PITTSBURGH, Sept. 11, 2025 (GLOBE NEWSWIRE) -- L.B. Foster Company (Nasdaq: FSTR, the “Company”), announced today that John Kasel, President and Chief Executive Officer, and Bill Thalman, Executive Vice President and Chief Financial Officer, will present virtually at the Sidoti Small Cap Virtual Conference on September 18, 2025, beginning at 9:15 AM ET. Presentation materials for the conference will be posted on the Company’s Investor Relations website under “Presentations” the morning of the conference. A ...

L.B. Foster Company (FSTR) FY Conference Summary Company Overview - **Company Name**: L.B. Foster Company - **Ticker Symbol**: FSTR - **Industry**: Infrastructure and Rail Technology - **Market Focus**: Primarily North America, with a historical foundation in rail technology and infrastructure solutions [1][3][4] Key Financial Metrics - **Trailing Twelve Months Revenue**: Over $500 million [4] - **Sales Guidance for 2025**: $580 million to $620 million [5] - **Stock Price**: Approximately $22.4 as of June, with a slight increase noted [4] - **EBITDA Growth**: 51.4% increase year-over-year in Q2 [25] - **Profit Margin Improvement**: From 16.8% in 2021 to 22.2% currently [26] Business Segments - **Rail Technology Services**: Accounts for $289 million of revenue, focusing on rail components and technology innovations [8] - **Infrastructure Solutions**: Includes precast concrete and tubular products, with a significant growth rate of 36% year-over-year in precast [24][25] Strategic Initiatives - **Transformation Goals**: Aimed at improving shareholder returns and operational efficiency, with a focus on technology innovation [2][5][7] - **Growth Platforms**: Significant growth in global friction management (42%) and total track monitoring (273%) [20] - **Acquisitions and Divestitures**: Focus on tuck-in acquisitions and divesting non-core businesses to streamline operations [21][26] Market Dynamics - **Federal Funding**: Increased allocations for infrastructure projects through CRISI grants, which are expected to benefit the company [53][54] - **Tariff Impact**: Minimal negative impact from tariffs due to domestic sourcing of materials, which has allowed for improved margins [55][56] Operational Insights - **Working Capital Management**: Seasonal working capital needs, with stronger performance expected in the second half of the year [29][30] - **Cash Flow Expectations**: Anticipated free cash flow of $41 million in the second half of 2025 [30][47] - **Debt Management**: Targeting a leverage ratio of 1 to 1.5 times, with an active stock buyback program of $40 million [31][38] Technology and Innovation - **Friction Management Technology**: Significant market share in friction management, providing fuel savings of 3% to 5% for customers [61] - **Advanced Diagnostics**: Implementation of LIDAR technology for early detection of track obstructions, enhancing operational safety [63][64] Conclusion - **Outlook**: Positive expectations for the second half of 2025, driven by backlog growth and improved profitability profiles [34][40][47] - **Investment Thesis**: The company is positioned as an attractive investment opportunity due to its transformation, cash generation capabilities, and strategic focus on technology innovation [36][48]

Core Points - L.B. Foster Company will present at the Three-Part Advisors' Midwest IDEAS Investor Conference on August 27, 2025 [1] - The presentation will be accessible via webcast on both the conference host's website and L.B. Foster's Investor Relations page [2] - L.B. Foster Company is a global technology solutions provider for the rail and infrastructure markets, established in 1902 [3] Company Overview - L.B. Foster Company specializes in innovative engineering and product development solutions that meet safety, reliability, and performance needs [3] - The company operates in multiple regions including North America, South America, Europe, and Asia [3]

Core Viewpoint - L.B. Foster Company will present at the Three-Part Advisors' Midwest IDEAS Investor Conference on August 27, 2025, highlighting its role as a global technology solutions provider in the rail and infrastructure markets [1][3]. Group 1: Conference Details - The presentation will be led by John Kasel, President and CEO, and Bill Thalman, Executive Vice President and CFO [1]. - The conference will begin at 7:55 AM CDT at The InterContinental Chicago Magnificent Mile [1]. - Presentation materials will be available on the Company's Investor Relations website on the morning of the conference [1]. Group 2: Webcast Information - The presentation will be webcast and accessible through the conference host's main website and L.B. Foster's Investor Relations page [2]. - A video replay of the presentation will be available for one year [2]. Group 3: Company Overview - L.B. Foster Company, founded in 1902, provides technology solutions for the rail and infrastructure markets [3]. - The Company focuses on innovative engineering and product development to meet safety, reliability, and performance needs [3]. - L.B. Foster has locations in North America, South America, Europe, and Asia [3].

