Core Insights - L.B. Foster Company reported a strong recovery in its second quarter 2025 results, with a 2.0% increase in net sales and a significant 51.4% rise in adjusted EBITDA, primarily driven by the Infrastructure segment [2][4][5] Financial Performance - Net sales for Q2 2025 were $143.6 million, up from $140.8 million in Q2 2024, reflecting a 2.0% increase [2][7] - Net income attributable to L.B. Foster Company was $2.9 million, a 1.3% increase from $2.8 million in the previous year [2][5] - Adjusted EBITDA reached $12.2 million, a 51.4% increase compared to $8.1 million in Q2 2024 [2][5] - Free cash flow improved to $7.7 million, compared to a negative $7.0 million in the prior year [2][5] - Total debt decreased to $81.6 million, down 6.4% from $87.2 million in the previous year [2][5] Segment Performance - The Infrastructure segment saw a 22.4% increase in organic sales, primarily due to a 36.0% rise in Precast Concrete sales [4][10] - The Rail segment experienced a decline in sales of 11.2%, but the backlog increased by 42.5%, indicating potential future growth [4][6] - New orders for Q2 2025 totaled $175.8 million, a 2.8% increase from $171.0 million in Q2 2024, with a backlog of $269.9 million, up 8.1% year-over-year [2][5][8] Financial Guidance - The company revised its full-year 2025 financial guidance, projecting net sales between $535 million and $555 million and adjusted EBITDA between $40 million and $44 million [3][5] - The anticipated free cash flow for the second half of 2025 is expected to be between $15 million and $25 million [3][5] Operational Efficiency - Selling and administrative expenses decreased by 9.8% to $22.4 million, improving the SG&A as a percentage of sales to 15.6%, down 200 basis points from the previous year [7][9] - Operating income for Q2 2025 improved by 67.9% to $7.7 million, driven by higher gross profit and lower expenses [7][9] Market Outlook - The company expects continued strong organic sales growth and profitability improvement in the second half of 2025, particularly in the Rail segment due to increased backlog [6][4] - The gross leverage ratio improved to 2.2x, down from 2.7x in the previous year, indicating better financial health [5][6]
L.B. Foster Announces Strong Second Quarter Results with Organic Growth and Profitability Expansion Expected to Continue Through Balance of 2025