L.B. Foster (NASDAQ:FSTR – Get Free Report) posted its quarterly earnings data on Monday. The basic materials company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.41 by ($0.12), FiscalAI reports. L.B. Foster had a return on equity of 6.36% and a net margin of 1.98%.The company had revenue of $138.55 million during the quarter, compared to the consensus estimate of $134.49 million.
Here are the key takeaways from L.B. Foster’s conference call:
- Cash generation and balance-sheet improvement were major highlights: second-quarter cash flow reached $17.9 million, net debt fell 24.2% sequentially to $42.2 million, and gross leverage declined to 1.0x from 2.2x a year ago.
- First-half sales increased 7.6% and adjusted EBITDA rose 19.6%, supported by higher volumes, favorable mix, and strong growth in Global Friction Management and Technology Services and Solutions.
- Management reaffirmed full-year guidance and expects at least 80% of the $246.1 million backlog to convert into revenue by year-end; sequential backlog improved 17.4%, with rail backlog up 8.2% year over year.
- Quarterly revenue declined 3.5% to $138.6 million and adjusted EBITDA fell 4.7% to $11.7 million, largely due to customer order timing and higher personnel and incentive-compensation costs following strong first-half performance.
- Infrastructure backlog declined to $104.7 million, while the consolidated trailing-12-month book-to-bill ratio was 0.96x; weaker Precast Concrete orders and the prior cancellation of a $19 million Summit pipeline-coating order remain headwinds.
L.B. Foster Price Performance
FSTR stock opened at $39.58 on Tuesday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.28 and a current ratio of 2.22. The company’s fifty day moving average price is $42.34 and its 200-day moving average price is $35.67. L.B. Foster has a one year low of $21.67 and a one year high of $45.81. The company has a market capitalization of $414.01 million, a PE ratio of 38.43, a price-to-earnings-growth ratio of 0.66 and a beta of 1.15.
Institutional Trading of L.B. Foster
Analyst Ratings Changes
A number of equities research analysts have commented on FSTR shares. Wall Street Zen upgraded shares of L.B. Foster from a “buy” rating to a “strong-buy” rating in a research note on Monday, June 8th. Weiss Ratings reissued a “hold (c+)” rating on shares of L.B. Foster in a research note on Friday. Finally, Zacks Research cut shares of L.B. Foster from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $32.00.
View Our Latest Report on FSTR
Key L.B. Foster News
Here are the key news stories impacting L.B. Foster this week:
- Positive Sentiment: Second-quarter gross margin expanded 80 basis points to 22.3%, while net income attributable to L.B. Foster rose 7.9% year over year to $3.1 million, or $0.29 per diluted share. First-half adjusted EBITDA increased 19.6% to $16.8 million. L.B. Foster Announces Second Quarter Results
- Positive Sentiment: Operating cash flow surged 71.7% to $17.9 million, helping reduce total debt 41.2% year over year to $48.0 million and lowering gross leverage to 1.0 times. Free cash flow reached $14.3 million, up 85%. L.B. Foster Q2 Net Income Rises
- Positive Sentiment: Management said backlog increased $36.5 million, or 17.4%, sequentially to $246.1 million, driven by rail orders, supporting its expectations for second-half growth. Full-year 2026 revenue guidance remains $540 million to $580 million, with adjusted EBITDA guidance of $41 million to $46 million. Q2 2026 Earnings Call Transcript
- Neutral Sentiment: First-half revenue rose 7.6% to $259.7 million, but second-quarter revenue declined 3.5% to $138.6 million. Rail revenue fell 5.2%, primarily because of the timing of large orders, while Infrastructure revenue declined 1.5%.
- Negative Sentiment: Reported diluted EPS of $0.29 was below the approximately $0.41 analyst consensus cited in earnings coverage, despite revenue exceeding estimates. Adjusted EBITDA also fell 4.7% to $11.7 million, and operating income declined 19.9% as selling and administrative expenses and UK business-exit costs increased. L.B. Foster Earnings Results
- Negative Sentiment: Total backlog remained 8.8% below the prior-year level, with Infrastructure backlog down 24.8%. The company also incurred about $2.6 million in costs related to exiting certain UK product lines. Reported insider activity showed nine sales and no purchases over the past six months, adding a cautious signal for investors. L.B. Foster Reports Second-Quarter Results
L.B. Foster Company Profile
L.B. Foster Company is a diversified infrastructure solutions provider offering products and services to the transportation, energy, and construction markets. Founded in 1902 and headquartered in Pittsburgh, Pennsylvania, the company has built a reputation for delivering specialty materials and engineering solutions that support critical infrastructure projects across various industries.
The company’s operations are organized into three primary segments: Rail Products & Services, Construction Products, and Tubular & Energy Products.
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