MOVING INFRASTRUCTURE FORWARD | NOVEMBER 2023 INVESTOR PRESENTATION Exhibit 99.1
2 I MOVING INFRASTRUCTURE FORWARD I 2023 FORWARD LOOKING STATEMENTS 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,” “strategy,” “plans,” 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 the impact of the COVID-19 pandemic, or other similar outbreaks, on Arcosa's business; assumptions, risks and uncertainties regarding achievement of the expected benefits of Arcosa’s spin-off from Trinity Industries, Inc.; tax treatment of the spin-off; failure to successfully integrate acquisitions or divest any business, or failure to achieve the expected benefit of acquisitions or divestitures; 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; ability to improve margins; the impact of inflation and costs of materials; assumptions regarding achievements of the expected benefits from the Inflation Reduction Act; 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 "Risk Factors" and the "Forward-Looking Statements" section of "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Arcosa's Form 10-K for the year- ended December 31, 2022 and as may be revised and updated by Arcosa's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. NON-GAAP FINANCIAL MEASURES This presentation contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Reconciliations of non- GAAP financial measures to the closest GAAP measure are provided in the Appendix.
01 03 04 STRATEGIC UPDATE ESG ACCOMPLISHMENTS 02 RECENT FINANCIAL HIGHLIGHTS TABLE OF CONTENTS 3 I MOVING INFRASTRUCTURE FORWARD I 2023 2023 OUTLOOK
HOW TO FIND US OUR WEBSITE www.arcosa.com NYSE TICKER ACA HEADQUARTERS Arcosa, Inc. 500 North Akard Street, Suite 400 Dallas, TX 75201 INVESTOR CONTACT InvestorResources@arcosa.com 4 I MOVING INFRASTRUCTURE FORWARD I 2023
STRATEGIC UPDATE 01
ARCOSA’S VALUE PROPOSITION HEALTHY BALANCE sheet and ample liquidity to navigate cycles and pursue strategic growth EXPERIENCED management team with history of managing through economic cycles LEADING businesses serving critical infrastructure markets TRACK RECORD of executing on strategic priorities DISCIPLINED CAPITAL allocation process to grow in attractive markets and improve returns on capital 6 I MOVING INFRASTRUCTURE FORWARD I 2023
ARCOSA AT A GLANCE Revenue, net income, and Adjusted EBITDA are for the twelve months ended 9/30/2023. See Adjusted EBITDA reconciliation in Appendix Net Income(1) Adjusted EBITDA Infrastructure-related Segments Employees Years of Operating History OUR THREE BUSINESS SEGMENTS Revenues$2.2B $135M $345M ~5,230 85+ 3 7 I MOVING INFRASTRUCTURE FORWARD I 2023 (1) Excludes the gain on the sale of our storage tanks business of $195M pre-tax, which is also excluded from Adjusted EBITDA. As reported, net income for trailing twelve months 9/30/23 was $287M.
BUSINESS OVERVIEW ENGINEERED STRUCTURES(1) TRANSPORTATION PRODUCTSCONSTRUCTION PRODUCTS (1) Arcosa completed the divestiture of its storage tanks business on October 3, 2022. Financial results for the business included in continuing operations to the date of sale. Revenues and Adjusted Segment EBITDA and margin for the twelve months ended 9/30/2023. See Adjusted Segment EBITDA reconciliation in Appendix. NATURAL & RECYCLED AGGREGATES SPECIALTY MATERIALS CONSTRUCTION SITE SUPPORT WIND TOWERS UTILITY STRUCTURES BARGES STEEL COMPONENTS Arcosa’s three segments are made up of leading businesses that serve critical infrastructure markets REVENUES ADJ. SEGMENT EBITDA & MARGIN $985M $843M $398M $242M 25% $101M 12% $56M 14% REVENUES ADJ. SEGMENT EBITDA & MARGIN REVENUES ADJ. SEGMENT EBITDA & MARGIN MARINE COMPONENTS 8 I MOVING INFRASTRUCTURE FORWARD I 2023 TRAFFIC & TELECOM STRUCTURES
ARCOSA’S LONG-TERM VISION Grow in attractive markets where we can achieve sustainable competitive advantages Reduce the complexity and cyclicality of the overall business Improve long-term returns on invested capital Integrate Environmental, Social, and Governance (ESG) initiatives into our long-term strategy 9 I MOVING INFRASTRUCTURE FORWARD I 2023
