L.B. Foster Announces Third Quarter Results Reflecting Strong Sales and Profitability Growth; Finishes Quarter with Lowest Debt Level in a Decade

(NASDAQ:FSTR) L.B. Foster Company reported its third quarter 2026 operating results, highlighting significant year-over-year growth in sales, profitability, and cash generation. Net sales for the third quarter of 2026 were $167,996,000, up from $138,286,000 in the prior year quarter, representing a 21.5% increase. Operating income for the quarter was $10,080,000, compared to $8,295,000 in Q3 2025, a 21.5% increase. Net income attributable to L.B. Foster Company was $6,764,000, up 55.4% from $4,354,000 in the prior year quarter. Adjusted EBITDA for the quarter was $13,075,000, a 15.1% increase from $11,359,000 in Q3 2025. Net cash provided by operating activities was $23,553,000, down from $29,181,000, a decrease of 19.3%. Free Cash Flow for the quarter was $20,830,000, compared to $26,372,000 in the prior year, a 21.0% decrease. Total debt as of September 30, 2026, was $28,690,000, down from $58,722,000, a reduction of 51.1%. The Gross Leverage Ratio was 0.6x, compared to 1.6x in the prior year. New orders, net, for the quarter were $155,759,000, up 35.7% from $114,776,000. Backlog at quarter end was $234,741,000, down 5.1% from $247,416,000. The company updated its 2026 full-year financial guidance, projecting net sales between $570,000,000 and $590,000,000, Adjusted EBITDA between $42,000,000 and $45,000,000, capital spending as a percent of sales between ~2.0% and ~2.2%, and Free Cash Flow between $20,000,000 and $28,000,000. CEO John Kasel stated that sales increased 21.5% over the prior year quarter, with strong growth across both segments, and Adjusted EBITDA increased 15.1%. Gross profit expanded by $3,400,000 during the quarter, despite a decline in gross margin of 200 basis points to 20.5%, primarily due to business mix within Rail, Technologies, and Services. Selling and administrative expense as a percentage of sales declined 190 basis points to 14.1%. Year-to-date sales growth was $48,100,000 or 12.7%, with Adjusted EBITDA expanding by $4,500,000 or 17.6%. Operating cash flow for the third quarter was $23,600,000, enabling a reduction in total debt by $19,300,000 during the quarter and by $30,000,000 compared to the prior year quarter. On October 28, 2026, L.B. Foster completed the acquisition of the operating assets of the residential wastewater precast business and the Aeris aerobic treatment systems platform of Dulworth Enterprises Inc. for approximately $52,200,000. The revised guidance assumes no material impact from this acquisition and excludes purchase accounting adjustments and transaction-related costs. The company continues to see healthy customer demand, particularly in Rail Distribution and UK businesses, supporting an increase in the full-year sales outlook. Segment results showed Rail, Technologies, and Services net sales of $102,921,000 (up 32.3%) and Infrastructure Solutions net sales of $65,075,000 (up 7.6%) for the quarter. Rail Products sales increased $24,400,000 or 54.6%, while Technology Services and Solutions sales increased $2,700,000 or 22.7%. Infrastructure Solutions saw Precast sales growth of $3,900,000 or 9.0% and Steel Products growth of $700,000 or 4.1%. For the first nine months of 2026, net sales were $427,690,000, up $48,054,000 or 12.7% from the prior year period. Gross profit for the nine months was $90,996,000, up $8,879,000 or 10.8%. Net income attributable to L.B. Foster Company for the nine months was $11,376,000, up $6,247,000 or 121.8%. Adjusted EBITDA for the nine months was $29,888,000, up $4,476,000 or 17.6%. New orders, net, for the nine months were $473,923,000, up $34,328,000 or 7.8%. Backlog at September 30, 2026, was $234,741,000, down $12,675,000 or 5.1% from the prior year.

