. A measure Reconciliations answer number you have with Second and and the are it included Good on by slide be appendix measures of call in prepared presentation the slide comments are copy press replay our call the for will our accessing prepared this under the morning's Relations to Antonio website

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

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

Antonio Carrillo

our and strong with to segments significant morning our pricing you, reflecting led second this revenue for joining thank executed second quarter Engineered our related X, efficiencies. double-digit EBITDA by efficiencies. a everyone quarter begin Products team challenging I'll today's All EBITDA environment, within EBITDA, fundamentals of the each of managing contributed in call. operational Thank growth results lean quarter actions dedicated again generating record high for proud driving second Arcosa level adjusted and we results, margins highlights. record am Structures, and once Starting infrastructure manufacturing of XX.X%. increases excellent proactive adjusted successfully navigating with businesses I on Slide adjusted reported Good at you pressures segments Construction quarter's and inflationary delivered and Gail. and the

this of on a to details to RAMCO recycled business. We our moment. I'll in great portfolio continue acquisition RAMCO, transformation of our of California while construction more and addition and leading a is market aggregates pending the in provider the with provide advance tank with Southern business storage a our our strategic the divestiture products complement optimizing acquisition

EBITDA guidance. continued several our half, also for XXXX. progress stronger positive projects and on our and confidence producing outlook to performance We full-year than we're EBITDA adjusted in large revenue the Based our first make half organic expected the raising start second that in should increasing on

transformation focused X, make to is the to strategic our on Slide Turning on we cyclicality our and continued progress complexity reducing business. of that

the our Southern expanding have key months, the specialty same portfolio In for business. Florida plant a in in our reinvest include source and growth continued growth support past pending materials our construction in manufacturing expansion three million expanding execute rationalized the XX the the several completed capabilities construction providing and our footprint structure storage to of with our plant business California, a acquisitions Oklahoma Tennessee. Arizona, including $XXX initiatives. in capital have divestiture on to markets utility we of which we our products organic concrete growth Over to particular, we time, high and tank into geographic At significant of projects plaster pole of

In addition, aggregates growth in accelerate sites greenfield will that the which business. will XXXX in open new two we

sell business this relatively the existing Turning of complementing representing implied to yet Construction less acquired Angeles strategic valuation Slide serving addition producer million, with $XX has Los as it recycling, disciplined to RAMCO recycled strategic area charge fee being compelling for for of business. profitable Metropolitan the EBITDA. model, to and charges and cost. by than X, a times in our and Products consistent RAMCO an in business, eight to excited of our our is makes This a May, sells crushes RAMCO unique attractive we most customer them receive Greater a approach aggregates. brings Construction our aggregates opportunities leading Materials to able recycled the small to combination customer acquired We're a aggregates M&A. footprint base California to very RAMCO, market. recycled We receive then independent business materials it

million half RAMCO $X second EBITDA incremental the close, from XXXX. of With mid-year of the adjusted in estimate approximately we

over turn Now I financial will to detail, performance call to review Gail. second our more Gail in quarter the

Gail Peck

XX start and first on consolidated Antonio. our touch results. on Slide briefly you, Thank I'll

Second in segments. quarter revenues all increased XX% driven by double-digit increases

a and improved the Second quarter, led in Structures pressures. EBITDA record Engineered XX.X% and inflationary consistent year-over-year increase despite EBITDA XX%, adjusted revenue, transportation Overall by led margin increased construction basis quarter in businesses. XXX growth points by in margins outpacing by adjusted our supported to second

organic actions. proactive Products increased Demand remain improved due points favorable sequential growth. Slide basis, from points maintain acquisitions contributing Construction each XX% X% seasonally revenue the a XX, to due first Turning roughly quarter. across approximately revenues basis margins and segment XXX we margins the adjusted trends pricing On to slower year-over-year to contributions to EBITDA primarily with and on stable segment

level. believe to exceed higher We for full quarter. XXXX serving by higher our We in cost headwinds helped margins or organic from market, demand healthy as face And and the the an our elevated year's and which for lines year-over-year. organic is inflationary potential cement particularly aggregates led growth benefited increased year approximately low our although Rock. pressure Total across during cement, of field energy by natural market maintain costs significantly natural average volume increases to Houston stabilized meet with continued mid-single-digit energy On Texas of basis, to organic in million we price aggregates volumes double-digit addition costs we sand margins and segment Coast the product from increased pricing used up generated $XX has the last Southwest sales that Gulf regions.