90 157 205 277 333129 127 127 51 43 FY-18 At Spin FY-19 FY-22FY-21FY-20 219 284 332 329 376 +20% DISCIPLINED TRACK RECORD OF GROWTH Adjusted EBITDA, excluding Corporate ($M) CAGR – Compound Annual Growth Rate. See reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses in Appendix. Achieved 39% CAGR in our Growth Businesses over the last four years, offsetting demand headwinds in our Cyclical Businesses Growth Businesses (Construction Products and Eng. Structures, excluding wind towers) Cyclical Businesses (wind towers, barge, and steel components) 10 I MOVING INFRASTRUCTURE FORWARD I 2023 +39%
STRATEGIC TRANSFORMATION Adjusted EBITDA, excluding Corporate ($M) 73 (33%) LTM 9/30/23 64 (29%) 82 (38%) FY 2018 242 (61%) 56 (14%) 101 (25%) 219 399 See Adjusted Segment EBITDA reconciliations in the Appendix. Construction Products has Increased to Approximately 60% of Adjusted EBITDA • Divestiture of storage tanks business for $275 million in October 2022 • Invested ~$1.4 billion on 5 large acquisitions and multiple complementary bolt-ons to expand our Construction Products platform • Grew natural aggregates operations beyond Texas, now serving 11 Top 50 MSAs, up from 5 at the end of 2018 • Added recycled aggregates to complement natural aggregates platform, serving 3 Top 5 MSAs • Expanded specialty materials platform with broader geographic presence and product diversity • Added 3 adjacent infrastructure-related product lines of traffic, telecom, and concrete structures • Market leading positions in our cyclical businesses, including barge, wind towers, and steel components, position us well for recovery $1T Infrastructure Bill and $370B Inflation Reduction Act Create Multi- Year Tailwinds for Many Arcosa Businesses Actionable Strategic Progress to Position Portfolio for Long-Term Growth Today Arcosa is a less cyclical and more resilient company 11 I MOVING INFRASTRUCTURE FORWARD I 2023 Transportation Products Engineered Structures Construction Products
GROWING OUR CONSTRUCTION PRODUCTS PLATFORM Attractive markets with long-term pricing and volume growth; less cyclical than other Arcosa businesses Sustainable competitive advantages, through reserve positions, product portfolio, proprietary processing capabilities, and deep market knowledge Fragmented industry structure with ability to buy small to medium size assets at attractive multiples Ability to use acquisitions as growth platforms for organic and bolt-on growth We have an active pipeline of attractive acquisition and organic opportunities. The sale of our storage tanks business allows us to continue to deploy capital to our construction businesses and accelerate our growth. October 2020January 2020 December 2018 • Top 25 U.S. aggregates platform adding attractive new geographies, more than 40 years of reserve life, and an experienced management team • Two acquisitions building leadership position in recycled aggregates, a new product category for Arcosa and growing in importance due to resource scarcity and ESG benefits • Cherry expands aggregates business into attractive Houston market, filling a key gap in our Texas network • Strata expands ability to serve DFW customers with a complementary product offering that includes both natural and recycled aggregates • Adds complementary, scaled specialty materials and aggregates platforms • Diversifies customer base across attractive end markets April 2021 August 2021 • Scaled entry into attractive Phoenix metropolitan area with accretive EBITDA margins We have deployed ~$1.4B on Construction Products acquisitions as we seek to expand our growth platforms Attractive fundamentals of Aggregates and Specialty Materials • Expands recycled aggregates platform into Southern California market at an attractive valuation and accretive margins May 2022 12 I MOVING INFRASTRUCTURE FORWARD I 2023
INFRASTRUCTURE SPENDING We believe our businesses are well-positioned to benefit from ~$1.4 trillion in expected spending from recent federal stimulus packages Infrastructure Investment and Jobs Act • Reauthorization of the Fixing America’s Surface Transportation Act (FAST Act) at a higher level of spending through 2026 • Spending catalysts to Arcosa: • Highway, Road, Bridges ($110B) • Passenger and Freight Rail ($66B) • Airports ($25B) • Power Infrastructure and Grid Hardening ($73B) • Broadband Expansion ($65B) • Ports and Waterways ($17B) Inflation Reduction Act • Provides ~$370B of investments into energy security and climate change • Includes multi-year extension of wind power PTC and new Advanced Manufacturer’s tax credit Bidding on new infrastructure projects is up. We expect this increased demand to impact our businesses throughout 2023 and beyond 13 I MOVING INFRASTRUCTURE FORWARD I 2023
