Arcosa, Inc. (NYSE:ACA) Q2 2023 Earnings Conference Call August 4, 2023 8:30 AM ET

Company Participants

Erin Drabek - Director, IR

Antonio Carrillo - President, CEO & Director

Gail Peck - CFO

Conference Call Participants

Noah Merkousko - Stephens Inc.

Ian Zaffino - Oppenheimer

Garik Shmois - Loop Capital Markets

Jean Ramirez - D.A. Davidson & Co.

Operator

Good morning, ladies and gentlemen, and welcome to the Arcosa, Inc. Second Quarter 2023 Earnings Conference Call. My name is Shelby, 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 Drabek, Director of Investor Relations for Arcosa. Ms. Drabek, you may begin.

Erin Drabek

Good morning, everyone, and thank you for joining Arcosa's Second 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 2 weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for 1 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.

Antonio Carrillo

Thank you, Erin. Good morning, and thank you for joining us to discuss our second quarter results and our updated outlook for 2023.

Please turn to Slide 4. I will start with a few key messages. Our second quarter financial performance was consistent with our expectations, driven by growth in Construction Products and Transportation Products segment. Construction Products benefited from strong unit profitability improvement in natural and recycled aggregates while Transportation Products performance highlighted the significant operating leverage in this segment from higher production volumes. These solid results were partially offset by expected softness from Engineered Structures, reflecting a less favorable mix of utility structures projects booked in 2022.