L.B. Foster pany(US:FSTR) Globenewswireยท2025-05-06 12:00Core 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]