Arcosa, Inc. and its consolidated subsidiaries (Arcosa) is a provider of infrastructure-related products and solutions with leading brands serving construction, engineered structures, and transportation markets in North America.
Arcosa serves a broad spectrum of infrastructure-related markets and is strategically focused on driving organic and disciplined acquisition growth to capitalize on the fragmented nature of many of the industries in which the company operates. With Arcosa’s platform of...
Arcosa, Inc. and its consolidated subsidiaries (Arcosa) is a provider of infrastructure-related products and solutions with leading brands serving construction, engineered structures, and transportation markets in North America.
Arcosa serves a broad spectrum of infrastructure-related markets and is strategically focused on driving organic and disciplined acquisition growth to capitalize on the fragmented nature of many of the industries in which the company operates. With Arcosa’s platform of businesses and additional growth opportunities, the company is well-aligned with key market trends, such as the replacement and growth of aging transportation infrastructure, the continued shift to renewable power generation, and the expansion of new transmission, distribution, and telecommunications infrastructure.
Segments
Arcosa's three segments are made up of leading businesses that serve critical infrastructure markets: Construction Products, Engineered Structures, and Transportation Products.
Construction Products segment
Products
Through wholly owned subsidiaries, the company’s Construction Products segment produces and sells natural and recycled aggregates, specialty materials, asphalt mix, and construction site support equipment, including trench shields and shoring products.
Natural Aggregates
The company is an established producer and distributor of natural aggregates serving both public infrastructure and private construction markets and operate in Texas, the company’s largest geographic exposure, and nine other states. The company manages the business from the four regions of Texas, the East, the Gulf Coast, and the West. The company operates primarily from open pit quarries and have one underground mine. The company’s natural aggregates products include sand, gravel, crushed stone, stabilized material, and various other products used in the production of ready mixed concrete, asphalt mix, cement, and other precast concrete products, roads, municipal and private water, sewer and drainage projects, oil and gas well pads, wind farms, as well as various other building products.
On October 1, 2024, the company completed the acquisition of the construction materials business of Stavola Holding Corporation and its affiliated entities.
Recycled Aggregates
The company is the largest producer of recycled aggregates in the U.S., with operations in Texas, New Jersey, California, Florida, and Arizona. Recycled aggregates are a complement to the company's natural aggregates platform and are produced by crushing concrete reclaimed from demolished highways, buildings, and other structures. The raw concrete product material is processed to remove debris, primarily rebar, and screened to appropriate sizes for use as a road base, erosion control, building foundations, and as backfill for utility trenches. The company also produces reclaimed asphalt pavement (RAP), primarily for sale to its asphalt operations. Recycled aggregates supply a small percentage of total aggregates supplied nationwide. Recycled aggregates serve as a substitute for natural aggregates, primarily for hard rock uses.
Specialty Materials
The company's specialty materials, including lightweight aggregates, select natural aggregates, and milled or processed specialty building products and agricultural products, are produced and distributed nationwide. The company operates in ten states and British Columbia, with several of its production facilities located at the quarries that produce the raw material inputs, which include shale, clay, limestone, and gypsum. Lightweight aggregates are select shales or clays that are expanded and hardened by high temperatures in a rotary kiln, possessing a bulk density that can be less than half the density of natural aggregates. Product applications include structural lightweight concrete, lightweight masonry block, and road surface treatments. The company's specialty building products and agricultural products are processed at several production facilities across the U.S., mostly using its natural aggregates as a component of raw material supply. Product applications include plasters, flooring, prills, agricultural supplements and fertilizers, paints, glass, ingredients for food and feed, cement, energy infrastructure, and other products.
Asphalt
Through the acquisition of Stavola, the company produces and sells asphalt mix and provides asphalt construction paving services in New Jersey. Asphalt is an aggregate-intensive downstream product that strengthens the company's local market position. The asphalt business essentially functions as a customer of the company's aggregates operations, purchasing crushed stone and sand, which make up a large portion of the asphalt mix and reclaimed asphalt pavement RAP. Product transfers between the aggregates businesses and the asphalt business are made at local market prices. Approximately 90% of the asphalt mix produced is sold to external customers, while the remaining production is sold to the company's mill and fill paving operations.
Construction Site Support
The company holds a strong market position in the manufacturing of trench shields and shoring products for the U.S. construction industry. Trench shields and shoring products are used for water and sewer construction, utility installations, manhole work, oil and gas pipeline construction, and other underground applications. Additionally, the company participates in certain regional rental markets for trench shoring equipment.