• Advances our long-term vision to reduce the complexity of Arcosa’s overall portfolio • Proceeds provide capital for allocation to our growth businesses as we continue to shift towards less cyclical, higher-margin opportunities • We prioritized improving the performance of the storage tanks business which was unprofitable in 2018 at the time of our spin-off • Lean initiatives along with de-urbanization tailwinds led to significant growth • Business requires additional capital to support future growth, making it an opportune time for new ownership • Arcosa maintains a Mexico manufacturing platform to support our Engineered Structures segment • In October 2022, we completed the sale of our storage tanks business, reported in Engineered Structures, for $275 million in cash • Recognized total gain on sale of $195M ($152M after-tax) • Leading manufacturer of steel pressure tanks for storage and distribution of propane, ammonia, and other gases • Serves residential, commercial, energy, and agricultural markets in U.S. and Mexico TRANSACTION OVERVIEW STORAGE TANKS ADJUSTED EBITDA ($M) (4) 29 44 47 FY 2018 3 Yr. Avg. 2019-2021 FY 2021 FY 2022 to date of sale STRATEGIC RATIONALE DIVESTITURE OF STORAGE TANKS BUSINESS ON OCTOBER 3, 2022 Excellent example of improving a business and preparing it for monetization when market conditions are supportive, enabling us to realize significant value through a competitive sale process See Adjusted EBITDA reconciliation in Appendix. Results for Storage Tanks business included in continuing operations to the date of sale. 14 I MOVING INFRASTRUCTURE FORWARD I 2023
2023 OUTLOOK 02
GROWTH BUSINESSES OUTLOOK Demand outlook is attractive with additional tailwinds from increased infrastructure spending Engineered Structures • Infrastructure spending up due to increased federal funding from IIJA and healthy state DOT budgets • Healthy demand for non-residential and multi-family construction • Recent affordability erosion weakening momentum in single- family residential construction; medium-term outlook supported by population migration into our key markets • Strong pricing increases through 2023 build on 2022 gains • Active pipeline of organic and bolt-on growth opportunities • Strong backlog visibility for utility and traffic structures, driven by grid-hardening and road infrastructure investments • Future demand catalysts from the electrification of vehicles and connecting renewable energy to the grid • Wireless 5G telecom buildout softening after initial build out phase but expected to drive solid long-term demand • Healthy DOT spending in Florida and other Southeastern states, with opportunities to grow in Texas and other markets 16 I MOVING INFRASTRUCTURE FORWARD I 2023 Infrastructure spending is on the rise as indicated by increased FY2022 state DOT letting activity in our key markets % Change in FY2022 State Letting Value vs. 5 Year Average1 30 60 20 40 50 70 2018 2019 20222015 2016 2017 2020 2021 2023 2024 2025 2026 2027 Actual Forecast U.S. and Canadian Electric Utility Transmission Reported CAPEX ($B)2 Forecasted Utility CAPEX driven by increased federal infrastructure funding and renewable energy capacity needs 1Wallstreet research; 2The C Three Group, Sept. 2023 Construction Products 19% 69% 84% 86% 57% 73% 19% 36% AL TXAZ KY PALA OK TN
