L.B. Foster (NASDAQ:FSTR) Releases Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• L.B. Foster beat quarterly expectations, reporting EPS of $0.64 versus the $0.60 consensus and revenue of $168 million versus expected revenue of $152.19 million.
• The company raised its 2026 sales outlook to $570 million–$590 million and free cash flow guidance to $20 million–$28 million, while narrowing its Adjusted EBITDA forecast to $42 million–$45 million.
• Gross margin fell 200 basis points to 20.5%, and backlog declined 5.1% year over year to $234.7 million. L.B. Foster also completed its Dulworth Enterprises acquisition, which is expected to add about $18 million in annual revenue.

L.B. Foster (NASDAQ:FSTR - Get Free Report) released its earnings results on Wednesday. The basic materials company reported $0.64 EPS for the quarter, topping analysts' consensus estimates of $0.60 by $0.04, FiscalAI reports. The business had revenue of $168.00 million during the quarter, compared to analysts' expectations of $152.19 million. L.B. Foster had a net margin of 2.04% and a return on equity of 7.61%.

Here are the key takeaways from L.B. Foster's conference call:

• Third-quarter sales rose 21.5% to $168 million, and Adjusted EBITDA increased 15.1% to $13.1 million, supported by higher volumes in both segments. Operating cash flow was $23.6 million, helping reduce quarter-end debt to $28.7 million.
• L.B. Foster raised its 2026 sales guidance to $570 million–$590 million and free cash flow guidance to $20 million–$28 million, while narrowing its Adjusted EBITDA range to $42 million–$45 million.
• Consolidated gross margin declined 200 basis points to 20.5%, primarily because of a higher mix of lower-margin Rail Distribution and U.K. sales. Backlog was $234.7 million, down 5.1% year over year, though management cited healthy project activity and demand.
• The company completed its acquisition of Dulworth Enterprises, expanding its precast wastewater business and geographic reach. Dulworth is expected to contribute about $18 million in annual revenue and $6.5 million–$7.5 million in Adjusted EBITDA, including synergies, after integration estimated to take 12–18 months; management expects no material fourth-quarter impact.

L.B. Foster Trading Up 9.8%

Shares of FSTR stock traded up $3.56 during trading on Wednesday, hitting $40.02. 67,022 shares of the stock traded hands, compared to its average volume of 67,749. L.B. Foster has a 52-week low of $25.66 and a 52-week high of $45.81. The firm has a market capitalization of $420.98 million, a P/E ratio of 38.26, a price-to-earnings-growth ratio of 0.56 and a beta of 1.17. The firm's fifty day moving average price is $36.59 and its 200-day moving average price is $35.89. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.00 and a quick ratio of 1.15.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on FSTR shares. Wall Street Zen cut L.B. Foster from a "strong-buy" rating to a "hold" rating in a report on Saturday, August 15th. Weiss Ratings downgraded L.B. Foster from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, L.B. Foster has an average rating of "Hold" and a consensus target price of $32.00.

About L.B. Foster

L.B. Foster Company NASDAQ: FSTR is a Pittsburgh-based manufacturer and supplier of products, technologies and services used in transportation and industrial infrastructure. The company serves customers primarily in the rail, construction and energy markets, providing solutions designed to support the construction, maintenance and operation of critical infrastructure.

In its rail business, L.B. Foster offers rail and track products such as rail joints, fastening systems, track components and related maintenance solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.