L.B. Foster's Earnings and Revenues Miss Estimates in Q4

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]