L B Foster : 1Q26 Earnings Presentation
FSTR
Published on 05/04/2026 at 07:45 am EDT
L.B. Foster Company Earnings Presentation
Nasdaq - FSTR
May 4, 2026
L.B. Foster Overview
Data shown above in millions, except stock price and ratios.
2026 Guidance3
Low
High
Revenue
$ 540
$ 580
Adj. EBITDA1
$ 41
$ 46
Cap Ex as a % of sales
2.7%
2.7%
Free Cash Flow1
$ 15
$ 25
Founded in 1902, headquartered in Pittsburgh, Pennsylvania
Locations throughout North America, South America, Europe, and Asia
March 31, 2026 Financial Data4
Stock Price
$ 30.61
Shares Outstanding
10.5
Market Capitalization
$ 321
Debt
60
Cash
4
Enterprise Value
$ 377
Critical infrastructure solutions provider focused on growing our innovative, technology-based offerings to address our customers' most challenging operating and safety requirements
Business Segments
Rail, Technologies, and Services
TTM Q1 2026 Sales by Segment
2025 Sales by Region
600
Infrastructure Solutions
400
200
($ in millions)
600
$563
$326
$237
400
Covenant Leverage
1.2x
200
($ in millions)
TTM Revenue
$ 563
TTM Adj. EBITDA1
$ 42
EV / Revenue
0.7
EV / Adj. EBITDA
8.9
-
Rail Infrastructure Total TTM Q1
2026 Sales
-
$33
$19
$7
$481
$540
United States
United Kingdom
Canada Other Total
2025
Sales
Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures.
Location and employee data as of December 31, 2025. 3
2026 guidance as of May 4, 2026.
All data as of March 31, 2026 except for market data which is reflected as of April 30, 2026.
Opening Remarks
LBFoster
John Kasel
President and CEO
@ LBFoster
May 4, 2026
Executive Summary - Quarter Highlights
What we've accomplished…
Where we're going…
Net sales of $121.1M up 23.9% YoY; Rail up 38.4%;
Infrastructure up 5.9%
Gross profit of $25.7M up
$5.5M YoY; gross margin of 21.2% up 60 bps YoY
SG&A of $23.0M up $2.1M YoY; % of Sales 19.0% favorable 240 bps YoY
Net income of $1.5M up
$3.6M YoY
EBITDA1 of $5.2M up 183.0% YoY
Net cash used in operations of $10.4M, favorable $15.7M YoY
Reduced net debt1 $24.2M YoY; Gross Leverage Ratio1,2 of 1.2x vs. 2.5x PY
New orders, net1 of
$142.1M down 4.7% YoY
Q1 TTM book-to-bill ratio1 of 0.95 : 1.00
Backlog1 of $209.6M down 11.7% YoY; up 10.7% during the quarter
2026 Guidance Net Sales
$540M - $580M
Adjusted EBITDA1
$41M - $46M
Free Cash Flow1
$15M - $25M
Cap Ex % of Sales
~2.7%
Exceptional Sales Growth Driving Profitability Expansion Across the Business
Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures.
Gross leverage ratio shown calculated per the credit agreement in place during the displayed quarter. 5
Financial Review
Bill Thalman
Executive Vice President and CFO
6
First Quarter Results
As of and for the quarter ended March 31, 2026:
$ in millions, unless otherwise noted
YoY Δ
SALES
121.1
23.4
GROSS PROFIT
25.7
5.5
GROSS PROFIT MARGIN
21.2%
60 bps
SG&A
23.0
2.1
NET INCOME ATTRIB. TO FSTR
1.5
3.6
EBITDA1
5.2
3.3
OPERATING CASH FLOW
(10.4)
15.7
NEW ORDERS, NET1
142.1
(7.0)
BACKLOG1
209.6
(27.6)
Net sales up 23.9% YoY driven primarily by sales growth in the Rail segment after a soft prior year first quarter
Gross profit up $5.5M YoY and margins up 60 bps due primarily to improved volumes in both segments and favorable mix in Infrastructure
SG&A % of sales favorable 240 bps to 19.0% due to sales volume leverage
Net income attributable to FSTR up $3.6M YoY
EBITDA1 up $3.3M, or 183.0% YoY
Operating cash flow favorable $15.7M YoY on improved profitability / lower working capital
New orders, net1 down 4.7% YoY; TTM book-to-bill ratio1 of 0.95 : 1.00
Backlog1 down 11.7% YoY; up 10.7% in Q1
Gross Profit Expansion and Improved Operating Leverage Drove 183.0% EBITDA1 Growth
1) Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures.
