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Section 1: 8-K (8-K)


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): November 5, 2018

Arcosa, Inc.


(Exact name of registrant as specified in its charter)

Delaware
 
1-38494
 
82-5339416
(State or other jurisdiction of incorporation
 
(Commission File No.)
 
(I.R.S. Employer Identification No.)

2525 N. Stemmons Freeway,
       
Dallas, Texas
     
75207-2401
(Address of principal executive offices)
     
(Zip Code)

Registrant’s telephone number, including area code:
972.942.6500

Not Applicable


Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



Item 2.02
Results of Operations and Financial Condition.

Item 7.01
Regulation FD Disclosure.

The following information is furnished pursuant to both Item 2.02 and Item 7.01 of Form 8-K.

Arcosa, Inc. (“Arcosa”) has updated its presentation materials that management intends to use from time to time in investor presentations about Arcosa’s operations and performance. The investor presentation is attached as Exhibit 99.1 to this report and is incorporated herein by reference. In addition, the investor presentation will be made available on www.arcosa.com.

The information in this report (including the Exhibit) is being furnished pursuant to Items 2.02 and 7.01 and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.  Additionally, the submission of this report on Form 8-K is not an admission of the materiality of any information in this report that is required to be disclosed solely by Regulation FD.

Item 9.01
Financial Statements and Exhibits.

(d)
Exhibits

The following are furnished as exhibits to this report:

99.1
Arcosa, Inc. Investor Presentation dated November 2018


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

   
Arcosa, Inc.
   
 November 5, 2018
By:
/s/ Bryan P. Stevenson
   
Name:
Bryan P. Stevenson
   
Title:
Chief Legal Officer and Assistant Corporate Secretary



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Section 2: EX-99.1 (EXHIBIT 99.1)


Exhibit 99.1

   Investor Presentation  November 2018 
 

   Forward-Looking Statements  Moving Infrastructure Forward — Investor Presentation, November 2018  2  Some statements in this presentation, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Arcosa’s estimates, expectations, beliefs, intentions or strategies for the future. Arcosa uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this presentation, and Arcosa expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, except as required by federal securities laws. Forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to assumptions, risks and uncertainties regarding achievement of the expected benefits of Arcosa’s spin-off from Trinity Industries, Inc. (NYSE:TRN); tax treatment of the spin-off; market conditions and customer demand for Arcosa’s business products and services; the cyclical nature of, and seasonal or weather impact on, the industries in which Arcosa competes; competition and other competitive factors; governmental and regulatory factors; changing technologies; availability of growth opportunities; market recovery; improving margins; and Arcosa’s ability to execute its long-term strategy, and such forward-looking statements are not guarantees of future performance. For further discussion of such risks and uncertainties, see “Information Statement Summary”, “Risk Factors” and “Forward-Looking Statements” in the information statement filed as an exhibit to Arcosa’s Registration Statement on Form 10, as amended.  
 

   How to Find Us  Moving Infrastructure Forward — Investor Presentation, November 2018  3  Investor ContactInvestorResources@arcosa.com  NYSE tickerACA  Our websitewww.arcosa.com  HeadquartersArcosa, Inc.500 North Akard StreetDallas, Tx 75201 
 

 Agenda  Company overview and strategic roadmapBusiness segment highlightsFinancial overview and capital allocation strategy  Moving Infrastructure Forward — Investor Presentation, November 2018  4 
 

       Enhances Focus of Each Company  Arcosa to focus on growing market opportunities in infrastructure spendingTrinity Industries to operate integrated rail leasing, manufacturing, and services business  Moving Infrastructure Forward — Investor Presentation, November 2018  5  Enables Each Company to Optimize Capital Structure  Enables Arcosa and Trinity to Pursue Distinct Growth Strategies  Strategic Rationale  For the separation of Arcosa from Trinity Industries 
 

   Moving Infrastructure Forward — Investor Presentation, November 2018  6  $182MEBITDA  ~$200MCash at spin, with no material outstanding debt  $1.4BRevenue  Arcosa By the Numbers  A new public company with an established operating history and financial flexibility  ~40Operating Locations across N. America  $119MOperating Profit  85+Years of Operating History  Note: Revenue, Operating Profit, and EBITDA are LTM 06/30/2018. See EBITDA reconciliation in Appendix 
 