Group 1 - The article highlights the potential of small companies in the oil and natural gas sector, suggesting they often provide significant upside opportunities for investors [1] - Crude Value Insights offers an investment service focused on cash flow analysis and growth prospects of oil and gas companies, emphasizing the importance of cash flow in determining value [1] - Subscribers to the service gain access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2]

Core Viewpoint - The article expresses a cautious optimism regarding L.B. Foster Company (NASDAQ: FSTR), noting that despite previous skepticism, the stock price has begun to rise, indicating potential positive momentum in the near future [1]. Company Analysis - The author has developed software that tracks market sentiment, specifically the levels of optimism and pessimism reflected in stock prices, which aids in identifying investment opportunities [1]. - The strategy focuses on companies that are likely to surprise the market positively in the coming months, suggesting a proactive approach to investment based on market sentiment analysis [1]. Investment Position - The author holds a beneficial long position in FSTR shares and plans to purchase an additional 240 shares immediately after submitting the article, indicating a strong personal conviction in the company's potential [2].

Core Insights - L.B. Foster reported revenue of $143.56 million for the quarter ended June 2025, reflecting a 2% increase year-over-year, but fell short of the Zacks Consensus Estimate of $144.26 million by -0.49% [1] - The company's EPS was $0.27, slightly up from $0.26 in the same quarter last year, but significantly below the consensus estimate of $0.52, resulting in an EPS surprise of -48.08% [1] Financial Performance - Net Sales in Rail, Technologies, & Services amounted to $75.97 million, which was below the average estimate of $81.87 million from two analysts [4] - Net Sales in Infrastructure Solutions reached $67.59 million, exceeding the average estimate of $62.39 million based on two analysts [4] - Segment Operating Income for Infrastructure Solutions was $6.77 million, surpassing the average estimate of $4.59 million [4] - Segment Operating Income for Rail, Technologies, and Services was $3.75 million, which was below the average estimate of $5.74 million [4] Stock Performance - L.B. Foster's shares have returned -8.8% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - L.B. Foster reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.52 per share, representing an earnings surprise of -48.08% [1]. Financial Performance - The company posted revenues of $143.56 million for the quarter ended June 2025, which was a 0.49% miss against the Zacks Consensus Estimate, compared to revenues of $140.8 million a year ago [2]. - Over the last four quarters, L.B. Foster has surpassed consensus EPS estimates only once [2]. Stock Performance - L.B. Foster shares have declined approximately 17.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3]. - The current Zacks Rank for L.B. Foster is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $152.92 million, and for the current fiscal year, it is $1.65 on revenues of $540.12 million [7]. - The trend of estimate revisions for L.B. Foster was mixed ahead of the earnings release, which could change following the recent report [6]. Industry Context - The Steel - Producers industry, to which L.B. Foster belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges for stock performance [8].

[PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for L.B. Foster Company as of June 30, 2025, and for the three and six-month periods then ended, including balance sheets, statements of operations, comprehensive income, cash flows, stockholders' equity, and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $349.9 million from $334.6 million at year-end 2024, driven by higher inventories and operating lease assets, while total liabilities also increased, primarily due to a significant rise in long-term debt to $81.4 million from $46.8 million, and total stockholders' equity slightly decreased to $175.2 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$349,925** | **$334,550** | | Total current assets | $173,484 | $161,605 | | Goodwill | $33,315 | $31,907 | | **Total Liabilities** | **$174,684** | **$155,536** | | Total current liabilities | $68,611 | $88,296 | | Long-term debt | $81,446 | $46,773 | | **Total Stockholders' Equity** | **$175,241** | **$179,014** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, net sales increased slightly to $143.6 million, with net income attributable to the company remaining stable at $2.9 million, or $0.27 per diluted share, while for the six-month period, net sales decreased to $241.4 million from $265.1 million year-over-year, and net income dropped significantly to $0.8 million from $7.3 million, primarily due to lower gross profit and the absence of a gain on sale of a facility that occurred in the prior year Q2 2025 vs Q2 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total net sales | $143,558 | $140,796 | | Gross profit | $30,900 | $30,513 | | Operating income | $7,678 | $4,572 | | Net income attributable to L.B. Foster | $2,885 | $2,847 | | Diluted EPS | $0.27 | $0.26 | Six Months 2025 vs 2024 Performance (in thousands, except per share data) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Total net sales | $241,350 | $265,116 | | Gross profit | $51,051 | $56,689 | | Operating income | $5,755 | $10,138 | | Net income attributable to L.B. Foster | $775 | $7,283 | | Diluted EPS | $0.07 | $0.66 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $15.7 million, an improvement from the $26.4 million used in the same period of 2024, while net cash used in investing activities increased to $5.2 million due to higher capital expenditures, and net cash provided by financing activities was $22.5 million, primarily from increased debt proceeds, partially offset by treasury stock acquisitions Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(15,734) | $(26,398) | | Net cash used in investing activities | $(5,199) | $(885) | | Net cash provided by financing activities | $22,468 | $28,815 | | **Net increase in cash** | **$1,732** | **$1,461** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on the company's accounting policies and financial results, including segment performance, revenue recognition, goodwill, debt, income taxes, and contingent liabilities, notably the discontinuation of the Automation and Materials Handling (AMH) product line, a new credit agreement, and ongoing environmental proceedings related to the Portland Harbor Superfund Site - The company is organized into two reportable segments: Rail, Technologies, and Services ('Rail') and Infrastructure Solutions ('Infrastructure')[27](index=27&type=chunk) - Announced the discontinuation of the Automation and Materials Handling (AMH) product line within the Rail segment, incurring **$1,351 thousand** in total exit costs during the period[35](index=35&type=chunk) - As of June 30, 2025, the company had approximately **$269.9 million** of remaining performance obligations (backlog)[46](index=46&type=chunk) - On June 27, 2025, the company entered into a new Fifth Amended and Restated Credit Agreement, increasing its revolving credit facility to **$150 million** and extending the maturity to June 2030[53](index=53&type=chunk) - The company is a potentially responsible party (PRP) for the Portland Harbor Superfund Site cleanup, with estimated total remedy costs of **$1.1 billion**; the company maintained a reserve of **$1.6 million** for all environmental liabilities as of June 30, 2025[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q2 and the first half of 2025, highlighting a 2.0% YoY sales increase in Q2 driven by Infrastructure, offsetting a Rail segment decline, and a 9.0% YoY sales decrease for the first six months due to lower Rail volumes, along with details on the AMH product line exit, a new credit facility, liquidity, capital resources, and an increased backlog of $270 million [Results of Operations - Second Quarter 2025 vs 2024](index=26&type=section&id=Results%20of%20Operations%20-%20Second%20Quarter%202025%20vs%202024) Net sales for Q2 2025 increased by 2.0% to $143.6 million, driven by a 22.4% increase in the Infrastructure segment, while the Rail segment declined by 11.2%, with gross profit stable at $30.9 million, operating income significantly improved to $7.7 million from $4.6 million due to a 9.8% decrease in selling and administrative expenses, and diluted EPS slightly up at $0.27 from $0.26 in the prior year Q2 2025 vs Q2 2024 Key Metrics (in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $143,558 | $140,796 | $2,762 | | Gross profit | $30,900 | $30,513 | $387 | | Operating income | $7,678 | $4,572 | $3,106 | | Diluted EPS | $0.27 | $0.26 | $0.01 | - The sales increase was driven by a **$12.4 million (22.4%)** improvement in the Infrastructure segment, partially offset by a **$9.6 million (11.2%)** decline in the Rail segment[89](index=89&type=chunk) - Selling and administrative expenses decreased by **$2.4 million (9.8%)**, primarily due to lower personnel costs and professional services expenditures[92](index=92&type=chunk) [Results of Operations - First Six Months 2025 vs 2024](index=29&type=section&id=Results%20of%20Operations%20-%20First%20Six%20Months%202025%20vs%202024) For the first six months of 2025, net sales decreased 9.0% to $241.4 million, primarily due to a 22.7% decline in the Rail segment, with gross profit falling 9.9% to $51.1 million, and net income attributable to the company dropping sharply to $0.8 million from $7.3 million in the prior year, which had benefited from a $3.5 million gain on the sale of a former joint venture facility Six Months 2025 vs 2024 Key Metrics (in thousands) | Metric | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $241,350 | $265,116 | $(23,766) | | Gross profit | $51,051 | $56,689 | $(5,638) | | Operating income | $5,755 | $10,138 | $(4,383) | | Net income attributable to L.B. Foster | $775 | $7,283 | $(6,508) | | Diluted EPS | $0.07 | $0.66 | $(0.59) | - The decrease in net income was primarily driven by lower gross profit, an increase in income tax expense, and the absence of a **$3,477 thousand** gain on sale of a former joint venture facility that was recognized in 2024[113](index=113&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had total available funding capacity of $72.3 million, including $4.2 million in cash and $68.1 million available under its new $150 million revolving credit facility, with net cash used in operating activities for the first six months at $15.7 million, and an active stock repurchase program, having repurchased $6.4 million of its common stock in the first half of 2025 Available Funding Capacity as of June 30, 2025 (in thousands) | Source | Amount | | :--- | :--- | | Cash and cash equivalents | $4,186 | | Net availability under revolving credit facility | $68,138 | | **Total available funding capacity** | **$72,324** | - The company repurchased a total of **276,931 shares** for **$6.4 million** during the six months ended June 30, 2025, under its authorized stock repurchase programs[133](index=133&type=chunk) [Backlog](index=33&type=section&id=Backlog) Total company backlog increased to $269.9 million as of June 30, 2025, up from $249.8 million a year prior, driven by growth in both the Rail, Technologies, and Services segment and the Infrastructure Solutions segment Backlog by Segment (in thousands) | Segment | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Rail, Technologies, and Services | $130,709 | $114,794 | | Infrastructure Solutions | $139,220 | $135,011 | | **Total backlog** | **$269,929** | **$249,805** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is not applicable as the company qualifies as a smaller reporting company - The company states that this item is not applicable because it is a smaller reporting company[145](index=145&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no changes to the company's internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[146](index=146&type=chunk) - No changes were made to the internal control over financial reporting during the quarter ended June 30, 2025[147](index=147&type=chunk) [PART II. Other Information](index=35&type=section&id=PART%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the financial statements for details on legal proceedings, which discusses the company's status as a potentially responsible party for the Portland Harbor Superfund Site cleanup, for which it maintains a reserve, and other ordinary course legal matters - The company refers to Note 13 of the Notes to Condensed Consolidated Financial Statements for information regarding legal proceedings[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its stock repurchase activities, including a new $40 million repurchase authorization approved on March 3, 2025, valid through February 2028, and the repurchase of 116,308 shares for approximately $2.3 million during the second quarter of 2025 - On March 3, 2025, the Board of Directors approved a new stock repurchase program authorizing up to **$40,000 thousand** of common stock repurchases through February 29, 2028[151](index=151&type=chunk) Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 82,175 | $19.61 | | May 2025 | 12,288 | $18.82 | | June 2025 | 21,845 | $21.48 | | **Total** | **116,308** | **$19.88** | - As of June 30, 2025, approximately **$36.7 million** remained available for repurchase under the current program[152](index=152&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) The company reports that none of its directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[155](index=155&type=chunk)

