Operating margins deteriorated to -0.3% in 2026Q1 from a 13.8% peak in 2025Q3, reflecting an inability to scale fixed costs against a 9.5% revenue decline.
| Sales/Revenue | 2.82B | 2.88B | 2.57B | 2.31B | 2.24B | 2.04B | 1.94B | 1.74B | 1.46B | 1.46B | 1.7B |
| Revenue Growth % | 8.44% | 12.2% | 11.35% | 2.9% | 10.14% | 5.21% | 11.44% | 18.93% | -0.14% | -14.18% | - |
| Cost of Goods Sold | 2.18B | 2.24B | 2.05B | 1.86B | 1.83B | 1.68B | 1.55B | 1.4B | 1.19B | 1.17B | 1.36B |
| COGS % of Revenue | - | 77.55% | 79.95% | 80.77% | 81.67% | 82.52% | 80.26% | 80.86% | 81.38% | 79.85% | 79.57% |
| Gross Profit | 642.7M | 647.2M | 515.2M | 443.8M | 411.1M | 355.9M | 382M | 332.4M | 272M | 294.7M | 348.1M |
| Gross Margin % | 22.77% | 22.45% | 20.05% | 19.23% | 18.33% | 17.48% | 19.74% | 19.14% | 18.63% | 20.15% | 20.43% |
| Gross Profit Growth % | - | 25.62% | 16.09% | 7.95% | 15.51% | -6.83% | 14.92% | 22.21% | -7.7% | -15.34% | - |
| Operating Expenses | 309.2M | 307.1M | 317.6M | 261.1M | 62.1M | 248.6M | 230.2M | 179.5M | 153.9M | 163M | 147.3M |
| OpEx % of Revenue | - | 10.65% | 12.36% | 11.31% | 2.77% | 12.21% | 11.89% | 10.33% | 10.54% | 11.15% | 8.64% |
| Selling, General & Admin | 309.2M | 307.1M | 320M | 261.1M | 262.8M | 256M | 223.1M | 179.5M | 153.9M | 163M | 147.3M |
| SG&A % of Revenue | - | 10.65% | 12.45% | 11.31% | 11.72% | 12.57% | 11.53% | 10.33% | 10.54% | 11.15% | 8.64% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | -2.4M | 0 | -200.7M | -7.4M | 7.1M | 0 | 1M | 500K | 1.1M |
| Operating Income | 286.4M | 340.1M | 197.6M | 182.7M | 349M | 107.3M | 151.8M | 152.9M | 94.9M | 131.7M | 200.8M |
| Operating Margin % | 10.14% | 11.8% | 7.69% | 7.92% | 15.56% | 5.27% | 7.84% | 8.8% | 6.5% | 9.01% | 11.78% |
| Operating Income Growth % | - | 72.12% | 8.16% | -47.65% | 225.26% | -29.31% | -0.72% | 61.12% | -27.94% | -34.41% | - |
| EBITDA | 455.8M | 563.1M | 392.6M | 342.2M | 503.1M | 251.6M | 266.3M | 238.7M | 162.5M | 197.4M | 266.4M |
| EBITDA Margin % | 16.15% | 19.53% | 15.28% | 14.83% | 22.43% | 12.36% | 13.76% | 13.74% | 11.13% | 13.5% | 15.63% |
| EBITDA Growth % | 15.98% | 43.43% | 14.73% | -31.98% | 99.96% | -5.52% | 11.56% | 46.89% | -17.68% | -25.9% | - |
| D&A (Non-Cash Add-back) | 169.4M | 223M | 195M | 159.5M | 154.1M | 144.3M | 114.5M | 85.8M | 67.6M | 65.7M | 65.6M |
| EBIT | 288.4M | 340.1M | 200.9M | 224M | 347.2M | 107M | 148.8M | 153.6M | 95.9M | 130.1M | 197.2M |
| Net Interest Income | -75.7M | -102.2M | -63.4M | -23.4M | -29.9M | -23.4M | -10.2M | -5.4M | -500K | 100K | 100K |
| Interest Income | 3.2M | 6.6M | 7.5M | 4.7M | 1.1M | 0 | 400K | 1.4M | 400K | 100K | 100K |
| Interest Expense | 104.5M | 108.8M | 70.9M | 28.1M | 31M | 23.4M | 10.6M | 6.8M | 900K | 0 | 0 |
| Other Income/Expense | -49.7M | -98.8M | -67.6M | 13.2M | -32.8M | -23.7M | -13.6M | -6.1M | 100K | -1.6M | -3.6M |
| Pretax Income | 236.7M | 241.3M | 130M | 195.9M | 316.2M | 83.6M | 138.2M | 146.8M | 95M | 130.1M | 197.2M |
| Pretax Margin % | 8.38% | 8.37% | 5.06% | 8.49% | 14.1% | 4.11% | 7.14% | 8.45% | 6.51% | 8.9% | 11.57% |
| Income Tax | 28.6M | 32.9M | 36.3M | 36.7M | 70.4M | 14M | 31.6M | 33.5M | 19.3M | 40.4M | 74.2M |
| Effective Tax Rate % | 12.08% | 13.63% | 27.92% | 18.73% | 22.26% | 16.75% | 22.87% | 22.82% | 20.32% | 31.05% | 37.63% |
| Net Income | 222.6M | 208.4M | 93.7M | 159.2M | 245.8M | 69.6M | 106.6M | 113.3M | 75.7M | 89.7M | 123M |
| Net Margin % | 7.88% | 7.23% | 3.65% | 6.9% | 10.96% | 3.42% | 5.51% | 6.52% | 5.18% | 6.13% | 7.22% |
| Net Income Growth % | 185.02% | 122.41% | -41.14% | -35.23% | 253.16% | -34.71% | -5.91% | 49.67% | -15.61% | -27.07% | - |
| Net Income (Continuing) | 222.6M | 208.4M | 93.7M | 159.2M | 245.8M | 69.6M | 106.6M | 113.3M | 75.7M | 89.7M | 123M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.52 | 4.24 | 1.91 | 3.26 | 5.05 | 1.42 | 2.18 | 2.34 | 1.55 | 1.84 | 2.52 |
