{"success":true,"data":{"pressRelease":{"id":"18825","rtpr_id":"nGNX4JGz50","ticker":"FSTR","exchange":"NASDAQ","all_tickers":["FSTR"],"title":"L.B. Foster Company Announces Strong Sales Growth and Profitability Expansion in 2026 First Quarter; Reaffirms Full Year 2026 Financial Guidance","author":"Globe Newswire","published_at":"2026-05-04T11:30:00.994Z","article_body":"* First quarter net sales totaled $121.1 million, up 23.9% over last year;\nRail segment sales growth was exceptionally strong improving 38.4%, while\nInfrastructure sales were also favorable up 5.9%.\n* First quarter net income of $1.5 million was up $3.6 million over last year;\nEBITDA(1) of $5.2 million was up $3.3 million over last year driven by volume\nand strong gross profit expansion; Selling and administrative expenses as a\npercentage of sales were 19.0% for the quarter, favorable 240 bps versus last\nyear.\n* Cash flow used in operations in the quarter was $10.4 million, a $15.7\nmillion improvement over last year; Gross Leverage Ratio(1) was 1.2x at\nquarter end significantly improved compared to 2.5x last year.\n* 2026 financial guidance reaffirmed with sales growth and profitability\nexpansion expected for the year.\nPITTSBURGH, May 04, 2026 (GLOBE NEWSWIRE) -- L.B. Foster Company (Nasdaq:\nFSTR), a global technology solutions provider of products and services for the\nrail and infrastructure markets (the \"Company\"), today reported its 2026 first\nquarter operating results.\n\nFirst Quarter 2026 Highlights\n\n Three Months Ended March 31, Change \n 2026 2025 2026 vs. 2025 \n \n $ in thousands, unless otherwise noted: (Unaudited) \n Net sales $ 121,144 $ 97,792 23.9 % \n Operating income (loss) 2,045 (1,923 ) 206.3 % \n Net income (loss) attributable to L.B. Foster Company 1,500 (2,110 ) 171.1 % \n EBITDA (1) 5,157 1,822 183.0 % \n Net cash used in operating activities (10,438 ) (26,136 ) 60.1 % \n Free Cash Flow (1) (13,398 ) (28,711 ) 53.3 % \n Total debt 59,684 82,498 (27.7 )% \n Gross Leverage Ratio (1) 1.2x 2.5x (1.3 )x \n New orders, net (1) $ 142,086 $ 149,064 (4.7 )% \n Backlog (1) $ 209,573 $ 237,215 (11.7 )% \n \n\nFinancial Guidance Update\n\n 2026 Full Year Financial Guidance Low High \n Net sales $ 540,000 $ 580,000 \n Adjusted EBITDA (1) $ 41,000 $ 46,000 \n Capital spending as a percent of sales ~2.7 % ~2.7 % \n Free Cash Flow (1) $ 15,000 $ 25,000 \n\nCEO Comments\n\nJohn Kasel, President and Chief Executive Officer, commented, \"We carried the\nfavorable momentum generated at the end of 2025 into our first quarter,\nposting strong growth and profitability expansion across the business. Both\nsegments delivered exceptional results in the quarter, led by Rail sales\ngrowth of 38.4%, reflecting a strong recovery in domestic Rail demand compared\nto last year's weaker start to the year. Sales volumes were higher across all\nRail business units, with Rail Products and Friction Management up 40.8% and\n39.5%, respectively. Technology Services and Solutions (\"TS&S\") sales were\nalso up 29.1% on increased short-term project work in the United Kingdom\n(\"UK\"). Infrastructure segment sales were up 5.9% on continuing robust demand\nfor Precast Concrete with sales up 17.2% over last year, partially offset by\n14.4% lower Steel Products sales due to soft bridge forms volume.\"\n\nMr. Kasel continued, \"The strong sales volume growth delivered robust\nprofitability improvement over last year, with EBITDA of $5.2 million up $3.3\nmillion, or 183.0%. Consolidated gross margins of 21.2% improved 60 bps over\nlast year with the improvement realized in Infrastructure, reflecting higher\nvolumes, improved business mix, and better manufacturing execution in our\nPrecast Concrete business. Rail gross margins were slightly lower due to the\nsignificantly higher Rail Distribution sales volumes this year. We continued\nleveraging our operating cost structure, with selling and administrative\nexpenses as a percentage of sales declining 240 bps to 19.0%. This is despite\na $0.7 million accelerated non-cash stock compensation expense related to\nmanagement equity plan awards made to retirement-eligible employees. Our\nnormal working capital cycle increased total debt $16.9 million during the\nquarter to $59.7 million. However, total debt was down $22.8 million compared\nto last year, with the lower debt level and improved profitability reducing\ngross leverage to 1.2x compared to 2.5x last year.\"\n\nMr. Kasel concluded, \"As expected, we're off to a great start to the year and\nremain optimistic about our prospects for continuing progress in 2026. While\nthe first quarter backlog is down 11.7% compared to last year, order rates\nincreased significantly in the back half of the quarter resulting in a 10.7%\nincrease in backlog during the quarter. Project bidding activity has been\nrobust and we believe order rates will continue to improve as the year\nprogresses. The government funding programs that support our customer project\nwork remain active, and there are no signs of disruption in funding like we\nexperienced last year. We're also seeing early signs that the actions we've\ntaken in the UK Rail business are translating into improvements in 2026.\nAccordingly, we're reaffirming our financial guidance for 2026, with the\nmidpoints for sales and Adjusted EBITDA representing year over year growth of\n3.7% and 11.3%, respectively. It should be noted that our guidance assumes the\ncurrent volatile geopolitical landscape does not have a significant impact on\nthe domestic economy. We'll continue to monitor market conditions and adjust\nas needed.\"\n\n(1 See \"Non-GAAP Disclosures\" at the end of this press release for a\ndescription of and information regarding EBITDA, Adjusted EBITDA, gross\nleverage ratio per the Company's credit agreement, new orders, net, backlog,\nbook-to-bill ratio, free cash flow, and related reconciliations to the\ncomparable United States Generally Accepted Accounting Principles financial\nmeasures. )\n\nFirst Quarter 2026 Consolidated Results\n\nThe Company’s first quarter performance highlights are reflected below:\n\n Three Months Ended March 31, Change Percent Change \n 2026 2025 2026 vs. 2025 2026 vs. 2025 \n \n $ in thousands, unless otherwise noted: (Unaudited) \n Net sales $ 121,144 $ 97,792 $ 23,352 23.9 % \n Gross profit 25,696 20,151 5,545 27.5 \n Gross profit margin 21.2 % 20.6 % 60 bps 2.9 \n Selling and administrative expenses $ 23,033 $ 20,952 $ 2,081 9.9 \n Selling and administrative expenses as a percent of sales 19.0 % 21.4 % (240) bps (11.2 ) \n Amortization expense 618 1,122 (504 ) (44.9 ) \n Operating income (loss) $ 2,045 $ (1,923 ) $ 3,968 206.3 \n Net income (loss) attributable to L.B. Foster Company 1,500 (2,110 ) 3,610 171.1 \n EBITDA (1) 5,157 1,822 3,335 183.0 \n New orders, net (1) 142,086 149,064 (6,978 ) (4.7 ) \n Backlog (1) 209,573 237,215 (27,642 ) (11.7 ) \n \n* Net sales for the 2026 first quarter increased $23.4 million, or 23.9%, over\nthe prior year quarter. The increase was driven by sales growth in Rail,\nTechnologies, and Services (\"Rail\") of $20.8 million, or 38.4%, with\nInfrastructure Solutions (\"Infrastructure\") sales also improving $2.6 million,\nor 5.9%.