PART I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 net loss of **$2.1 million**, reversing Q1 2024's **$4.4 million** net income, driven by a **21.3%** sales decrease [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$342.8 million**, liabilities rose to **$171.2 million** driven by long-term debt, and equity decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $164,316 | $161,605 | | **Total Assets** | **$342,826** | **$334,550** | | **Total Current Liabilities** | $63,865 | $88,296 | | **Long-Term Debt** | $82,347 | $46,773 | | **Total Liabilities** | $171,231 | $155,536 | | **Total Stockholders' Equity** | $171,595 | $179,014 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 net loss of **$2.1 million** (or **$0.20** per share) reversed Q1 2024's **$4.4 million** net income, due to **21.3%** sales decline Q1 2025 vs. Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Net Sales | $97,792 | $124,320 | | Gross Profit | $20,151 | $26,176 | | Operating (Loss) Income | $(1,923) | $5,566 | | Net (Loss) Income Attributable to L.B. Foster | $(2,110) | $4,436 | | Diluted (Loss) Earnings Per Share | $(0.20) | $0.40 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$26.1 million** in Q1 2025, while financing activities provided **$28.8 million** Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,136) | $(21,444) | | Net cash (used in) provided by investing activities | $(2,575) | $789 | | Net cash provided by financing activities | $28,820 | $21,298 | | **Net increase in cash and cash equivalents** | **$158** | **$588** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail two segments, Rail and Infrastructure, with Rail sales declining; backlog at **$237.2 million**; contingent liability for Portland Harbor - The company operates under two reportable segments: Rail, Technologies, and Services ('Rail') and Infrastructure Solutions ('Infrastructure')[24](index=24&type=chunk)[26](index=26&type=chunk) - As of March 31, 2025, the company's remaining performance obligations (backlog) totaled approximately **$237.2 million**[39](index=39&type=chunk) - The company is a potentially responsible party (PRP) for the Portland Harbor Superfund Site cleanup, with environmental reserves of approximately **$1.8 million** as of March 31, 2025[68](index=68&type=chunk) - The Settlement Agreement with Union Pacific Railroad (UPRR) has been fully paid as of December 31, 2024, and all obligations have been satisfied[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 net loss of **$2.1 million** due to **21.3%** sales decrease, mainly in Rail; **$47.2 million** available credit; backlog at **$237.2 million** [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 2025 net sales fell **21.3%** to **$97.8 million**, resulting in a **$1.9 million** operating loss and **$2.1 million** net loss Q1 2025 vs. Q1 2024 Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Net sales | $97,792 | $124,320 | $(26,528) | (21.3)% | | Gross profit | $20,151 | $26,176 | $(6,025) | (23.0)% | | Gross profit margin | 20.6% | 21.1% | - | (50) bps | | Operating (loss) income | $(1,923) | $5,566 | $(7,489) | - | | Net (loss) income | $(2,110) | $4,436 | $(6,546) | - | - Selling and administrative expenses decreased by **$1.9 million** (**8.4%**), primarily due to lower personnel and professional services costs[80](index=80&type=chunk) [Segment Analysis](index=25&type=section&id=Segment%20Analysis) Rail segment sales dropped **34.6%** to **$54.0 million**, while Infrastructure sales grew **5.0%** to **$43.8 million**, narrowing its operating loss Rail, Technologies, and Services Segment Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | Change % | | :--- | :--- | :--- | :--- | | Net sales | $54,015 | $82,623 | (34.6)% | | Segment operating income | $144 | $6,778 | (97.9)% | - The Rail segment's sales decrease was primarily due to a **$23.7 million** (**44.7%**) decline in the Rail Products business unit, attributed to the timing of large orders and an exceptionally strong prior year[84](index=84&type=chunk) Infrastructure Solutions Segment Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | Change % | | :--- | :--- | :--- | :--- | | Net sales | $43,777 | $41,697 | 5.0% | | Segment operating loss | $(444) | $(1,388) | (68.0)% | - The Infrastructure segment's sales increase was driven by the Precast Concrete Products business unit, which grew by **$7.1 million** (**33.7%**)[88](index=88&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity from cash, operations, and **$130 million** credit facility with **$47.2 million** available; total debt increased; **$40 million** share repurchase authorized Available Funding Capacity as of March 31, 2025 (in thousands) | Source | Amount | | :--- | :--- | | Cash and cash equivalents | $2,612 | | Net availability under the revolving credit facility | $47,178 | | **Total available funding capacity** | **$49,790** | - In Q1 2025, the company repurchased **168,911** shares for **$4.3 million** under its authorized programs[103](index=103&type=chunk) - On March 3, 2025, the Board approved a new share repurchase authorization of up to **$40 million** through February 29, 2028[102](index=102&type=chunk) [Backlog](index=29&type=section&id=Backlog) Total company backlog increased **6.7%** year-over-year to **$237.2 million**, with both Rail and Infrastructure segments showing growth Backlog by Segment (in thousands) | Segment | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Rail, Technologies, and Services | $91,724 | $86,038 | | Infrastructure Solutions | $145,491 | $136,223 | | **Total backlog** | **$237,215** | **$222,261** | [Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is not applicable as the company is a smaller reporting company - This item is not applicable to a smaller reporting company[116](index=116&type=chunk) [Controls and Procedures](index=30&type=section&id=Controls%20and%20Procedures) Management concluded disclosure controls were effective; previously reported material weakness related to complex transactions has been remediated - Management concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[117](index=117&type=chunk) - The material weakness previously disclosed in 2023 and 2024 reports, related to accounting for non-recurring complex transactions, has been remediated as of March 31, 2025[118](index=118&type=chunk)[120](index=120&type=chunk) PART II. Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is detailed in Note 13 of the Notes to Condensed Consolidated Financial Statements - For details on legal proceedings, the report refers to Note 13 of the Notes to Condensed Consolidated Financial Statements[123](index=123&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This item is not applicable as the company is a smaller reporting company - This item is not applicable to a smaller reporting company[124](index=124&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Company repurchased **234,262** shares for **$25.32** average price; new **$40 million** repurchase program authorized through February 2028 - On March 3, 2025, the Board of Directors authorized a new stock repurchase program for up to **$40,000 thousand** of the company's common stock, effective through February 29, 2028[125](index=125&type=chunk) Share Repurchases for Q1 2025 | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Program | Remaining Authorization (approx. $) | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 59,480 | $27.36 | 57,853 | $4,299 | | Feb 2025 | 113,568 | $27.85 | 52,116 | $0 | | Mar 2025 | 61,214 | $21.08 | 58,942 | $38,846 | | **Total** | **234,262** | **$25.32** | **168,911** | **$38,846** | [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No 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 March 31, 2025[129](index=129&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data

