Core Points - Crédit Agricole S.A. has filed its 2024 Universal Registration Document and Annual Financial Report with the French Financial Market Authority (AMF) on March 24, 2025 [1] - The French version of the documents is available on the Crédit Agricole S.A. website and the AMF website [1] - The Registration Document includes the 2024 Annual Financial Report, a report on corporate governance, and information on fees paid to statutory auditors [3]

Group 1 - The company has initiated a share buyback program as part of a free share allocation plan, with transactions completed on March 18, 2025 [1] - On March 18, 2025, Crédit Agricole S.A. acquired a total of 186,838 shares at a weighted average price of €16.748231 [2] - Detailed information regarding the share buyback program is available on the company's official website [2]

Acquisitions and Business Expansion - The company completed the acquisition of Stavola Holding Corporation for $1.2 billion in cash, expanding its aggregates platform into the New York-New Jersey Metropolitan Statistical Area[22]. - Arcosa completed a significant acquisition of the construction materials business of Stavola Holding Corporation for a total purchase price of $1.2 billion in 2024[338]. - The company completed the sale of its steel components business in August 2024, which served the railcar industry[61]. Financial Performance - Arcosa reported revenues of $2,569.9 million for the year ended December 31, 2024, an increase of 11.3% compared to $2,307.9 million in 2023[343]. - The company's net income for 2024 was $93.7 million, a decrease of 41.2% from $159.2 million in 2023[343]. - Operating profit for 2024 was $197.6 million, down from $217.3 million in 2023, reflecting a decline of 9.9%[343]. - Interest expense increased significantly to $70.9 million in 2024, compared to $28.1 million in 2023, marking a rise of 152.4%[343]. - Total liabilities increased to $2,487.3 million in 2024 from $1,245.9 million in 2023, largely due to an increase in debt[346]. - Retained earnings rose to $748.9 million in 2024 from $664.9 million in 2023, reflecting the net income generated during the year[349]. - The company recognized a cash dividend of $9.7 million to common shareholders in 2024, consistent with the previous year[349]. - The company reported a net cash provided by operating activities of $502.0 million in 2024, significantly higher than $261.0 million in 2023[348]. Market and Demand Insights - In 2024, the company had shipments of approximately 38 million tons of aggregates and specialty materials, including about 5 million tons of recycled aggregates[26]. - Texas represented approximately 40% of the segment's revenues in 2024, with planned Texas Department of Transportation lettings of approximately $12.5 billion for the fiscal year[26]. - The Infrastructure Investment and Jobs Act (IIJA) authorized approximately $350 billion for federal highway programs from 2022 through 2026, benefiting the company's infrastructure construction segment[24]. - The company is the largest producer of recycled aggregates in the U.S., with operations in multiple states, and anticipates growth in this segment due to sustainability benefits[22]. - Approximately 90% of the asphalt mix produced is sold to external customers, strengthening the company's local market position[25]. Operational Challenges - Arcosa's operations are susceptible to delays in construction projects, which can lead to increased costs and inefficiencies[79]. - The company relies on a limited number of suppliers for certain raw materials, which may affect pricing and availability[90]. - The inability to hire and retain skilled labor may limit production rates and increase operational costs[85]. - Labor union agreements may result in strikes or work stoppages, potentially disrupting operations and increasing labor costs[87]. - Seasonal demand affects construction activity, with higher sales from spring through autumn and declines during winter months due to adverse weather conditions[77]. Risks and Compliance - Arcosa's operations are subject to significant fluctuations due to cyclical industries, which may lead to decreased demand for its products[114]. - The company is exposed to risks associated with the creditworthiness of its customers and suppliers, which could lead to reduced orders and increased operating costs[113]. - Arcosa's ability to secure adequate insurance coverage may be limited, which could have a material adverse effect on its financial condition[101]. - Compliance with extensive regulatory obligations in the U.S. and abroad is critical, as non-compliance could have a material adverse effect on Arcosa[141]. - Arcosa's operations are subject to various environmental regulations, and failure to comply could result in significant penalties and operational disruptions[142]. Backlog and Future Expectations - As of December 31, 2024, the backlog of firm orders for Engineered Structures was $1,190.8 million, down from $1,367.5 million in 2023, while Transportation Products backlog increased to $280.1 million from $253.7 million[47]. - Approximately 64% of unsatisfied performance obligations for utility, wind, and related structures are expected to be delivered during 2025, with 92% of inland barge obligations expected in the same year[47]. - Arcosa's backlog as of December 31, 2024, was approximately $1.2 billion in the Engineered Structures segment and $280.1 million in the Transportation Products segment[82]. Sustainability and Safety Initiatives - The company has launched various safety initiatives, including "ARC 100," to improve employee health and safety, resulting in reduced severity and frequency of incidents[52]. - Arcosa's sustainability initiatives may incur high costs and may not align with public sentiment, potentially affecting its reputation and business[159]. Debt and Financial Obligations - Arcosa's total debt as of December 31, 2024, was approximately $1.7 billion, with unused commitments of $699.3 million under its revolving credit facility[105]. - The increase in indebtedness year-over-year was primarily due to the closing of the Stavola acquisition, resulting in higher interest expenses[105]. - The company had $700.0 million outstanding on its Term Loan as of December 31, 2024, with an estimated interest expense increase of $7.0 million if interest rates rise by one percentage point in fiscal year 2025[322]. Revenue Segmentation - Revenues from GE Vernova constituted 10.8%, 8.1%, and 9.3% of consolidated revenues for the years ended December 31, 2024, 2023, and 2022, respectively[40]. - The Engineered Structures segment reported revenue of $1,047.3 million in 2024, up 19.9% from $873.5 million in 2023[359]. - The Transportation Products segment generated revenue of $417.6 million in 2024, a decrease of 3.1% from $433.5 million in 2023[359]. - The Inland barges segment reported revenue of $329.8 million in 2024, an increase of 17.6% from $280.2 million in 2023[359]. - The Construction Products segment's revenue increased to $1,105.1 million in 2024, up 10.4% from $1,001.3 million in 2023[359].