\n* Gross profit for the 2026 first quarter increased $5.5 million, or 27.5%,\nover the prior year quarter driven primarily by higher volumes in Rail which\nimproved $4.1 million, and improved volumes and business mix in Infrastructure\nwhich contributed $1.4 million. Gross profit margins improved 60 basis points\nto 21.2%.\n* Selling and administrative expenses for the 2026 first quarter increased\n$2.1 million, or 9.9%, over the prior year quarter, primarily due to higher\npersonnel costs driven by merit increases, higher variable incentives, and a\n$0.7 million accelerated non-cash stock compensation expense related to\nmanagement equity plan awards made to retirement-eligible employees. Selling\nand administrative expenses as a percentage of net sales decreased 240 basis\npoints to 19.0%.\n* Operating income for the 2026 first quarter improved $4.0 million, or\n206.3%, over the prior year quarter. The improvement was primarily driven by\nhigher gross profit partially offset by increased selling and administrative\nexpenses.\n* Net income attributable to the Company for the 2026 first quarter improved\n$3.6 million, or 171.1%, over the prior year quarter due to improved gross\nprofit. The Company's income tax provision for the 2026 first quarter includes\na discrete tax benefit associated with a higher tax deduction for vested\nmanagement equity awards.\n* There were no adjustments to EBITDA in the first quarter of 2026 or 2025.\nEBITDA for the 2026 first quarter increased $3.3 million, or 183.0%, over the\nprior year quarter.\n* Cash used in operating activities totaled $10.4 million in the 2026 first\nquarter, favorable $15.7 million compared to cash used in operating activities\nof $26.1 million in the prior year quarter.\n* Total debt as of March 31, 2026 was $59.7 million, a decrease of $22.8\nmillion from the prior year quarter due primarily to improved free cash flow.\nTotal debt increased $16.9 million during the quarter due primarily to\nseasonal working capital requirements and annual incentive and insurance\npremiums. The Company's Gross Leverage Ratio per its credit facility was 1.2x\nas of March 31, 2026, down from 2.5x last year, reflecting higher\nprofitability and disciplined capital deployment.\n* New orders, net for the 2026 first quarter decreased $7.0 million, or 4.7%,\nfrom the prior year quarter, with the decrease realized in both segments. The\ntrailing twelve month book-to-bill ratio(1) was 0.95 : 1.00. Backlog decreased\n$27.6 million, or 11.7%, from the prior year quarter driven in part by an\norder cancellation last year in the Infrastructure segment which declined\n26.1%. This was partially offset by an 11.3% increase in the Rail segment\nbacklog. During the quarter, backlog increased $20.2 million, or 10.7%, with\norder book increases realized in both segments.\nFirst Quarter 2026 Business Results by Segment\n\nRail, Technologies, and Services Segment\n\n Three Months Ended March 31, Change Percent Change \n $ in thousands, unless otherwise noted: 2026 2025 2026 vs. 2025 2026 vs. 2025 \n Net sales $ 74,776 $ 54,015 $ 20,761 38.4 % \n Gross profit $ 16,142 $ 12,029 $ 4,113 34.2 \n Gross profit margin 21.6 % 22.3 % (70) bps (3.1 ) \n Segment operating income $ 4,820 $ 144 $ 4,676 ** \n Segment operating income margin 6.4 % 0.3 % 610 bps ** \n New orders, net (1) $ 80,629 $ 83,252 $ (2,623 ) (3.2 ) \n Backlog (1) $ 102,126 $ 91,724 $ 10,402 11.3 \n\n**Results of this calculation are not meaningful for presentation purposes.\n* Net sales for the 2026 first quarter increased $20.8 million, or 38.4%, over\nthe prior year quarter. Rail Products sales increased $12.0 million, or 40.8%,\nreflecting a recovery in Rail Distribution following softer demand in early\n2025. Global Friction Management sales increased $6.1 million, or 39.5%,\ndriven by strong demand in domestic markets. TS&S sales increased $2.7\nmillion, or 29.1%, driven by short-term project work in the UK.\n* Gross profit for the 2026 first quarter increased $4.1 million, or 34.2%,\nover the prior year quarter due to increased volumes. Gross profit margins\ndeclined 70 basis points to 21.6% to due unfavorable business mix with the\nhigher Rail Distribution volumes this year.\n* Segment operating income for the 2026 first quarter increased $4.7 million\nover the prior year quarter driven primarily by improved gross profit and\nlower amortization expense.\n* New orders, net for the 2026 first quarter decreased $2.6 million from the\nprior year quarter primarily due to an 18.6% decline in Global Friction\nManagement. Rail Products and TS&S orders modestly improved 0.9% and 2.3% over\nthe prior year quarter, respectively. The trailing twelve month book-to-bill\nratio was 1.03 : 1.00. Backlog increased $10.4 million over the prior year\nquarter due primarily to a large, multi-year order received in our UK\nbusiness.\nInfrastructure Solutions Segment\n\n Three Months Ended March 31, Change Percent Change \n $ in thousands, unless otherwise noted: 2026 2025 2026 vs. 2025 2026 vs. 2025 \n Net sales $ 46,368 $ 43,777 $ 2,591 5.9 % \n Gross profit $ 9,554 $ 8,122 $ 1,432 17.6 \n Gross profit margin 20.6 % 18.6 % 200 bps 10.8 \n Segment operating income (loss) $ 529 $ (444 ) $ 973 (219.1 ) \n Segment operating income (loss) margin 1.1 % (1.0 )% 210 bps 210.0 \n New orders, net (1) $ 61,457 $ 65,812 $ (4,355 ) (6.6 ) \n Backlog (1) $ 107,447 $ 145,491 $ (38,044 ) (26.1 ) \n \n* Net sales for the 2026 first quarter increased $2.6 million, or 5.9%, over\nthe prior year quarter driven by growth in Precast Concrete Products\n(\"Precast\"), which increased $4.8 million, or 17.2%. The increase was\npartially offset by a decline in Steel Products sales of $2.3 million, or\n14.4%.\n* Gross profit for the 2026 first quarter increased $1.4 million, or 17.6%,\nover the prior year quarter. Precast gross profit increased $2.0 million due\nto the higher sales volumes, coupled with improved business mix and\nmanufacturing execution, partially offset by lower Steel Product volumes which\ndrove a $0.6 million decrease in gross profit. Gross profit margins improved\n200 basis points to 20.6% driven by Precast.\n* Segment operating income for the 2026 first quarter improved $1.0 million\nover the prior year quarter due primarily to improved gross profit offset in\npart by an increase in selling and administrative expenses.\n* New orders, net for the 2026 first quarter decreased $4.4 million, or 6.6%,\nfrom the prior year quarter, due primarily to a 26.7% decline in Steel\nProducts due to strong prior year demand for Protective Coatings. This was\npartially offset by a 5.5% increase in Precast. The trailing twelve month\nbook-to-bill ratio was 0.84 : 1.00, which included a large order cancellation\nlast year. Backlog was down $38.0 million from the prior year quarter due to\nthe order cancellation in the Steel Products business coupled with a decline\nof 8.5% in Precast.\nFirst Quarter Conference Call\n\nL.B. Foster Company will conduct a conference call and webcast to discuss its\nfirst quarter 2026 operating results on Monday, May 4, 2026 at 8:30 AM ET.\nThe call will be hosted by Mr. John Kasel, President and Chief Executive\nOfficer. Listen via audio and access the slide presentation on the L.B. Foster\nwebsite: www.lbfoster.com, under the Investor Relations page. A conference\ncall replay will be available through May 11, 2026 via webcast through L.B.