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• Developments our extensive-time period vision to lessen the complexity of Arcosa’s In general portfolio • Proceeds give capital for allocation to our expansion companies as we go on to shift toward significantly less cyclical, larger-margin opportunities • We prioritized bettering the performance of your storage tanks company which was unprofitable in 2018 at some time of our spin-off • Lean initiatives coupled with de-urbanization tailwinds led to substantial growth • Enterprise requires further money to help long run development, making it an opportune time For brand new possession • Arcosa maintains a Mexico producing platform to support our Engineered Constructions segment • In October 2022, we done the sale of our storage tanks company, claimed in Engineered Buildings, for $275 million in money • Recognized whole get on sale of $195M ($152M soon after-tax) • Foremost manufacturer of steel stress tanks for storage and distribution of propane, ammonia, and also other gases • Serves residential, professional, Strength, and agricultural marketplaces in U.
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Expansion Firms OUTLOOK Desire outlook is beautiful with supplemental tailwinds from elevated infrastructure shelling out Engineered Structures • Infrastructure paying up resulting from enhanced federal funding from IIJA and healthier point out DOT budgets • Healthier desire for weighty non-household and multi-household building • Affordability erosion has weakened one-family residential development exercise; medium-time period outlook supported by populace migration into our important marketplaces • Solid pricing gains in 2023 assist 2024 pricing levels • Active pipeline of natural and organic and bolt-on development opportunities • Sturdy backlog visibility for utility and site visitors constructions, pushed by grid-hardening and street infrastructure investments • Long term demand catalysts with the electrification of motor vehicles and connecting renewable Electrical power to your grid • Wi-fi 5G telecom buildout softening immediately after initial Develop out stage but envisioned to travel solid extensive-term demand from customers • Healthy DOT paying out in Florida as well as other Southeastern states, with alternatives to increase in Texas and various markets 17 I Transferring INFRASTRUCTURE FORWARD I 2024 Infrastructure spending is on the rise as indicated by elevated FY2023 condition DOT allowing activity in our essential markets % Modify in FY2023 Condition Letting Benefit vs.
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