| EPS Growth % | 155.35% | 121.99% | -41.41% | -35.45% | 255.63% | -34.86% | -6.84% | 50.97% | -15.76% | -26.98% | - |
| EPS (Basic) | - | 4.25 | 1.92 | 3.27 | 5.08 | 1.44 | 2.20 | 2.37 | 1.55 | 1.84 | 2.52 |
| Diluted Shares Outstanding | 49.2M | 49M | 48.8M | 48.7M | 48.5M | 48.6M | 48.5M | 48.4M | 48.9M | 48.8M | 48.8M |
| Basic Shares Outstanding | 49M | 48.9M | 48.6M | 48.5M | 48.2M | 48.1M | 48M | 47.9M | 48.8M | 48.77M | 48.77M |
| Dividend Payout Ratio | - | 4.8% | 10.35% | 6.16% | 3.99% | 14.08% | 9.19% | 8.74% | - | - | - |
Cyclical Margin Volatility
According to recent financial filings, Arcosa's revenue growth has turned negative, with a 9.5% year-over-year decline reported in 2026Q1, signaling a sharp reversal from the 24.6% peak growth observed in 2025Q3 and highlighting the company's sensitivity to shifting demand in its core industrial and infrastructure markets.
The recent contraction suggests that the tailwinds from infrastructure spending may be losing momentum against broader macroeconomic pressures. Investors should monitor whether this deceleration is a temporary seasonal dip or a structural shift in the demand for the company's long-cycle project-based offerings.
As reported in quarterly statements, Arcosa's gross margin fell to 21.1% in 2026Q1, down from the 24.1% peak achieved in 2025Q3, reflecting the inherent difficulty in maintaining pricing power when faced with fluctuating input costs and a shifting mix of lower-margin manufacturing versus higher-margin aggregate sales.
The inability to sustain margins above the 23% level suggests that the company's cost structure remains highly sensitive to steel price volatility and operational inefficiencies. This margin profile appears structurally inferior to pure-play aggregate peers like Vulcan Materials, which consistently command higher profitability through superior geographic positioning.
Based on the latest income statement data, Arcosa's operating margin plummeted to -0.3% in 2026Q1, a significant deterioration from the 13.8% margin recorded in 2025Q3, indicating that the company's fixed cost base is not scaling efficiently during periods of declining top-line revenue performance.
The rapid swing into negative operating territory implies that SG&A expenses are relatively rigid, preventing the company from protecting profitability during revenue downturns. This lack of operating leverage warrants further investigation into whether management can effectively rationalize the cost structure without compromising long-term growth capacity.
Analysis of the reported figures reveals significant earnings volatility, with net income swinging from a $73.0 million profit in 2025Q3 to a $7.7 million loss in 2024Q4, a trend that appears heavily influenced by non-operating items and the impact of stock-based compensation expenses.
The inconsistency in bottom-line results suggests that GAAP net income may be an unreliable metric for assessing the company's true operational health. Investors should focus on the impact of stock-based compensation, which remains a consistent drag on earnings, and consider whether these non-cash charges are adequately reflecting the true cost of talent retention.
Quick answers to the most common questions about buying ACA stock.
For fiscal year 2025, Arcosa, Inc. (ACA) reported total revenue of $2.88B. This represents a 69.2% increase compared to $1.70B in 2016.
Arcosa, Inc. (ACA) is profitable, generating $208.4M in net income for the fiscal year ending 2025 with a net profit margin of 7.2%.
Arcosa, Inc. (ACA) reported an operating income of $340.1M, resulting in an operating profit margin of 11.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Arcosa, Inc. (ACA) generated $647.2M in gross profit for the year, representing a gross profit margin of 22.4%. This demonstrates the company's core pricing power and production efficiency.