\nFoster’s Investor Relations page of the company’s website.\n\nThose interested in participating in the question-and-answer session may\nregister for the call at\nhttps://register-conf.media-server.com/register/BI8239c4c86c8742b38a7505746106b0bb\nto receive the dial-in numbers and unique PIN to access the call. The\nregistration link will also be available on the Company’s Investor Relations\npage of its website.\n\nAbout L.B. Foster Company\n\nFounded in 1902, L.B. Foster Company is a global technology solutions provider\nof products and services for the rail and infrastructure markets. The\nCompany’s innovative engineering and product development solutions address\nthe safety, reliability, and performance needs of its customers' most\nchallenging requirements. The Company maintains locations in North America,\nSouth America, Europe, and Asia. For more information, please visit\nwww.lbfoster.com.\n\nNon-GAAP Financial Measures\n\nThis press release contains financial measures that are not calculated and\npresented in accordance with generally accepted accounting principles in the\nUnited States (\"GAAP\"). These non-GAAP financial measures are provided as\nadditional information for investors. The presentation of this additional\ninformation is not meant to be considered in isolation or as a substitute for\nGAAP measures. For definitions of the non-GAAP financial measures used in this\npress release and reconciliations to the most directly comparable respective\nGAAP measures, see the “Non-GAAP Disclosures” section below.\n\nThe Company has not reconciled the forward-looking adjusted EBITDA and free\ncash flow to the most directly comparable GAAP measure because this cannot be\ndone without unreasonable effort due to the variability and low visibility\nwith respect to certain costs, the most significant of which are acquisition\nand divestiture-related costs, impairment expense, and changes in operating\nassets and liabilities. These underlying expenses and others that may arise\nduring the year are potential adjustments to future earnings. The Company\nexpects the variability of these items to have a potentially unpredictable,\nand a potentially significant, impact on our future GAAP financial results.\n\nThe Company believes free cash flow is useful information to investors as it\nprovides insight on cash generated by operations, less capital expenditures,\nwhich we believe to be helpful in assessing the Company's long-term ability to\npursue growth and investment opportunities as well as service its financing\nobligations and generate capital for shareholders. Additionally, the Company's\nannual incentive plans for management provide for the utilization of free cash\nflow as a metric for measuring cash-generation performance in determining\nannual variable incentive achievement.\n\nThe Company defines new orders, net as a contractual agreement between the\nCompany and a third-party in which the Company will, or has the ability to,\nsatisfy the performance obligations of the promised products or services under\nthe terms of the agreement net of order cancellations incurred during the\nperiod. The Company defines backlog as contractual commitments to customers\nfor which the Company’s performance obligations have not been met, including\nwith respect to new orders and contracts for which the Company has not begun\nany performance. Backlog may not be indicative of future operating results as\norders may be cancelled or modified by the customer. Management utilizes new\norders and backlog to evaluate the health of the industries in which the\nCompany operates, the Company’s current and future results of operations and\nfinancial prospects, and strategies for business development. The Company\nbelieves that new orders and backlog are useful to investors as supplemental\nmetrics by which to measure the Company’s current performance and\nprospective results of operations and financial performance. The Company\ndefines book-to-bill ratio as new orders divided by revenue. The Company\nbelieves this is a useful metric to assess supply and demand, including order\nstrength versus order fulfillment.\n\nThe Company views its Gross Leverage Ratio per its credit agreement, as\ndefined in the Fifth Amended and Restated Credit Agreement dated June 27,\n2025, as an important indication of the Company's financial health and\nbelieves it is useful to investors as an indicator of the Company's ability to\nservice its existing indebtedness and borrow additional funds for its\ninvesting and operational needs.\n\nForward-Looking Statements\n\nThis release may contain “forward-looking” statements within the meaning\nof Section 21E of the Securities Exchange Act of 1934, as amended, and Section\n27A of the Securities Act of 1933, as amended. Forward-looking statements\nprovide management's current expectations of future events based on certain\nassumptions and include any statement that does not directly relate to any\nhistorical or current fact. Sentences containing words such as “believe,”\n“intend,” “plan,” “may,” “expect,” “should,” “could,”\n“anticipate,” “estimate,” “predict,” “project,” or their\nnegatives, or other similar expressions of a future or forward-looking nature\ngenerally should be considered forward-looking statements. Forward-looking\nstatements in this earnings release are based on management's current\nexpectations and assumptions about future events that involve inherent risks\nand uncertainties and may concern, among other things, the Company’s\nexpectations relating to our strategy, goals, projections, valuations and\nimpairments, and plans regarding our financial position, liquidity, capital\nresources, results of operations and decisions regarding our strategic growth\ninitiatives, market position, and product development. While the Company\nconsiders these expectations and assumptions to be reasonable, they are\ninherently subject to significant business, economic, competitive, regulatory,\nand other risks and uncertainties, most of which are difficult to predict and\nmany of which are beyond the Company’s control. The Company cautions readers\nthat various factors could cause the actual results of the Company to differ\nmaterially from those indicated by forward-looking statements. Accordingly,\ninvestors should not place undue reliance on forward-looking statements as a\nprediction of actual results. Among the factors that could cause the actual\nresults to differ materially from those indicated in the forward-looking\nstatements are risks and uncertainties related to: adverse economic conditions\nin the markets we serve, including recession, the volatility in the prices for\noil and gas, tariffs, duties or trade wars, inflation, rising labor costs,\nproject delays, and budget shortfalls, or otherwise; the disruption of\ngovernment funding programs as a result of potential periodic government\nshutdowns; volatility in the global capital markets, including interest rate\nfluctuations, which could adversely affect our ability to access the capital\nmarkets on terms that are favorable to us; restrictions on our ability to draw\non our credit agreement, including as a result of any future inability to\ncomply with