Arcosa, Inc. announced its results for the first quarter ended March 31, 2025, reporting revenues of $632.0 million, a 6% increase year-over-year, or 12% excluding the divested steel components business. Adjusted EBITDA grew 19% to $109.9 million, with Adjusted EBITDA Margin expanding 200 basis points to 17.4%.
Net income for the quarter was $23.6 million, or $0.48 per diluted share, a decrease from the prior year, while Adjusted Net Income was $24.0 million. The decline in net income was primarily due to a significant increase in interest expense related to debt financing for the Stavola acquisition.
Operating cash flow was a net use of $0.7 million, and free cash flow was a net use of $29.7 million, primarily driven by an $80.7 million net use of cash from changes in working capital and first-quarter seasonality. Despite this, the Engineered Structures segment outperformed expectations with robust demand and operating improvements, and the barge business performed well, increasing its backlog by 19% from the start of the year.
The company maintained its Net Debt to Adjusted EBITDA at 2.9x, consistent with the start of the year, and reaffirmed its full year 2025 guidance for consolidated revenues and Adjusted EBITDA. Management noted that the integration of the $1.2 billion Stavola acquisition is progressing well, with operations ramping up for the spring construction season in the Northeast, despite Stavola's seasonally dilutive impact on Q1 results.
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