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 ...

Core Insights - L.B. Foster Company reported a significant decline in net sales and profitability for the first quarter of 2025 compared to the previous year, primarily due to lower demand in the Rail Distribution segment, despite growth in the Infrastructure segment driven by Precast Concrete sales [2][3][4] Financial Performance - Net sales for Q1 2025 were $97.8 million, down 21.3% from $124.3 million in Q1 2024 [2][6] - Net loss attributable to L.B. Foster Company was $2.1 million, a decrease of 147.6% compared to a profit of $4.4 million in the same quarter last year [2][6] - Adjusted EBITDA fell to $1.8 million, down 69.3% from $5.9 million in Q1 2024 [2][6] - Total debt increased to $82.5 million, a rise of 5.7% from $78.1 million in the previous year [2][6] Segment Performance - Rail, Technologies, and Services segment saw net sales drop to $54.0 million, a decline of 34.6% from $82.6 million in Q1 2024, with a gross profit margin of 22.3% [7][10] - Infrastructure Solutions segment reported a 5.0% increase in net sales to $43.8 million, driven by a 33.7% increase in Precast Concrete sales [11][16] Orders and Backlog - New orders for Q1 2025 totaled $149.1 million, an increase of 12.6% compared to $132.4 million in Q1 2024 [2][9] - Backlog increased to $237.2 million, up 6.7% from $222.3 million in the previous year, indicating strong order rates across the portfolio [2][4] Operational Insights - The company implemented cost controls, resulting in an 8.4% reduction in operating expenses compared to the previous year [3][4] - The Gross Leverage Ratio as of March 31, 2025, was 2.5x, up from 2.2x in the prior year, reflecting increased debt levels [2][9] Future Outlook - The company maintains its full-year financial guidance, expecting improved sales and profitability in the second quarter of 2025 [4][5] - The anticipated federal infrastructure funding is expected to support the company's performance throughout the year [5]

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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]