   Established businesses with additional potential to thrive in Arcosa’s new structure  Moving Infrastructure Forward — Investor Presentation, November 2018  7    Revenue  Note: Revenue and Adj. EBITDA margin are LTM 06/30/2018. See Adjusted EBITDA reconciliation in Appendix    $785M  ENERGY  WIND TOWERS  UTILITY STRUCTURES  STORAGE TANKS    $353M  COMPONENTS  BARGES  TRANSPORTATION    CONSTRUCTION  $288M  AGGREGATES  SPECIALTY MATERIALS  CONSTRUCTION SITE SUPPORT  Markets      Adj. EBITDA margin  12%  16%  26%   
 

   Moving Infrastructure Forward — Investor Presentation, November 2018  8  Investment Case  Stage 1 plan underway to execute on our long term vision  Established businesses with additional potential to thrive in Arcosa’s new structure  Barge recovery to provide near term growth  Experienced leadership team with a common vision  Expected Revenue and EBITDA growth in 2019  Broad infrastructure market exposure creates opportunities for growth and strategic optionality 
 

 Moving Infrastructure Forward — Investor Presentation, November 2018  9  Long term vision for Arcosa  Improve returns on invested capital  Grow in attractive markets where we can achieve sustainable competitive advantages  Reduce the complexity and cyclicality of the overall business 
 

           Stage 1 Priorities  Moving Infrastructure Forward — Investor Presentation, November 2018  10  Grow Construction Products organically and through acquisitions  Expand Transport-ation Products organically as barge and rail markets recover  Improve Energy Equipment’s operational performance while pursuing disciplined growth  Operate a flat and responsive corporate structure 
 

   Broad infrastructure market exposure creates growth opportunities across construction, energy, and transportation   Moving Infrastructure Forward — Investor Presentation, November 2018  11  Sources: American Society of Civil Engineers, Oxford Economics  Recent estimates suggest that improving U.S. infrastructure to an “adequate state” requires a total investment of approximately $4.6 trillion from 2016 to 2025   Replacement of aging infrastructure  Long-term population growth in key Southwest geographies is expected to exceed U.S. growth ratesAdditionally, population growth in Mexico and other Latin American countries is expected to positively impact future infrastructure spending  New infrastructure spending to meet population growth  Shifting trends in the global energy landscape expected to benefit Arcosa, including:Increased adoption of renewablesIncreased U.S. oil & gas production, driven by shale basins  Changing energy landscape  Early signs of recovery in barge and rail marketsArcosa is well-positioned to benefit from a market recovery in these areas  Recovery in key transportation markets 
 

         A separation that provides the foundation for a strong future  Moving Infrastructure Forward — Investor Presentation, November 2018  12  Liquidity to fund growth opportunities  Healthy balance sheet  ~$200M of cash, plus $400M unsecured revolving credit facilityHealthy free cash flow and relatively light capital intensity  No material outstanding debt at time of spinNo material contingent liabilities   Independent structure  Trinity distributed 100% of Arcosa shares to Trinity shareholdersNo overlapping directorsNew headquarters  Note: Free cash flow defined as cash provided by operating activities less capex 
 

 Agenda  Company overview and strategic roadmapBusiness segment highlightsFinancial overview and capital allocation strategy  13  Moving Infrastructure Forward — Investor Presentation, November 2018 
 

   Construction Products Segment Overview        Key Figures  REVENUE   ProductS  by product type ($M)  Natural sand, gravel and limestone base  Shale & clay expanded and hardened in a rotary kiln   Steel & aluminum trench shoring products and systems  $288M  Revenue  26%  Adjusted EBITDA Margin  $30B+  Estimated annual market size  $*(*)  AGGREGATES  SPECIALTY MATERIALS  CONSTRUCTION SITE SUPPORT  217(75%)  Aggregates andspecialty materials  Constructionsite support  71(25%)  Note: Aggregates and Specialty Materials grouped as “Construction Aggregates” in Financials. Construction Site Support classified as “Other”. See Adjusted EBITDA reconciliation in Appendix to reconcile Adjusted EBITDA margin with Operating Profit margin of 19%.  (LTM 6/30/18)  Moving Infrastructure Forward — Investor Presentation, November 2018  14 
 

   Aggregates Overview  Aggregates business operates in favorable Texas and Gulf Coast markets, with opportunities to expand in this fragmented industry    Population and GDP growth in the “Texas Triangle” projected to outpace the national average from 2018-2025Texas Department of Transportation’s (TXDOT) Unified Transportation Plan anticipates $75 billion in infrastructure spending over the next 10 yearsAppealing attributes have brought additional competition and supply          Dallas-Ft Worth market    Houston-Gulf Coast market  Central Texas market    Operate 11 locations across 3 importantmarkets in Texas and the Gulf Coast  Attractive market fundamentals in Texas and Gulf Coast markets  Source: Oxford Economics, TXDOT UTP (2019)  Moving Infrastructure Forward — Investor Presentation, November 2018  15 
 

