Arcosa, Inc.

Please stand by. Your program is about to begin. Good morning, ladies and gentlemen, and welcome to the ARCOSA, Inc. First Quarter 2025 Earnings Conference Call. My name is Nikki, 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, Vice President of Investor Relations for ARCOSA. Ms. Drabek, you may begin.

Good morning, everyone, and thank you for joining ARCOSA's first quarter 2025 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 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, everyone, and thank you for joining us today for a discussion of our first quarter results and our outlook for 2025. I am pleased with the financial results we delivered in the quarter, which places us on a strong footing for 2025. Let me start with a few key takeaways on slide four. Our first quarter results demonstrate solid execution of our strategic vision driven by the transformative actions undertaken over the past several years. Excluding the divested steel components business from the prior year, we delivered consolidated adjusted EBITDA growth of 26%, outpacing 12% revenue growth in the quarter, and expanded our margin by 190 basis points. The integration of the $1.2 billion Stavola acquisition completed in October 2024 continues to progress well, and operations are ramping up for the spring construction season in the Northeast. As expected, Stavola contribution was diluted to our first quarter results in its seasonally slowest quarter. So delivering 26% adjusted EBITDA growth with significant margin expansion in the quarter shows the strength of Marcoso's legacy businesses. First quarter organic performance was led by engineer structures where we operated well in utility structures with strong demand conditions and successfully continued to ramp up our wind tower facility in Belen, New Mexico. In construction products, despite unseasonably cold and wet weather impacting January and February, we expanded unit profitability on strong pricing gains and first quarter results finished in line with our expectations. Within transportation products, our barge business had a solid quarter both in terms of performing better than expected on strong execution and extending our backlog with new orders. We are pleased to maintain our leverage at 2.9 times net debt to adjusted EBITDA. As Stavola starts to contribute in the second quarter, we're confident we will continue reducing our leverage. We remain committed to our goal of achieving a leverage target of 2 to 2.5 times over the next 12 months. With operations primarily in the US, we expect to benefit from continued investment in the nation's aging infrastructure and the new era of growth for the US power market. While the macroeconomic and policy environments continue to evolve rapidly, our cause is in good position to navigate this environment because our teams are managing our business as well. Most of our end markets continue to demonstrate resilience and our backlogs provide solid visibility. In summary, Our strong first quarter results show solid execution from our teams, the strategic portfolio moves we have made over the last several years, and the initial benefit of the organic investments of the last few years. I will now turn over the call to Gail to discuss our first quarter segment results in more detail.