Overview

• Rail and infrastructure firm's Q4 net sales rose 25.1%, beating analyst expectations

• Adjusted EBITDA for Q4 increased 89% yr/yr

• Company reduced total debt by $16 mln in Q4

Outlook

• L.B. Foster expects 2026 net sales between $540 mln and $580 mln

• Company anticipates 2026 Adjusted EBITDA of $41 mln to $46 mln

• Free Cash Flow for 2026 expected between $15 mln and $25 mln

Result Drivers

• RAIL SEGMENT GROWTH - Rail segment sales increased 23.7% driven by Global Friction Management and Rail Products, despite declines in UK Technology Services and Solutions

• INFRASTRUCTURE SEGMENT GROWTH - Infrastructure segment sales rose 27.3% due to higher demand for Protective Coatings and Precast Concrete products

• COST MANAGEMENT - Selling and administrative expenses as a percentage of sales decreased 470 bps to 14.4%, aiding profitability

Company press release: ID:nGNXjGYcQ

Key Details

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 $30.50, about 5.3% below its March 2 closing price of $32.19

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago

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