   Specialty Materials Overview  Specialty lightweight aggregates business has geographic and end market diversity                                                                                                                                    We operate 7 lightweight aggregate locations across the United States  Road and bridge construction  Residential/ commercial  Environmental / Horticulture  Other specialty markets    Nationwide Footprint  Diverse End Markets  Moving Infrastructure Forward — Investor Presentation, November 2018  16  Pre-cast products, stone veneer, rooftile, baseball infield conditioner 
 

   Asset swap for multiple lightweight aggregates operating plants  Acquisition of multiple lightweight aggregates operating plants  Acquisition of multiple lightweight aggregates operating plants  Aggregates and Specialty Materials Growth  Moving Infrastructure Forward — Investor Presentation, November 2018  17  Track record of disciplined acquisitions to expand aggregates and specialty materials platforms  2017  2015  2012  2016  2013  LTM06/30/2018  2014  Combined Aggregates and Specialty Materials Revenue$ Millions    Source: Arcosa financials (2015- LTM 6/30/18); Trinity Industries, Inc. financials (2012-2014) 
 

   Construction Site Support Overview  Trench shoring is a growing platform, driven by nationwide infrastructure spending and regulatory and safety standards  Diverse Product Portfolio      Shoring products apply pressure to the walls of a trench or hole  Increasing focus on worker safety and OSHA compliance  Growing End Markets  Road and bridge construction  Water and sewer construction  Utility construction (Gas / Electric)  Pipeline construction & inspection  Moving Infrastructure Forward — Investor Presentation, November 2018  18 
 

   Energy Equipment Segment Overview  Moving Infrastructure Forward — Investor Presentation, November 2018  19        WIND TOWERS  UTILITY STRUCTURES  RESIDENTIAL/COMMERCIAL/AGRICULTURAL STORAGE  INDUSTRIAL SCALE & FIELD ERECTED STORAGE  585(75%)  Utility structuresand wind towers  200(25%)  Storage tanks and other  See Adjusted EBITDA reconciliation in Appendix to reconcile to Operating Profit Margin of 8%; backlog as of 9/30/2018 provided in Trinity Industries, Inc. financials  Storage   $785M  Revenue  12%  Adjusted EBITDA Margin  Key figures  Revenue   Products  by product type ($M)  (LTM 6/30/18)  $700M Backlog in Utility Structuresand Wind Towers as of 09/30/18  
 

       Wind Power Market Outlook  Moving Infrastructure Forward — Investor Presentation, November 2018  20  Wind is projected to be competitive on an unsubsidized basis in 22 states by 2022 …  …resulting in a market driven business model  Source: MAKE Consulting (2017 North America Wind Power Outlook)  Industry forecasts show drop in wind power installations in 2021, as the 2015 extension of the US Production Tax Credit begins to phase outMagnitude of the projected drop is uncertain, and depends on a number of factors, including:Levelized cost of energy vs. other sources of generation, particularly natural gas and solarRenewable Energy Standards at the US state levelFederal climate change policySpeed of coal plant retirementsOverall load growthForeign tower importsFuture US offshore market  Wind power is already competitive in the regions that we serve 
 

   Moving Infrastructure Forward — Investor Presentation, November 2018  21  Storage tanks for gas and liquids, including:Liquefied petroleum gasesNatural gas liquidsCO2NitrogenAnhydrous ammonia (NH3)ChlorineRefrigerant gases  Pressurized storage spheresField-erected API storage tanks  LPG bobtailsLarge truck transports  Aboveground and underground propane tanksVertical tanks and cylinders  RESIDENTIAL / COMMERCIAL / AGRICULTURAL STORAGE  Industrial-scale Storage  Field-erected storage  Mobile storage and transportation  Storage Tank Market Outlook  Storage tanks serve a diverse group of markets, with higher growth potential in industrial and field-erected storage 
 

       Reliability, renewables, and reducing congestion continue to drive transmission investment…  …and industry forecasts point towards robust spending in the next several years  Other  Reliability  Renewables integration  Economics/congestion  1%  13%  Source: NERC Long Term Reliability Assessment (2017)  Source: C3 Group (2018); projections from 2019-2022 tend to have upward revisions as projects are confirmed  Moving Infrastructure Forward — Investor Presentation, November 2018  22  Utility Structures Market Outlook  Fundamentals of the power transmission industry remain positive  32  2010  2009  2008  2011  2012  2013  2014  2015  2016  2017  2018  2019  31  2020  31  2021  2022  15  16  18  19  24  29  30  30  31  30  30  30  Total U.S. and Canada Electric Transmission: Reported Capital Expenditures$ Billions      Actual  Forecast  Primary Drivers for New Transmission Projects 
 