WIND TOWERS OUTLOOK Long-Term Recovery in Wind Industry Expected in 2024 and Beyond 0 5 10 15 2826242020 21 2322 2725 29 U.S. Onshore Wind Installations (2020-2029)1 (GW) Forecast 10-year PTC extension, passed in August 2022, is expected to boost capacity in the U.S., after the industry recovers in the near term from the temporary lapse Since the passage of IRA in August 2022, we have received wind tower orders in excess of $1.1 billion for delivery through 2028 633 597 334 438 671 4Q214Q18 4Q19 3Q234Q20 4Q22 1,451 Utility, Wind, and Related Structures Backlog ($M) Wind industry transitioning to no PTC Four Manufacturing Facilities to Support U.S. Energy Transition Newton, IA Clinton, IL (currently idled) Tulsa, OK Belen, NM (new brownfield facility announced Mar 2023) 2023 is a transition year for wind towers as we ramp production and invest in our New Mexico facility to prepare for the expected multi-year upcycle Strategic investment in New Mexico facility • Well positioned to support wind investment in the Southwest • Five-year firm order with additional capacity available • Similar potential manufacturing capacity as other three facilities • ~$55-60 million investment with attractive return profile • Production expected to begin in mid-2024 17 I MOVING INFRASTRUCTURE FORWARD I 2023 1Wood Mackenzie, Q3 2023 Market Outlook (September 2023)
INLAND BARGE OUTLOOK 18 I MOVING INFRASTRUCTURE FORWARD I 2023 84 90 17 18 81 16 55 49 13 105 35 48 134 122 81 21 4Q223Q211Q20 1Q234Q19 3Q20 1Q212Q20 4Q20 2Q21 4Q21 1Q22 2Q22 3Q22 2Q23 3Q23 14.4 16.3 2016 2020 Hopper Barge Fleet Age2 (in Years) 0 600 1,200 6 162005 97 8 10 11 12 201713 14 15 18 2119 22 Theoretical Replacement Level Annual Industry Deliveries Since ‘053 (# Hopper Barges) Lowest level in 30 years of new dry barge construction Arcosa Historical Barge Orders ($M) COVID-19 pull-back Plate steel prices elevated while hot-rolled coil prices declined Plate steel prices began escalating in late 4Q20 Beginning of hopper barge replacement cycle Outlook for dry barge replacement cycle remains intact 1Criton Corporation: Prospects for the Dry Cargo Inland Barge Market Through 2026, Nov. 2021; 2Company estimates and IHS Markit, May 2021; 3River Transport News annual survey of new hopper barge construction • Annual industry deliveries of new dry barges have been well below replacement level needed to keep fleet age constant • 3rd-party forecasts indicate potential for ~750 average annual dry barge needs through 20261, nearly triple the past 5-year average rate • Our backlog of $240 million at 9/30/23 is up approximately 90% year-over-year with improved pricing • High steel prices, rising interest rates, and historic low river levels tempered orders in 3Q’23 • Our ability to manufacture barges using plate or hot-rolled coil steel provides flexibility as steel dynamics shift Aging Fleet and Underinvestment in Replacement Support Positive Outlook for New Hopper Barge Construction
Strong revenue and Adjusted EBITDA growth expected for full year 2023 See full year 2023 Adjusted EBITDA guidance reconciliation in Appendix; storage tanks business was divested on October 3, 2022 and historically included as part of continuing operations until the date of sale. 2023 GUIDANCE 278 47 FY-22 2023 Guidance 325 355 - 370 +30% Adjusted EBITDA ($M) Storage Tanks 19 I MOVING INFRASTRUCTURE FORWARD I 2023 Margin, excl. Storage Tanks 13.5% 15.9% • Wind towers business expected to perform above break-even, before consideration of AMP(1) tax credits, driven by operating efficiencies • Adjusted EBITDA range includes $17-22M of estimated AMP (1) tax credits for wind towers sold and produced in 2023 • Final guidance and clarification on the AMP (1) tax credits from the IRS is still pending 2,054 189 2023 GuidanceFY-22 2,243 2,250 - 2,300 +11% Storage Tanks Revenues ($M) (1) Advanced Manufacturing Production (“AMP”) tax credit provided for in the Inflation Reduction Act Includes $22M gain from land sale in Q1 for Construction Products
RECENT FINANCIAL HIGHLIGHTS 03
RECENT FINANCIAL RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliation in Appendix; storage tanks business divested on October 3, 2022 and results included in continuing operations to the date of sale. Revenues ($M) Adjusted EBITDA ($M) 2,036 2,243 FY-22FY-21 +10% Double-digit Adjusted EBITDA growth and improved margins 21 I MOVING INFRASTRUCTURE FORWARD I 2023 1,820 2,054 FY-22FY-21 +13% As Reported Excluding Storage Tanks 283 325 FY-22FY-21 +15% 239 278 FY-21 FY-22 +16% As Reported Excluding Storage Tanks Margin 13.9% 13.5%13.1%14.5% Excludes revenues from storage tanks in both periods Excludes Adj. EBITDA from storage tanks in both periods