7
Historical Seasonality of Financial Performance
2026 Financial Results Expected to Return to Historical Phasing
Sales and Adjusted EBITDA1 follow construction season cycles for our customers (normal peak levels in Q2/Q3)
2026 phasing expected to follow historical pattern with Q1 and Q4 returning to a normal level of demand for Rail
Free Cash Flow1 generation strongest in second half due to winding down of construction season and the related impact on working capital needs
52.2%
Q2/Q3
47.8%
52.4%
47.6%
46.0%
50.0%
54.0%
75.0%
Adj. EBITDA1Q1/Q4 v. Q2/Q3 - Construction Season
75.0%
66.7%
60.8%
60.3%
62.6%
50.0%
39.2%
39.7%
33.3%
37.4%
25.0%
-%
2023
2024
Q1/Q4
2025
Average
2024
H1
$50.0
Free Cash Flow1 H1 v. H2 - Working Capital Seasonality
$46.2
$37.3
$44.0
$42.5
$25.0
$-
$(4.8)
$(25.0)
$(21.0)
$(19.0)
$(31.2)
$(50.0)
2023
Net Sales Q1/Q4 v. Q2/Q3 - Construction Season
2025
Average
H2
52.9%
Q2/Q3
Average
2025
2024
Q1/Q4
2023
-%
25.0%
47.1%
$ in millions unless otherwise indicated. Figures may not foot due to rounding.
1) Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures. 8
Rail, Technologies, and Services - Q1 Results
Strong Sales Growth Across Segment; Modest Margin Decline due to Rail Distribution Demand Recovery
Rail, Technologies and Services
(70) bps
+38.4%
GP Margin
Sales
Rail, Technologies, and Services
Net sales increased 38.4% on higher volumes in all business units; Rail Products up 40.8%, Friction Management up 39.5%, and Technology Services and Solutions ("TS&S") up 29.1%
Gross margins down 70 bps due primarily to unfavorable business mix with higher Rail Distribution volumes this year
New orders, net1 decreased 3.2% due to an 18.6% decline in Friction Management with modest growth in Rail Products and TS&S of 0.9% and 2.3%, respectively; Backlog1 up 11.3% due to multi-year UK order awarded last year
125
100
75
50
25
-
125
100
75
50
25
-
$54
$75
Q1 2025 Q1 2026
New Orders, Net1
(3.2)%
$83 $81
Q1 2025 Q1 2026
25%
20%
15%
10%
5%
-%
125
100
75
50
25
-
22.3% 21.6%
Q1 2025 Q1 2026
Backlog1
+11.3%
$92
$102
Q1 2025 Q1 2026
$ in millions unless otherwise indicated. Figures may not foot due to rounding.
1) Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures. 9
Infrastructure Solutions - Q1 Results
Solid Quarter with Robust Margin Expansion Driven by Precast Concrete
+200 bps
+5.9%
GP Margin
Sales
Infrastructure Solutions
Net sales increased 5.9% with Precast Concrete up 17.2% due to continued strong demand, while Steel Products was down 14.4% YoY on lower Bridge Form volumes
Gross margins improved 200 basis points due to higher volumes, favorable mix and manufacturing execution in Precast Concrete; Steel Products down YoY due to lower volumes
New orders, net1 down 6.6% YoY due to strong prior year for Protective Coatings; Backlog1 down primarily in Steel Products, $30.1 million lower ($19 million Summit order cancellation)
80
60
40
20
-
100
75
50
25
-
$44 $46
Q1 2025 Q1 2026
New Orders, Net1
(6.6)%
$66 $61
Q1 2025 Q1 2026
30%
25%
20%
15%
10%
5%
-%
150
100
50
-
18.6%
20.6%
Q1 2025 Q1 2026
Backlog1
(26.1)%
$145
$107
Q1 2025 Q1 2026
$ in millions unless otherwise indicated. Figures may not foot due to rounding.
1) Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures. 10
Net Debt1, Leverage, and Cash Flow
Net Debt1 and Gross Leverage Ratio1,2 Favorable YoY on Improved Operating Cash Flow / Profitability
Net debt1 and Gross Leverage Ratio1,2 increased during Q1 due to seasonal working capital needs; favorable YoY driven by strong cash flow / improved profitability
Demonstrated history of diligent debt and leverage management over time...targeting ~1.0x to ~1.5x
Capital-light business model with significant Free Cash
3.0x
2.0x
2.7x
1.9x
Net Debt1 and Gross Leverage Ratio1,2 Per Credit Agreement
($ in millions)
2.5x
2.2x
1.6x
1.2x
1.2x
$100
$90
$80
$70
$60
$50
Flow1 drivers (~$28M 3-year average ex UP payments)
~$75M in federal NOLs with additional 2026 benefits from "One Big Beautiful Bill" tax legislation
Share repurchase program expiring Feb 2028 ($28.7M of $40M authorization remaining); 1,016,899 shares
1.0x
-x
$83
TTM Q2 2024
$65
TTM Q3 2024
$44
TTM Q4 2024
$80
TTM Q1 2025
$77
TTM Q2 2025
$55
TTM Q3 2025
1.0x
$38
TTM Q4 2025
$56
TTM Q1 2026
$40
$30
$20
$10
$-
repurchased since Feb 2023 (9.3% of o/s shares)
March 31, 2026
Key Metrics
Gross Leverage Ratio1,2
Funding Capacity1,3
YTD Operating Cash Use
YTD Capital Spending
$3.0M
$10.4M
$94.0M
1.2x
Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures.
Gross leverage ratio shown calculated per the credit agreement in place during the displayed quarter. 11
Subject to covenant restrictions.
Capital Allocation Priorities
Relentless Pursuit of Shareholder Returns with Prudent Capital Allocation
Debt Reduction
Target maintaining Gross Leverage Ratio1 between
~1.0x - ~1.5x; strong Free Cash Flow generation provides opportunities for further growth and shareholder returns
Capital Allocation Investment for Growth
Growth Capital Expenditures
Targeting ~2.7% of sales for maintenance, efficiency and to support organic growth initiatives
Tuck In Acquisitions
Continue to opportunistically evaluate strategic partnerships that enhance our current portfolio
Share Repurchases
$28.7M authorized and remaining under share repurchase program through February 2028
1) Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures.
12
New Orders1, Revenue, and TTM Book-to-Bill Ratios1
$144
$115
$138
$142
$121
TTM Q1 2026 Book-to-Bill Ratio: 0.95 : 1.00
$76
$78
$98
$75
1.05 : 1.00
$62
$60
$61
$66
$50
1.05
Infrastructure Solutions
1.02 : 1.00
0.94 : 1.00
0.87 : 1.00
$75
0.84 : 1.00
$61
$46
$100
Consolidated L.B. Foster Company
1.08 : 1.00
1.00 : 1.00
1.05
$150
$176
0.95 : 1.00
$149
$-
TTM Book-to-Bill Ratio
Revenue
New Orders, Net
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
0.90
0.60
$28
$47
$44
$25
0.75
$68
$114
0.75
$54
$54
0.90
$81
$86
$83
1.05
0.60
1.03 : 1.00
1.20
Rail, Technologies, and Services
1.18 : 1.00
1.11 : 1.00
1.06 : 1.00
1.03 : 1.00
$140
$112
$84
$56
$28
$-
$200
TTM Book-to-Bill Ratio
1.04 : 1.00
Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
0.90
1.04 : 1.00
$98
$101
$50
0.75
$-
0.60
$160
Total New Orders, Net
Total Revenue
TTM Book-to-Bill Ratio
$100
Revenue
New Orders, Net
Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
TTM Q1 2026 Book-to-Bill Ratio: 1.03 : 1.00 TTM Q1 2026 Book-to-Bill Ratio: 0.84 : 1.00
1) Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures.