restrictive covenants contained therein; a decrease in freight or\ntransit rail traffic; environmental matters and the impact of environmental\nregulations, including any costs associated with any remediation and\nmonitoring of such matters; the risk of doing business in international\nmarkets, including compliance with anti-corruption and bribery laws, foreign\ncurrency fluctuations and inflation, global shipping disruptions, the\nimposition of increased or new tariffs, and trade restrictions or embargoes,\nor uncertainties relating to the imposition and enforcement of tariffs; our\nability to timely effectuate our strategy, including cost reduction\ninitiatives, and our ability to effectively integrate acquired businesses or\nto divest businesses, and to realize anticipated synergies and benefits; costs\nof and impacts associated with shareholder activism; the timeliness, cost, and\navailability of materials from our major suppliers, as well as the impact on\nour access to supplies of customer preferences as to the origin of such\nsupplies, such as customers’ concerns about conflict minerals; labor\ndisputes; emerging technologies, including those related to or arising from\nartificial intelligence, and resultant risks to our business and operations;\ncybersecurity risks such as data security breaches, malware, ransomware,\n“hacking,” and identity theft, either with respect to our systems or those\nof third parties on whom we rely, which could disrupt our business and may\nresult in misuse or misappropriation of confidential or proprietary\ninformation, and could result in the disruption or damage to our systems,\nincreased costs and losses, or an adverse effect to our reputation, business\nor financial condition; the continuing effectiveness of our ongoing\nimplementation of an enterprise resource planning system; changes in current\naccounting estimates and their ultimate outcomes; the adequacy of internal and\nexternal sources of funds to meet financing needs, including our ability to\nnegotiate any additional necessary amendments to our credit agreement or the\nterms of any new credit agreement, the Company’s ability to manage its\nworking capital requirements and indebtedness; domestic and international\ntaxes, including estimates that may impact taxes; domestic and foreign\ngovernment regulations, including tariffs; our ability to maintain effective\ninternal controls over financial reporting and disclosure controls and\nprocedures; any change in policy or other change due to the results of the\nUK’s parliamentary elections and the U.S. presidential and congressional\nelections that could affect UK or US business conditions; other geopolitical\nconditions, including the ongoing conflicts between Russia and Ukraine,\nconflicts in the Middle East, and increasing tensions between China and\nTaiwan; a lack of, freezing of, or delay in state or federal funding for\ninfrastructure projects; an increase in manufacturing or material costs,\nincluding volatility in steel prices, oil prices, and wage inflation; the loss\nof future revenues from current customers; any future global health crises,\nand the related social, regulatory, and economic impacts and the response\nthereto by the Company, our employees, our customers, and national, state, or\nlocal governments, including any governmental travel restrictions; and risks\ninherent in litigation and the outcome of litigation and product warranty\nclaims. Should one or more of these risks or uncertainties materialize, or\nshould the assumptions underlying the forward-looking statements prove\nincorrect, actual outcomes could vary materially from those indicated.\nSignificant risks and uncertainties that may affect the operations,\nperformance, and results of the Company’s business and forward-looking\nstatements include, but are not limited to, those set forth under Item 1A,\n“Risk Factors,” and elsewhere in our Annual Report on Form 10-K for the\nyear ended December 31, 2025, or as updated and/or amended by our other\ncurrent or periodic filings with the Securities and Exchange Commission.\n\nThe forward-looking statements in this release are made as of the date of this\nrelease and we assume no obligation to update or revise any forward-looking\nstatement, whether as a result of new information, future developments, or\notherwise, except as required by the federal securities laws.\n\nInvestor Relations:\nLisa Durante\n412-928-3400, and follow the prompts\ninvestors@lbfoster.com\n\nL.B. Foster Company\n415 Holiday Drive\nSuite 100\nPittsburgh, PA 15220\n\n\n\n L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) \n \n Three Months Ended March 31, \n 2026 2025 \n \n Sales of goods $ 105,188 $ 86,548 \n Sales of services 15,956 11,244 \n Total net sales 121,144 97,792 \n Cost of goods sold 80,933 66,938 \n Cost of services sold 14,515 10,703 \n Total cost of sales 95,448 77,641 \n Gross profit 25,696 20,151 \n Selling and administrative expenses 23,033 20,952 \n Amortization expense 618 1,122 \n Operating income (loss) 2,045 (1,923 ) \n Interest expense - net 851 1,143 \n Other income - net (217 ) (318 ) \n Income (loss) before income taxes 1,411 (2,748 ) \n Income tax benefit (81 ) (631 ) \n Net income (loss) 1,492 (2,117 ) \n Net loss attributable to noncontrolling interest (8 ) (7 ) \n Net income (loss) attributable to L.B. Foster Company $ 1,500 $ (2,110 ) \n \n Per share data attributable to L.B. Foster shareholders: \n Basic earnings per common share: $ 0.15 $ (0.20 ) \n Diluted earnings (loss) per common share: $ 0.14 $ (0.20 ) \n \n Basic weighted average shares outstanding 10,197 10,540 \n Diluted weighted average shares outstanding 10,584 10,540 \n\n\n\n\n\n L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) \n \n March 31, 2026 December 31, 2025 \n (Unaudited) \n ASSETS \n Current assets: \n Cash and cash equivalents $ 3,991 $ 4,348 \n Accounts receivable - net 77,907 80,551 \n Contract assets - net 3,640 6,395 \n Inventories - net 68,479 60,219 \n Other current assets 8,192 5,358 \n Total current assets 162,209 156,871 \n Property, plant, and equipment - net 77,347 77,183 \n Operating lease right-of-use assets - net 27,181 28,309 \n Other assets: \n Goodwill 32,733 33,062 \n Other intangibles - net 10,901 11,526 \n Deferred tax assets 20,497 20,355 \n Other assets 2,915 3,066 \n TOTAL ASSETS $ 333,783 $ 330,372 \n LIABILITIES AND STOCKHOLDERS’ EQUITY \n Current liabilities: \n Accounts payable $ 44,092 $ 52,519 \n Deferred revenue 8,670 5,900 \n Accrued payroll and employee benefits 6,579 11,346 \n Current maturities of long-term debt 145 153 \n Other accrued liabilities 13,466 14,003 \n Total current liabilities 72,952 83,921 \n Long-term debt 59,539 42,603 \n Deferred tax liabilities 871 903 \n Long-term operating lease liabilities 23,258 24,266 \n Other long-term liabilities 2,669 2,681 \n Stockholders' equity: \n Common stock 111 111 \n Paid-in capital 39,507 44,782 \n Retained earnings 176,624 175,124 \n Treasury stock (20,541 ) (23,852 ) \n Accumulated other comprehensive loss (22,081 ) (20,889 ) \n Total L.B. Foster Company stockholders’ equity 173,620 175,276 \n Noncontrolling interest 874 722 \n Total stockholders’ equity 174,494 175,998 \n TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 333,783 $ 330,372 \n\n\n\n Non-GAAP Disclosures (Unaudited) \n \n\nThis earnings release discloses earnings before interest, taxes, depreciation,\nand amortization (“EBITDA”), adjusted EBITDA, and free cash flow. The\nCompany believes that EBITDA is useful to investors as a supplemental way to\nevaluate the ongoing operations of the Company’s business since EBITDA may\nenhance investors’ ability to compare historical periods as it adjusts for\nthe impact of financing methods, tax law and strategy changes, and\ndepreciation and amortization. In addition, EBITDA is a financial measure that\nmanagement and the Company’s Board of Directors use in their financial and\noperational decision-making and in the determination of certain compensation\nprograms. Adjusted EBITDA adjusts for certain charges to EBITDA from\ncontinuing operations that the Company believes are unusual, non-recurring,\nunpredictable, or non-cash. In the three months ended March 31, 2026 and three\nmonths ended March 31, 2025, the Company made no adjustments to EBITDA.