Financial Data and Key Metrics Changes - In 2024, Arcosa, Inc. achieved double-digit organic growth and significant margin expansion, driven by higher-margin businesses and divestitures of non-core assets [8][9] - The company generated nearly $200 million in free cash flow in Q4 2024, allowing for full repayment of its revolver, resulting in a net leverage of 2.9 times [16][29] - Full-year 2024 adjusted EBITDA growth was split evenly between organic and inorganic drivers, with a margin expansion of 408 basis points in Q4 [15][29] Business Line Data and Key Metrics Changes - Construction Products segment revenues increased by 31% in Q4, with adjusted segment EBITDA growing by 52%, largely due to the STAVOLA acquisition [18][19] - Engineered Structures revenues increased by 11%, with adjusted segment EBITDA rising by 41%, driven by higher wind tower volumes and the Ameren acquisition [23][24] - Transportation Products revenues were up 28%, with adjusted segment EBITDA doubling, supported by higher tank barge volumes and improved efficiencies [25][26] Market Data and Key Metrics Changes - The construction materials business accounted for approximately 62% of adjusted EBITDA, nearly double the contribution from 2018 [14] - The company ended the year with a combined backlog for utility, wind, and related structures of $1.2 billion, expecting to deliver 64% during 2025 [25] Company Strategy and Development Direction - Arcosa, Inc. is focused on growing in the U.S. market, supported by long-term infrastructure-led investments, while simplifying its portfolio through divestitures [34][36] - The company anticipates growth from construction materials, utility structures, and cyclical businesses, alongside contributions from organic projects and acquisitions [37][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for renewables, particularly wind energy, and the potential for infrastructure spending to drive growth [65][66] - The company expects revenues in 2025 to range from $2.8 billion to $3 billion, with adjusted EBITDA between $545 million and $595 million, implying 30% growth at the midpoint [38] Other Important Information - The company plans to reduce capital expenditures in 2025 to between $145 million and $165 million, focusing on maintenance and completing ongoing projects [30][88] - Depreciation, depletion, and amortization expenses are expected to range from $230 million to $235 million for 2025, primarily due to the STAVOLA acquisition [32][104] Q&A Session Summary Question: Impact of steel prices on revenues - Management indicated that the decline in steel prices primarily impacted engineered structures, resulting in a revenue miss of about $25 million in Q4 [55][56] Question: Wind outlook and customer sentiment - Management noted that customer demand for wind remains strong, with expectations for a flat year in 2026, pending regulatory clarity [66][68] Question: Construction products volume outlook - Management expects strong double-digit growth in total volumes for construction products, with organic volumes anticipated to be flattish to slightly up [80][85] Question: Contribution of organic projects to performance - Management highlighted that several organic projects completed in 2024 are expected to contribute positively to performance in 2025, including the concrete poles factory and wind tower facility [90][92]

