Revenue declined 10.6% YoY to $658.7M in Q2 2026, but gross margin expanded to 23.6% from 22.5% a year earlier, while net income surged to $328.5M due to a likely one-time tax benefit, masking an operating income drop of 9.5% YoY.
Arcosa, Inc. (ACA) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 2.74B | 2.88B | 2.57B | 2.31B | 2.24B | 2.04B | 1.94B | 1.74B | 1.46B | 1.46B | 1.7B |
| Revenue Growth % | 2.59% | 12.2% | 11.35% | 2.9% | 10.14% | 5.21% | 11.44% | 18.93% | -0.14% | -14.18% | - |
| Cost of Goods Sold | 2.11B | 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 | 632.3M | 647.2M | 515.2M | 443.8M | 411.1M | 355.9M | 382M | 332.4M | 272M | 294.7M | 348.1M |
| Gross Margin % | 23.04% | 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 | 307.6M | 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 | 325.3M | 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 | -1000K | 0 | -2.4M | 0 | -200.7M | -7.4M | 7.1M | 0 | 1M | 500K | 1.1M |
| Operating Income | 324.7M | 340.1M | 197.6M | 182.7M | 349M | 107.3M | 151.8M | 152.9M | 94.9M | 131.7M | 200.8M |
| Operating Margin % | 11.83% | 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 | 603M | 563.1M | 392.6M | 342.2M | 503.1M | 251.6M | 266.3M | 238.7M | 162.5M | 197.4M | 266.4M |
| EBITDA Margin % | 21.97% | 19.53% | 15.28% | 14.83% | 22.43% | 12.36% | 13.76% | 13.74% | 11.13% | 13.5% | 15.63% |
| EBITDA Growth % | 37.95% | 43.43% | 14.73% | -31.98% | 99.96% | -5.52% | 11.56% | 46.89% | -17.68% | -25.9% | - |
| D&A (Non-Cash Add-back) | 278.3M | 223M | 195M | 159.5M | 154.1M | 144.3M | 114.5M | 85.8M | 67.6M | 65.7M | 65.6M |
| EBIT | 328.3M | 350.1M | 200.9M | 224M | 347.2M | 107M | 148.8M | 153.6M | 95.9M | 130.1M | 197.2M |
| Net Interest Income | -90.3M | -102.2M | -63.4M | -23.4M | -29.9M | -23.4M | -10.2M | -5.4M | -500K | 100K | 100K |
| Interest Income | 8.8M | 6.6M | 7.5M | 4.7M | 1.1M | 0 | 400K | 1.4M | 400K | 100K | 100K |
| Interest Expense | 99.1M | 108.8M | 70.9M | 28.1M | 31M | 23.4M | 10.6M | 6.8M | 900K | 0 | 0 |
| Other Income/Expense | -95.5M | -98.8M | -67.6M | 13.2M | -32.8M | -23.7M | -13.6M | -6.1M | 100K | -1.6M | -3.6M |
| Pretax Income | 229.2M | 241.3M | 130M | 195.9M | 316.2M | 83.6M | 138.2M | 146.8M | 95M | 130.1M | 197.2M |
| Pretax Margin % | 8.35% | 8.37% | 5.06% | 8.49% | 14.1% | 4.11% | 7.14% | 8.45% | 6.51% | 8.9% | 11.57% |
| Income Tax | 29.9M | 32.9M | 36.3M | 36.7M | 70.4M | 14M | 31.6M | 33.5M | 19.3M | 40.4M | 74.2M |
| Effective Tax Rate % | 13.05% | 13.63% | 27.92% | 18.73% | 22.26% | 16.75% | 22.87% | 22.82% | 20.32% | 31.05% | 37.63% |
| Net Income | 491.4M | 208.4M | 93.7M | 159.2M | 245.8M | 69.6M | 106.6M | 113.3M | 75.7M | 89.7M | 123M |
| Net Margin % | 17.9% | 7.23% | 3.65% | 6.9% | 10.96% | 3.42% | 5.51% | 6.52% | 5.18% | 6.13% | 7.22% |
| Net Income Growth % | 432.97% | 122.41% | -41.14% | -35.23% | 253.16% | -34.71% | -5.91% | 49.67% | -15.61% | -27.07% | - |
| Net Income (Continuing) | 199.3M | 208.4M | 93.7M | 159.2M | 245.8M | 69.6M | 106.6M | 113.3M | 75.7M | 89.7M | 123M |
| Discontinued Operations | 2M | 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) | 9.99 | 4.24 | 1.91 | 3.26 | 5.05 | 1.42 | 2.18 | 2.34 | 1.55 | 1.84 | 2.52 |
| EPS Growth % | 430.85% | 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 | 49.1M | 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% | - | - | - |
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.
