Arcosa, Inc.

Good morning, ladies and gentlemen, and welcome to the Arcosa Inc. Third Quarter 2024 Earnings Conference Call. My name is Jim, and I will be your conference operator today. As a reminder, today's conference is being recorded, and 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 Third Quarter 2024 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 the press release issued yesterday 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 includes 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, everyone, and thank you for joining us today. There are three key takeaways I want to highlight as we look at our third quarter progress, which you can see on slide four. First, our third quarter performance and profitability were strong, a result of our success in growing the business with meaningful margin expansion. During the third quarter, adjusted EBITDA grew significantly faster than our top-line growth. We also generated free cash flow of $107 million as we prioritized working capital management. Next, we made significant progress on our strategic transformation. During the quarter, we completed the divestiture of our steel components business, and on October 1st, we closed the acquisition of Stavola, the largest purchase in Arcosa's history. Stavola expands our aggregates footprint into the nation's largest MSA with increased exposure to lower volatility infrastructure markets. In our press release yesterday, we increased our adjusted EBITDA guidance for 2024, reflecting these portfolio actions. The midpoint of our revised adjusted EBITDA guidance reflects a 34% increase year-over-year when normalizing for the steel components divestiture and a large land sale gain in 2023. Finally, we completed these initiatives while implementing financial flexibility that enables us to use our cash flow to reduce our net leverage towards our target of 2 to 2.5 times over the next 18 months while supporting our capital allocation priorities and growth initiatives. Slide 7 shows the positive results of our strategic transformation. When we spun off from Trinity in 2018, our construction products business represented one-third of adjusted EBITDA. Today, our cost is much larger than we were in 2018, and the construction segment represents two-thirds of our EBITDA. We have come a long way as we have worked to build a simpler, more focused and less cyclical company. This strategy continues to drive our operations and decisions every day and was a key driver of the transactions we completed throughout this year. Now let me briefly discuss third quarter results on slide nine. From a profitability perspective, we delivered strong results relative to prior year as the third quarter benefit from recent acquisitions and divestiture progress along with solid organic growth and more efficient operations. Third quarter consolidated revenues increased 14% and adjusted EBITDA increased 39%, with margin expanded 330 basis points to 18.4% after normalizing for the divestiture of steel components. This was driven by organic improvement led by construction products and engineered structures and supported by accretive acquisitions completed earlier in the year, including Ameroom. Within construction products, we were very pleased with the quarter's strong unit profitability growth and adjusted it with the margin expansion. Our operations performed well, overcoming weather challenges and recent bolt-ons are contributing nicely. Construction activity was stable during the quarter despite overall volumes coming in lower than expected. A portion of the volume weakness reflects our commercial strategy as we continue to value price over volume. However, we do believe an element is also related to uncertainty regarding both the future path for interest rates and the outcome of U.S. elections. Turning to engineer structures, Ameron continues to perform well with strong execution. With respect to wind towers, our new facility in Belén, New Mexico, continues to ramp up production and is contributing positively to adjusted EBITDA. Market fundamentals for utility structures remain very healthy. Transportation products results were distorted by the impact of steel components and vestiture during the quarter. Our barge business continues to perform in line with expectation and we were pleased with the 0.9 times booked to build in the quarter. As you know, during the third quarter, several regions where we have operations were affected by severe weather events. Our focus during the quarter was to support our employees and local communities. Our people and our plants were not significantly affected by these weather events, and the ARCOSA team showed incredible resilience in getting our plants back operating as soon as conditions were safe. Overall, our third quarter financial performance reflects strong operational performance and the continued positive impact from the strategic initiatives we began implementing six years ago. Since that time, we have seen improved revenue trends and meaningful acceleration in our margins. I will turn over the call to Gail to discuss our third quarter results in more detail. Gail?