A maker of the materials and structures that keep modern life running, Arcosa produces crushed stone and asphalt for roads, steel utility poles and wind towers for power grids, and traffic and telecom structures. The company was born in 2018 as a spin-off from Trinity Industries, and its name was coined to evoke the "arc of progress." It later sold its inland barge business to focus on construction materials.
Arcosa's Q2 operating profit rose 2.8% as utility structures growth offset wind tower declines, while the pending CRH acquisition drove corporate costs higher.
The pending $150-per-share acquisition by CRH overshadowed the quarter's results. rose 1.7% to $658.7 million and widened 0.4 points to 23.6%, as a 12.4% increase in utility structures offset a 19.0% decline in wind towers, while $14.5 million in merger-related costs pushed corporate expenses up 72.6%. The company is now operating under the constraints of a merger agreement, with its portfolio reshaped by the completed $450 million barge sale.
Key takeaways
Corporate costs rose 72.6% to $32.8 million, driven by $14.5 million in acquisition and divestiture-related expenses tied to the pending acquisition by CRH, which weighed on growth.
Engineered Structures rose 46.2% to $62.5 million, as a 12.4% increase in utility structures and a gain on a land sale more than offset a 19.0% decline in wind tower revenue.
Construction Products fell 6.0% to $25.0 million, as lower asphalt volumes and higher costs more than offset improved aggregates and trench shoring profitability.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 1.7% to $658.7M, driven by utility structures growth, while M&A costs and asphalt weakness pressured margins.
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Consolidated grew 1.7% to $658.7M, as a 12.4% increase in utility structures offset a 19.0% decline in wind towers.
rose 2.8% to $84.3M, with Engineered Structures up 46.2% on higher utility volumes and a land sale gain, while Construction Products fell 6.0% on lower asphalt volumes.
The company completed the $450 million sale of its inland barge and marine components business, using $83 million of the proceeds to prepay term loan debt and recording a $359.7 million pre-tax gain in .
rose to $328.5 million from $59.7 million a year ago, driven almost entirely by the $359.7 million gain on the barge sale recorded in .
for the first half was $33.4 million, constrained by a $166.3 million use of cash from , while nearly doubled to $102.3 million.
What changed
The $450 million barge sale flagged in the FY 2025 10-K closed on April 1, 2026, with $83 million of proceeds used to prepay term loan debt; the business is now classified as .
The 21.3% decline in wind tower reported in Q1 2026 deepened to a 19.0% decline in Q2, as the phase-out of key federal tax credits continued to pressure the .
The Construction Products decline flagged in Q1 2026 continued into Q2, with profit falling 6.0% as lower asphalt volumes and higher costs persisted.
The $215–$240 million full-year flagged in Q1 2026 is tracking ahead of pace, with $102.3 million spent in the first half, nearly double the prior-year period.
What to watch
Whether the CRH acquisition receives stockholder and antitrust approvals, and whether the $260.4 million termination fee is triggered under any scenario.
Whether the 19.0% decline in wind tower stabilizes or accelerates as the 2027 expiration of Advanced Manufacturing Production tax credits approaches.
Whether the $166.3 million use of cash in the first half reverses in the second half, and whether generation is sufficient to cover the elevated .
Whether the utility structures , up 49% year-to-date to $648.1 million, converts into at margins that sustain the Engineered Structures profit improvement.
Corporate costs surged 72.6% to $32.8M, driven by $14.5M in acquisition and divestiture-related expenses tied to the pending CRH merger.
The Company completed the $450M sale of its barge business, using $83M of proceeds to prepay term loan debt and recording a $359.7M pre-tax gain in .
Utility structures reached $648.1M, up 49% year-to-date, while wind tower backlog declined to $537.4M amid the phase-out of key federal tax credits.
was $33.4M for the first half, constrained by a $166.3M use, while nearly doubled to $102.3M.
Quantitative and Qualitative Disclosures About Market Risk
There has been no material change in our market risks since December 31, 2025 as set forth in our 2025 Annual Report on Form 10-K. The impact of such market risk exposures as a result of foreign exchange rate fluctuations has not been significant to Arcosa.
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There has been no material change in our market risks since December 31, 2025 as set forth in our 2025 Annual Report on Form 10-K. The impact of such market risk exposures as a result of foreign exchange rate fluctuations has not been significant to Arcosa.
All material risk-factor changes relate to the pending $150/share cash acquisition by CRH, including deal uncertainty, business restrictions, and a $260.4M termination fee.
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Uncertainty around the Merger may cause employees to leave or lose productivity and may lead customers and suppliers to delay, reduce, or alter their business with Arcosa.
The Merger Agreement restricts Arcosa’s ability to enter contracts, acquire or dispose of assets, incur debt, or make , potentially harming its competitive position.
Completion requires stockholder approval, antitrust clearance in the U.S., Australia, and Mexico, and possibly Investment Canada Act approval; failure to obtain any could delay or block the deal.
If the Merger fails, Arcosa’s stock price could fall, it may face negative publicity, and it might need to secure financing on unfavorable terms, while business disruptions could persist or worsen.
A $260.4 million is payable by Arcosa if the deal ends under certain circumstances, such as the Board changing its recommendation or accepting a superior proposal.
Arcosa has incurred and will continue to incur significant non-recurring transaction costs that are largely payable even if the Merger is not completed.