L.B. Foster (NASDAQ:FSTR) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

L.B. Foster (NASDAQ:FSTR) posted its quarterly earnings data on Wednesday. The basic materials company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.04, FiscalAI reports. The business had revenue of $168.00 million during the quarter, compared to the consensus estimate of $152.19 million. L.B. Foster had a return on equity of 7.61% and a net margin of 2.04%.

Here are the key takeaways from L.B. Foster’s conference call:

• Third-quarter sales rose 21.5% to $168 million, and Adjusted EBITDA increased 15.1% to $13.1 million, supported by higher volumes in both segments. Operating cash flow was $23.6 million, helping reduce quarter-end debt to $28.7 million.
• L.B. Foster raised its 2026 sales guidance to $570 million–$590 million and free cash flow guidance to $20 million–$28 million, while narrowing its Adjusted EBITDA range to $42 million–$45 million.
• Consolidated gross margin declined 200 basis points to 20.5%, primarily because of a higher mix of lower-margin Rail Distribution and U.K. sales. Backlog was $234.7 million, down 5.1% year over year, though management cited healthy project activity and demand.
• The company completed its acquisition of Dulworth Enterprises, expanding its precast wastewater business and geographic reach. Dulworth is expected to contribute about $18 million in annual revenue and $6.5 million–$7.5 million in Adjusted EBITDA, including synergies, after integration estimated to take 12–18 months; management expects no material fourth-quarter impact.

L.B. Foster Stock Performance

NASDAQ:FSTR traded up $4.11 during midday trading on Wednesday, reaching $40.56. The stock had a trading volume of 76,868 shares, compared to its average volume of 67,764. The company has a quick ratio of 1.15, a current ratio of 2.00 and a debt-to-equity ratio of 0.27. The stock has a market cap of $426.74 million, a P/E ratio of 38.63, a P/E/G ratio of 0.56 and a beta of 1.17. The firm has a fifty day simple moving average of $36.59 and a two-hundred day simple moving average of $35.89. L.B. Foster has a 12-month low of $25.66 and a 12-month high of $45.81.

Analyst Ratings Changes

Several research firms recently commented on FSTR. Wall Street Zen downgraded shares of L.B. Foster from a “strong-buy” rating to a “hold” rating in a research report on Saturday, August 15th. Weiss Ratings downgraded shares of L.B. Foster from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $32.00.

Key Headlines Impacting L.B. Foster

Here are the key news stories impacting L.B. Foster this week:

• Positive Sentiment: Q3 results beat expectations: L.B. Foster reported earnings of $0.64 per share, ahead of the $0.60 consensus and up from $0.40 a year earlier. Sales rose 21.5% to $168.0 million, exceeding analyst expectations of $152.19 million. Net income increased 56.5% to $6.8 million, while adjusted EBITDA grew 15.1% to $13.1 million. L.B. Foster Announces Third Quarter Results
• Positive Sentiment: Debt and cash flow improved: The company generated $23.6 million in quarterly operating cash flow and ended the quarter with $28.7 million of debt—its lowest debt level in a decade. Gross leverage fell to 0.6x, improving by 1.0x year over year. L.B. Foster Announces Third Quarter Results
• Positive Sentiment: Acquisition expands growth opportunities: L.B. Foster agreed to acquire Dulworth Enterprises for $52.2 million, adding to its residential wastewater business and strengthening its precast concrete capabilities. FSTR Expands Precast Concrete Business With Dulworth Acquisition

L.B. Foster Company Profile

L.B. Foster Company (NASDAQ: FSTR) is a Pittsburgh-based manufacturer and supplier of products, technologies and services used in transportation and industrial infrastructure. The company serves customers primarily in the rail, construction and energy markets, providing solutions designed to support the construction, maintenance and operation of critical infrastructure.

In its rail business, L.B. Foster offers rail and track products such as rail joints, fastening systems, track components and related maintenance solutions.