PITTSBURGH, Aug. 20, 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 at the Three-Part Advisors’ Midwest IDEAS Investor Conference on August 27, 2025, beginning at 7:55 AM CDT at The InterContinental Chicago Magnificent Mile in Chicago, IL. Presentation materials for the conference will be posted on the Company’s Investor Rel ...

PITTSBURGH, Aug. 20, 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 at the Three-Part Advisors’ Midwest IDEAS Investor Conference on August 27, 2025, beginning at 7:55 AM CDT at The InterContinental Chicago Magnificent Mile in Chicago, IL. Presentation materials for the conference will be posted on the Company’s Investor Rel ...

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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]

[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]

Financial Performance - Net sales for Q2 2025 were $143.6 million, a 20% increase year-over-year[18] - Adjusted EBITDA for Q2 2025 increased by $42 million, or 514%, year-over-year, reaching $122 million[18] - New orders increased by 28% year-over-year, totaling $1758 million[19] - Backlog increased by 81% year-over-year, reaching $2699 million[19] - The company updated its 2025 guidance with net sales expected to be between $535 million and $555 million, adjusted EBITDA between $40 million and $44 million, and free cash flow between $15 million and $25 million[19] Segment Performance - Infrastructure Solutions net sales increased by 224% in Q2 2025[37] - Rail, Technologies, and Services net sales decreased by 112% in Q2 2025[31] - Precast Concrete sales improved 360%[40] - Protective Coatings improved 474%[40] Capital Management - Net debt decreased by $66 million year-over-year to $774 million[18] - The company repurchased 108,020 shares of common stock for $22 million, representing approximately 10% of outstanding shares[18]

Core Insights - L.B. Foster Company reported a strong recovery in its second quarter 2025 results, with a 2.0% increase in net sales and a significant 51.4% rise in adjusted EBITDA, primarily driven by the Infrastructure segment [2][4][5] Financial Performance - Net sales for Q2 2025 were $143.6 million, up from $140.8 million in Q2 2024, reflecting a 2.0% increase [2][7] - Net income attributable to L.B. Foster Company was $2.9 million, a 1.3% increase from $2.8 million in the previous year [2][5] - Adjusted EBITDA reached $12.2 million, a 51.4% increase compared to $8.1 million in Q2 2024 [2][5] - Free cash flow improved to $7.7 million, compared to a negative $7.0 million in the prior year [2][5] - Total debt decreased to $81.6 million, down 6.4% from $87.2 million in the previous year [2][5] Segment Performance - The Infrastructure segment saw a 22.4% increase in organic sales, primarily due to a 36.0% rise in Precast Concrete sales [4][10] - The Rail segment experienced a decline in sales of 11.2%, but the backlog increased by 42.5%, indicating potential future growth [4][6] - New orders for Q2 2025 totaled $175.8 million, a 2.8% increase from $171.0 million in Q2 2024, with a backlog of $269.9 million, up 8.1% year-over-year [2][5][8] Financial Guidance - The company revised its full-year 2025 financial guidance, projecting net sales between $535 million and $555 million and adjusted EBITDA between $40 million and $44 million [3][5] - The anticipated free cash flow for the second half of 2025 is expected to be between $15 million and $25 million [3][5] Operational Efficiency - Selling and administrative expenses decreased by 9.8% to $22.4 million, improving the SG&A as a percentage of sales to 15.6%, down 200 basis points from the previous year [7][9] - Operating income for Q2 2025 improved by 67.9% to $7.7 million, driven by higher gross profit and lower expenses [7][9] Market Outlook - The company expects continued strong organic sales growth and profitability improvement in the second half of 2025, particularly in the Rail segment due to increased backlog [6][4] - The gross leverage ratio improved to 2.2x, down from 2.7x in the previous year, indicating better financial health [5][6]

Core Insights - L.B. Foster Company (FSTR) has entered into a Fifth Amended and Restated Credit Agreement, extending the maturity date to June 27, 2030, increasing borrowing capacity to $150 million, and improving pricing and covenants [1][7] Group 1: Credit Agreement Details - The Credit Agreement can be utilized for working capital financing, capital expenditures, letters of credit, approved acquisitions, and general company purposes [2] - The terms of the agreement lower overall finance costs and reduce constraints, enhancing borrowing capacity, which aligns with the company's objectives for profitability and growth [2][7] Group 2: Growth Prospects - The company is optimistic about growth in its key platforms, Rail Technologies and Precast Concrete, and the new facility structure provides necessary flexibility and capacity for continued growth [3][7] Group 3: Market Performance - Shares of FSTR have increased by 7.3% over the past year, contrasting with a 29.3% decline in its industry [4]