as better generally Texas, stabilized in impacted the sand and the than pressure ready-mix West in customers prior year our experienced quarter, availability, some well Coast While Houston, in Gulf to the weather which was of operations cement due volume we that region. lack our as

to Turning results. in and closing, quarter was the recycled a pricing volumes to aggregates, May contributed increased positively late RAMCO significantly our second

but recycled in prices materials, revenues second lightweight reflecting broadly quarter volume were the largely up In our margins average aggregates improved about volume. were year-over-year weather The Strong aggregates market. down, organic demand offset favorable during Houston plaster was leaving business selling was and flat in pricing Specialty growth growth volumes and lower the primarily lower. and by

market as maintenance market. scheduled volumes due certain to demand availability well labor declined aggregates for While remains in as and unplanned favorable, lightweight

order revenues on Finally, business the providing during XX% increase production by quarter, activity visibility. steel higher was increased shoring volume. our solid trench a healthy in and prices reported

traffic our margin, and in quarter growth in pricing outperformance EBITDA each the robust and measures primary to increased business and adjusted our XX% during structures contributed helped versus gain XXX was outpacing second built Moving footprint market by one driver XX% serving volumes and a adjusted Engineered revenues of revenue XX, telecom on Slide tank a year. resulting strategic our quarterly increased from point plants $X.X better-than-anticipated significant second the region. Mexico Structures, steel business increase business sale in businesses volumes counter of benefited prior although structures Florida storage results, Overall demands, Combined basis quarter and In on the to leverage. our the were utility our market. increased due we business, the year-over-year pricing were the revenues compared year. in in serving reduced to This EBITDA products operating last to were as strong price the traffic our also lower up the inflation. reflecting to two of We in consolidated million quarter

wind during At of to utility utility significantly up wind related and quarter of lower and end year-over-year million, quarter, by XX% second we towers, the volume. and the structures backlog $XXX traffic for executed approximately Turning combined well the led structures. year-over-year, the

improvements barge to business. Turning to segment declines last business Segment Slide on similar volume the offset our well with year. XX% the profitability in adjusted and components steel more as EBITDA expected our Products increased margins in Transportation than year-over-year executed XX,

significantly to level. components Second business quarter last compared year's revenues higher volumes increased by trough in steel driven our XX%

increased notably margins EBITDA leverage. As improved a adjusted result, and operating

decline lower increased exceeded higher prices, challenging as cost benefited Our market due barges the XX% despite adjusted absorption barge for several end XX% $XXX conditions Revenues scheduled for delivery business quarter, into our the our and EBITDA from year-over-year. but to second the of better XXXX. At expectations steel with half, in scheduled volumes stood million this second approximately backlog at quarter. moved while

first flow, leverage reflected X.X the revolver Moving times, to in an net of fund free to million crude with slightly by EBITDA net RAMCO. cash the down Slide $XX XX, of we in quarter quarter is debt to adjusted ended the additional driven position of higher borrowings our acquisition

level generated in we quarter, first cash flow $XX free breakeven the the quarter. to a compared During million

Second quarter, million supported by flow pressures quarter to from cash contributed and driven level. inventory capital $X working overall increased first Inflationary working a representing improvement capital flat increase management investment. payables the significant by continue

source XXXX, year in million million have full based XXXX. Engineered of reach capital high CapEx will the Structures. end So continue were we the of year to range see be the Capital expenditures of working we on growth a underway projects for full million $XX continue $XXX the expect to cash with to and construction $XXX the to we potential in

back $XX as shares million, million There totaling available During is sale before our $XX anticipate second the for as no were we close leaving the or current in flow changes P&L balance the to we the Antonio store now $XX the year, made extent million cash held our call divestiture on turning sheet. the half quarter, to of business repurchased One authorization. presentation. the presented final note to under

year of In prior similar tank newly and guidance addition, storage results. the our includes full to revised our comparability, guidance facilitate with

the $XX.X tanks. indicated in revenues of storage midpoint million full and Antonio? $XXX our adjusted EBITDA year related guidance revised million of release, we yesterday's includes As to of

Antonio Carrillo

Thank you, Gail.