\n\nNon-GAAP financial measures are not a substitute for GAAP financial results\nand should only be considered in conjunction with the Company’s financial\ninformation that is presented in accordance with GAAP. The following tables\npresent quantitative reconciliations of EBITDA and Free Cash Flow (in\nthousands):\n\n Three Months Ended March 31, \n 2026 2025 \n \n EBITDA Reconciliation \n Net income (loss), as reported $ 1,492 $ (2,117 ) \n Interest expense - net 851 1,143 \n Income tax benefit (81 ) (631 ) \n Depreciation expense 2,277 2,305 \n Amortization expense 618 1,122 \n Total EBITDA $ 5,157 $ 1,822 \n\n\n\n Three Months Ended March 31, \n 2026 2025 \n (Unaudited) \n Free Cash Flow Reconciliation \n Net cash used in operating activities $ (10,438 ) $ (26,136 ) \n Less capital expenditures on property, plant, and equipment (2,960 ) (2,575 ) \n Free Cash Flow $ (13,398 ) $ (28,711 ) \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/c97c8b49-331b-4522-8337-bcc49c5154e7)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX4JGz50","title":"L.B. Foster Company Announces Strong Sales Growth and Profitability Expansion in 2026 First Quarter; Reaffirms Full Year 2026 Financial Guidance","author":"Globe Newswire","ticker":"FSTR","created":"2026-05-04T11:30:00.994Z","tickers":["FSTR"],"exchange":"NASDAQ","article_body":"* First quarter net sales totaled $121.1 million, up 23.9% over last year;\nRail segment sales growth was exceptionally strong improving 38.4%, while\nInfrastructure sales were also favorable up 5.9%.\n* First quarter net income of $1.5 million was up $3.6 million over last year;\nEBITDA(1) of $5.2 million was up $3.3 million over last year driven by volume\nand strong gross profit expansion; Selling and administrative expenses as a\npercentage of sales were 19.0% for the quarter, favorable 240 bps versus last\nyear.\n* Cash flow used in operations in the quarter was $10.4 million, a $15.7\nmillion improvement over last year; Gross Leverage Ratio(1) was 1.2x at\nquarter end significantly improved compared to 2.5x last year.\n* 2026 financial guidance reaffirmed with sales growth and profitability\nexpansion expected for the year.\nPITTSBURGH, May 04, 2026 (GLOBE NEWSWIRE) -- L.B. Foster Company (Nasdaq:\nFSTR), a global technology solutions provider of products and services for the\nrail and infrastructure markets (the \"Company\"), today reported its 2026 first\nquarter operating results.\n\nFirst Quarter 2026 Highlights\n\n Three Months Ended March 31, Change \n 2026 2025 2026 vs. 2025 \n \n $ in thousands, unless otherwise noted: (Unaudited) \n Net sales $ 121,144 $ 97,792 23.9 % \n Operating income (loss) 2,045 (1,923 ) 206.3 % \n Net income (loss) attributable to L.B. Foster Company 1,500 (2,110 ) 171.1 % \n EBITDA (1) 5,157 1,822 183.0 % \n Net cash used in operating activities (10,438 ) (26,136 ) 60.1 % \n Free Cash Flow (1) (13,398 ) (28,711 ) 53.3 % \n Total debt 59,684 82,498 (27.7 )% \n Gross Leverage Ratio (1) 1.2x 2.5x (1.3 )x \n New orders, net (1) $ 142,086 $ 149,064 (4.7 )% \n Backlog (1) $ 209,573 $ 237,215 (11.7 )% \n \n\nFinancial Guidance Update\n\n 2026 Full Year Financial Guidance Low High \n Net sales $ 540,000 $ 580,000 \n Adjusted EBITDA (1) $ 41,000 $ 46,000 \n Capital spending as a percent of sales ~2.7 % ~2.7 % \n Free Cash Flow (1) $ 15,000 $ 25,000 \n\nCEO Comments\n\nJohn Kasel, President and Chief Executive Officer, commented, \"We carried the\nfavorable momentum generated at the end of 2025 into our first quarter,\nposting strong growth and profitability expansion across the business. Both\nsegments delivered exceptional results in the quarter, led by Rail sales\ngrowth of 38.4%, reflecting a strong recovery in domestic Rail demand compared\nto last year's weaker start to the year. Sales volumes were higher across all\nRail business units, with Rail Products and Friction Management up 40.8% and\n39.5%, respectively. Technology Services and Solutions (\"TS&S\") sales were\nalso up 29.1% on increased short-term project work in the United Kingdom\n(\"UK\"). Infrastructure segment sales were up 5.9% on continuing robust demand\nfor Precast Concrete with sales up 17.2% over last year, partially offset by\n14.4% lower Steel Products sales due to soft bridge forms volume.\"\n\nMr. Kasel continued, \"The strong sales volume growth delivered robust\nprofitability improvement over last year, with EBITDA of $5.2 million up $3.3\nmillion, or 183.0%. Consolidated gross margins of 21.2% improved 60 bps over\nlast year with the improvement realized in Infrastructure, reflecting higher\nvolumes, improved business mix, and better manufacturing execution in our\nPrecast Concrete business. Rail gross margins were slightly lower due to the\nsignificantly higher Rail Distribution sales volumes this year. We continued\nleveraging our operating cost structure, with selling and administrative\nexpenses as a percentage of sales declining 240 bps to 19.0%. This is despite\na $0.7 million accelerated non-cash stock compensation expense related to\nmanagement equity plan awards made to retirement-eligible employees. Our\nnormal working capital cycle increased total debt $16.9 million during the\nquarter to $59.7 million. However, total debt was down $22.8 million compared\nto last year, with the lower debt level and improved profitability reducing\ngross leverage to 1.2x compared to 2.5x last year.\"\n\nMr. Kasel concluded, \"As expected, we're off to a great start to the year and\nremain optimistic about our prospects for continuing progress in 2026. While\nthe first quarter backlog is down 11.7% compared to last year, order rates\nincreased significantly in the back half of the quarter resulting in a 10.7%\nincrease in backlog during the quarter. Project bidding activity has been\nrobust and we believe order rates will continue to improve as the year\nprogresses. The government funding programs that support our customer project\nwork remain active, and there are no signs of disruption in funding like we\nexperienced last year. We're also seeing early signs that the actions we've\ntaken in the UK Rail business are translating into improvements in 2026.