Financial Data and Key Metrics Changes - The company reported a 2% year-over-year increase in revenues for Q2 2025, marking a return to sales growth after a period of decline [6][10] - Adjusted EBITDA increased by 51.4% compared to the previous year, driven by improved margins in the infrastructure segment and lower SG&A spending [7][12] - Net debt decreased to $77.4 million, with gross leverage improving to 2.2 times compared to 2.7 times last year [8][21] Business Line Data and Key Metrics Changes - Infrastructure segment sales rose by 22.4%, primarily due to a 36% increase in precast concrete sales [6][16] - Rail revenues declined by 11.2%, although friction management sales within the rail segment increased by 17.2% [7][14] - The backlog for rail products increased by 42.5% during the quarter, indicating strong future demand [7][15] Market Data and Key Metrics Changes - The backlog for infrastructure solutions totaled $139.2 million, with a 36.8% increase in protective coatings demand [17][25] - The overall backlog improved by 42.5% during the quarter, with significant gains in both rail products and global friction management [15][24] - The company noted that federal project funding began to release in Q2, positively impacting rail customer demand [26] Company Strategy and Development Direction - The company is focusing on organic growth and capital allocation towards growth projects, while also maintaining a stock buyback program [39][21] - The strategic execution in the infrastructure segment is expected to drive continued growth, particularly in precast concrete due to government funding programs [27][28] - The company is also exploring tuck-in acquisitions to support its long-term strategy while managing existing operations effectively [39] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding steady rail customer demand through the remainder of 2025, supported by federal funding [26] - The UK market remains challenging, but the company is taking steps to right-size its operations there [26] - The company anticipates a strong second half of 2025, with a solid order book and favorable business mix [30] Other Important Information - The company successfully negotiated an amendment to its revolving credit facility, increasing borrowing capacity and extending the facility tenure to June 2030 [22] - The effective tax rate for the quarter was reported at 55%, but management expects this to improve as profitability in the UK increases [70][72] Q&A Session Summary Question: Are there high return opportunities in acquisitions or reinvesting in growth projects? - Management indicated a focus on organic growth and capital allocation towards existing operations, while also being open to acquisitions that align with their strategy [39] Question: Is there follow-through on backlog composition for infrastructure and rail products? - Management confirmed strong growth in friction management and precast concrete, with positive backlog support for the second half of the year [41][42] Question: What is the status of the UK business and remaining exposure? - Management acknowledged ongoing challenges in the UK but expressed confidence in the right-sizing efforts and the strength of the US operations [50][52] Question: How does the company envision sales growth across segments in the second half? - Management expects strong seasonal performance in Q3 and Q4, supported by a solid backlog and improved gross profit margins [54][55] Question: What is the focus on the EnviroCast business and its expected contribution? - Management emphasized a cautious approach to entering the new market, focusing on quality and productivity, with expectations for long-term growth rather than immediate contributions [58][60]