Financial Data and Key Metrics Changes - First quarter sales decreased by 21.3% compared to the previous year, primarily due to a decline in the rail segment, which saw a 34.6% drop in sales [7][11] - Adjusted EBITDA for the first quarter was $1.8 million, down $4.1 million from the previous year, reflecting lower margins from the rail sales decline [12] - Net debt increased to $79.9 million during the quarter, up $4.9 million from last year, with a gross leverage ratio of 2.5 times compared to 2.2 times last year [9][18] Business Line Data and Key Metrics Changes - Rail segment sales totaled $54 million, down 34.6%, with the rail products business unit declining by 44.7% due to lower rail distribution volume [15] - Infrastructure solutions saw a 5% increase in net sales, driven by a 33.7% increase in precast concrete sales, while steel product sales decreased by 24.4% [17] - Rail margins were down approximately 20 basis points to 22.3%, influenced by the sales volume decline and unfavorable business mix [16] Market Data and Key Metrics Changes - Order rates improved by 12.6% year-over-year, with infrastructure orders increasing by 35.3% [21] - The consolidated backlog grew by 6.7% year-over-year, with significant increases in rail products and friction management backlog [22] - The backlog for infrastructure solutions increased by $9.3 million year-over-year, including a 51.6% increase in protective coating demand [17][22] Company Strategy and Development Direction - The company is focusing on capital allocation priorities, including a $40 million stock buyback program authorized for three years [19] - There is an emphasis on organic growth initiatives and evaluating tuck-in acquisitions to enhance product line breadth and geographic coverage [20] - The company aims to maintain leverage between one and two times over the long term while managing working capital needs [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving demand levels for rail products and infrastructure solutions, anticipating a strong second quarter [24][27] - The company is closely monitoring government funding programs, expecting them to move forward due to increased infrastructure needs [27][30] - Management remains confident in achieving 2025 financial guidance despite a volatile macro environment, citing strong backlog and favorable demand drivers [29][30] Other Important Information - The company reported a typical seasonal pattern in cash flow, with expected improvements in sales volumes and profitability in the second quarter [14] - The first quarter results were characterized as softer than last year, but management expects a rebound in the following quarters [29] Q&A Session Summary Question: Impact of lower year-over-year volume on Rail Technology and Services segment - Management acknowledged the challenges but expressed confidence in a strong Q2 and Q3, with expectations for improved rail products volumes [34][35] Question: Backlog growth mix - Management highlighted a 22% growth in rail products backlog and a 71% increase in friction management backlog, indicating an improving mix [37][38] Question: Capital expenditures on rail projects - Management noted that increased capital expenditures are being observed, particularly for maintenance and additional capital work [48][49] Question: Orders and sales in pipe coating - Management indicated strong order intake and hiring efforts, expecting to reach full capacity in the second quarter [51][52] Question: New orders in infrastructure - Management reported a 35% increase in infrastructure orders, particularly in precast concrete, and expressed optimism for continued growth [56][57] Question: Potential acquisitions - Management stated that while they are not actively seeking acquisitions, they remain open to smaller tuck-in opportunities if they align with strategic goals [60][61] Question: Impact of higher steel prices - Management indicated that they are well-positioned to pass on higher steel prices to customers, similar to past experiences [70][71] Question: Sales and orders in April - Management expressed optimism about April's performance, indicating readiness to meet year-end guidance [74][75]

