Arcosa, Inc.

As a reminder, today's call is being... ...to Rester of Invector Relations for ARCOSA. Ms. Drabeck, you may begin.

Good morning, everyone, and thank you for joining ARCOSA's third 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 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-Q, expected to be filed later today. I would now like to turn the call over to Antonio.

Thank you, Erin. Good morning. Thank you for joining us to discuss our third quarter results and the outlook for the remainder of 2023. Please turn to page four. Our COSAC generated double-digit growth in revenue and adjusted EBITDA, normalizing for the divestiture of the storage tank business. Our solid financial results underscore the resilience of our diversified portfolio and the enhanced operating leverage in our cyclical businesses as production volumes improve. Starting with construction products, strong pricing and recovery in natural aggregate volumes drove 9% adjusted EBITDA growth. We made progress on our improvement plan for specialty materials, and margins for the business increased sequentially. I am pleased to announce that we recently closed on three Bolton acquisitions in construction products. In September, we acquired a stabilized sand producer, enhancing our presence in the fast-growing North Houston market. Following quarter end, we acquired two recycled aggregate producers, expanding our presence in Phoenix and entering the Florida recycled market. Our newly acquired businesses in Florida have six locations, predominantly in central Florida, from Orlando to Tampa. Combined, these three acquisitions represent an investment of approximately $41 million and an attractive multiple of roughly seven times EBITDA. We continue to have an attractive pipeline of additional bolt-on opportunities. While engineer structures revenue increased, segment profitability was below our expectations. Our utility structures business was impacted by several headwinds, including a shift in production mix that certain high margin orders were delayed to 2024, as well as an unfavorable foreign currency impact. Additionally, we experienced operational challenges, including equipment downtime, which required the outsourcing of some processes at higher costs. During the quarter, we began implementing correcting actions that enabled initial margin improvement in the month of September. On the positive side, our wind business performed well in the third quarter, even as production volume remained relatively low. With our continued focus on driving operation efficiencies, we anticipate our wind business will be profitable on an EBITDA basis for the year before considering the net benefit of tax credits. This forecast compares favorably with our earlier expectation for breakeven EBITDA performance for 2023. Transportation products generated strong results driven by volume and pricing growth in both barge and steel components. While the barge order intake during the quarter was modest, inquiries continued to be healthy, and our backlog nearly doubled on a year-over-year basis, providing production visibility well into 2024. In summary, I am pleased with our solid year-to-date financial performance. We have continued to advance our strategic priorities, expanding our growth businesses both through M&A and organic products projects. At the same time, we've positioned our cyclical businesses to capitalize on the expected improvement in market fundamentals next year. Finally, our balance sheet and liquidity position remain strong, providing flexibility for capital allocation. Gail will now provide detail on our financial results for the quarter, and I will return to discuss our updated outlook. Gail?