   Transportation Products Segment  Established brands and products primed for growth astransportation markets recover        $353M  Revenue  16%  Adjusted EBITDA Margin  $5B+  Estimated annual market size  TANK BARGES  HOPPER BARGES  RAILCAR AXLES  RAILCAR COUPLING DEVICES  FIBERGLASS COVERS  217(62%)  Components  136(38%)  Barges  Key Figures  REVENUE   ProductS  by product type ($M)  (LTM 6/30/18)  Moving Infrastructure Forward — Investor Presentation, November 2018  23  INDUSTRIAL & MINING COMPONENTS  $210M Backlog in Barges as of 09/30/18   See Adjusted EBITDA reconciliation in Appendix to reconcile with Operating Profit Margin of 11%; backlog as of 9/30/2018 provided in Trinity Industries, Inc. financials  
 

 Axles for freight, tank, and passenger railcarsCrane wheelsIndustrial wheelsGear blanks  Railcar couplers and related productsIndustrial and mining castings  FORGINGS        Primary Products  Brands  CASTINGS  Moving Infrastructure Forward — Investor Presentation, November 2018  24  Components Overview  Arcosa’s components businesses are market leaders with well-established products and reputations  McConway & Torley      End markets  New railcar marketMaintenance railcar marketMining and industrial markets  New railcar marketMaintenance railcar marketMining and industrial markets 
 

     Marine Hardware and Fiberglass covers    Primary Products  Tank barges  Moving Infrastructure Forward — Investor Presentation, November 2018  25  Barge Overview  Arcosa is an industry leader in barge manufacturing, fiberglass barge covers, and marine hardware      Primary end markets  Refined productsPetrochemicals and ChemicalsCrude oilAgriculture  HatchesWinchesCastingsFiberglass barge covers   New equipment and maintenance for the marine market: Barges, Towboats, Dock facilities  Hopper barges      Food and farm productsCoal and coal cokeSand, gravel, and other construction products 
 

                                                                                                                                                                           Mississippi River System  Columbia River System                                                                                Gulf Intracoastal Waterway  Atlantic Intracoastal Waterway          Other waterways    Pittsburgh  St. Louis  New Orleans  Minneapolis  Houston  Chicago  Kansas City  Cincinnati  Columbus  Knoxville  Portland  Tulsa                        Atlanta      New York City    San Francisco  Miami  Washington D.C.                Shreveport    Buffalo    Jones Act requires barges to be manufactured in the U.S.  14% of all domestic freight moves on the inland waterway systemWaterways transport:~60% of the nation’s grain exports~22% of domestic petroleum and petroleum products~20% of the coal used in electricity generation Inland marine transportation has valuable fuel efficiency and environmental advantages over truck and rail  Sources: American Society of Civil Engineers 2017 Infrastructure Report Card, Texas Transportation Institute (Jan 2017)  Moving Infrastructure Forward — Investor Presentation, November 2018  26  Barge Market Overview  The inland waterway system is a critical part of the country’s infrastructure 
 

   Moving Infrastructure Forward — Investor Presentation, November 2018  27  2016  2013  2015  2010  2012  2011  2014  2017  2018(P)      Revenue  Adjusted EBITDA  Inland Barge business$ Millions  Healthy returns on capital over the cycle, as Adj. EBITDA / Assets averaged 62% from 2010-2017Even in the significant downturn over the last several years, this business remained profitable  Barge Overview  Since 2010, our barge business has averaged ~$470M in revenue; even in the downturn, operating profit has been positive  Source: Trinity financials for all historical periods. 2018 Projections based on 07/26/18 Trinity Industries, Inc. Guidance. See Adjusted EBITDA reconciliation in Appendix  
 

   Inland Barge businessBook to Bill ratio ($ Value of Orders Signed: $ Value of Orders Produced)    2Q16  1Q16  3Q16  3Q17  2Q17  4Q16  1Q17  4Q17  1Q18  2Q18  1  3Q18  Backlog Growing  Backlog Shrinking      Moving Infrastructure Forward — Investor Presentation, November 2018  28  Barge Market Outlook  Orders in the first half of 2018 have been strong, leading to expectations of significantly improved 2019  Recent book to bill ratios have been strong, and above 1.0, in 4 of last 5 quarters3Q18 customer activity also included finalized supply agreements not included in backlog at this timeContinue to see healthy inquiry levels for a wide variety of liquid typesAnnounced re-opening of idled facility in October to support demand conditions  Source: Trinity Industries, Inc. financials for all periods  
 