from to our implementing drawing businesses price on cyclicality pressures our barge increases benefit long-term both our in supplier the vigilant we trends, managing wind relationships in bill fundamentals we materials, As raw large-scale inflationary benefit on proactively to projects in driven and will secure add monitoring remain more steel. by secular Gail investment pricing businesses from private successfully within an infrastructure strength continue We and and key infrastructure of solid advantageous and of uplift appropriate Many the rail including components. we're public and in discussed, XXXX. expect underlying where infrastructure related our

and environment EBITDA rates XX% continue demand on We to monitor increase the Please to the revised XX. businesses of our consumer range, interest macroeconomic midpoint potential forecast in confidence. our in turn impact the XXXX. of now for Slide At growth improvement in of light the guidance and we housing

major construction supply second favorable performance activity time, of positive, businesses outlook our and to expect chain strong portfolio from At products, manage benefiting our to addition for growth The construction remains half of certain aggregates customers. currently healthy continue EBITDA the first RAMCO. we in pricing We the with exceed same affecting our constraints in expanded our markets. half products

more that Products As tailwind $X and we look for the our a more from achieved infrastructure leads anticipate portfolio Products at Today, long-term Construction stronger growth significant product spending foundation business. initial and in providing segment Construction focused for our to and the a is trillion approach XXXX, solid expansion. broadening bill Strategically, we have diversified, geographic presence our we will our margin fundamentally provide M&A. out through resilient progress

the we underway. as on opportunities M&A have that enhance we're to on larger bolt passing growth completing operations, we our we projects organic efforts smaller for While our focus continue now would evaluate

XXXX. structures strong direct providing towards to good within demand businesses traffic see hardening, through utilities the resiliency, for market. our projects, and of for outlook energy structures improving continue continue and robust telecom The and for key drivers Electric We to are the visibility renewable our rate Engineered Structures growth utility CapEx within continued segment. demand remainder utility

In addition, we are seeing our favorable structures traffic in volume business.

orders business we XX, in in received have the continue Moving secured to most first environment but Slide to signs in million new $XX in businesses, quarter. our $XXX adding of face the barge our seen to challenging although notably, we new market second early the recovery, promising cyclical orders million quarter

ability was for key which these production XXXX. factor visibility provide secure completed production a year Our getting into more favorable in steel and pricing plans orders this to our

order of continues our In their to addition, upwards seeking demand aging we have short-term In wind inquiries for indicating fleets. the seen absence barge customers to pent-up renewable in trend weigh towers, tax demand. credit upgrade

the generation outlook power long-term positive. However, for remains wind very

well deliveries components XXXX recently the encouraged the to are tax forecast announced benefiting market rail into credits to spreads business. in for the Senate sharply a that our continue renewable to North of boost If energy. these anticipate by tower business the We from over remainder to where perform will compared XXXX. raise includes are American improvement law, should We legislation provide significant wind enacted

financial our to now Turning XX. on Slide guidance updated

including range prior overall $XXX cost $XXX guidance up million. revised of prior as increase $XX.X first both from million guidance $XXX the our $XXX now of an well to confidence revised our ranges, in half EBITDA tanks, as the our million XXXX of our increased stronger Using outlook. is in our increase the guidance million in adjusted range represents midpoint our full-year guidance our storage million, performance second to half of reflects from expected the guidance. than The EBITDA year our For

production estimate business, tower million and expectation cyclical operating $XX slightly $XX specifically, XXXX our our Driven we EBITDA previously. by greater in barge and wind million million efficiencies to our of $XX.X both for million, business. For from up adjusted to $XX volumes higher

In and compensating half financial our performance expected guidance growth businesses the our our in to our for half portfolio call our certain later I second full for acquisitions and and primarily Significant higher progress summary, increase Second in weakness margin the first performance shows would because expanding year like strong barges into the our selectively for enhance EBITDA solid us year, for the am I delivery organic cyclical our the optimizing businesses, trails our half. the strategic to cyclicality. our pleased questions. businesses cyclical year-over-year half initiatives with the closing, our expansion reduced revenue In for same the outlook made have scheduled growth EBITDA business. in shifted strengthening second-half And to lead pattern. we guidance. through while for resiliency and and open first

Operator

Crist [Operator Instructions] We'll take with our first question CJS Securities. from Stefanos

Stefanos Crist

morning congrats on and Good quarter. the

Antonio Carrillo

Thank you, Stefanos.

