Arcosa, Inc. Declares Quarterly Dividend and Renews $50 Million Share Repurchase Authorization

Rhea-AI Summary

Arcosa (NYSE: ACA) has announced two key financial decisions: First, the Board of Directors declared a regular quarterly cash dividend of $0.05 per share on its $0.01 par value common stock, payable January 31, 2025, to stockholders of record as of January 15, 2025. Second, the company has renewed its $50 million share repurchase program, which will be effective from January 1, 2025, through December 31, 2026. This new program replaces the current one of the same amount expiring December 31, 2024. The company maintains flexibility in executing repurchases through open market or private transactions based on market conditions.

Positive

• Continuation of regular dividend payments shows stable cash flow management
• Renewal of $50 million share repurchase program indicates strong financial position
• Two-year buyback window provides flexibility in execution

Negative

• Low quarterly dividend amount of $0.05 per share indicates conservative cash distribution

Insights

Financial Analyst

The dual announcement of dividend continuation and share buyback renewal signals stability in Arcosa's capital return strategy. The $0.05 quarterly dividend, while modest at approximately 0.4% annual yield, demonstrates commitment to consistent shareholder returns. More significantly, the renewed $50 million buyback program, representing about 1% of market cap, provides flexibility for opportunistic share repurchases through 2026. This conservative capital allocation approach balances shareholder returns with maintaining financial flexibility for potential growth investments. The extended timeframe for the buyback program suggests management isn't rushing to deploy capital, indicating a measured approach to market opportunities.

DALLAS--(BUSINESS WIRE)-- Arcosa, Inc. (NYSE: ACA) (“Arcosa” or the “Company”), a provider of infrastructure-related products and solutions, today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.05 per share on its $0.01 par value common stock. The quarterly cash dividend is payable January 31, 2025 to stockholders of record as of January 15, 2025.

The Company also renewed its $50 million share repurchase program, effective January 1, 2025 through December 31, 2026, replacing the current share repurchase program of the same amount that will expire on December 31, 2024. Shares may be repurchased in the open market or through private transactions at times and amounts determined by the Company based on its evaluation of market conditions and other factors.

About Arcosa

Arcosa, Inc. (NYSE:ACA), headquartered in Dallas, Texas, is a provider of infrastructure-related products and solutions with leading positions in construction, engineered structures, and transportation markets. Arcosa reports its financial results in three principal business segments: Construction Products, Engineered Structures, and Transportation Products. For more information, visit www.arcosa.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241212461872/en/

INVESTOR CONTACTS

Erin Drabek

VP of Investor Relations

T 972.942.6500

InvestorResources@arcosa.com

David Gold

ADVISIRY Partners

T 212.661.2220

David.Gold@advisiry.com

MEDIA CONTACT

Media@arcosa.com

Source: Arcosa, Inc.

FAQ

When will Arcosa (ACA) pay its next quarterly dividend?

Arcosa will pay its quarterly dividend of $0.05 per share on January 31, 2025, to stockholders of record as of January 15, 2025.

How much is Arcosa's (ACA) new share repurchase authorization?

Arcosa has renewed its share repurchase program for $50 million, effective from January 1, 2025, through December 31, 2026.

What is the duration of Arcosa's (ACA) new share buyback program?

The new share repurchase program will run for two years, from January 1, 2025, through December 31, 2026.

How does Arcosa (ACA) plan to execute its share repurchases?

Arcosa may repurchase shares either through the open market or private transactions, with timing and amounts determined by the company based on market conditions and other factors.