\nAccordingly, we're reaffirming our financial guidance for 2026, with the\nmidpoints for sales and Adjusted EBITDA representing year over year growth of\n3.7% and 11.3%, respectively. It should be noted that our guidance assumes the\ncurrent volatile geopolitical landscape does not have a significant impact on\nthe domestic economy. We'll continue to monitor market conditions and adjust\nas needed.\"\n\n(1 See \"Non-GAAP Disclosures\" at the end of this press release for a\ndescription of and information regarding EBITDA, Adjusted EBITDA, gross\nleverage ratio per the Company's credit agreement, new orders, net, backlog,\nbook-to-bill ratio, free cash flow, and related reconciliations to the\ncomparable United States Generally Accepted Accounting Principles financial\nmeasures. )\n\nFirst Quarter 2026 Consolidated Results\n\nThe Company’s first quarter performance highlights are reflected below:\n\n Three Months Ended March 31, Change Percent Change \n 2026 2025 2026 vs. 2025 2026 vs. 2025 \n \n $ in thousands, unless otherwise noted: (Unaudited) \n Net sales $ 121,144 $ 97,792 $ 23,352 23.9 % \n Gross profit 25,696 20,151 5,545 27.5 \n Gross profit margin 21.2 % 20.6 % 60 bps 2.9 \n Selling and administrative expenses $ 23,033 $ 20,952 $ 2,081 9.9 \n Selling and administrative expenses as a percent of sales 19.0 % 21.4 % (240) bps (11.2 ) \n Amortization expense 618 1,122 (504 ) (44.9 ) \n Operating income (loss) $ 2,045 $ (1,923 ) $ 3,968 206.3 \n Net income (loss) attributable to L.B. Foster Company 1,500 (2,110 ) 3,610 171.1 \n EBITDA (1) 5,157 1,822 3,335 183.0 \n New orders, net (1) 142,086 149,064 (6,978 ) (4.7 ) \n Backlog (1) 209,573 237,215 (27,642 ) (11.7 ) \n \n* Net sales for the 2026 first quarter increased $23.4 million, or 23.9%, over\nthe prior year quarter. The increase was driven by sales growth in Rail,\nTechnologies, and Services (\"Rail\") of $20.8 million, or 38.4%, with\nInfrastructure Solutions (\"Infrastructure\") sales also improving $2.6 million,\nor 5.9%.\n* Gross profit for the 2026 first quarter increased $5.5 million, or 27.5%,\nover the prior year quarter driven primarily by higher volumes in Rail which\nimproved $4.1 million, and improved volumes and business mix in Infrastructure\nwhich contributed $1.4 million. Gross profit margins improved 60 basis points\nto 21.2%.\n* Selling and administrative expenses for the 2026 first quarter increased\n$2.1 million, or 9.9%, over the prior year quarter, primarily due to higher\npersonnel costs driven by merit increases, higher variable incentives, and a\n$0.7 million accelerated non-cash stock compensation expense related to\nmanagement equity plan awards made to retirement-eligible employees. Selling\nand administrative expenses as a percentage of net sales decreased 240 basis\npoints to 19.0%.\n* Operating income for the 2026 first quarter improved $4.0 million, or\n206.3%, over the prior year quarter. The improvement was primarily driven by\nhigher gross profit partially offset by increased selling and administrative\nexpenses.\n* Net income attributable to the Company for the 2026 first quarter improved\n$3.6 million, or 171.1%, over the prior year quarter due to improved gross\nprofit. The Company's income tax provision for the 2026 first quarter includes\na discrete tax benefit associated with a higher tax deduction for vested\nmanagement equity awards.\n* There were no adjustments to EBITDA in the first quarter of 2026 or 2025.\nEBITDA for the 2026 first quarter increased $3.3 million, or 183.0%, over the\nprior year quarter.\n* Cash used in operating activities totaled $10.4 million in the 2026 first\nquarter, favorable $15.7 million compared to cash used in operating activities\nof $26.1 million in the prior year quarter.\n* Total debt as of March 31, 2026 was $59.7 million, a decrease of $22.8\nmillion from the prior year quarter due primarily to improved free cash flow.\nTotal debt increased $16.9 million during the quarter due primarily to\nseasonal working capital requirements and annual incentive and insurance\npremiums. The Company's Gross Leverage Ratio per its credit facility was 1.2x\nas of March 31, 2026, down from 2.5x last year, reflecting higher\nprofitability and disciplined capital deployment.\n* New orders, net for the 2026 first quarter decreased $7.0 million, or 4.7%,\nfrom the prior year quarter, with the decrease realized in both segments. The\ntrailing twelve month book-to-bill ratio(1) was 0.95 : 1.00. Backlog decreased\n$27.6 million, or 11.7%, from the prior year quarter driven in part by an\norder cancellation last year in the Infrastructure segment which declined\n26.1%. This was partially offset by an 11.3% increase in the Rail segment\nbacklog. During the quarter, backlog increased $20.2 million, or 10.7%, with\norder book increases realized in both segments.\nFirst Quarter 2026 Business Results by Segment\n\nRail, Technologies, and Services Segment\n\n Three Months Ended March 31, Change Percent Change \n $ in thousands, unless otherwise noted: 2026 2025 2026 vs. 2025 2026 vs. 2025 \n Net sales $ 74,776 $ 54,015 $ 20,761 38.4 % \n Gross profit $ 16,142 $ 12,029 $ 4,113 34.2 \n Gross profit margin 21.6 % 22.3 % (70) bps (3.1 ) \n Segment operating income $ 4,820 $ 144 $ 4,676 ** \n Segment operating income margin 6.4 % 0.3 % 610 bps ** \n New orders, net (1) $ 80,629 $ 83,252 $ (2,623 ) (3.2 ) \n Backlog (1) $ 102,126 $ 91,724 $ 10,402 11.3 \n\n**Results of this calculation are not meaningful for presentation purposes.\n* Net sales for the 2026 first quarter increased $20.8 million, or 38.4%, over\nthe prior year quarter. Rail Products sales increased $12.0 million, or 40.8%,\nreflecting a recovery in Rail Distribution following softer demand in early\n2025. Global Friction Management sales increased $6.1 million, or 39.5%,\ndriven by strong demand in domestic markets. TS&S sales increased $2.7\nmillion, or 29.1%, driven by short-term project work in the UK.\n* Gross profit for the 2026 first quarter increased $4.1 million, or 34.2%,\nover the prior year quarter due to increased volumes. Gross profit margins\ndeclined 70 basis points to 21.6% to due unfavorable business mix with the\nhigher Rail Distribution volumes this year.\n* Segment operating income for the 2026 first quarter increased $4.7 million\nover the prior year quarter driven primarily by improved gross profit and\nlower amortization expense.\n* New orders, net for the 2026 first quarter decreased $2.6 million from the\nprior year quarter primarily due to an 18.6% decline in Global Friction\nManagement. Rail Products and TS&S orders modestly improved 0.9% and 2.3% over\nthe prior year quarter, respectively. The trailing twelve month book-to-bill\nratio was 1.03 : 1.00. Backlog increased $10.4 million over the prior year\nquarter due primarily to a large, multi-year order received in our UK\nbusiness.\nInfrastructure Solutions Segment\n\n Three Months Ended March 31, Change Percent Change \n $ in thousands, unless otherwise noted: 2026 2025 2026 vs. 2025 2026 vs. 2025 \n Net sales $ 46,368 $ 43,777 $ 2,591 5.9 % \n Gross profit $ 9,554 $ 8,122 $ 1,432 17.6 \n Gross profit margin 20.6 % 18.6 % 200 bps 10.8 \n Segment operating income (loss) $ 529 $ (444 ) $ 973 (219.1 ) \n Segment operating income (loss) margin 1.1 % (1.0 )% 210 bps 210.0 \n New orders, net (1) $ 61,457 $ 65,812 $ (4,355 ) (6.6 ) \n Backlog (1) $ 107,447 $ 145,491 $ (38,044 ) (26.1 ) \n \n* Net sales for the 2026 first quarter increased $2.6 million, or 5.9%, over\nthe prior year quarter driven by growth in Precast Concrete Products\n(\"Precast\"), which increased $4.8 million, or 17.2%. The increase was\npartially offset by a decline in Steel Products sales of $2.3 million, or\n14.4%.