Core Viewpoint - Arcosa reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.79 per share, representing an earnings surprise of -41.77% [1] - The company posted revenues of $666.2 million for the quarter, missing the Zacks Consensus Estimate by 4.03%, compared to $582.2 million in the same quarter last year [2] Financial Performance - Earnings per share (EPS) decreased from $0.68 a year ago to $0.46 this quarter [1] - Over the last four quarters, Arcosa has surpassed consensus EPS estimates three times [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] Market Performance - Arcosa shares have lost about 3.5% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current Zacks Rank for Arcosa is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.57 on revenues of $631 million, and for the current fiscal year, it is $4.56 on revenues of $2.96 billion [7] - The estimate revisions trend for Arcosa is currently unfavorable, which may impact future stock performance [6] Industry Context - The Building Products - Miscellaneous industry, to which Arcosa belongs, is currently in the bottom 25% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Revenue Performance - Fourth quarter 2024 revenues increased by 14% to $666.2 million compared to $582.2 million in Q4 2023, with a 22% increase when excluding the impact of divested business[4] - Full year 2024 revenues reached $2.569 billion, an 11% increase from $2.308 billion in 2023, with adjusted EBITDA growing by 22% to $447 million[5] - Revenues for the year ended December 31, 2024, increased to $2,569.9 million, up 11.3% from $2,307.9 million in 2023[30] - Total revenues for the year ended December 31, 2024, were $1,105.1 million, compared to $1,001.3 million in 2023, an increase of 10.4%[32] - Revenues from Construction Products segment increased to $311.9 million, up from $238.3 million year-over-year[23] - Construction Products segment revenues increased to $311.9 million in Q4 2024 from $238.3 million in Q4 2023, representing a growth of 30.9%[32] - Engineered Structures segment revenues rose to $261.5 million in Q4 2024 compared to $236.3 million in Q4 2023, marking an increase of 10.7%[32] Profitability and Income - Net income for Q4 2024 was $(7.7) million, a decrease of 128% from $27.1 million in Q4 2023, while adjusted net income decreased by 32% to $22.6 million[4] - Net income for the year ended December 31, 2024, was $93.7 million, a decrease of 41.2% compared to $159.2 million in 2023[25] - Adjusted Net Income for the year ended December 31, 2024, was $147.9 million, compared to $158.1 million in 2023, reflecting a decline of 6.9%[27] - Diluted EPS for the year ended December 31, 2024, was $1.91, down from $3.26 in 2023, reflecting a decrease of 41.0%[28] Cash Flow and Liquidity - Free cash flow for Q4 2024 was $199 million, a significant increase of 1892% from $10 million in Q4 2023[4] - Operating cash flow for the fourth quarter was $248.2 million, an increase of $186.0 million year-over-year, driven by a reduction in working capital[19] - Free Cash Flow for the quarter was $199.2 million, significantly up from $10.0 million in the prior year[19] - Net cash provided by operating activities for the year ended December 31, 2024, was $502.0 million, significantly higher than $261.0 million in 2023[25] - Free Cash Flow for the year ended December 31, 2024, was $330.6 million, significantly up from $94.1 million in 2023[36] - The company ended the quarter with total liquidity of $886.6 million, including $187.3 million in cash and cash equivalents[19] Capital Expenditures and Investments - Capital expenditures in the fourth quarter were $53.3 million, down from $58.7 million in the previous year[19] - Capital expenditures for the year ended December 31, 2024, were $189.7 million, a decrease from $203.5 million in 2023[25] - The company reported a net cash required by investing activities of $1,508.9 million for the year ended December 31, 2024, compared to $285.8 million in 2023[25] Acquisitions and Strategic Initiatives - The acquisition of Stavola for $1.2 billion was completed on October 1, 2024, enhancing exposure to infrastructure-driven end markets[3] - The acquisition of Stavola was completed for $1.2 billion, funded by $600 million in senior unsecured notes and $700 million in borrowings[19] - The company made acquisitions in 2024, including Ameron and Stavola, which are expected to positively impact future Adjusted EBITDA[37] Future Guidance and Expectations - The company expects a 30% increase in adjusted EBITDA for full year 2025, with approximately 40% of growth anticipated from double-digit organic increases[8] - The company provided guidance for 2025 revenues between $2,800.0 million and $3,000.0 million, indicating expected growth[30] Backlog and Market Position - The combined backlog for utility, wind, and related structures at the end of Q4 2024 was $1.190 billion, down from $1.368 billion at the end of Q4 2023[15] - The company aims to reduce leverage to 2.0-2.5x within 18 months following the Stavola acquisition, ending 2024 with a net debt to adjusted EBITDA ratio of 2.9x[6] - Net Debt as of December 31, 2024, was $1,519.8 million, with a Net Debt to Adjusted EBITDA ratio of 2.9[37] Tax and Regulatory - The effective tax rate in Q4 2024 was 43.5%, up from 25.8% in the prior year, primarily due to higher state tax true-ups[15] Segment Performance - Adjusted EBITDA for the year ended December 31, 2024, was $447.0 million, representing a 21.6% increase from $367.6 million in 2023[30] - Adjusted EBITDA margin for full year 2024 improved to 17.4%, up 150 basis points from 15.9% in 2023[5] - Adjusted Segment EBITDA for Construction Products reached $80.8 million in Q4 2024, up from $53.0 million in Q4 2023, reflecting a 52.8% increase[34] - Adjusted Segment EBITDA for Engineered Structures improved to $45.7 million in Q4 2024 from $32.3 million in Q4 2023, a growth of 41.5%[32] - Adjusted EBITDA Margin for the year ended December 31, 2024, was 17.4%, compared to 15.9% in 2023, showing an improvement of 1.5 percentage points[30]