Stefanos Crist

organic employ projects. and some those. much for you Can about M&A pausing those of discussed You in talk organic how projects capital can you

Antonio Carrillo

script, Sure. I'm my more just but trying bit a I'll give a color. little you little in

we four So on. really have large going projects

We our new significantly capacity Plaster to have plan Oklahoma. in expand a

should business in XXXX. facility because natural We conference we capacity late XXXX. quarter start call, new greenfield expect then sometime for and somewhere announced to We that our we should announced facilities that start that our Florida early pole have just in aggregates first concrete started the plant to in expand and XXXX two a in in start we also

high projects that the we So the in are the and for reason of to why we has and with the not CapEx M&A so that's only investing those larger is because are see will year some and find this those you do do, as we a others, think the et them. like to environment probably better for is dry we're RAMCO about some think expectation there if bolt-ons powder cetera, in, opportunities slower about or economy, but passing

near anything. will in So lend so mean I opportunities, opportunity better we we can just or find environment better it that itself, say, prices do let's doesn't future. won't think those the the

Stefanos Crist

talk what the see color, you you Perfect, going RAMCO. on if of driving there. just recycled just acquisition expectations and aggregates follow your about thank forward for growth Can the I you for up

Antonio Carrillo

Absolutely.

of into couple of and of but factors by maximum the is is we're sell pricing them putting price the the The pricing for So differences. that's aggregates, recycled same aggregates aggregates a has natural sort It the set the exactly same. are natural demand demand same. can you

is have one think I reserves. you for don't

return in as a don't I reserves. aggregates. ranges invested you would have the the are because lot much Margins, of is similar higher natural So say, capital

very less we in material, and receive described The is there, bit of charge is over California, a you you my of script Texas. landfills in the it's a market the So is in similar. material, the difference the how this California, business that's your dump case that of in little in lot, how fee that developed here because to you acquire those, regulations fundamentals case the raw recycling the beauties business acquire support in cannot is I would one on but a than this rubble.

California, and taking aggregates. where Texas had we So our applying in to a from lightweight I think it we're experiences our already presence

as the growing the So stop to that, aggregates, not something a it's I I and we it's business think trend business more a and a business. recycling very but not here all a a natural business future natural that think healthy cannot it's this for recycled I it's it's that much a it's that a than business aggregates, think something stay, it's complement to

Operator

will the with Shmois from Loop our question We line take Garik of Capital. next

Garik Shmois

stronger just kind to kind type the XX% this margin taking just sustainable the margin not congratulations how margin I maybe Engineered margin to be to around in normal, near for question going drivers to XX% of on parse out start quarter and much expansion, wondering to hold in of moving was asking relative with to my the wanted in of the to Structures mid-term. given thanks forward, Hi, quarter. you is to the quarter, it's the improvement just how but

GailPeck

strong above margin XX% this very execution the led material the first as really very and safety we for safety Gail. solid we're comments of the performance with pleased structures performance, half robust Structures Garik, from demand as and even very, morning. Very half we handling all segment. Good our materials year-over-year. fronts first said utility across segment, by look Yes, at our including Engineered and records and is in

team a is firing quarter. really favorable on this So benefited and from all mix during we fronts the

think have said, but half, the first half, that in to half, to year expectations with meet level second market we slots strong may really but very orders, we our or do to second all potential a for just lower margins, the all, it the a challenge the as a may that the those to slots first about fill half, there could for I continue those come So later like to the be, XX% so back that achieved margin segment in have be so be often with is we a it it and may meet some big half. selling hard in be perfection for level

Antonio Carrillo

Garik.

and Let is remember if think three includes wind segment achieving still and me that were margins we remember. tower towers wind our than towers in though segment business, the years are bound This balancing seems performance was like is even which expected. I these ago, wind margin something we in more better add a but it efficient, you bottom. business It highest there to our had there important

of I about that's, So future right goes rest through, towers are carried think wind we package by are especially the very but the wind businesses. optimistic being legislative of the now if

Garik Shmois

the Wanted to Got up it. just business. encouraging. cyclical That's follow on

to you worried of you think that some and with at a pulled if see life first wondering recession. the here the that bottom, was the more starting I there forward broadly, first could quantify market you're barge half some into off, just shipments about mentioned, the but are year, were

businesses how high curious thoughts if a perform of your cyclical recession. kind on Just could the in level

