L.B. Foster pany(FSTR) - 2025 Q4 - Annual Report

Financial Performance - In 2025, the Rail segment accounted for 57% of total net sales, down from 62% in 2024, while the Infrastructure Solutions segment increased to 43% from 38%[14] - Approximately 11% of total sales in 2025 were generated from international markets, a decrease from 14% in 2024[30] Business Segments - The Company operates under two reporting segments: Rail, Technologies, and Services, and Infrastructure Solutions, with a focus on engineered products and services for infrastructure[13] - The Rail Products business unit includes Rail Distribution, Allegheny Rail Products, and Transit Products, providing a variety of components for rail systems[15] - The Global Friction Management unit offers products that optimize performance at the rail to wheel interface, helping customers reduce fuel consumption and maintenance costs[21] - The Infrastructure segment includes ten operating facilities across the US, focusing on precast concrete solutions and protective coatings for civil infrastructure[23] - The Steel Products business unit provides custom engineered solutions for civil and energy infrastructure, including corrosion protection for pipelines[25] Product Development and Discontinuation - The Company announced the discontinuation of the Automation and Materials Handling product line in 2025, completing all related customer obligations by year-end[22] - The Company has proprietary technologies such as ENVIROCAST and ENVIROKEEPER for precast concrete and water management systems, enhancing build efficiency and design flexibility[24] Competition and Market Position - The Company faces significant competition in its markets, with product availability, quality, service, and price being key competitive factors[31] Workforce and Employment - The Company had a total of 1,191 employees as of December 31, 2025, with 974 located in the US, 44 in Canada, 166 in Europe, and 7 in other locations[46] - The Company has 641 hourly production workers and 550 salaried employees, with 7 of the hourly workers represented by unions[46] - The Company has one collective bargaining agreement covering 7 employees, which is set to expire in March 2030[47] - All employees are covered by either a defined benefit plan or a defined contribution plan[48] Environmental and Safety Commitment - The Company emphasizes a culture of environmental, health, safety, and sustainability excellence, aiming to exceed EHS regulations[40] - The Company has eight locations in North America and Europe with Environmental Management Systems compliant with ISO 14001:2015 and ISO 45001:2018[40] Leadership and Culture - The executive leadership team is focused on sustainable, profitable growth and quality service to customers[41] - The Company conducts an annual succession planning process to identify and develop employees for key leadership positions[44] - The Company is committed to equal employment opportunity and a workplace free from discrimination[38] - The Company promotes a culture based on its SPIRIT model, which includes Safety, People, Integrity, Respect, Innovation, and Teamwork[37]