Note figures may not foot due to rounding. 13
$ in millions, except Book-to-Bill Ratios
Backlog1 Trends
Infrastructure Solutions Backlog
175
150
125
100
75
50
25
-
$145
$139
$107
$107
$92
Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
Consolidated Backlog
$270
$237
$247
$189
$210
300
250
200
150
100
50
-
Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
Rail, Technologies, and Services Backlog
$131 $140
$92
$97
$102
150
125
100
75
50
25
-
Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
Backlog Down 11.7% due primarily to Lower Protective Coatings Open Orders
1) Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures.
14
Closing Remarks
John Kasel
President and CEO
May 4, 2026
Market and Business Outlook
Demand Outlook Supported by Stable Domestic Markets and Government Funding Programs
Demand in North America has recovered to normal levels after a soft start in 2025 supported by our customers' maintenance and investment projects
Rail Technologies growth supported by continued customer adoption of our technologies and services
Precast Concretes well positioned to benefit from expansion of civil construction projects including increased demand for water management solutions
Renewed interest in domestic energy production expected to drive improving demand for Protective Coatings
May 4, 2026
Innovating to Solve Global Infrastructure Challenges
Investing in Growth Platforms to Drive Sales Growth and Profitability Expansion in 2026 and Beyond
Financial Results 2021 v. 2025
2021 2025
Net sales $514M $540M
Adj. EBITDA1 $19M $39M Adj. EBITDA %1 3.6% 7.2%
Free Cash Flow1 ($5M) $25M
2026 Financial Guidance
March 3, 2026
Low High
Net sales $540M $580M
Adj. EBITDA1 $41M $46M Adj. EBITDA %1 7.6% 7.9%
Free Cash Flow1 $15M $25M
Strategic Transformation commenced in 2021
Significant improvement in financial results through 2025, with 5% sales growth, 430 bps GP % improvement and 2x Adjusted EBITDA1 increase
2026 Q1 TTM sales and Adjusted EBITDA1 at or near full year guidance mid-points
Solid Free Cash Flow1 expected; 2.7% Cap Ex percent of sales to invest in growth opportunities
1) Refer to safe harbor disclaimer slide and related reconciliations within the appendix regarding non-GAAP measures.
17
Thank you!
L.B. Foster Q1 2026 Earnings Presentation
We look forward to discussing our Q2 2026 results in August 2026
May 4, 2026
Appendix
May 4, 2026
Condensed Balance Sheet - Assets
Assets
March 31, 2026
December 31, 2025
($ in millions)
Current assets:
Cash and cash equivalents
$ 4.0
$ 4.3
Accounts receivable - net
77.9
80.6
Contract assets
3.6
6.4
Inventories - net
68.5
60.2
Other current assets
8.2
5.4
Total current assets
$ 162.2
$ 156.9
Property, plant, and equipment - net
77.3
77.2
Operating lease right-of-use assets - net
27.2
28.3
Other assets:
Goodwill
32.7
33.1
Other intangibles - net
10.9
11.5
Deferred tax assets
20.5
20.4
Other assets
2.9
3.1
Total assets
$ 333.8
$ 330.4
Note figures may not foot due to rounding.
20
Disclaimer
L.B. Foster Company published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 11:44 UTC.