Company: ACA
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001739445-25-000067
Chunk: 6

Company: Arcosa, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 6
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.3 $28.8 (36.5)Depreciation, depletion, and amortization(1)$38.6 $30.1 28.2 

(1) Depreciation, depletion, and amortization are components of operating profit.

Three Months Ended March 31, 2025 versus Three Months Ended March 31, 2024

•Revenues increased 4.6% primarily due to the acquisition of Stavola which contributed $26.4 million to revenues during the quarter. Organic revenues in our construction materials businesses declined as higher pricing was offset by lower volumes, a decrease in freight revenue, and a reduction in revenue from recently divested operations. Revenues in our trench shoring business decreased 3.7% primarily due to reduced steel prices and lower volumes. 

26

•Cost of revenues increased 9.5% due to increased costs from the Stavola acquisition, including higher depreciation, depletion, and amortization expense. This was partially offset by a decrease in costs for our legacy businesses driven by lower organic volumes. As a percentage of revenues, cost of revenues increased to 82.6% in the current period, compared to 78.9% in the prior period.

•Selling, general, and administrative expenses increased 11.4% due to additional costs from Stavola partially offset by lower costs in our legacy businesses. Selling, general, and administrative expenses as a percentage of revenues was 11.9% in the current period, compared to 11.1% in the prior period.

•Operating profit decreased 36.5% primarily due to impact of the Stavola acquisition, which is more seasonally impacted by the winter months than our legacy operations. Stavola reduced operating profit by $11 million in the current period. On an organic basis, operating profit increased slightly as increased unit profitability was partially offset by volume declines.

•Depreciation, depletion, and amortization expense increased 28.2% primarily due to the acquisition of Stavola, including the fair market value write-up of long-lived assets.

Engineered Structures Three Months Ended March 31, 20252024Percent ($ in millions)ChangeRevenues:Utility, wind, and related structures$284.8 $231.6 23.0 %Total revenues284.8 231.6 23.0 Operating costs:Cost of revenues222.6 193.8 14.9 S