Arcosa, Inc.

2025 Earnings Conference Call. My name is Leo, 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. Drabeck, you may begin.

Good morning, everyone, and thank you for joining Arcosa's second 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 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 for a discussion of our second quarter results and the outlook for 2025. Let me start with a few key takeaways on slide four. We are pleased to report a record quarter that reflects the positive momentum for our strategic initiatives. Over the past year, we have taken deliberate actions to strengthen our growth businesses, streamline the portfolio, reduce the cyclicality, and expand margins. and the impact is clear in this quarter's results. It also bodes well for our future performance. As ARCOSA continues to transform, we have expanded our disclosures around our key growth businesses, construction materials, and utility related structures to help investors track our progress. Gail will provide more details in her remarks. ARCOSA's revenue increased 18% and adjusted EBITDA grew 42% year over year, excluding the divested steel components business. we reported a record adjusted EBITDA margin of 20.9% up 360 basis points. The successful integration of Stavola, which we acquired in October of 2024, has proven to be a significant driver of our growth, increasing consolidated revenues by 14% and expanding adjusted EBITDA margin by 250 basis points. Contribution from Stavola more than compensated for weather-related challenges in our organic legacy construction products business. which experienced above-average rainfall throughout the quarter. In the aggregates business, we continued to realize strong pricing gains, which drove 15% increase in adjusted cash growth profit per ton. Additionally, our growth was augmented by a record quarter for engineer structures, fueled by strong execution in our utility and related structures business and raising demand tied to long-term grid expansion trends. Our fully ramped wind tower facility in Belen, New Mexico is performing well and is margin accretive. Our barge business performed in line with expectation and order activity is positive with orders received in the third quarter. Our hopper barge backlog now extends into the second quarter of 2026. Tank barge backlog extends into the fourth quarter of next year. We also delivered strong cash generation during the quarter. we continue to prioritize the leveraging following the stable acquisition we remain on track to reach our target leverage range of two to two and a half times within the next three quarters given healthy overall demand in our growth businesses along with solid solid backlog visibility in our cyclical businesses we're tightening our guidance range for full year 2025 revenues and adjusted the beta while maintaining the midpoint as a reminder the midpoint of our guidance implies a 30% growth in EBITDA for 2025, excluding the divested rail components business. To wrap up, we are pleased with our solid first half performance and the momentum we have as we move into the second half of the year. I will now turn the call over to Gail to discuss our second quarter segment results in more detail.