Arcosa, Inc. reported fourth‑quarter 2025 results that included $716.7 million in revenue, up 8 % from $666.2 million a year earlier, and net income of $52.1 million, a turnaround from a $7.7 million loss in the same period last year. Adjusted net income rose 151 % to $56.7 million, and diluted earnings per share were $1.06, with adjusted EPS of $1.15. The company’s adjusted EBITDA for the quarter was $145.0 million, translating to a margin of 20.2 %, an increase of 90 basis points from the 19.3 % margin reported in 2024.
The revenue figure fell slightly short of some consensus estimates—$719.46 million and $714 million—yet beat the $714.0 million estimate cited in the original article. The modest miss is largely attributable to the barge business, which, although sold to Wynnchurch Capital for $450 million in February, was still included in the quarter’s financials and contributed $383 million in revenue and $68 million in adjusted segment EBITDA. The remaining core segments—Construction Products and Engineered Structures—displayed solid growth, offsetting the barge contribution and supporting the overall revenue trend.
Arcosa’s EPS beat was driven by a combination of cost discipline, a favorable mix shift toward higher‑margin construction materials and engineered structures, and the impact of the Stavola acquisition and the divestiture of its steel components business. These actions have sharpened the company’s portfolio, reduced cyclicality, and improved operating leverage, allowing the firm to generate $1.15 in adjusted EPS versus the consensus estimate of $0.93–$0.95—a beat of $0.20–$0.22, or roughly 21–24 %.
Margin expansion was a key theme: adjusted EBITDA margin rose to 20.2 % for the full year, up from 17.4 % in 2024. The increase reflects the portfolio transformation, higher pricing power in the core segments, and the elimination of lower‑margin legacy businesses. The barge divestiture, completed in February, is expected to further lift margins by removing a cyclical, lower‑margin line of business.
For 2026, Arcosa guided for consolidated revenue of $2.95 billion to $3.10 billion and adjusted EBITDA of $590 million to $640 million. The guidance, which excludes the barge business, signals management’s confidence in sustained demand for construction materials and engineered structures, and indicates a continued focus on high‑margin growth opportunities.
"With a strong backlog that provides production visibility deep into 2026 and market fundamentals supporting a healthy replacement cycle, we believe this is the right time to transition the barge business to an owner aligned with its long‑term growth plans," said President and CEO Antonio Carrillo. Carrillo added, "The barge divestiture further reduces complexity and cyclicality, raises our overall margin profile, and enhances the long‑term resiliency of the company."
Arcosa’s stock fell 3.53 % in pre‑market trading after the release, a reaction that analysts attribute to the revenue miss against some estimates. The EPS beat, however, was noted as a positive sign of operational efficiency and cost control, while the guidance for 2026 was viewed as a sign of confidence in the company’s strategic transformation.
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