Group 1 - The core message of the news is that Crédit Agricole Group has demonstrated strong earnings momentum in 2024, exceeding all financial targets of its 2025 ambitions plan ahead of schedule [1][10][28] - The Group reported record quarterly and full-year revenues, driven by excellent performance in Asset Gathering and Large Customers, with a notable increase in profitability reflected in a low cost/income ratio [6][18][39] - The proposed dividend for 2024 is set to increase to €1.10 per share, representing a 5% increase compared to 2023 [3] Group 2 - In Q4 2024, Crédit Agricole S.A. reported stated net income of €1,689 million, up 26.6% year-on-year, benefiting from high revenues exceeding €7 billion and a maintained low cost/income ratio [57][34] - The underlying net income for the full year 2024 reached €8,679 million, reflecting a 13.5% increase compared to 2023, with underlying revenues totaling €37,967 million, up 6.5% [49][44] - The Group's cost of risk rose to €3,171 million for the full year, indicating an increase of 11.0% compared to 2023, driven by provisions for performing loans [46][40] Group 3 - The Group's capital position remains solid, with a phased-in CET1 ratio of 11.7% for Crédit Agricole S.A. and 17.2% for the Group [7] - The customer base grew significantly, with an addition of 1.9 million new customers since 2022, reflecting strong customer acquisition efforts [20][12] - The Group's commitment to energy transition is evident, with a 141% increase in low-carbon energy financing since the end of 2020, totaling €26.3 billion by the end of 2024 [29][30]

Core Insights - Crédit Agricole Personal Finance & Mobility has finalized a 50% equity stake in GAC-Sofinco Leasing, enhancing its presence in the Chinese electric vehicle market [2][6] - The partnership aims to stimulate electric vehicle sales in China, with electric vehicles already accounting for 60% of leasing contracts in the new GAC-Sofinco Leasing portfolio [3][6] - GAC Group was the 4th largest automotive group in China in 2023, selling over 2.5 million vehicles globally, with 39.90% being electrified vehicles [7] Company Overview - Crédit Agricole Personal Finance & Mobility is a leader in personal financing and mobility solutions in Europe, offering a range of financing options including leasing and credit services [8] - The company aims to lead in electric mobility across 22 countries, managing €113 billion in outstanding credit as of December 31, 2023 [8] Partnership Details - The joint venture with GAC Group, established in 2009, has been strengthened through this transaction, which will promote electric vehicle deployment in China [6][4] - GAC-Sofinco Leasing will provide financial and operational leasing solutions to GAC customers and its dealer network, which includes over 3,000 dealers [6]

Core Points - Crédit Agricole S.A. announced a reduction in its share capital through the cancellation of 15,128,677 treasury shares, which represents approximately 0.5% of the total share capital [1][2] - The capital reduction will be effective from January 13, 2025, following a share repurchase program conducted between October 1, 2024, and November 6, 2024, aimed at offsetting the dilutive effect of a capital increase reserved for employees [2][3] - Post-cancellation, Crédit Agricole S.A.'s share capital will amount to 9,077,707,050 euros, consisting of 3,025,902,350 shares, including 1,053,639 treasury shares held under a liquidity agreement [3]

Group 1 - Crédit Agricole S.A. has signed an agreement to acquire Santander's 30.5% stake in CACEIS, aiming to achieve 100% ownership [2] - The acquisition aligns with Crédit Agricole's strategic priority to strengthen CACEIS as a major European asset servicing player, supporting client business development [3] - CACEIS has shown robust growth through organic means and strategic acquisitions, including the recent addition of RBC Investor Services' operations in Europe [3] Group 2 - The transaction will maintain the long-term partnership between CACEIS and Santander, with their joint venture for Latin American operations remaining jointly controlled [4] - Completion of the acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to occur in 2025 [4] - The transaction is consistent with Crédit Agricole Group's investment return targets but will negatively impact the fully-loaded CET1 ratio by approximately 30 basis points [5]