2023 Outlook and Guidance
The Company made the following adjustments to its full year 2023 guidance:
- Increased its revenue guidance range to $2.2 billion to $2.3 billion, from its prior range of $2.15 billion to $2.25 billion.
- Increased its Adjusted EBITDA guidance range to $345 million to $370 million, from its prior guidance range of $310 million to $340 million.
- Included in the revised Adjusted EBITDA guidance range is the anticipated net benefit from the Advanced Manufacturing Production (“AMP”) tax credits provided for in the Inflation Reduction Act (“IRA”) for full year 2023 of approximately $17 million to $22 million for wind towers produced and sold during the year. We recognized a net benefit from the AMP tax credits of $3.2 million in the first quarter.
- Certain provisions of the IRA, including the AMP tax credits for wind towers, remain subject to the issuance of additional guidance and clarification. Since the credit is fully refundable regardless of an entity’s tax position, the Company has accrued for the tax credit as a reduction in cost of revenues.
Commenting on the outlook, Carrillo concluded, “Despite macroeconomic headwinds, Arcosa continues to generate strong financial performance, underscoring the resilience of our businesses and the unwavering dedication of our team. Looking forward, Arcosa remains well-positioned to execute on the numerous expansion opportunities we see across our portfolio, particularly in light of improving market fundamentals that point to a multi-year upcycle for our cyclical businesses. We will continue to manage our business with focus and discipline to drive growth and build long-term shareholder value.”