Key Metrics
Top Statement Risk
EPS miss and revenue decline
Metrics are mathematically derived from official filings.
Revenue Momentum Fades After Peak
Arcosa's revenue growth decelerated sharply to -10.6% YoY in Q2 2026, down from +24.6% in Q3 2025, according to the latest quarterly report, signaling a potential demand inflection.
The 12.2% YoY growth reported in the recent context flags appears to be a trailing figure, but the latest quarter shows a contraction. This suggests that the infrastructure-driven demand surge may be cooling, possibly due to higher interest rates or project timing. Investors should monitor whether this is a temporary dip or the start of a sustained slowdown, especially given the company's exposure to cyclical transportation and construction markets.
Gross Margin Resilience Amid Volume Decline
Gross margin expanded to 23.6% in Q2 2026 from 22.5% a year earlier, as reported in the income statement, indicating pricing power or favorable mix despite lower revenue.
The margin improvement suggests that Arcosa is able to maintain pricing discipline even as volumes decline, possibly due to the localized monopoly in aggregates and specialized manufacturing. However, the sustainability of this margin is questionable if steel costs rise or if the mix shifts toward lower-margin transportation products. The gap between Arcosa's gross margin and peers like MLM (30%) and VMC (27.3%) highlights structural differences, but also room for improvement if the portfolio shift toward aggregates continues.
Operating Leverage Reverses on Revenue Drop
Operating income fell 9.5% YoY in Q2 2026 to $84.3M, despite a 60 bps margin expansion, as per the latest earnings release, showing that fixed costs are not fully covered by lower sales.
The operating margin of 12.8% is above the prior year's 12.6%, but the absolute decline in operating income indicates that the high fixed-cost structure amplifies revenue swings. SG&A expenses rose to $89.1M from $73.0M in Q2 2025, a 22% increase, which is concerning given the revenue decline. This suggests that overhead is not being managed tightly, and if revenue continues to fall, operating leverage could work against the company.
Net Income Distorted by One-Time Gains
Net income surged to $328.5M in Q2 2026, a 450% increase YoY, but this appears driven by a one-time tax benefit or gain, as operating income only grew modestly, based on the reported figures.
The net margin of 49.9% is anomalous compared to historical levels of 6-9%, indicating a non-recurring item. The EPS of $6.67 versus operating EPS of roughly $1.71 (using a 49M share count) suggests a massive below-the-line gain. This inflates reported earnings and masks the underlying operational weakness. Investors should adjust for this one-time item to assess true earnings power, and the lack of guidance adds uncertainty.
SG&A Creep Outpaces Revenue Decline
SG&A expenses rose to $89.1M in Q2 2026 from $73.0M a year earlier, a 22% increase, while revenue fell 10.6%, as per the income statement, indicating cost discipline is lacking.
The increase in SG&A is particularly concerning given the revenue contraction, suggesting that the company is not adjusting its cost base quickly enough. This could be due to investments in growth initiatives or inflation in administrative costs. If revenue continues to decline, the elevated SG&A will pressure operating margins further. Management's claim of 'solid operational execution' seems inconsistent with this cost trend, warranting a closer look at expense management.
Q2 2026 Marks a Potential Turning Point
The Q2 2026 earnings miss of $0.53 per share versus consensus, with revenue down 10.6% YoY, represents a clear inflection from prior growth, as reported in the latest earnings release.
This quarter breaks the pattern of sequential revenue growth seen in 2025, and the EPS miss suggests that street expectations were too high. The combination of revenue decline, SG&A increase, and a one-time gain in net income creates a confusing picture. The lack of forward guidance amplifies the uncertainty, and investors should watch whether this is a one-off or the beginning of a downward trend. The company's exposure to cyclical barges and policy-dependent wind towers adds to the risk.
What Could Invalidate the Base Case
The Q2 2026 EPS miss and revenue decline may signal structural weakness, not a temporary blip, as the company's high fixed costs and cyclical segments could amplify downturns, according to the latest financials.
Short-sellers might argue that the revenue contraction and SG&A inflation indicate a loss of pricing power and cost control, which could lead to sustained margin compression. The one-time gain in net income masks the underlying operational deterioration, and without guidance, the market may lose confidence. Additionally, the company's reliance on policy-dependent wind towers and cyclical barges makes it vulnerable to regulatory and economic shifts. If the aggregates segment cannot offset weakness in other areas, the stock could face a de-rating.