Financial Performance - For the year ended December 31, 2024, L.B. Foster Company recorded total net sales of $530.765 million, a decrease of 2.0% from $543.744 million in 2023[225]. - The gross profit for 2024 was $118.062 million, representing an increase of 5.0% compared to $112.044 million in 2023[225]. - Net income attributable to L.B. Foster Company for 2024 was $42.946 million, significantly up from $1.464 million in 2023, marking an increase of 2,831.5%[225]. - Basic earnings per common share rose to $4.01 in 2024, compared to $0.14 in 2023, reflecting a substantial increase[225]. - Total assets increased to $334.550 million in 2024, up from $312.401 million in 2023, indicating a growth of 7.1%[222]. - Current liabilities decreased to $88.296 million in 2024 from $94.501 million in 2023, a reduction of 6.6%[222]. - The company reported a total comprehensive income of $40.403 million for 2024, compared to $3.350 million in 2023, an increase of 1,103.5%[228]. - Long-term debt decreased to $46.773 million in 2024 from $55.171 million in 2023, a decline of 15.5%[222]. - Net income for the year ended December 31, 2024, was $42,843,000, a significant increase from $1,299,000 in 2023, representing a growth of approximately 3,295%[232]. - The company reported a foreign currency transaction gain of $154 million for the year ended December 31, 2024, compared to a loss of $77 million in 2023[263]. Sales and Revenue - Rail segment accounted for 62% of total net sales in 2024, up from 57% in 2023, while Infrastructure Solutions decreased to 38% from 43%[14]. - The Rail segment generated net sales of $326,869 million in 2024, compared to $312,160 million in 2023, reflecting a growth of 4.5%[280][283]. - Infrastructure Solutions segment net sales decreased to $203,896 million in 2024 from $231,584 million in 2023, a decline of 11.9%[280][283]. - The company recognized $145,254 million in total over time sales for 2024, accounting for 27.4% of total net sales, consistent with 2023[292]. - The Bridge Exit product line had sales of $3,700 million in 2024 and $6,146 million in 2023, with the Company incurring $1,403 million in exit costs during 2023[276]. Employee and Workforce - The Company employs a global sales force of approximately 79 people, with 16 located outside the US[30]. - The Company had a total of 1,057 employees as of December 31, 2024, with 819 located in the US, 42 in Canada, 189 in Europe, and 7 in other locations[47]. - The Company has a collective bargaining agreement covering 8 employees, which is currently being negotiated and is set to expire in March 2025[48]. - The Company focuses on attracting and retaining employees that embody its values summarized in the SPIRIT model, which includes Safety, People, Integrity, Respect, Innovation, and Teamwork[37]. - The Company has a defined benefit plan or defined contribution plan covering all hourly and salaried employees[48]. Sustainability and Environmental Initiatives - The Company emphasizes a culture of environmental, health, safety, and sustainability excellence, aiming to exceed applicable regulations and improve its EHSS performance[41]. - The Company issued its inaugural sustainability report in 2024, aligning sustainability with operations and addressing its environmental footprint[40]. - The Company has nine locations in North America and Europe with Environmental Management Systems independently assessed for compliance with ISO 14001:2015 and ISO 45001:2018[41]. - The Company aims to create advanced solutions around sustainability while maximizing opportunities for environmental and social benefits[41]. - The Company is committed to good corporate citizenship and has adopted safety and environmental policies to support long-term sustainability excellence[39]. Investments and Acquisitions - The company acquired the operating assets of Cougar Mountain Precast, LLC for $1,644,000 on November 17, 2023, enhancing its Infrastructure segment[240]. - The Company completed the sale of its Concrete Ties division in June 2023 and the Chemtec business in March 2023[19][29]. - The Company sold substantially all operating assets of the Chemtec business for cash proceeds of $5,344 million, resulting in a pre-tax loss of $2,065 million[275]. - The Company sold substantially all operating assets of the prestressed concrete railroad tie business for cash proceeds of $2,362 million, generating a pre-tax loss of $1,009 million[272]. Financial Position and Assets - The company recorded $52.7 million in revenue recognized over time using the input method for long-term contracts in 2024[216]. - Retained earnings increased to $167.579 million in 2024, up from $124.633 million in 2023, reflecting a growth of 34.4%[222]. - Total cash and cash equivalents at the end of the period decreased to $2,454,000 in 2024 from $2,560,000 in 2023, a decline of approximately 4%[232]. - The company recorded a net cash used in investing activities of $(6,312,000) in 2024, compared to a net cash provided of $2,486,000 in 2023[232]. - The company’s segment assets increased to $334,550 million in 2024 from $312,401 million in 2023, a growth of 7.1%[287]. Debt and Liabilities - The company repaid $230,640,000 in debt during 2024, compared to $208,668,000 in 2023, indicating an increase in debt repayment of about 10%[232]. - Long-term debt decreased to $46,773 million in 2024 from $55,171 million in 2023, a decline of 15.5%[222]. - The allowance for credit losses increased from $809 million as of December 31, 2023, to $1,127 million as of December 31, 2024, marking a rise of 39.3%[306]. - Accounts receivable as of December 31, 2024, totaled $66,105 million, up from $54,293 million in 2023, indicating an increase of 21.8%[304]. - Inventory decreased from $73,111 million as of December 31, 2023, to $70,506 million as of December 31, 2024, a decline of 3.6%[307]. Stock and Compensation - Stock-based compensation expenses were $3,834,000 in 2024, down from $4,179,000 in 2023, a decrease of approximately 8%[232]. - The weighted average fair value of restricted stock grants awarded was $27.45 per share for 2024, up from $13.00 per share in 2023[346]. - The total amount of unrecognized tax benefits was $265 as of December 31, 2024, with accrued interest and penalties related to these benefits amounting to $294[338]. - The Company issued 22,458 restricted shares to non-employee directors in 2024, with a compensation expense of approximately $589[345]. - The performance stock units are tied to a three-year program, with adjustments based on the company's expected performance target attainment[348].

Core Insights - L.B. Foster Company reported a narrower loss of 2 cents per share for Q4 2024, compared to a loss of 4 cents per share a year ago, missing the Zacks Consensus Estimate of earnings of 29 cents per share [1] - The company recorded revenues of $128.2 million for the quarter, down approximately 5% year over year, and also missed the Zacks Consensus Estimate of $133.2 million due to lower volumes in the Steel Products business unit [2] - New orders for the quarter were approximately $107.2 million, reflecting a 2% year-over-year increase, driven by strong demand in the protective pipe coatings business [3] Segment Performance - Sales from the Rail, Technologies, and Services segment increased by 14% year over year to $79.2 million, attributed to higher sales volumes in the Rail Products business unit [4] - The Infrastructure Solutions segment saw sales decline to $49 million, down roughly 25% year over year, primarily due to lower sales in steel products amid soft end-market conditions [4] Full-Year Results - For the full year 2024, earnings were reported at $3.89 per share, a significant increase from 13 cents a year ago, while sales fell around 2% year over year to approximately $530.8 million, mainly due to divestitures and product line exits [5] Financial Position - At the end of 2024, L.B. Foster had cash and cash equivalents of around $2.5 million, a decrease of about 4% year over year, and long-term debt was approximately $46.8 million, down roughly 15% from the previous year [6] - Cash flow from operations for the fourth quarter was reported at $24.3 million [6] Outlook - The company anticipates adjusted EBITDA in the range of $42-$48 million for 2025, with net sales projected between $540-$580 million [7] - Free cash flow is expected to be between $20 million and $30 million for the year, with capital expenditures estimated to account for roughly 2% of sales [7] - A new $40 million share repurchase program has been authorized, replacing the earlier $15 million buyback authorization [7] Stock Performance - L.B. Foster's shares have declined by 16% year to date, contrasting with a 12.2% rise in the Zacks Steel Producers industry [8] Zacks Rank - L.B. Foster currently holds a Zacks Rank 3 (Hold), while better-ranked stocks in the Basic Materials sector include Denison Mines Corp., Gold Royalty Corp., and Orla Mining Ltd., each with a Zacks Rank 2 (Buy) [9]