Q3 2023 CONSOLIDATED RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix; storage tanks business was divested on October 3, 2022 and results were historically included as part of continuing operations until the date of sale. For the three months ended September 30, 2022, storage tanks contributed approximately $16.6 million of operating profit and $12.4 million of net income. Revenues ($M) Adjusted EBITDA ($M) 538.1 65.8 Q3-22 Q3-23 603.9 591.7 +10% -2% Net Income ($M) Growth in Construction and Transportation Products more than offset anticipated decline in Engineered Structures, normalizing for the storage tanks divestiture 22 I MOVING INFRASTRUCTURE FORWARD I 2023 72.1 89.4 18.7 Q3-22 Q3-23 90.8 +24% -2% Margin excl. Storage Tanks 13.4% 15.1% 32.0 35.5 1.7 Q3-23Q3-22 33.7 35.9 0.4 +7% Storage Tanks Adjusted Net Income Storage Tanks
CASH FLOW AND BALANCE SHEET Disciplined ‘cash culture’ and increased balance sheet flexibility post storage tanks divesture to support expansion through organic growth initiatives and opportunistic acquisitions (1.2) 0.5 (0.6) 0.5 2.1 1.2 1 Pro Forma at Spin FY-18 FY-19 FY-20 FY-21 FY-22 Q3-23 Net Debt / Adjusted EBITDA (ratio at end of period) 1Cash Flow defined as Adjusted Segment EBITDA less CapEx. See 2020 10-K for CapEx by Segment. See Free Cash Flow and Net Debt to Adjusted EBITDA reconciliation in Appendix. Targeted Range of 2.0 - 2.5x Transportation Products segment generated $159M of Cash Flow from 2018 to 2020 that funded growth in other segments1 Free Cash Flow Strength Free Cash Flow ($M) Leverage Below Targeted Range Spun debt free with $200M of cash 23 I MOVING INFRASTRUCTURE FORWARD I 2023 Sale of Storage Tanks for $275M 119 359 260 167 174 191 -77 -73 -65 -106 -166 -35 2018 2019 2020 2021 2022 LTM 9/30/23 Avg. $125M 84 282 187 101 69 24 Operating Cash Flow Net Capital Expenditures Decline reflects end market softness in cyclical businesses and increased capital expenditures for organic growth projects
ESG ACCOMPLISHMENTS 04
ESG ACCOMPLISHMENTS Our 2022 Sustainability Report details the initiatives in place to integrate ESG into our long-term strategy 25 I MOVING INFRASTRUCTURE FORWARD I 2023 PEOPLE Community Impact Employee Health and Safety Inclusion and Diversity Talent Development PRODUCTS Product Quality and Safety Product Use Supplier Management ENVIRONMENT Air Quality Energy Management GHG Emissions Land Management Recycled Materials Waste Management Water Management GOVERNANCE Business Ethics Cybersecurity LAYING THE FOUNDATION FOR A MORE SUSTAINABLE FUTURE
26 I MOVING INFRASTRUCTURE FORWARD I 2023 EMPLOYEE HEALTH AND SAFETY 72% reduction in our TRIR since 2019 Total Recordable Incident Rate (TRIR) Continuous Improvement Initiatives: • Front-line supervisor training • Employee safety mentorship • Enhanced near miss reporting • Hand and eye injury reduction campaign • Dedicated internal safety culture managers Our ARC 100 Safety Culture Initiative has Accelerated a Positive and Proactively Engaged Workforce Part of building a better world is building a culture of safety, with employees, contractors, and visitors working safely every day 4.31 1.89 1.73 1.21 2019 2020 2021 2022 -72% -30%
27 I MOVING INFRASTRUCTURE FORWARD I 2023 GREENHOUSE GAS (GHG) EMMISSIONS We are tracking ahead of our 2026 GHG emissions intensity reduction goal of 10% compared to 2020 levels 371 327 296 264 2020 20222019 2021 -19% GHG EMISSIONS INTENISITY2 117 113 120 101 468 452 442 491 2019 592 2020 2021 2022 584 565 562 Scope 2 Scope 1 GHG EMMISIONS1 10% reduction target 1Metric Tonnes of CO2 equivalent in Thousands; 2Metric Tonnes of CO2 equivalent /$ Million Revenues 2022 Energy Management Projects: • Compressed air evaluation and leak repair • Energy efficient asset replacements • Insulation improvements to prevent heat loss in key production areas • Plant lighting upgrades • Overland conveyor system installation to reduce fuel and conserve water • Conversion from generator power to line or solar power • Energy audits to identify and plan for future energy reduction projects Practical, Business Focused Energy Management is the Foundation for GHG Emissions Reductions
APPENDIX
