Investor Presentaiton
INLAND BARGE OUTLOOK
Outlook for dry barge replacement cycle remains intact
Aging Fleet and Underinvestment in Replacement Support Positive Outlook for New Hopper Barge Construction
Hopper Barge Fleet Age²
14.4
(in Years)
16.3
1,200
600
2016
2020
0
Annual Industry Deliveries Since '05³
(# Hopper Barges)
Lowest level
in 30 years of
new dry barge
construction
2005 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Arcosa Historical Barge Orders
Plate steel prices elevated while
hot-rolled coil prices declined
134
122
81
Beginning of
hopper barge
replacement cycle
($M)
Plate steel prices began
escalating in late 4Q20
105
84
90
COVID-19
pull-back 81
55
49
48
35
17 18
16
13
Theoretical
Replacement
Level
•
Annual industry deliveries of new dry barges have been well below
replacement level needed to keep fleet age constant
3rd-party forecasts indicate potential for ~750 average annual dry
barge needs through 2026¹, nearly triple the past 5-year average rate
• Our backlog of $240 million at 9/30/23 is up approximately 90%
year-over-year with improved pricing
•
High steel prices, rising interest rates, and historic low river levels
tempered orders in 3Q'23
• Our ability to manufacture barges using plate or hot-rolled coil steel
provides flexibility as steel dynamics shift
21
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23
¹Criton Corporation: Prospects for the Dry Cargo Inland Barge Market Through 2026, Nov. 2021; 2Company estimates and IHS Markit, May 2021; ³River Transport News annual survey of new hopper barge construction
18 MOVING INFRASTRUCTURE FORWARD I 2023
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