Financial Data and Key Metrics Changes - The company reported a gross margin of 22.3%, an increase of 100 basis points year-over-year despite a 5% decline in sales, indicating improved profitability [10] - Adjusted EBITDA for Q4 was $7.2 million, up $1.1 million or 18.7% compared to the previous year, primarily due to lower SG&A expenses [11] - Operating cash flow totaled $24.3 million in Q4, contributing to a reduction in net debt by $20.9 million to $44.5 million at quarter end [11][32] - The gross leverage ratio improved to 1.2 times, down from 1.9 times at the start of the quarter and 1.7 times from the previous year [12] Business Line Data and Key Metrics Changes - Net sales for the fourth quarter were $128.2 million, a decline of 5% due to a 3.8% organic sales decline in the infrastructure segment, while rail organic sales increased by 14.2% [16] - Rail segment revenues reached $79.2 million, up 14.2% year-over-year, driven by higher volumes in rail products and friction management [23] - Infrastructure solutions segment revenue decreased by 25.2% to $16.6 million, primarily due to soft market conditions in the steel products business [26] Market Data and Key Metrics Changes - The overall backlog decreased by approximately 13% year-over-year, with rail segment backlog down $22 million, largely due to strategic actions and lower market steel prices [41] - Protective coatings orders increased significantly to $8.6 million in Q4, up from $1.4 million the previous year, indicating a recovery in demand [52] Company Strategy and Development Direction - The company is focused on executing its strategic playbook, which includes expanding more profitable work programs and scaling back less profitable segments [46] - A new three-year $40 million stock repurchase program was authorized, reflecting confidence in cash generation and valuation [36][55] - The company plans to maintain a capital-light business model while investing approximately 2% of sales in CapEx to support organic growth initiatives [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in 2025, despite a softer start expected due to lower backlog levels and a volatile macro environment [48] - The company is monitoring government funding programs for rail infrastructure investments, which are expected to support long-term growth [49] - Management highlighted the importance of safety and operational efficiency, noting that a strong safety record contributes to overall business performance [59] Other Important Information - The company finalized the Union Pacific settlement funding in 2024, which is expected to improve cash generation by $8 million annually going forward [14] - The company has made significant progress in reducing SG&A expenses, which decreased by $1.2 million from the prior year [31] Q&A Session Summary Question: Can you discuss the 2025 guidance ranges for sales and EBITDA? - Management indicated that the guidance reflects a choppy market environment but expressed confidence in technology innovation driving sales and margins [64][66] Question: What factors could drive increased market adoption of new rail technologies? - Management noted that their products provide early detection warnings, enhancing safety and operational efficiency, which is increasingly valued by customers [70][72] Question: How will the new steel tariffs affect backlog? - Management stated that the backlog remains intact and that previous experiences with tariffs have been manageable, with strong relationships with domestic steel mills [90][92] Question: What is the rationale behind the $40 million share buyback program? - The decision was based on available cash from the Union Pacific settlement and anticipated operating cash generation [99] Question: How is the company factoring potential disruptions in national and state parks into its guidance? - Management remains optimistic about the precast concrete business, citing strong backlog and ongoing projects [110] Question: What parts of the business are expected to recover in the second half of the year? - Management expects recovery in protective coatings and infrastructure projects, particularly in Tennessee and Florida [115] Question: How will tariffs against Canada and Mexico impact the rail business? - Management believes that demand for their products will continue, and they have flexibility in pricing to manage potential cost increases [118][122]