Core Insights - L.B. Foster reported a revenue of $97.79 million for the quarter ended March 2025, reflecting a decline of 21.3% year-over-year [1] - The company's EPS was -$0.20, a significant drop from $0.08 in the same quarter last year, indicating a substantial earnings miss [1] - The revenue fell short of the Zacks Consensus Estimate by 14.53%, which was projected at $114.41 million [1] - The EPS surprise was notably negative at -2100.00% compared to the consensus estimate of $0.01 [1] Financial Performance Metrics - Net Sales in Rail, Technologies, & Services amounted to $54.02 million, below the average estimate of $73.97 million from two analysts [4] - Net Sales in Infrastructure Solutions reached $43.78 million, slightly above the two-analyst average estimate of $40.43 million [4] - Segment Operating Income for Infrastructure Solutions was reported at -$0.44 million, better than the average estimate of -$0.63 million [4] - Segment Operating Income for Rail, Technologies, and Services was $0.14 million, significantly lower than the average estimate of $4.59 million [4] Stock Performance - L.B. Foster's shares have returned +10.1% over the past month, compared to a +11.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - First quarter sales decreased by 21.3% compared to the previous year, primarily due to a decline in the rail segment, which saw a 34.6% drop in sales [7][11] - Adjusted EBITDA for the first quarter was $1.8 million, down $4.1 million from the previous year, reflecting lower margins from the rail sales decline [12] - Net debt increased to $79.9 million, up $4.9 million from last year, with a gross leverage ratio of 2.5 times compared to 2.2 times last year [9][18] Business Line Data and Key Metrics Changes - Rail segment sales totaled $54 million, down 34.6%, with the rail products business unit declining by 44.7% due to weak rail distribution demand [15] - Infrastructure Solutions saw a 5% increase in net sales, driven by a 33.7% increase in precast concrete sales, while steel product sales decreased by 24.4% [17] - Rail backlog increased by 46.9% during the quarter, with a significant increase in rail products backlog by 63.4% [21][22] Market Data and Key Metrics Changes - Order rates improved by 12.6% year-over-year, with infrastructure orders increasing by 35.3% [21] - The consolidated backlog grew by 6.7% compared to last year, with gains in more profitable product lines [22] - The UK backlog within technology services and solutions declined by 52.7%, indicating challenges in that market [22] Company Strategy and Development Direction - The company is focusing on capital allocation priorities, including a $40 million stock buyback program authorized for three years [19] - There is an emphasis on organic growth initiatives and evaluating tuck-in acquisitions to enhance product line breadth and geographic coverage [20] - The company aims to maintain leverage between 1 times and 2 times over the long term while managing working capital needs [18][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter's results were impacted by a slowdown in government funding, but there are signs of improvement in project funding and bidding levels [8][24] - The company expects a substantial improvement in second quarter results, driven by a strong backlog and favorable demand drivers in key end markets [28] - There is optimism regarding government funding programs for infrastructure investment, which are expected to remain intact [29] Other Important Information - The company reported a typical seasonal pattern in cash flow, with expected consumption in the first half of the year and a reversal in the second half [14] - The company is closely monitoring the status of government funding programs and the impact of tariffs on supply chains [26] Q&A Session Summary Question: Insights on Rail Technology and Services segment performance - Management indicated that they expect a strong second quarter despite tough year-over-year comparisons, with a focus on maintaining guidance for the year [34] Question: Backlog growth mix - The backlog growth was primarily in rail products and friction management, with a noted decline in the UK backlog [36][37] Question: Friction management growth and market share - Management reported strong performance in friction management, with new customer acquisitions and increased demand for lubricators [40] Question: Capital expenditures on rail projects - Management observed increased capital expenditures on maintenance and additional capital work, contributing to backlog and new orders [47] Question: Infrastructure orders improvement - The company noted a 35% increase in infrastructure orders, particularly in precast concrete, driven by strong demand and government funding [55] Question: Potential acquisitions - Management is currently focused on organic growth opportunities and is not actively seeking acquisitions, although smaller tuck-in opportunities may be considered [57]

