Arcosa, Inc.ACA
Arcosa, Inc. Revenue Disclosure
Revenue Recognition
Revenue is measured based on the allocation of the transaction price in a contract to satisfied performance obligations. The transaction price does not include any amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The following is a description of principal activities from which the Company generates its revenue, separated by reportable segments. Payments for our products and services are generally due within normal commercial terms. For a further discussion regarding the Company’s reportable segments, see Note 4. "Segment Information".
Construction Products
The Construction Products segment primarily recognizes revenue when the customer has accepted the product and legal title of the product has passed to the customer.
Engineered Structures
Within the Engineered Structures segment, revenue is recognized for wind towers and certain utility structures over time as the products are manufactured using an input approach based on the costs incurred relative to the total estimated costs of production. We recognize revenue over time for these products as they are highly customized to the needs of an individual customer resulting in no alternative use to the Company if not purchased by the customer after the contract is executed. In addition, we have the right to bill the customer for our work performed to date plus at least a reasonable profit margin for work performed. As of December 31, 2025 and 2024, we had a contract asset of $65.1 million and $65.5 million, respectively, which is included in receivables, net of allowance, within the Consolidated Balance Sheets. The decrease in the contract asset is attributed to the timing of deliveries of finished structures to customers during the period. For all other products, revenue is recognized when the customer has accepted the product and legal title of the product has passed to the customer.
Transportation Products
The Transportation Products segment recognizes revenue when the customer has accepted the product and legal title of the product has passed to the customer.
Revenues
Total revenues for the Company's reportable segments are presented below:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| ($ in millions) | |||||||||||||||||
| Aggregates | $ | 761.5 | $ | 678.6 | $ | 619.7 | |||||||||||
| Specialty materials and asphalt | 463.6 | 308.3 | 273.7 | ||||||||||||||
| Aggregates intrasegment sales | (45.3) | (9.0) | (13.5) | ||||||||||||||
| Total Construction Materials | 1,179.8 | 977.9 | 879.9 | ||||||||||||||
| Construction site support | 130.4 | 127.2 | 121.4 | ||||||||||||||
| Construction Products | 1,310.2 | 1,105.1 | 1,001.3 | ||||||||||||||
| Utility and related structures | 834.7 | 768.1 | 687.1 | ||||||||||||||
| Wind towers | 355.2 | 279.2 | 186.4 | ||||||||||||||
| Engineered Structures | 1,189.9 | 1,047.3 | 873.5 | ||||||||||||||
| Inland barges | 383.3 | 329.8 | 280.2 | ||||||||||||||
Steel components(1) | — | 87.8 | 153.3 | ||||||||||||||
| Transportation Products | 383.3 | 417.6 | 433.5 | ||||||||||||||
| Segment Totals before Eliminations | 2,883.4 | 2,570.0 | 2,308.3 | ||||||||||||||
| Eliminations | — | (0.1) | (0.4) | ||||||||||||||
| Consolidated Total | $ | 2,883.4 | $ | 2,569.9 | $ | 2,307.9 | |||||||||||
(1) On August 16, 2024, the Company completed the divestiture of its steel components business.
Unsatisfied Performance Obligations
The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially satisfied as of December 31, 2025:
| Unsatisfied performance obligations at | |||||
| December 31, 2025 | |||||
| Total Amount | |||||
| (in millions) | |||||
| Engineered Structures: | |||||
| Utility and related structures | $ | 434.9 | |||
| Wind towers | $ | 627.8 | |||
| Transportation Products: | |||||
| Inland barges | $ | 296.9 | |||
In our Engineered Structures segment, 95% of the unsatisfied performance obligations for our utility and related structures are expected to be recognized during 2026, and all of the remaining performance obligations are expected to be recognized during 2027. For our wind towers business, 42% of the unsatisfied performance obligations are expected to be recognized during 2026, 53% are expected to be recognized during 2027, and the remainder are expected to be recognized during 2028.
For inland barges in our Transportation Products segment, all of the unsatisfied performance obligations are expected to be recognized during 2026.
Advance Billings
Advance billings represent cash collected from customers prior to the satisfaction of the related performance obligations and are separately presented on the Consolidated Balance Sheets. For the years ended December 31, 2025, 2024 and 2023, the Company recognized as revenue substantially all of the advance billings balances that were outstanding at the beginning of each respective year.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.