Market Street Capital Advises Dulworth Enterprises on Its Sale to CXT Incorporated, a Subsidiary of L.B. Foster Company

(NASDAQ:FSTR) L.B. Foster Company, through its subsidiary CXT Incorporated, has acquired substantially all of the assets of Dulworth Enterprises, Inc.'s residential wastewater precast products and Aeris Aerobics treatment systems business. The transaction closed on October 28, 2026. The purchase price for the assets was approximately $52.2 million in cash, as publicly disclosed by L.B. Foster Company. Dulworth Enterprises, Inc. is based in Rice, Texas and is a family-founded manufacturer of precast concrete wastewater solutions for the residential market, including its proprietary Aeris Aerobics® line of aerobic treatment technology. Market Street Capital acted as exclusive financial advisor to Dulworth Enterprises, Inc. on the sale. Market Street Capital managed the marketing process, engaged with prospective buyers, and assisted with negotiations through closing. Tommy Dulworth, Co-Founder & President of Dulworth Enterprises, Inc., stated that Market Street Capital provided guidance throughout the sale process, including connecting the company with legal counsel, organizing the data room and financial information, coordinating with auditors, and managing due diligence. The combination of Dulworth’s products and production capabilities with CXT’s precast concrete operations is expected to enhance the overall business. Market Street Capital is a boutique investment banking and advisory firm with more than 30 years of combined M&A and capital markets experience among its professionals. Market Street Capital has representatives in Texas, California, Louisiana, New York, and Switzerland. The transaction was publicly disclosed by L.B. Foster Company.

L.B. Foster Company Announces Executive Officer Changes

(NASDAQ:FSTR) L.B. Foster Company announced that, effective August 1, 2026, its Board of Directors has approved certain changes among its executive officers. Jason Bowlin is promoted to Senior Vice President – Rail (“SVP – Rail”), succeeding Greg Lippard, who has provided notice of his intention to retire from the Company at the end of the year. On July 28, 2026, Gregory W. Lippard informed the Board that he intends to retire from the Company effective December 31, 2026. On the Effective Date, Greg Lippard will assume the role of Senior Vice President - Special Rail Projects and will serve in that capacity through the Retirement Date. L.B. Foster Company was founded in 1902 and is a global technology solutions provider of products and services for the rail and infrastructure markets. The Company maintains locations in North America, South America, Europe, and Asia.

L.B. Foster Company Announces the Appointment of Executive Officers

L.B. Foster Company (NASDAQ:FSTR) announced the promotion of three key executive officers, effective June 1, 2026. John F. Kasel, President and Chief Executive Officer, introduced the appointments of Bill Thalman as Executive Vice President and Chief Operating Officer, Sean Reilly as Senior Vice President and Chief Financial Officer, and Timothy J. Curran as Controller and Principal Accounting Officer. The announcement highlights the extensive experience of each executive, including prior roles at Kennametal, Inc., Tollgrade Communications, Inc., and KPMG LLP. The company emphasizes these changes as part of its ongoing strategy to enhance performance and increase shareholder return. L.B. Foster Company is described as a global technology solutions provider for the rail and infrastructure markets, with locations in North America, South America, Europe, and Asia. The release also contains cautionary forward-looking statements regarding risks and uncertainties that may affect future results. No specific financial figures or immediate capital expenditures are disclosed in this announcement.

L.B. Foster Company Announces Strong Sales Growth and Profitability Expansion in 2026 First Quarter; Reaffirms Full Year 2026 Financial Guidance

L.B. Foster Company (NASDAQ:FSTR) reported first quarter 2026 net sales of $121.1 million, up 23.9% over last year, with Rail segment sales growing 38.4% and Infrastructure sales up 5.9%. Net income for the quarter was $1.5 million, an improvement of $3.6 million over last year, and EBITDA reached $5.2 million, up $3.3 million. Cash flow used in operations was $10.4 million, a $15.7 million improvement, and total debt at quarter end was $59.7 million, down $22.8 million from last year. The company reaffirmed its 2026 financial guidance, expecting continued sales growth and profitability expansion. Backlog at quarter end was $209.6 million, down 11.7% from last year, but increased 10.7% during the quarter.