Markets
Approximately 40% of the company’s portfolio of construction materials are used in infrastructure projects with the remainder split across non-residential, residential, and specialty/other end markets.
Infrastructure Construction: Includes construction spending by federal, state, and local governments for roads, highways, bridges, airports, and other public infrastructure, as well as private spending on road and utility construction. Public infrastructure spending is typically supported by federal and state legislation and programs.
Residential Construction: Includes single family homes and multi-family units such as apartments and condominiums. Demand for residential construction is influenced primarily by population growth, new household formation, and mortgage interest rates.
Non-Residential Construction: Includes a wide variety of privately financed construction, including manufacturing and distribution facilities, data centers, industrial complexes, office buildings, and large retailers and wholesalers. Demand for non-residential construction is driven primarily by population and economic growth, in addition to segment-specific factors, such as the growth of e-commerce and artificial intelligence, changes in retail patterns, changes in office occupancy trends, financing costs, and numerous other factors.
Specialty/Other: The company’s products are used in various other end markets, including energy-related activities, such as drilling pads, roads and major downstream projects, agriculture/horticulture, and industrial uses.
In 2024, the company had shipments of approximately 38 million tons of aggregates and specialty materials, including approximately 5 million tons of recycled aggregates. Texas is the company's largest geographic market, representing approximately 40% of the segment's revenues in 2024. Pro forma for the full-year impact of the Stavola acquisition, which closed on October 1, 2024, Texas and New Jersey represent approximately 35% and 20% of segment revenues, respectively. Within Texas, the company primarily serves the Texas Triangle formed by the Dallas-Fort Worth metro at its northern point in North Texas, the Houston metro at its southeastern edge on the Gulf Coast, and Austin-San Antonio at its western tip in Central Texas.
Customers
For natural and recycled aggregates and specialty materials, the company’s customers include concrete and asphalt producers; commercial, residential, highway, and general contractors; manufacturers of masonry and building products; and state and local governments. For asphalt, the company’s customers primarily include contractors and local/state road departments.
Where practical, the company has operations located close to its local markets, and in certain locations, offer portable crushing services at a job site for re-use onsite. Proximity of the company’s active quarries, stationary crushing locations, and strategic reserves to demand centers serve as barriers to entry. Because asphalt mix hardens rapidly, the company’s asphalt operations are either co-located with its aggregates quarries or in close proximity to its local markets.
The company’s specialty materials products enjoy higher barriers to entry than its natural and recycled aggregates due to specific mineral properties, specialized manufacturing, or additional processing.
For trench shields and shoring products, the company’s customers are equipment rental dealers and commercial, residential, and industrial contractors.
Engineered Structures segment
Products
Through wholly owned subsidiaries, the company’s 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 the company’s North American footprint. This segment also historically manufactured and sold storage and distribution tanks.
Utility Structures
The company is a well-established manufacturer in the U.S. and Mexico of engineered steel utility structures, including tapered steel, lattice, and sub-station structures, for electricity transmission and distribution. The company also manufactures pre-stressed concrete poles for utility, lighting, transportation, and telecommunications markets. The company has six manufacturing plants in the U.S. and Mexico dedicated to steel structures. The company has two manufacturing plants in the U.S. dedicated to concrete structures, including a new plant in Florida that was completed in December 2023.
Wind Towers
The company is one of the leading manufacturers of structural wind towers in the U.S. and Mexico with four manufacturing plants strategically located in wind-rich regions of North America, including a new wind tower plant in New Mexico that began delivering towers late in the second quarter of 2024 to support the growing wind investment in the Southwest.
Traffic and Lighting Structures
The company manufactures steel and concrete poles and structures for a broad range of transportation and lighting applications. The company has five plants in the U.S., with three dedicated to steel structures and two dedicated to concrete poles.
During 2024, the company completed the acquisition of Ameron Pole Products, LLC, which expanded its traffic structures business, including the addition of concrete traffic structures, and provided entry into the complementary steel and concrete lighting pole market.
Telecommunication Structures
The company manufactures telecom structures, including self-supporting lattice towers, monopole towers, and guyed towers. The company has one manufacturing plant in Oklahoma and has the capability to manufacture telecom structures in the company’s other Engineered Structures plants.
Markets
The company's Engineered Structures segment serves a broad spectrum of infrastructure markets, including electricity transmission and distribution, wind power generation, highway road construction, and wireless communication. The company is well-positioned to benefit from significant upgrades in the electrical grid to support enhanced reliability, demand for more electric generation from renewable energy sources, the expansion of new transmission, distribution, and telecommunication infrastructure, and the replacement and growth of the U.S. highway and road system.