Antonio Carrillo

little you, talk bit I'll give about. So a

the the little will couple script let's we as course, so which I discussed drivers. you and all why it's new the little one we've you half the growth a by pulled That's of the but biggest be has give but the now to up specifically, second business, petrochemicals. barge grain the million over-compensated market ones, moved the three lower a I'll the including the on believe driven this are it be maybe business cyclical or signs of in now, not, on energy mentioned expect businesses, with cyclical So businesses several color acquisition, is markets give coal is showing exports, a the And a the dollars my barge three of that half. numbers, in I before, are second big those of forward life, think it forward, second drivers starting

kinds for are barges, some grain, seeing for barges, of and are We those healthy inquiries dry hopper which especially very mainly cargo coal commodities and petrochemicals.

think plate same a Barges still large reason though are the barge. of come so, made to the the has cost bit very of even generally slow has way. I the demand a with and not down coil, component plate be is continues in And a the quite exactly place behaved the steel market

news in So able indicates plate a trend prices. we've normally coil, that it's wind wide coming these time we been have should customers everything have and with of don't down. XXXX. from these for still be quarter. this we our come the shows are show very to getting been that of to able forecast our right that to of down. at and is why down conversations levels plate the there is And our to difference the to from the but is barge But down we that We've coming that of and steel first should price every we're it between On to pricing expect good But coming plate the now seen, quarter relatively we the get business towers, demand negotiations, also year. barges sell inquiries it customers and good in second least of there that's be some the

production as our because quarter, stay, wind the get our towers with we time a we believe be in project credit and gap And But it is in even When healthy right future. we we delivered, of this the advantage is tax keep going are when have possible to wind in slow that slow created flexibility expect very will orders we, it's as near us, so goal towers comes it surprise the we manufacturing can then we market it's start seeing, you components, significant of EBITDA ending second So we're the a issue. the even there market though and between growth wind in slowness time the approved, The very timing we didn't tower get quarter already a in year. didn't good and if have so of see period rail we a finally approved, rail And this the legislation significant forecast saw in has back, revenue now take and growth it extremely is the of we robust XXXX. back. to comes market demand. unless a

that range a where of year there's seems for falls XXXX see and to be a XXXX, good growth components. but also rail For let's

I you I news. think in add them if think So all, all all, positive

the on that package good gets see wait us. news if legislative to Let's approved, it would really for be

Operator

Company. We'll Sidoti and from with Julio line our question of next Romero the take

Julio Romero

side, on Wanted everyone. on Structures morning, to business. Engineered the stay the Good structures specifically utility

mix. demand, quarter robust Materials you the your ago? three relative expectations What You surprised about talked months the Handling to in most

Antonio Carrillo

very think you Hi of poles know we things know, it's Antonio, aligned Julio, size the were making. in terms you of I well

as up allocation our to did ramped our we in you Mexico. know, in started we XXXX, the think plants, our, I plant

efficiencies the very, very we than has up Our expected. faster been well going Mexico probably production and in ramping

more labor. availability of seeing are We

we a an the the I that doing is we, It just U.S. trend. get people we've positive for plants, are have at last least job. to mean are specifically months, we our that line seen the been have over labor people difficult but right, it seeing team of think But doesn't that very our incredible business, in We a three for probably meeting. waiting, getting the year, we was in

we've performing brought tremendous work. and good amount of They're to very they're just very, the doing team, Now talent clockwork. like a

I think it very implementation going It's and our efficiencies. It's there. to combination shows of from over lean everything the well. just safety all Gail things as of in to quality it's a process So mentioned

fantastic just is team job. the think I doing a So

Julio Romero

about in then touched And Act, helpful. earlier very tower guys cautiously you chain, I our value the to being your that's way it getting about legislation, the to enacted. folks Inflation Okay, believe optimistic the on and wind impact think any business Senate Reduction that potentially the

Antonio Carrillo

Yes.

look the, is look would So from if ago And market the you impact ones completely the because on from different say if in you almost different, made in in or provisions market it the today proposals, things be the tone environment say mood I the terms, the a have the I changed a conversations, month in country. is the, or would at to or the our the legislation has at dramatically. or business, it previous to will significant it it the

lot We basically. package. are think basically a the sourced comply use making we country. of them all everything in We things U.S. with the are in the We that in the

other addition also So previous provide incentives that I think in are it to for package. the is would and which there manufacturing be things, a perfect but package for provisions us, the

I be which longer-term to booster would all, in a all would business. So is provide the it business, view something needed. and a fantastic think perspective it And that's

behaves is wind of business very history investors. their The and clarity tower the very, see time well. you there's business, for If certainty every

what hope challenges, the what risks I course, or to say don't [indiscernible] would risks or percentage on that want the the I of comment Of it it's are my happens.