Core Viewpoint - L.B. Foster reported a significant quarterly loss of $0.20 per share, missing the Zacks Consensus Estimate of $0.01, marking an earnings surprise of -2,100% compared to a profit of $0.08 per share a year ago [1] Financial Performance - The company posted revenues of $97.79 million for the quarter ended March 2025, which was 14.53% below the Zacks Consensus Estimate and down from $124.32 million year-over-year [2] - Over the last four quarters, L.B. Foster has only surpassed consensus EPS estimates once and has also topped consensus revenue estimates just once [2] Stock Performance - L.B. Foster shares have declined approximately 23.9% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.56 on revenues of $146.73 million, and for the current fiscal year, it is $1.71 on revenues of $543.73 million [7] Industry Context - The Steel - Producers industry, to which L.B. Foster belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

L.B. Foster Company Earnings Presentation Nasdaq - FSTR May 6, 2025 Safe Harbor Disclaimer Safe Harbor Statement This presentation may contain "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements provide management's current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or cur ...

| Adjusted EBITDA | $ | 42,000 | $ | 48,000 | | --- | --- | --- | --- | --- | | Capital spending as a percent of sales | | ~2.0% | | ~2.0% | | Free cash flow | $ | 20,000 | $ | 30,000 | CEO Comments John Kasel, President and Chief Executive Officer, commented, "As mentioned in our 2024 year end earnings announcement back in March, we started 2025 with first quarter sales and profitability down versus last year. This was due to an exceptionally-strong first quarter last year for our Rail segment. Within the ...

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Core Viewpoint - L.B. Foster Company will release its first quarter results on May 6, 2025, and will host a conference call to discuss the results and market outlook [1]. Group 1: Earnings Release and Conference Call - The earnings release will occur pre-market on May 6, 2025 [1]. - A conference call will take place at 11:00 A.M. Eastern Time on the same day to discuss operating results and business developments [1]. - The conference call will be available as a live webcast on the Company's Investor Relations page [2]. Group 2: Participation Details - Interested participants can register for the question-and-answer session to receive dial-in numbers and a unique PIN [3]. - It is recommended to join the call 10 minutes prior to the start time [3]. Group 3: Company Overview - L.B. Foster Company, founded in 1902, is a global technology solutions provider for the rail and infrastructure markets [4]. - The Company focuses on innovative engineering and product development to meet safety, reliability, and performance needs [4]. - L.B. Foster has locations in North America, South America, Europe, and Asia [4].

Company Announcement - L.B. Foster Company will present virtually at the Sidoti Small Cap Virtual Conference on March 20, 2025, starting at 2:30 PM EST [1] - Presentation materials will be available on the Company's Investor Relations website on the morning of the conference [1] Webcast Information - A video webcast and replay will be available online, with a registration link provided on the L.B. Foster website on the day of the event [2] - The video replay will be accessible for 90 days following the event [2] Company Overview - L.B. Foster Company, founded in 1902, is a global technology solutions provider specializing in engineered, manufactured products and services for infrastructure [3] - The Company focuses on innovative engineering and product development solutions to meet safety, reliability, and performance needs [3] - L.B. Foster maintains locations across North America, South America, Europe, and Asia [3]