Overview

* L.B. Foster Q3 sales up 0.6%, driven by Infrastructure growth, Rail sales down 2.2%

* Adjusted EBITDA for Q3 down 7.9%, reflecting lower profitability

* Net income for Q3 fell 87.9% due to prior year's tax adjustment

Outlook

* L.B. Foster revises 2025 guidance, expecting 22% increase in Adjusted EBITDA on 2% sales growth

* Company expects Q4 Adjusted EBITDA to rise 115% on 25% sales growth

* L.B. Foster expects $12 mln in free cash flow in Q4 for share buybacks and leverage reduction

Result Drivers

* INFRASTRUCTURE GROWTH - Infrastructure sales rose 4.4%, driving overall sales increase

* RAIL BACKLOG INCREASE - Rail backlog up 58.2%, indicating strong demand across all business units

* MARGIN PRESSURE - Lower margins in Precast Concrete and Rail due to volume-timing and higher costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net $30 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

* Wall Street's median 12-month price target for L B Foster Co ( FSTR ) is $28.00, about 2.1% above its October 31 closing price of $27.40

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)