Julio Romero

and very taking knock for the wood, Thanks very Yes much encouraging. on it questions. sounds

Operator

Davidson. next DA John our take Ramirez the with of line question We'll from

John Ramirez

to morning. there is diesel due is Brent other margins. us higher Ramirez to way and impact a for John for Good This cost of understand the what aggregate Thielman. Is

industry But are wondering they seeing since it surface, year-to-year like just comparison. you seeing I'm you're are this pressures. peers that acquisitions looks what the some have On pressure stable. the kind of

GailPeck

some Yes, an a color to try provide take, that did that's, and aggregate we costs. I'll bucket that's in question of great on

the cement, then put used look inclusive saw and biggest diesel, driver about the would pieces in in or of when is a I component million drove which sand costs at say natural $XX fuel increase our Specialty natural in that a of the million coal consumer we if increase look and along $XX that is in we at product year-over-year. Materials with diesel, was our was by business year-over-year stabilized those in of that, gas, cost. So far largest I gas Houston,

Antonio Carrillo

think a downstream very, One important, I very to business. which clarify thing small very, we is it's have

mainly are ship we aggregates So and We recycled aggregates. our don't product.

our you're use things our an they and inside we, and a we difference things basically We that's some of loaders and peers, with do. where than to So they our like move other lot that. more important facilities use diesel ready-mix have our diesel

system that we So because we less some are exposed don't that delivery have of do. a peers little our

John Ramirez

year-over-year specifically that is And overall, for $XX that or cement. million that cost just clarify to was

GailPeck

was price and of cost the the our for impact those do That to inputs taking side of year-over-year. weighted sales energy for really categories volume of price cement,

John Ramirez

if quotations it. And based on second and for like in the What year the half I and the do of inquire barge Got question. for this shoring and business this, commentary wind they second you look and another today. provided but half could do of

Antonio Carrillo

Sure.

For wind.

at the We capacity are XXXX. current sold for basically out

So we our production have good visibility of XXXX. for

of our XXXX, the For are program we their negotiating customers, with XXXX. for in process

time. the simply projects be to we the in out in approved time I packet gets takes mentioned also my comments we between power though, and as wind approval do and slowdown delivering and then the even because being market expect ready the before, time rolled begin So if slow even

we So a year expect general the will that's, I and slow mood of the be tower XXXX that's industry. wind think

with the at let's that able sell think as they be we're current this petrochemicals very I some, for steel prices the coal, mentioned grain In and before, to to terms hope going healthy even fast expectations I so market. customers fall inquiries prices fall and the aligned of down, hope, of current barge let's as

GailPeck

to our maybe you'll in is now. our is that prepared backlog remarks, Half million half in about agree the for that of scheduled have $XXX then and other mentioned see right barge our materials, then we And half on it XXXX. just that back for the

So today. a we of the sense you backlog at cadence what that with gives have

Operator

question from Grooms We'll take the of our with line next Stephens. Trey

Noah Merkousko

And for Merkousko congrats Trey. the Noah is This results. on on strong

see half. Would in that price in about think prepared aggregates the pretty the the I double-digit given for half, in digits up you'd we mid-teens double more for be thinking that quarter So was first maybe back accelerate growth. expectation back growth, pricing How increases the that mid your impressive. low mentioned should remarks

GailPeck

Good in morning. the quarter, pricing nice is did Yes, low-double digit. we the Gail. This have

the at mid-single quarter was look you digit. If first

have We prices annual there out mid-single. guidance for

going second us in that pace for us. at digit can. the high of to the the for a products range our everyday for continues back I'm lot confidence, very, the strong discussion to quarter the to not a obviously seeing and watching end think value I'm of can we're inflation low-double position carefully. match half. gives be in we're where very, certainly I combat be performance But very year. price The an very, we of say We're to pricing the for pricing we sure raising