GUIDANCE SUMMARY FOR 2023 ADJUSTED EBITDA COMMENTARY CAPITAL EXPENDITURES OTHER • $355M to $370M range for full year 2023 • Includes estimated AMP tax credits for wind towers of $17M to $22M, subject to further guidance from the IRS • 2022 full year Adjusted EBITDA was $278M, excluding $47M from the storage tanks business • $200M-210M in full year 2023, including $90-95M for growth projects • Includes investment in brownfield New Mexico wind tower facility announced on March 14, 2023 TAX RATE • We expect Adjusted EBITDA for our wind towers business to be above break-even in 2023 before consideration of the AMP tax credits • We expect a full year 2023 effective tax rate of ~17-19%, including the impact of AMP tax credits REVENUE • $2.25B to $2.30B range for full year 2023 • 2022 full year revenue was $2.05B, excluding $189M from the storage tanks business 29 I MOVING INFRASTRUCTURE FORWARD I 2023
NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our business. GAAP does not define EBITDA or Adjusted EBITDA and they should not be considered as alternatives to earnings measures defined by GAAP, including net income. We use Adjusted EBITDA to assess the operating performance of our consolidated business, as a metric for incentive-based compensation, as a measure within our lending arrangements, and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value. As a widely used metric by analysts, investors, and competitors in our industry, we believe Adjusted EBITDA also assists investors in comparing a company's performance on a consistent basis without regard to depreciation, depletion, amortization, and other items which can vary significantly depending on many factors. “Adjusted EBITDA Margin” is defined as Adjusted EBITDA divided by Revenues. GAAP does not define “Adjusted Net Income” and it should not be considered as an alternative to earnings measures defined by GAAP, including net income. We use this metric to assess the operating performance of our consolidated business. We adjust net income for certain items that are not reflective of the normal operations of our business to provide investors with what we believe is a more consistent comparison of earnings performance from period to period. “Segment EBITDA” is defined as segment operating profit plus depreciation, depletion, and amortization. “Adjusted Segment EBITDA” is defined as Segment EBITDA adjusted for certain items that are not reflective of the normal earnings of our business. GAAP does not define Segment EBITDA or Adjusted Segment EBITDA and they should not be considered as alternatives to earnings measures defined by GAAP, including segment operating profit. We use Adjusted Segment EBITDA to assess the operating performance of our businesses, as a metric for incentive-based compensation, and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value. As a widely used metric by analysts, investors, and competitors in our industry we believe Adjusted Segment EBITDA also assists investors in comparing a company's performance on a consistent basis without regard to depreciation, depletion, amortization, and other items, which can vary significantly depending on many factors. “Adjusted Segment EBITDA Margin” is defined as Adjusted Segment EBITDA divided by Revenues. “Freight-Adjusted Revenues” for Construction Products is defined as segment revenues less freight and delivery, which are pass-through activities. GAAP does not define Freight-Adjusted Revenues and they should not be considered as alternatives to earnings measures defined by GAAP, including revenues. We use Freight-Adjusted Revenues in the review of our operating results. We also believe that this presentation is consistent with our competitors. As a widely used metric by analysts and investors, this metric assists in comparing a company's performance on a consistent basis. “Freight-Adjusted Segment EBITDA Margin” is defined as Freight-Adjusted Revenues divided by Adjusted Segment EBITDA. GAAP does not define “Net Debt” and it should not be considered as an alternative to cash flow or liquidity measures defined by GAAP. The Company uses Net Debt, which it defines as total debt minus cash and cash equivalents to determine the extent to which the Company’s outstanding debt obligations would be satisfied by its cash and cash equivalents on hand. The Company also uses “Net Debt to