L.B. Foster (NASDAQ:FSTR) Issues Quarterly Earnings Results, Beats Expectations By $0.04 EPS

L.B. Foster (NASDAQ:FSTR) posted its earnings results on Wednesday. The basic materials company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.04, FiscalAI reports. The firm had revenue of $168.00 million during the quarter, compared to the consensus estimate of $152.19 million. L.B. Foster had a net margin of 2.04% and a return on equity of 7.61%.

Here are the key takeaways from L.B. Foster’s conference call:

• Third-quarter sales rose 21.5% to $168 million, and Adjusted EBITDA increased 15.1% to $13.1 million, supported by higher volumes in both segments. Operating cash flow was $23.6 million, helping reduce quarter-end debt to $28.7 million.
• L.B. Foster raised its 2026 sales guidance to $570 million–$590 million and free cash flow guidance to $20 million–$28 million, while narrowing its Adjusted EBITDA range to $42 million–$45 million.
• Consolidated gross margin declined 200 basis points to 20.5%, primarily because of a higher mix of lower-margin Rail Distribution and U.K. sales. Backlog was $234.7 million, down 5.1% year over year, though management cited healthy project activity and demand.
• The company completed its acquisition of Dulworth Enterprises, expanding its precast wastewater business and geographic reach. Dulworth is expected to contribute about $18 million in annual revenue and $6.5 million–$7.5 million in Adjusted EBITDA, including synergies, after integration estimated to take 12–18 months; management expects no material fourth-quarter impact.

L.B. Foster Stock Up 9.8%

FSTR stock traded up $3.56 during midday trading on Wednesday, hitting $40.02. The company’s stock had a trading volume of 67,022 shares, compared to its average volume of 67,749. The firm has a 50-day simple moving average of $36.59 and a 200-day simple moving average of $35.89. The firm has a market capitalization of $420.98 million, a P/E ratio of 38.26, a PEG ratio of 0.56 and a beta of 1.17. The company has a quick ratio of 1.15, a current ratio of 2.00 and a debt-to-equity ratio of 0.27. L.B. Foster has a 52-week low of $25.66 and a 52-week high of $45.81.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on FSTR. Wall Street Zen cut L.B. Foster from a “strong-buy” rating to a “hold” rating in a research note on Saturday, August 15th. Weiss Ratings downgraded L.B. Foster from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $32.00.

About L.B. Foster

L.B. Foster Company (NASDAQ: FSTR) is a Pittsburgh-based manufacturer and supplier of products, technologies and services used in transportation and industrial infrastructure. The company serves customers primarily in the rail, construction and energy markets, providing solutions designed to support the construction, maintenance and operation of critical infrastructure.

In its rail business, L.B. Foster offers rail and track products such as rail joints, fastening systems, track components and related maintenance solutions.