 Agenda  Company overview and strategic roadmapBusiness segment highlightsFinancial overview and capital allocation strategy  29  Moving Infrastructure Forward — Investor Presentation, November 2018 
 

   Moving Infrastructure Forward — Investor Presentation, November 2018  30  Financial overview  Key messages  Higher revenue and EBITDA expected in 2019  Liquidity and balance sheet capacity to fund growth  Disciplined capital allocation process  Lean operating model, with focus on improving ROIC  
 

   Grow Construction Products  Stage 1 Priorities  Moving Infrastructure Forward — Investor Presentation, November 2018  31  Actions completed or underway  Improve Energy Equipment  Expand Transportation Products  Operate a flat corporate structure          Pursuing pipeline of acquisitions across aggregates, specialty materials, and construction site support  Outsourced certain corporate functions as part of separationStreamlined corporate structure to reduce layers  Extending Continuous Improvement program from Wind Towers to rest of Energy EquipmentIn process of divesting certain businesses in “Other” Energy Equipment  Preparing barge plants for increased production in 2019, including announced re-opening of idled plantExpanding components business to new customers and markets  2019 EBITDA guidance of $180-195M    FY 2019 guidance as of November 1, 2018. See EBITDA reconciliation included in Appendix for reconciliation to 2019 Net Income range of $81-89M  
 

   Revenue ($M’s)  2017  1,421  2015  1,704  LTM 6/30/18  2016  2019P  1,462  2,140  1,550-1,650  2019 Guidance  Overall EBITDA expected to be higher in 2019 than 2018, driven by barge recovery and operating improvements  EBITDA ($M’s)  2019P  2016  377  2015  196  2017  LTM 6/30/18  263  182  180-195          Energy Equipment  Transportation Products  Corporate/ Other  Construction Products  Moving Infrastructure Forward — Investor Presentation, November 2018  32  See EBITDA reconciliation included in Appendix for reconciliation to 2019 Net Income range of $81-89M   FY 2019 guidance as of November 1, 2018 
 

   Positives from 2018  Challenges from 2018  Moving Infrastructure Forward — Investor Presentation, November 2018  33    2019 Guidance  We expect EBITDA of $180-195M in 2019  2019 revenue guidance: $1,550-1,650M2019 EBITDA guidance: $180-195M  $10-15M of incremental public company costs (will be in corporate costs)Lower margin in Components, due to 2019 market pricing in sales agreement with TrinityRail    Barge recovery expected to result in higher revenue and operating marginEnergy Equipment improvementsPlanned exit of certain businesses in “Other” Energy Equipment Continuous improvement programContinued strength in Construction Products  FY 2019 guidance as of November 1, 2018. See EBITDA reconciliation included in Appendix for reconciliation to 2019 Net Income range of $81-89M  
 

   Liquidity and balance sheet capacity to pursue growth  Moving Infrastructure Forward — Investor Presentation, November 2018  34    Strong Available LiquidityPosition    ~$200M of cash at separationNo material outstanding debt at time of separationUnencumbered balance sheet    5-YearCredit Facility    $400M five-year unsecured credit facility Lender group comprised of leading relationship banks    Appropriate Use of Leverage    Long term target leverage of 2.0 – 2.5x Net Debt to EBITDA, implying $400-500M of capacity  Note: Net debt defined as Total Debt minus Cash 
 

       Organic investments  Balance between growth and maintenance investmentsCapital expenditures averaged ~$84M annually in 2016 and 2017Construction Products: $47M (includes reserve investments)Energy: $26MTransportation: $11MTarget short cash payback periods for internal investments  Moving Infrastructure Forward — Investor Presentation, November 2018  35  Acquisitions  Invest in acquisitions that will:Enhance our strategic positionReduce the cyclicality of the total portfolioCurrent pipeline of potential acquisitions in construction, energy, and transportation marketsAcquisitions likely to be a combination of bolt-ons and strategic acquisitions  Return of capital to shareholders  Capital Allocation Priorities   Anticipate paying quarterly dividends Expect share repurchase authorization  Balanced capital allocation strategy across organic investments and acquisitions 
 