Adjusted EBITDA”, which it defines as Net Debt divided by Adjusted EBITDA for the trailing twelve months as a metric of its current leverage position. We present this metric for the convenience of investors who use such metrics in their analysis and for shareholders who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions. GAAP does not define “Free Cash Flow” and it should not be considered as an alternative to cash flow measures defined by GAAP, including cash flow from operating activities. We define Free Cash Flow as cash provided by operating activities less “Net Capital Expenditures”, which is defined as capital expenditures net of the proceeds from the disposition of property, plant, equipment, and other assets. We use this metric to assess the liquidity of our consolidated business. We present this metric for the convenience of investors who use such metrics in their analysis and for shareholders who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions. 30 I MOVING INFRASTRUCTURE FORWARD I 2023
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) 31 I MOVING INFRASTRUCTURE FORWARD I 2023 (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions and divestitures, including the cost impact of the fair value markup of acquired inventory, advisory and professional fees, integration, separation, and other transaction costs. (3) See Reconciliation of Historical Adjusted EBITDA for the Storage Tanks Business table for the contribution of the storage tanks business to Adjusted EBITDA for the three months ended September 30, 2022. Three Months Ended September 30, Full Year 2023 Guidance 2023 2022 Low High Net income $ 35.5 $ 32.0 $ 154.8 $ 160.0 Add: Interest expense, net 5.0 8.6 23.0 24.0 Provision for income taxes 7.5 8.6 31.7 37.5 Depreciation, depletion, and amortization expense(1) 40.5 39.6 157.0 160.0 EBITDA 88.5 88.8 366.5 381.5 Add (less): Gain on storage tanks divestiture — — (6.4) (6.4) Impact of acquisition and divestiture-related expenses(2) 0.5 2.2 1.4 1.4 Benefit from reduction in holdback obligation — — (5.0) (5.0) Other, net (income) expense 0.4 (0.2) (1.5) (1.5) Adjusted EBITDA(3) $ 89.4 $ 90.8 $ 355.0 $ 370.0 Adjusted EBITDA Margin 15.1 % 15.0 % 15.8 % 16.1 % Three Months Ended September 30, 2023 2022 Net income $ 35.5 $ 32.0 Impact of acquisition and divestiture-related expenses, net of tax(2) 0.4 1.7 Adjusted Net Income $ 35.9 $ 33.7
Reconciliation of Adjusted Segment EBITDA ($’s in millions) (unaudited) (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions and divestitures, including the cost impact of the fair value markup of acquired inventory, advisory and professional fees, integration, separation, and other transaction costs. 32 I MOVING INFRASTRUCTURE FORWARD I 2023 Three Months Ended September 30, Twelve Months Ended September 30, Twelve Months Ended December 31, 2023 2022 2023 2022 2021 2020 2019 2018 Construction Products Operating Profit $ 30.3 $ 27.6 $ 138.3 $ 96.5 $ 83.2 $ 74.7 $ 52.7 $ 50.4 Add: Depreciation, depletion, and amortization expense(1) 28.4 26.3 108.6 102.7 88.7 60.1 38.0 21.9 Segment EBITDA 58.7 53.9 246.9 199.2 171.9 134.8 90.7 72.3 Add: Impact of acquisition and divestiture-related expenses(2) — — — — 7.6 2.9 1.4 0.8 Add: Impairment charge — — — — — 0.8 — — Less: Benefit from reduction in holdback obligation — — (5.0) — — — — — Adjusted Segment EBITDA $ 58.7 $ 53.9 $ 241.9 $ 199.2 $ 179.5 $ 138.5 $ 92.1 $ 73.1 Adjusted Segment EBITDA Margin 22.4 % 22.1 % 24.6 % 21.6 % 22.5 % 23.3 % 20.9 % 25.0 % Engineered Structures Operating Profit $ 18.7 $ 37.1 $ 270.4 $ 307.0 $ 88.0 $ 80.2 $ 100.7 $ 28.6 Add: Depreciation and amortization expense(1) 6.7 8.1 26.1 30.5 33.1 31.5 27.9 29.7 Segment EBITDA 25.4 45.2 296.5 337.5 121.1 111.7 128.6 58.3 Add: Impact of acquisition and divestiture-related expenses(2) — 0.6 — 0.6 1.0 2.8 — — Add: Impairment charge — — — — 2.9 1.3 — 23.2 Less: Gain on sale of storage tanks business — — (195.4) $ (189.0) — — — — Adjusted Segment EBITDA $ 25.4 $ 45.8 $ 101.1 $ 149.1 $ 125.0 $ 115.8 $ 128.6 $ 81.5 Adjusted Segment EBITDA Margin 11.4 % 16.5 % 12.0 % 14.9 % 13.4 % 13.2 % 15.4 % 10.4 % Transportation Products Operating Profit $ 14.1 $ 1.0 $ 40.1 $ 11.5 $ 6.4 $ 54.6 $ 46.8 $ 48.4 