ACA - Arcosa surges 13% as Q2 revenue reach record high levels ups FY revenue guidance

• Arcosa ( NYSE: ACA ) Q2 topline surged 17% to $602.8M, beating consensus by $55.67M .
• Segment wise: Construction revenue increased 20% to $245.9M and adjusted EBITDA increased 21% to $54.4M; Engineered Structures revenue surged 11% to $268.8M with adjusted EBITDA increased 30% to $49.5M; Transportation products revenue were $88.3M with adjusted EBITDA up 29% to $7.5M.
• Net income of $39M and adjusted net income of $40.9M, up 41%
• Adjusted EBITDA of $99.2M, up 26%, and adjusted EBITDA margin of 16.5%.
• Operating cash flow of $86.7M; free cash flow of $59.7M, with free cash flow conversion of 153%.
• Operating cash flow was $86.7M, an improvement of $36M from last year.
• Ended the quarter with total liquidity of $393.5M.
• Non-GAAP EPS of $0.83 beats consensus by $0.37 .
• 2022 Guidance : Adjusted its revenue guidance range to $2.2B-2.3Bfrom prior range of $2.1B-2.2B; revised adjusted EBITDA guidance range to $325M-345M, from prior guidance range of $290M-305M.
• Guidance includes FY revenues of ~$245M-255M and FY Adjusted EBITDA of $52M-55M from the storage tanks business, the sale of which is expected to close in H2 2022.
• Antonio Carrillo, President and CEO commented, "We delivered record second quarter revenues and Adjusted EBITDA, led by strong performance in our Engineered Structures and Construction Products segments as well as year-over-year growth in Transportation Products. Favorable demand conditions in our growth businesses, coupled with proactive pricing actions to combat rising input costs and solid execution in our manufacturing businesses, led to a 120 basis point increase in overall Adjusted EBITDA margin to a record 16.5%."
• Commenting on the outlook, Carrillo noted, “Based on the strength of our year-to-date results and increased confidence in the outlook for the second half of the year, we are raising our 2022 Adjusted EBITDA guidance. We now expect full-year Adjusted EBITDA growth of 18% at the mid-point of our range, including a full year of contribution from our storage tanks business.”
• Stock jumps ~13% .
• The sell-side analyst give the stock a Buy rating with 4.66 score and average price target of $65.5.
• Quant rating of Hold for the stock and score of 3.11 and lowest factor grade given to growth.

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