Antonio Carrillo

And least our to Gail remarks year the mentioned is margins at meet in her last for our or goal year. exceed in from

to So on for try our to margins to able goal is match be business. to pricing the increases focus the

Noah Merkousko

good digit lot constraints. run Is the some Okay, volume. are that's of more think that helpful a from of been residential, coming there said the a also side, rest and supply I rate for then headwinds you new Obviously year. hearing mid-single volume the

if maybe just for could you contextualize how aggregates. So volumes about thinking you're

GailPeck

to much stick the on I our full year-over-year lower year quarter first in Yes basis. Volumes a were guidance there. kind of

So I organic just we're pricing. like think one three, seeing to

higher volume the your to but we're still within opportunity watching organic full We to for watching year that our very markets have conditions Arizona, closer we're Tennessee, range, the end at, that very closely. point, very closely, the within within of to residential we're favorable the in Texas, residential coming

Operator

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

Ian Zaffino

Alex is This for the for morning. Ian. question. good on taking Thanks Hi,

bill. for Is any into of wondering we've Construction the know XXXX the across magnitude businesses, as about Products business. but maybe there for the talking Regarding indication just applies uplift some structures the been or I utility it the time, infrastructure to

Antonio Carrillo

included, it probably water, you if Yes, almost this except to will give can name the is tell bill, exposure that's hard you number, I we Arcosa you have to infrastructure. water lot don't but read a to infrastructure in think you everything a I is of point, Antonio, put

projects from of of versus being the there. comes projects build is the deployed, It's which there barge blocks for some Mississippi to, around hard talks many, of projects our already the lot seeing to normal of a out especially improving example the are it's maintenance project. businesses and many infrastructure some We for business, in a see projects large hard the infrastructure River, in just the

is have will said some businesses XXXX, specific are barge, what GDP our expect things infrastructure So, just we we think but I the what, are have have we They tied but hard is in like comments boost that, things and well of it's to in that much, think of specific way and how our like provides behaving tailwinds the very not from many see about some tell They that. to it necessarily you I that. a to growth. drivers bill towers, wind replacement additional drivers

hand, of housing, tied the are On that for the more things that. the other businesses some construction to like

bill the more would we safety some some tailwinds you bigger you infrastructure some a for I sort think because infrastructure is housing, get to much exposure, for a provides of housing. are exposed net will on headwinds much the them infrastructure which than get side,

think of slowdown. help I compensate of us it overall, some negatives So the should

Ian Zaffino

great, small now, what landscape realized RAMCO. that's M&A there. M&A be larger be what on plenty it bolt-on the acquisitions Okay, any, but guess seems M&A, acquisition for off of there generally know synergies, then would And I like. out of RAMCO, helpful. or if the strategic look acquisitions like on can table is given does guess you kind like still of mentioned I I the briefly

Antonio Carrillo

it find it's think later. the to So, are taking going really, to a and we we can, table, larger I going we too being good because disciplined very said we're M&A's pause opportunities around probably of be

always have bolt-ons, have and choose presence. acquisitions a we we ones you On relatively and generate pipeline, the want best are a have synergies do smaller full the have we analyzed pipeline, we in we a easy to where

relatively I example, a example, recycled here in think aggregates, now operations. discipline, for California bolt-on Texas once of fast pricing, of RAMCO, are have synergies, terms acquisitions developed in there Arizona, many the than case the So in presence, in the and for are many, in the integrated we more it's really

from California is is bringing our So the increase Dallas to And and market to help margins. us. to I think, going our idea capabilities the Houston

are think than systems I generate do a say when are let's else, to our bolt-on try operational the very, So the very synergies and so. more they you but synergies profitable, and but anything really fast

Operator

for time have will that And call back the is the turn all questions. to CFO, we over Gail Peck. I now

Gail Peck

speaking Thank again you for quarter. We you today. us forward And thank with next to everyone look Bobby. joining you,

Operator

the XXXX second does conclude This conference joining quarter earnings Arcosa, Thank you for Incorporated call. program. the

disconnect. may Have You now great day. a

Arcosa (ACA) 7 Aug 222022 Q2 Earnings call transcript