 Fit with broader strategy of growing in attractive infrastructure-related marketsRe-positioning of portfolio to more stable, less cyclical profileLeverage from current manufacturing or mining/processing platforms  Exposure to fast-growing submarkets within broader infrastructure marketAttractive top line growthPlatform for additional acquisition growth opportunities  Attractive returns on invested capital over an economic cycleCurrent EBITDA marginsPath to grow EBITDA margins  Market dynamics leading to attractive returns on capital  Cultural potential to thrive within Arcosa’s operating model (e.g., safety, compliance, sustainability commitments)High ethics and integrityBrings additional talent to Arcosa    Capital Allocation Priorities  Moving Infrastructure Forward — Investor Presentation, November 2018  36  How we assess potential acquisitions  Strategic alignment  Profitability & returns  Culture and capabilities  Market growth potential  Marketdynamics   
 

   37  Capital Expenditures ($M’s)  Net cash from operating activities ($M’s)  Moving Infrastructure Forward — Investor Presentation, November 2018  2015  LTM 6/30/18  2016  2017  Pre-Tax Return on Invested Capital  2015  2016  9.5%  2017  8.4%  LTM 6/30/18  15.7%  14.6%  Focus on improving ROIC  Cash generation has been healthy; focus is on improving ROIC  Working capital as % of Sales  Moving Infrastructure Forward — Investor Presentation, September 2018  LTM 6/30/18  2015  2016  2017  LTM 6/30/18  24.1%  2015  2016  21.5%  2017  17.6%  23.2%  Notes: Capex includes reserve investments in Construction Products segment. Pre-Tax ROIC defined as Income Before Income Taxes for the period divided by Average Ending Equity  
 

   Lean operating model  Guiding principles  Reduce layers to expedite decision making and enhance connections with customers and other stakeholdersEncourage an entrepreneurial cultureMaintain small corporate team performing limited set of activitiesLeverage external support and technological innovation in order to increase cost flexibility (e.g., outsourced IT functions)Focus on improving ROIC  Corporate actions taken prior to spin  Outsourced certain corporate functions, where appropriateStreamlined corporate structure to reduce layersMaintained best practices from Trinity  Moving Infrastructure Forward — Investor Presentation, November 2018  38  Actions are underway to reduce layers and make costs more variable  Incremental independent public company costs expected to be $10-15M per year, but actions underway to offset these costs in the medium term 
 

 We are stewards ofthe environment and committed to sustainability A leading producer of wind towers for renewable power generation Arcosa headquarters is LEED Gold, Energy Star CertifiedInstituted sustainability program to track environmental metrics  Our people contribute to the communities in which they live and workEthics Training and Certification programsExtensive community engagement programsTalent development program to build the skills and experience of our team  We are committed to the highest principles of corporate governance Chairman and CEO roles are separatedManagement pay linked to performanceCommitment to disclosure and transparency  Protecting the safety and health of our people guides us in everything we doSafety Excellence program rolled out to plantsOur trench shoring products are used for worker protection in the construction industry    Moving Infrastructure Forward — Investor Presentation, November 2018  39  Governance   Environment  Safety and health  People & communities  Environmental, social, and governance impact  Our board and leadership team are committed to ESG impact 
 

   As a leadership team, we are committed to building a culture of trust with our investors, analysts, and other stakeholders  Moving Infrastructure Forward — Investor Presentation, November 2018  40  Credibility  Accessibility  Transparency 
 

   Appendix 
 

 Moving Infrastructure Forward — Investor Presentation, November 2018  42  Mary HendersonChief Accounting Officer  Jess CollinsTransportation Products  Gail PeckSVP, Finance & Treasurer  Reid EsslConstruction Products  Kathryn CollinsChief HR Officer  Kerry ColeEnergy Equipment  Bryan StevensonChief Legal Officer  Antonio CarrilloPresident & CEO  Scott BeasleyChief Financial Officer    Management team  Experienced leadership team with renewed focus on growth 
 

   43  Moving Infrastructure Forward — Investor Presentation, November 2018  43  Rhys Best, Non-Executive Chairman of ArcosaFormer Director of Trinity Industries, Inc. Non-Executive Chairman of MRC Global, Inc.  Antonio CarrilloPresident and CEO of ArcosaFormer Director of Trinity Industries, Inc.  Joe AlvaradoFormer Chairman and CEO of Commercial Metals Company  David BieglerFormer Director of Trinity Industries, Inc. Former Chairman, President and CEO of Southcross Energy Partners GP, LLC.  Jay CraigChief Executive Officer and President of Meritor, Inc.  Ron GaffordFormer Director of Trinity Industries, Inc. Former President and CEO of Austin Industries, Inc.  John LindsayPresident and CEO of Helmerich & Payne, Inc.  Douglas RockFormer Director of Trinity Industries, Inc.Former Chairman and CEO of Smith International, Inc.  Melanie TrentFormer EVP, General Counsel and Chief Administrative Officer of Rowan Companies plc.  Board of directors  Board Members bring diverse expertise and leadership experience 
 