\n* Gross profit for the 2026 first quarter increased $1.4 million, or 17.6%,\nover the prior year quarter. Precast gross profit increased $2.0 million due\nto the higher sales volumes, coupled with improved business mix and\nmanufacturing execution, partially offset by lower Steel Product volumes which\ndrove a $0.6 million decrease in gross profit. Gross profit margins improved\n200 basis points to 20.6% driven by Precast.\n* Segment operating income for the 2026 first quarter improved $1.0 million\nover the prior year quarter due primarily to improved gross profit offset in\npart by an increase in selling and administrative expenses.\n* New orders, net for the 2026 first quarter decreased $4.4 million, or 6.6%,\nfrom the prior year quarter, due primarily to a 26.7% decline in Steel\nProducts due to strong prior year demand for Protective Coatings. This was\npartially offset by a 5.5% increase in Precast. The trailing twelve month\nbook-to-bill ratio was 0.84 : 1.00, which included a large order cancellation\nlast year. Backlog was down $38.0 million from the prior year quarter due to\nthe order cancellation in the Steel Products business coupled with a decline\nof 8.5% in Precast.\nFirst Quarter Conference Call\n\nL.B. Foster Company will conduct a conference call and webcast to discuss its\nfirst quarter 2026 operating results on Monday, May 4, 2026 at 8:30 AM ET.\nThe call will be hosted by Mr. John Kasel, President and Chief Executive\nOfficer. Listen via audio and access the slide presentation on the L.B. Foster\nwebsite: www.lbfoster.com, under the Investor Relations page. A conference\ncall replay will be available through May 11, 2026 via webcast through L.B.\nFoster’s Investor Relations page of the company’s website.\n\nThose interested in participating in the question-and-answer session may\nregister for the call at\nhttps://register-conf.media-server.com/register/BI8239c4c86c8742b38a7505746106b0bb\nto receive the dial-in numbers and unique PIN to access the call. The\nregistration link will also be available on the Company’s Investor Relations\npage of its website.\n\nAbout L.B. Foster Company\n\nFounded in 1902, L.B. Foster Company is a global technology solutions provider\nof products and services for the rail and infrastructure markets. The\nCompany’s innovative engineering and product development solutions address\nthe safety, reliability, and performance needs of its customers' most\nchallenging requirements. The Company maintains locations in North America,\nSouth America, Europe, and Asia. For more information, please visit\nwww.lbfoster.com.\n\nNon-GAAP Financial Measures\n\nThis press release contains financial measures that are not calculated and\npresented in accordance with generally accepted accounting principles in the\nUnited States (\"GAAP\"). These non-GAAP financial measures are provided as\nadditional information for investors. The presentation of this additional\ninformation is not meant to be considered in isolation or as a substitute for\nGAAP measures. For definitions of the non-GAAP financial measures used in this\npress release and reconciliations to the most directly comparable respective\nGAAP measures, see the “Non-GAAP Disclosures” section below.\n\nThe Company has not reconciled the forward-looking adjusted EBITDA and free\ncash flow to the most directly comparable GAAP measure because this cannot be\ndone without unreasonable effort due to the variability and low visibility\nwith respect to certain costs, the most significant of which are acquisition\nand divestiture-related costs, impairment expense, and changes in operating\nassets and liabilities. These underlying expenses and others that may arise\nduring the year are potential adjustments to future earnings. The Company\nexpects the variability of these items to have a potentially unpredictable,\nand a potentially significant, impact on our future GAAP financial results.\n\nThe Company believes free cash flow is useful information to investors as it\nprovides insight on cash generated by operations, less capital expenditures,\nwhich we believe to be helpful in assessing the Company's long-term ability to\npursue growth and investment opportunities as well as service its financing\nobligations and generate capital for shareholders. Additionally, the Company's\nannual incentive plans for management provide for the utilization of free cash\nflow as a metric for measuring cash-generation performance in determining\nannual variable incentive achievement.\n\nThe Company defines new orders, net as a contractual agreement between the\nCompany and a third-party in which the Company will, or has the ability to,\nsatisfy the performance obligations of the promised products or services under\nthe terms of the agreement net of order cancellations incurred during the\nperiod. The Company defines backlog as contractual commitments to customers\nfor which the Company’s performance obligations have not been met, including\nwith respect to new orders and contracts for which the Company has not begun\nany performance. Backlog may not be indicative of future operating results as\norders may be cancelled or modified by the customer. Management utilizes new\norders and backlog to evaluate the health of the industries in which the\nCompany operates, the Company’s current and future results of operations and\nfinancial prospects, and strategies for business development. The Company\nbelieves that new orders and backlog are useful to investors as supplemental\nmetrics by which to measure the Company’s current performance and\nprospective results of operations and financial performance. The Company\ndefines book-to-bill ratio as new orders divided by revenue. The Company\nbelieves this is a useful metric to assess supply and demand, including order\nstrength versus order fulfillment.\n\nThe Company views its Gross Leverage Ratio per its credit agreement, as\ndefined in the Fifth Amended and Restated Credit Agreement dated June 27,\n2025, as an important indication of the Company's financial health and\nbelieves it is useful to investors as an indicator of the Company's ability to\nservice its existing indebtedness and borrow additional funds for its\ninvesting and operational needs.