Add: Depreciation and amortization expense(1) 4.1 3.9 16.1 15.8 17.8 18.0 16.3 15.5 Segment EBITDA 18.2 4.9 56.2 27.3 24.2 72.6 63.1 63.9 Add: Impact of acquisition and divestiture-related expenses(2) — — — — — — 0.6 — Add: Impairment charge — — — — — 5.0 — — Adjusted Segment EBITDA $ 18.2 $ 4.9 $ 56.2 $ 27.3 $ 24.2 $ 77.6 $ 63.7 $ 63.9 Adjusted Segment EBITDA Margin 17.0 % 5.9 % 14.1 % 8.6 % 7.9 % 16.6 % 13.7 % 16.3 % Operating Loss - Corporate $ (14.7) $ (16.7) $ (66.2) $ (66.0) $ (70.3) $ (57.7) $ (47.3) $ (32.5) Add: Impact of acquisition and divestiture-related expenses - Corporate(2) 0.5 1.6 6.8 10.4 11.5 4.6 — — Add: Legal settlement — — — — 8.7 — — — Add: Corporate depreciation expense 1.3 1.3 5.2 5.1 4.7 4.9 3.6 0.5 Adjusted EBITDA $ 89.4 $ 90.8 $ 345.0 $ 325.1 $ 283.3 $ 283.7 $ 240.7 $ 186.5
Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow ($’s in millions) (unaudited) 33 I MOVING INFRASTRUCTURE FORWARD I 2023 (1) These periods include pro forma adjustments for acquisitions completed during the period, as previously disclosed. As of Pro Forma September 30, 2018(1) December 31, 2018 December 31, 2019 December 31, 2020(1) December 31, 2021(1) December 31, 2022(1) September 30, 2023 Total debt excluding debt issuance costs $ 0.4 $ 185.5 $ 107.3 $ 254.5 $ 685.7 $ 555.9 $ 514.8 Cash and cash equivalents 210.4 99.4 240.4 95.8 72.9 160.4 155.3 Net Debt $ (210.0) $ 86.1 $ (133.1) $ 158.7 $ 612.8 $ 395.5 $ 359.5 Adjusted EBITDA (trailing twelve months) $ 178.1 $ 186.5 $ 240.7 $ 291.4 $ 298.4 $ 329.1 $ 345.0 Net Debt to Adjusted EBITDA -1.2 0.5 -0.6 0.5 2.1 1.2 1.0 Year Ended December 31, Twelve Months Ended September 30, 2018 2019 2020 2021 2022 2023 Cash Provided by Operating Activities $ 118.5 $ 358.8 $ 259.9 $ 166.5 $ 174.3 $ 190.5 Capital expenditures (44.8) (85.4) (82.1) (85.1) (138.0) (196.9) Proceeds from the disposition of property, plant, equipment, and other assets 10.2 8.9 9.6 20.0 32.2 30.8 Net Capital Expenditures (34.6) (76.5) (72.5) (65.1) (105.8) (166.1) Free Cash Flow $ 83.9 $ 282.3 $ 187.4 $ 101.4 $ 68.5 $ 24.4
Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses (in millions) (unaudited) 34 I MOVING INFRASTRUCTURE FORWARD I 2023 Year Ended December 31, 2018 2019 2020 2021 2022 Consolidated Adjusted EBITDA(1) $ 186.5 $ 240.7 $ 283.7 $ 283.3 $ 325.1 Add: Corporate Adjusted EBITDA(1) 32.0 43.7 48.2 45.4 50.5 Adjusted EBITDA, excluding corporate 218.5 284.4 331.9 328.7 375.6 Wind towers business: Operating Profit 56.7 55.5 41.8 19.9 8.2 Add: Depreciation and amortization expense 8.4 7.9 7.8 7.3 7.0 Wind towers EBITDA 65.1 63.4 49.6 27.2 15.2 Wind towers Adjusted EBITDA 65.1 63.4 49.6 27.2 15.2 Transportation Products Adjusted Segment EBITDA(1) 63.9 63.7 77.6 24.2 27.3 Cyclical businesses Adjusted EBITDA(2) 129.0 127.1 127.2 51.4 42.5 Growth businesses Adjusted EBITDA(3) $ 89.5 $ 157.3 $ 204.7 $ 277.3 $ 333.1 (1) See Reconciliation of Adjusted Segment EBITDA table. (2) Our cyclical businesses include our wind towers business, included in the Engineered Structures segment, and our Transportation Products segment, which includes our barge and steel components businesses. (3) Our growth businesses include our Construction Products segment and our Engineered Structures segment, excluding the wind towers business.
(1) Expenses associated with acquisitions and divestitures, including the cost impact of the fair value markup of acquired inventory, advisory and professional fees, integration, separation, and other transaction costs. Reconciliation of Historical Adjusted EBITDA for Storage Tanks Businesses (in millions) (unaudited) 35 I MOVING INFRASTRUCTURE FORWARD I 2023 Three Months Ended September 30, 2022 Year Ended December 31, 2018 Average for Years Ended December 31, 2019-2021 Year Ended December 31, 2021 Year Ended December 31, 2022 Storage tanks business: Operating Profit $ 16.6 $ (9.5) $ 21.9 $ 36.8 $ 230.1 Add: Depreciation and amortization expense 1.5 5.7 7.0 7.3 5.2 EBITDA 18.1 (3.8) 28.9 44.1 235.3 Impact of acquisition and divestiture-related expenses(1) 0.6 — — — 0.6 Less: Gain on sale of storage tanks business — — — — (189.0) Adjusted EBITDA $ 18.7 $ (3.8) $ 28.9 $ 44.1 $ 46.9
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