The company’s utility structures business is well-positioned to benefit from significant investment in utility infrastructure.
The company’s traffic and lighting structures business is well-positioned to benefit from public infrastructure spending, replacement demand, and population growth. Additionally, the company expects to benefit from continued spending on the buildout of 5G and other wireless networks in North America within the company’s telecommunication structures business.
Customers
Through the company’s recognized brands in its utility structures business, the company has developed strong relationships with its primary customers, public and private utilities. Sales to its customers, particularly certain large utility customers, are often made through alliance contracts that can extend several years. The company also sells into the competitive-bid market, whereby the lowest bidder is awarded the contract, provided all other qualifying criteria are met.
Within the company’s wind towers business, its primary customers are wind turbine producers. Revenues from GE Vernova, Inc. (GE Vernova), a customer in the company’s Engineered Structures segment, constituted 10.8% of consolidated revenues for the year ended December 31, 2024.
The company’s traffic and lighting structures business primarily sells to contractors and distributors serving state Departments of Transportation and state and municipality agencies.
The company’s telecom structures business sells to wireless communication carriers and third-party tower lessors and developers.
Transportation Products segment
Products
Through wholly owned subsidiaries, the company's Transportation Products segment manufactures and sells inland barges, fiberglass barge covers, winches, and marine hardware. This segment also historically manufactured and sold steel components for railcars and other transportation and industrial equipment. In August 2024, the company completed the sale of its steel components business.
Inland Barges
The company has a leading position in the U.S. market for the manufacture of inland barges and fiberglass barge covers. The company manufactures a variety of hopper barges, tank barges, deck barges, other specialized barges, and fiberglass covers, and provide a full line of deck hardware to the marine industry, including hatches, castings, and winches for barges, towboats, and dock facilities. Dry cargo barges transport various commodities, such as grain, coal, and aggregates. Tank barges transport liquids, including refined products, chemicals, and a variety of petroleum products. Deck barges are used for transportation of heavy, oversized cargo and construction support. The company’s fiberglass reinforced lift covers are used primarily for grain barges.
Markets
The company's inland barge business serves numerous end-markets through a base of established customers who support the transportation of staple commodities, such as grain, coal, aggregates, chemicals, fertilizers, petrochemicals, and refined products.
Customers
The company's barge manufacturing facilities are located along the U.S. inland river systems, which allows for rapid delivery to its customers. The company's inland barge customers are primarily commercial marine transportation companies, lessors, and industrial shippers. The company holds a majority share of the inland barge manufacturing market.
Marketing
The company sells substantially all of its products and services through its own sales personnel operating from offices in multiple locations in the U.S. and Mexico. The company also uses independent sales representatives and distributors.
Seasonality
Results in the company’s Construction Products segment are affected by seasonal fluctuations with the second and third quarters historically being the quarters (year ended December 2024) with the highest revenues.
Governmental Regulation
Construction Products: Arcosa’s Construction Products segment is subject to regulation by the U.S. Mine Safety and Health Administration (MSHA), the Health-Safety and Reclamation Code of Ministry of Mines for British Columbia, and various state agencies, and certain specialty materials are regulated by the U.S. Food and Drug Administration (FDA).
Engineered Structures: Arcosa’s Engineered Structures segment is subject to the regulations of various state departments of transportation. These agencies promulgate and enforce rules and regulations pertaining, in part, to the manufacture of traffic and lighting structures.
Transportation Products: The primary regulatory and industry authorities involved in the regulation of the inland barge industry are the U.S. Coast Guard, the U.S. National Transportation Safety Board, the U.S. Customs Service, the Maritime Administration of the U.S. Department of Transportation (USDOT), and private industry organizations, such as the American Bureau of Shipping. These organizations establish safety criteria, investigate vessel accidents, and recommend improved safety standards.
Occupational Safety and Health Administration and Similar Regulations: In addition to the regulations described above, the company’s operations are subject to regulation of health and safety matters by the U.S. Occupational Safety and Health Administration (‘OSHA’), and within the company’s Construction Products segment, MSHA.
Environmental, Health, and Safety
The company is subject to federal, state, and international environmental, health, and safety laws and regulations in the U.S., Mexico, and each country in which the company operates, including regulations promulgated by the U.S. Environmental Protection Agency (‘USEPA’). These include laws regulating air emissions, water discharge, hazardous materials, and waste management. The company has an environmental management structure designed to facilitate and support its compliance with these requirements globally.
History
Arcosa, Inc., a Delaware corporation, was incorporated in 2018.
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