   Nationwide footprint to cost-effectively serve customers across the countrySpecialized technical sales force to work with customers on lightweight material applicationsProcessing expertise to run critical rotary kiln operations  7 operating locations across the United States  Industry-leading innovation of trench shoring and safety productsManufacturing capacity to serve the strong rental marketHealthy category growth driven by increased focus on worker safety and OSHA regulations  2 trench shoring manufacturing plants, plus additional rental locations in Michigan    Construction Products Segment Overview  Moving Infrastructure Forward — Investor Presentation, November 2018  44      Strategically located reserves in fast growing TX & Gulf Coast marketsDeep customer relationships with major concrete producers & construction companiesIntimate knowledge of land and operating companies in our markets  11 operating locations in Texas and Louisiana  Value Proposition  Footprint  Construction Site Support  Aggregates  Specialty Materials 
 

                   Energy Equipment Segment Overview  Footprint   Value proposition   Wind towers  Utility structures  Storage tanks  4 manufacturing plants currently producing wind towers in US and Mexico  6 manufacturing plants currently producing utility structures in US and Mexico  3 manufacturing locations producing energy storage products in US and Mexico  A leading manufacturer of wind towers in North America, having produced >12,000 towers Low cost manufacturing platform dedicated to operational excellenceLong-term relationships with industry leadersStrong relationships with steel millsISO 9001:2015   A leading provider of engineered, tubular and lattice steel structures for electricity transmission and distributionOriginal pioneer of tubular steel transmission structures, known for long history of innovationExperienced engineering team supported by proprietary software and a full-scale testing facilityHighly valued alliances with leading utility customersISO 9001:2015   Reputation for quality built on decades of serviceAccess to Mexico manufacturing platformFlexible platform to respond to different types of storage needsISO 9001:2015   Moving Infrastructure Forward — Investor Presentation, November 2018  45 
 

     Industry-leading inland barge manufacturing capacity, with proven ability to operate in cyclical marketsFlexibility to shift between barge typesLong-term relationships with leading barge operatorsStrong relationships with steel millsAlso provide fiberglass barge covers and a full line of deck hardware to the marine industry  4 manufacturing facilities along the inland river system, plus additional barge cover facilities    Transportation Products Operating Overview  Value proposition  Footprint  COMPONENTS  BARGES  A leading manufacturer of steel components for rail transportation. Primary product lines include railcar coupling devices, railcar axles, and circular forgingsModernized foundries in the US, with global sourcing capabilities to supplement production Specialized intellectual propertyCapacity to serve rail and industrial markets throughout cycles  3 manufacturing facilities in the United States  Moving Infrastructure Forward — Investor Presentation, November 2018  46 
 

       Liquid cargo transported by inland barge, by commodity (%)  Dry cargo transported by inland barge, by commodity (%)  Coal and Coal Coke  Food and Farm Products  Sand, Gravel, Stone,And Other  ManufacturedGoods / Other  Iron / Ores / Scrap  Sources: US Corps of Engineers (2016-2017), Informa Economics  Total hopper barge fleet: 18,819 bargesAverage age: 14.6 yearsRecent softness from oversupply of dry barges, but replacement demand as fleet continues to age  Total fleet: 3,617 bargesAverage age: 14.7 yearsStrong demand for liquid barges in last 6 months across wide variety of commodity types  Moving Infrastructure Forward — Investor Presentation, November 2018  47  Barge Market Overview  Inland barges serve a diverse set of commodity markets  1%  Petrochemicalsand Chemicals  Black Oil  Refined Products  Agricultural 
 

   EBITDA reconciliation: Arcosa  48     2019P      LTM    Fiscal Years ended December 31,            $ Millions  Low  High    6/18      2017    2016    2015                             Net income  $81.0  $89.0    $89.0      $89.7    $123.0    $135.0  Add:                               Interest expense  $2.0   $2.0     $0.0       $0.0     $0.0    $0.4    Provision/(Benefit) for income taxes  $27.0  $29.0    $25.9      $40.4    $74.2    $84.2   Depreciation & amortization expense  $70.0   $75.0     $67.2       $65.7     $65.6     $67.8    Goodwill Impairment  $0.0  $0.0    $0.0      $0.0    $0.0    $89.5                                                             Net income before interest expense, income                              taxes, and depreciation and                               amortization expense  $180.0  $195.0    $182.1      $195.8    $262.8    $376.9  “EBITDA” is defined as net income plus interest expense, income taxes, and depreciation and amortization including goodwill impairment charges. EBITDA is not a calculation based on generally accepted accounting principles. The amounts included in the EBITDA calculation, however, are derived from amounts included in the historical statements of operations data. In addition, EBITDA should not be considered as an alternative to net income or operating income as an indicator of our operating performance, or as an alternative to operating cash flows as a measure of liquidity. We believe EBITDA assists investors in comparing a company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors.  Moving Infrastructure Forward — Investor Presentation, November 2018  Guidance as of November 1, 2018 
 

