L.B. Foster Company (NASDAQ:FSTR) saw its stock climb 2% on Monday, despite reporting second-quarter earnings that came in below Wall Street expectations. Investors appeared encouraged by the company’s optimistic full-year guidance.
The rail and infrastructure technology provider delivered adjusted earnings of $0.27 per share, missing the consensus forecast of $0.59. Quarterly revenue reached $143.56 million—slightly under the $146.79 million estimate—yet represented a 2.0% year-over-year increase.
Despite the earnings shortfall, profitability improved sharply, with Adjusted EBITDA jumping 51.4% to $12.2 million. “In line with our expectations, we achieved a strong, broad recovery in our business in the second quarter, with 2.0% organic sales growth delivering 51.4% higher Adjusted EBITDA,” said President and CEO John Kasel. He noted that the Infrastructure segment was the key driver, with organic sales rising 22.4%, led by a 36.0% surge in Precast Concrete sales.
Order momentum continued to build, with the company’s backlog climbing 8.1% year-over-year to $269.9 million. The Rail segment backlog rose 13.9%, fueled by strong gains in Rail Products (up 28.4%) and Global Friction Management (up 22.1%).
For 2025, L.B. Foster expects revenue in the range of $535 million to $555 million, aligning with the $540.1 million analyst consensus. Management’s midpoint guidance reflects a projected 25.1% increase in Adjusted EBITDA compared with last year, alongside 2.7% organic sales growth.
The company also reported an improved gross leverage ratio of 2.2x at quarter end, down from 2.7x a year earlier, and reiterated its year-end target range of 1.0x to 1.5x.
L.B. Foster Company stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.