L.B. Foster's stock price rose slightly after earnings fell short of expectations but guidance was issued

LootboxPhobia · 2026-03-03T12:56:59+00:00

L.B. Foster Company announced its Q4 results, with adjusted earnings per share of $0.22, below expectations; revenue was $160.4 million, exceeding estimates, up 25.1%. The company projects FY2026 revenue guidance of $540 million to $580 million, with EBITDA between $41 million and $46 million. Overall operating cash flow performed well, and the stock price rose 1.96% after hours.

LootboxPhobia

2026-03-03 12:56:59

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Pittsburgh - L.B. Foster Company (NASDAQ:FSTR) reported mixed fourth-quarter results on Tuesday, with earnings falling short of expectations but revenue exceeding forecasts.

The company’s stock rose 1.96% in after-hours trading.

The railway and infrastructure solutions provider posted an adjusted quarterly earnings of $0.22 per share, below the analyst consensus of $0.66.

However, revenue was $160.4 million, surpassing the expected $157.8 million and up 25.1% from $128.2 million in the same period last year.

Revenue growth was primarily driven by a 23.7% increase in the railway segment and a 27.3% increase in the infrastructure segment, both supported by strong North American demand.

For fiscal 2026, L.B. Foster issued revenue guidance of $540 million to $580 million, with a midpoint of $560 million, slightly above the analyst consensus of $552.8 million. The company also expects adjusted EBITDA of $41 million to $46 million and free cash flow of $15 million to $25 million.

Adjusted EBITDA for the fourth quarter reached $13.7 million, up 89.0% from $7.2 million last year. However, gross margin contracted by 260 basis points to 19.7%, impacted by weak performance in the UK railway business and restructuring costs.

The company recorded $2.2 million in restructuring expenses related to layoffs and facility consolidations in its UK operations.

President and CEO John Kasel stated, “We closed 2025 with exceptional organic sales growth, strong profit expansion, and robust cash generation, largely in line with our expectations. Our guidance for 2026 reflects the momentum we built in our business as we finish 2025 and expect it to continue.”

In this quarter, the company generated $22.2 million in operating cash flow and used $16 million to reduce total debt to $42.8 million. The total leverage ratio improved from 1.2 times a year ago to 1.0 times.

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