ACA - Arcosa: Robust Infrastructure Spending And Electric Utility Transmission CAPEX

2024-06-15 05:28:14 ET

Summary

• ACA is a provider of infrastructure products in North America with consistent revenue growth and expanding profitability margins.
• ACA is shifting towards less cyclical businesses as its construction product segment's adjusted EBITDA weightage increases. Allowing ACA to be more resilient to economic shocks.
• The robust infrastructure spending, increasing electric utility transmission CAPEX, and its forecasted growth until 2027 are anticipated to provide tailwinds for ACA. Therefore, bolstering its growth outlook.

Synopsis

Arcosa ( ACA ) is an established provider of infrastructure-related products and solutions to the North American construction, transportation, and engineered structures markets. ACA’s historical financials have shown consistent consolidated revenue growth. In addition, its profitability margins have been expanding annually. For its most recent 1Q24, it continues to report top-line growth, with revenue increasing by 9% year-over-year....

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