Overview

• U.S. rail and infrastructure supplier's Q1 net sales rose 24% year-over-year

• Net income improved to $1.5 mln from a loss last year

• Company reaffirmed 2026 full-year guidance for sales and profitability growth

Outlook

• L.B. Foster reaffirms 2026 net sales guidance of $540 mln to $580 mln

• Company expects 2026 adjusted EBITDA between $41 mln and $46 mln

• L.B. Foster projects 2026 free cash flow of $15 mln to $25 mln

Result Drivers

• RAIL SEGMENT RECOVERY - Rail segment sales rose 38.4% on strong domestic demand and higher volumes, especially in Rail Products and Friction Management

• PRECAST CONCRETE DEMAND - Infrastructure segment growth was driven by a 17.2% increase in Precast Concrete sales, offsetting lower Steel Products sales

• GROSS PROFIT AND MARGIN IMPROVEMENT - Higher volumes and improved business mix, especially in Infrastructure, lifted gross profit and margin

Company press release: ID:nGNX4JGz50

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales		$121.10 mln	$104.30 mln (2 Analysts)
Q1 EPS		$0.14
Q1 Gross Margin		21.20%

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 is $32.00, about 4.2% above its May 1 closing price of $30.70

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

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