         LTM      Fiscal Years ended December 31,            $ Millions    6/18          2017    2016    2015  Construction Products Segment                          Operating Profit    $54.8          $53.7    $59.3    $50.4  Add: Depreciation & amortization expense    $20.0          $18.4    $16.0    $15.6   Adjusted EBITDA    $74.8          $72.1    $75.3    $66.0                          Energy Equipment Segment                           Operating Profit    $61.7          $78.4    $87.7    $8.4  Add: Depreciation & amortization expense    $30.2          $30.2    $31.7    $32.9  Add: Goodwill Impairment    $0.0          $0.0    $0.0    $89.5   Adjusted EBITDA    $91.9          $108.6    $119.4    $130.8                           Transportation Products Segment                           Operating Profit    $39.6          $39.0    $87.3    $197.7  Add: Depreciation & amortization expense    $17.0          $17.1    $17.9    $19.3   Adjusted EBITDA    $56.6          $56.1    $105.2    $217.0                          Operating Profit – Corporate    ($37.7)          ($39.4)    ($33.5)    ($38.7)  Other, net expense    ($3.5)          ($1.6)    ($3.6)    $1.4  Add: Interest expense    $0.0          $0.0    $0.0    $0.4  EBITDA    $182.1          $195.8    $262.8    $376.9  Adjusted EBITDA reconciliation by Arcosa Segment  49  “Adjusted EBITDA” is defined as segment operating profit plus depreciation and amortization including goodwill impairment charges. “Adjusted EBITDA Margin” is defined as Adjusted EBITDA divided by Revenue. Since income taxes and interest expense are not allocated to the segment level, they are not added back in the calculation of adjusted EBITDA. For a reconciliation of EBITDA to net income, see the accompanying EBITDA reconciliation. Adjusted EBITDA is not a calculation based on generally accepted accounting principles. The amounts included in the Adjusted EBITDA calculation, however, are derived from amounts included in the historical statements of operations data. In addition, Adjusted EBITDA should not be considered as an alternative to net income or operating income as an indicator of our operating performance, or as an alternative to operating cash flows as a measure of liquidity. We believe adjusted EBITDA assists investors in comparing a company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors.   Moving Infrastructure Forward — Investor Presentation, November 2018 
 

   $ Millions  Fiscal Years ended December 31,                             2018(P)   (1)    2017    2016    2015    2014    Barge (FY14 – FY18(P))                            Operating Profit    $5.1      $6.4    $45.3    $117.0    $114.4    Add: Depreciation & amortization expense    $7.3      $7.3    $8.4    $10.5    $9.3     Adjusted EBITDA    $12.4      $13.7    $53.7    $127.5    $123.7                                  Fiscal Years ended December 31,                      Barge (FY10 – FY13)    2013    2012      2011    2010         Operating Profit    $96.0    $124.7      $106.4    $69.0        Add: Depreciation & amortization expense    $8.1    $7.6      $6.4    $5.5         Adjusted EBITDA    $104.1    $132.3      $112.8    $74.5                                   Adjusted EBITDA reconciliation: Trinity’s Historic Barge Segment  50  “Adjusted EBITDA” is defined as segment operating profit plus depreciation and amortization expense. Since income taxes and interest expense are not allocated to the segment level, they are not added back in the calculation of adjusted EBITDA. For a reconciliation of EBITDA to net income, see the accompanying EBITDA reconciliation. Adjusted EBITDA is not a calculation based on generally accepted accounting principles. The amounts included in the adjusted EBITDA calculation, however, are derived from amounts included in the historical statements of operations data. In addition, adjusted EBITDA should not be considered as an alternative to net income or operating income as an indicator of our operating performance, or as an alternative to operating cash flows as a measure of liquidity. We believe adjusted EBITDA assists investors in comparing a company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors.  Moving Infrastructure Forward — Investor Presentation, November 2018  (1) Based on Trinity Industries guidance provided on 7/26/2018; revenues of $170M and operating profit margin of 3%; depreciation assumed equal to FY 2017 level 
 

 Investor Presentation  November 2018 
 


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