Arcosa's Q2 2025 Earnings Call: Unpacking Contradictions in Wind Tower Demand, Pricing, and Capacity

Wind tower demand and backlog, aggregates ASP and pricing momentum, wind tower capacity and orders, utility structures market and wind tower conversion are the key contradictions discussed in Arcosa's latest 2025Q2 earnings call.



Revenue and Earnings Growth:
- Arcosa, Inc. reported record revenue growth of 18% and adjusted EBITDA growth of 42% year-over-year for Q2 2025.
- The growth was driven by the successful integration of the Stavola acquisition, which increased revenues by 14%, and despite weather-related challenges in the Construction Products business.

Aggregates and Pricing Trends:
- In the Aggregates business, revenues increased by 15%, with adjusted cash gross profit per ton growing by 15%.
- The increase was supported by strong pricing gains and the addition of Stavola, which helped offset lower organic volumes due to weather challenges.

Engineered Structures and Backlog:
- Segment revenue for Engineered Structures increased by 7%, with a record backlog of $450 million for Utility and Related Structures, up 9% from the start of the year.
- Growth was driven by strong execution in utility structures and backlog visibility, supported by increased utility CapEx and strategic alliances with customers.

Barge Segment Performance:
- The Transportation Products segment reported a 18% increase in revenues, driven by higher tank barge volumes.
- Orders totaled $33 million in Q2, with a backlog extending into 2026, indicating strong demand for barge replacements.