L.B. Foster pany(US:FSTR)2025-11-03 20:40Financial Performance - Net sales for the three months ended September 30, 2025, increased by $820, or 0.6%, compared to the prior year quarter, driven by a 4.4% increase in the Infrastructure segment [92]. - Gross profit for the same period decreased by $1,692, or 5.2%, with gross profit margins declining by 130 basis points to 22.5% [93][94]. - Selling and administrative expenses decreased by $2,212, or 9.1%, resulting in a reduction to 16.0% of net sales [95]. - Net income attributable to the Company for the three months ended September 30, 2025, was $4,354, or $0.40 per diluted share, a significant decrease from $35,905, or $3.27 per diluted share in the prior year quarter [98]. - Segment operating income for the three months ended September 30, 2025, was $4,147 million, a decrease of $963 million or 18.8% compared to the prior year quarter [106]. - For the nine months ended September 30, 2025, net sales decreased by $22,946 million or 5.7% compared to the prior year period, with the Rail segment net sales declining by $39,939 million or 16.1% [111]. - Gross profit for the nine months ended September 30, 2025, decreased by $7,330 million or 8.2%, with a gross profit margin of 21.6%, down 60 basis points from the prior year [112]. - Selling and administrative expenses for the nine months ended September 30, 2025, decreased by $6,566 million or 9.1%, with expenses as a percentage of net sales decreasing to 17.2% [113]. - Net income attributable to the Company for the nine months ended September 30, 2025, was $5,129 million, or $0.47 per diluted share, compared to $43,188 million, or $3.91 per diluted share in the prior year [116]. Segment Performance - The Rail segment's net sales decreased by $1,710, or 2.2%, primarily due to a 5.9% decline in Rail Products sales volumes [99]. - New orders for the Rail segment totaled $86,360, an increase of $33,685, with a backlog of $140,233, reflecting a 58.2% increase year-over-year [102]. - Infrastructure segment net sales for the nine months ended September 30, 2025, increased by $16,993 million or 11.0%, driven by the Precast Concrete Products business unit [122]. - The Infrastructure segment had new orders, net of $155,639 million, an increase of $9,700 million or 6.6% over the prior year period, primarily due to the Precast Concrete Products business unit [125]. - The Rail segment's operating income increased by $962, or 19.5%, due to declines in selling and administrative expenses and lower amortization expense [101]. - New orders for the Infrastructure segment were $28,416 million, a decrease of $14,882 million or 34.4% from the prior year quarter, primarily due to cancellations in the Steel Products business unit [107]. Cash Flow and Capital Management - Net cash provided by operating activities for the nine months ended September 30, 2025 was $13,447, compared to cash used of $1,653 in the prior year, reflecting a significant improvement [132]. - Capital expenditures for the nine months ended September 30, 2025 were $8,057, slightly higher than $7,834 in 2024, focusing on operational improvements and organic growth initiatives [133]. - The company’s working capital management has improved, with a reduction in working capital needs resulting in a cash flow increase [132]. Debt and Financing - The outstanding debt balance as of September 30, 2025, was $58,722, down from $68,544 a year earlier [96]. - The company’s total debt, including finance leases, increased to $58,722 as of September 30, 2025, up from $46,940 at the end of 2024 [127]. - The company incurred debt issuance costs of $706 during the nine months ended September 30, 2025, related to the Fifth Amended and Restated Credit Agreement [134]. - The effective income tax rate for the three months ended September 30, 2025, was 39.4%, compared to (483.4)% in the prior year quarter [97]. - The company has entered into SOFR-based interest rate swaps totaling $20,000 to mitigate the impact of interest rate changes on variable-rate debt [142]. Shareholder Returns - The company repurchased a total of 461,074 shares for $11,158 during the nine months ended September 30, 2025, as part of its stock repurchase programs [137]. Exit Costs - The Company incurred $1,351 in exit costs related to the discontinuation of the Automation and Materials Handling product line, including $655 in inventory and fixed asset write-downs [89].