Arcosa, Inc.

Good morning, ladies and gentlemen, and welcome to the ARCOSA Incorporated fourth quarter and full year 2022 earnings conference call. My name is Todd, and I will be your conference call coordinator today. As a reminder, today's call is being recorded. Now I would like to turn the call over to your host, Aaron Drabeck, Director of Investor Relations for ARCOSA. Mr. Drabeck, you may begin.

Good morning, everyone, and thank you for joining ARCOSA's fourth quarter and full year 2022 earnings call. With me today are Antonio Carrillo, President and CEO, and Gail Peck, CFO. A question and answer session will follow their prepared remarks. A copy of yesterday's press release and the slide presentation for this morning's call are posted on our investor relations website, ir.arcosa.com. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website under the News and Events tab. Today's comments and presentation slides contain financial measures that have not been prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures to their closest GAAP measure are included in the appendix of the slide presentation. In addition, today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's SEC filings for more information on these risks and uncertainties, including the press release we filed yesterday, and our Form 10-K we expect to file later today. I would now like to turn the call over to Antonio.

Thank you, Erin. Good morning and thank you for joining us to discuss our fourth quarter and full year 2022 results and our outlook for 2023. I will start with a few key messages. ARCOSA achieved solid financial performance in the fourth quarter and fall of 2022. generating strong growth in both revenue and adjusted EBITDA. I am proud of the Arcosa team for successfully navigating a challenging operating environment and delivering financial performance consistent with our guidance. Despite facing persistent inflationary pressures and headwinds in our cyclical businesses, we effectively compensated for them while expanding our growth businesses, both organically and through an acquisition. We also achieved significant strategic progress in 2022. Through the divestiture of our storage tank business, we took another step toward optimizing our asset portfolio and reducing the complexity of our business. With the proceeds from this transaction, we strengthened our balance sheet, enhanced our financial flexibility, and realized significant value for shareholders. For 2022, ARCOSA grew revenue and adjusted EBITDA in each of our business segments. underscoring our ability to execute consistently despite challenging market conditions. Within our growth business in construction products and engineering structures, adjusted EBITDA improved by a combined 20%, reflecting proactive pricing actions to offset inflationary pressures. At the same time, our cyclical businesses performed better than we had anticipated, largely due to our focus on managing costs and generating operational efficiencies in a demand-constrained environment. Slide 9 summarizes the considerable progress we have achieved in advancing our strategic transformation. Our actions, which have included focused M&A, organic growth initiatives, and asset optimization, have enhanced our resiliency and increased our participation in higher growth markets. ARCOSA today is a stronger, more focused company that is better positioned to capitalize the multiple long-term growth opportunities in front of us. In addition, federal infrastructure spending is expected to provide a multi-year tailwind to many of our business. Turn to slide 11 to review our fourth quarter results. Excluding storage tanks, fourth quarter consolidated adjusted EBITDA increased 13% from prior year periods. outpacing revenue growth and driving a 50 basis point improvement in margins. The improvements in adjusted EBITDA reflect growth in each of our business segments, led by a more than doubling of transportation product EBITDA. Strong organic pricing gains help compensate for lower volumes in construction products, while engineered structures benefit from elevated steel pricing, even as overall segment volumes decline. Looking at full year results on slide 12, Our COSA generated revenue of $2.24 billion, an increase of 14%, which met the operating end of our guidance. Adjusted EBITDA was $325 million, up 19% year-over-year, normalizing for the sale of storage tanks, and was right in line with the midpoint of our updated guidance range. I will now turn over the call to Gail to discuss our segment performance, and then I will return to update you on our 2023 outlook. Gail?