Arcosa, Inc.

Good morning, ladies and gentlemen, and welcome to the ARCOSA, Inc. Second Quarter 2023 Earnings Conference Call. My name is Shelby, 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, Erin Drabeck, Director of Investor Relations for ARCOSA. Ms. Drabeck, you may begin.

Good morning, everyone, and thank you for joining ARCOSA's second quarter 2023 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 the closest GAAP measure are included in the appendix of this 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-Q expected to be filed 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 second quarter results and our updated outlook for 2023. Please turn to slide four. I will start with a few key messages. Our second quarter financial performance was consistent with our expectations during my growth in construction products and transportation product segments. Construction products benefit from strong unit profitability improvement in natural and recycled aggregates, while transportation products' performance highlighted the significant operating leverage in this segment from higher production volumes. These solid results were partially offset by expected softness from engineered structures, reflecting a less favorable mix of utility structures projects booked in 2022. I am pleased with our performance through the first half of the year. We have achieved double-digit growth in revenue and adjusted EBITDA, normalizing for storage tanks, and expanded margins approximately 100 basis points, excluding the first quarter land sale. This strengthened profitability reflects proactive pricing actions, effective cost management, and improved operating leverage in transportation products. Through disciplined working capital management, second quarter cash conversion was strong, driving free cash flow up 11%. The strength in our free cash flow generation is especially notable, given our expanded CapEx program in 2023 that includes a broad set of organic growth initiatives. As we look ahead, our cyclical businesses are poised for accelerated growth and profitability next year, driven by improved production volume. Our engineer structures backlog has more than tripled over the last year, while our transportation products backlog has more than doubled. Additionally, ordering inquiries for dry cargo barges remain strong, and hot-wool-coil steel prices have retreated from their recent highs. In construction products, we remain committed to prioritizing value over volume, focusing on increasing unit profitability and expanding margins. The overall pricing environment remains supportive, aided by favorable demand conditions in our geographic market, and we continue to work proactively to mitigate inflationary pressures. our solid first half financial performance and improved visibility for our cyclical businesses has increased our confidence in the second half outlook. As a result, we're raising the low ends of both our revenue and adjusted EBITDA guidance ranges for 2023. Gail will now provide detail on our financial results for the second quarter, and I will return to discuss our updated outlook. Gail?