\n\nForward-Looking Statements\n\nThis release may contain “forward-looking” statements within the meaning\nof Section 21E of the Securities Exchange Act of 1934, as amended, and Section\n27A of the Securities Act of 1933, as amended. Forward-looking statements\nprovide management's current expectations of future events based on certain\nassumptions and include any statement that does not directly relate to any\nhistorical or current fact. Sentences containing words such as “believe,”\n“intend,” “plan,” “may,” “expect,” “should,” “could,”\n“anticipate,” “estimate,” “predict,” “project,” or their\nnegatives, or other similar expressions of a future or forward-looking nature\ngenerally should be considered forward-looking statements. Forward-looking\nstatements in this earnings release are based on management's current\nexpectations and assumptions about future events that involve inherent risks\nand uncertainties and may concern, among other things, the Company’s\nexpectations relating to our strategy, goals, projections, valuations and\nimpairments, and plans regarding our financial position, liquidity, capital\nresources, results of operations and decisions regarding our strategic growth\ninitiatives, market position, and product development. While the Company\nconsiders these expectations and assumptions to be reasonable, they are\ninherently subject to significant business, economic, competitive, regulatory,\nand other risks and uncertainties, most of which are difficult to predict and\nmany of which are beyond the Company’s control. The Company cautions readers\nthat various factors could cause the actual results of the Company to differ\nmaterially from those indicated by forward-looking statements. Accordingly,\ninvestors should not place undue reliance on forward-looking statements as a\nprediction of actual results. Among the factors that could cause the actual\nresults to differ materially from those indicated in the forward-looking\nstatements are risks and uncertainties related to: adverse economic conditions\nin the markets we serve, including recession, the volatility in the prices for\noil and gas, tariffs, duties or trade wars, inflation, rising labor costs,\nproject delays, and budget shortfalls, or otherwise; the disruption of\ngovernment funding programs as a result of potential periodic government\nshutdowns; volatility in the global capital markets, including interest rate\nfluctuations, which could adversely affect our ability to access the capital\nmarkets on terms that are favorable to us; restrictions on our ability to draw\non our credit agreement, including as a result of any future inability to\ncomply with restrictive covenants contained therein; a decrease in freight or\ntransit rail traffic; environmental matters and the impact of environmental\nregulations, including any costs associated with any remediation and\nmonitoring of such matters; the risk of doing business in international\nmarkets, including compliance with anti-corruption and bribery laws, foreign\ncurrency fluctuations and inflation, global shipping disruptions, the\nimposition of increased or new tariffs, and trade restrictions or embargoes,\nor uncertainties relating to the imposition and enforcement of tariffs; our\nability to timely effectuate our strategy, including cost reduction\ninitiatives, and our ability to effectively integrate acquired businesses or\nto divest businesses, and to realize anticipated synergies and benefits; costs\nof and impacts associated with shareholder activism; the timeliness, cost, and\navailability of materials from our major suppliers, as well as the impact on\nour access to supplies of customer preferences as to the origin of such\nsupplies, such as customers’ concerns about conflict minerals; labor\ndisputes; emerging technologies, including those related to or arising from\nartificial intelligence, and resultant risks to our business and operations;\ncybersecurity risks such as data security breaches, malware, ransomware,\n“hacking,” and identity theft, either with respect to our systems or those\nof third parties on whom we rely, which could disrupt our business and may\nresult in misuse or misappropriation of confidential or proprietary\ninformation, and could result in the disruption or damage to our systems,\nincreased costs and losses, or an adverse effect to our reputation, business\nor financial condition; the continuing effectiveness of our ongoing\nimplementation of an enterprise resource planning system; changes in current\naccounting estimates and their ultimate outcomes; the adequacy of internal and\nexternal sources of funds to meet financing needs, including our ability to\nnegotiate any additional necessary amendments to our credit agreement or the\nterms of any new credit agreement, the Company’s ability to manage its\nworking capital requirements and indebtedness; domestic and international\ntaxes, including estimates that may impact taxes; domestic and foreign\ngovernment regulations, including tariffs; our ability to maintain effective\ninternal controls over financial reporting and disclosure controls and\nprocedures; any change in policy or other change due to the results of the\nUK’s parliamentary elections and the U.S. presidential and congressional\nelections that could affect UK or US business conditions; other geopolitical\nconditions, including the ongoing conflicts between Russia and Ukraine,\nconflicts in the Middle East, and increasing tensions between China and\nTaiwan; a lack of, freezing of, or delay in state or federal funding for\ninfrastructure projects; an increase in manufacturing or material costs,\nincluding volatility in steel prices, oil prices, and wage inflation; the loss\nof future revenues from current customers; any future global health crises,\nand the related social, regulatory, and economic impacts and the response\nthereto by the Company, our employees, our customers, and national, state, or\nlocal governments, including any governmental travel restrictions; and risks\ninherent in litigation and the outcome of litigation and product warranty\nclaims. Should one or more of these risks or uncertainties materialize, or\nshould the assumptions underlying the forward-looking statements prove\nincorrect, actual outcomes could vary materially from those indicated.\nSignificant risks and uncertainties that may affect the operations,\nperformance, and results of the Company’s business and forward-looking\nstatements include, but are not limited to, those set forth under Item 1A,\n“Risk Factors,” and elsewhere in our Annual Report on Form 10-K for the\nyear ended December 31, 2025, or as updated and/or amended by our other\ncurrent or periodic filings with the Securities and Exchange Commission.\n\nThe forward-looking statements in this release are made as of the date of this\nrelease and we assume no obligation to update or revise any forward-looking\nstatement, whether as a result of new information, future developments, or\notherwise, except as required by the federal securities laws.\n\nInvestor Relations:\nLisa Durante\n412-928-3400, and follow the prompts\ninvestors@lbfoster.com\n\nL.B. Foster Company\n415 Holiday Drive\nSuite 100\nPittsburgh, PA 15220\n\n\n\n L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) \n \n Three Months Ended March 31, \n 2026 2025 \n \n Sales of goods $ 105,188 $ 86,548 \n Sales of services 15,956 11,244 \n Total net sales 121,144 97,792 \n Cost of goods sold 80,933 66,938 \n Cost of services sold 14,515 10,703 \n Total cost of sales 95,448 77,641 \n Gross profit 25,696 20,151 \n Selling and administrative expenses 23,033 20,952 \n Amortization expense 618 1,122 \n Operating income (loss) 2,045 (1,923 ) \n Interest expense - net 851 1,143 \n Other income - net (217 ) (318 ) \n Income (loss) before income taxes 1,411 (2,748 ) \n Income tax benefit (81 ) (631 ) \n Net income (loss) 1,492 (2,117 ) \n Net loss attributable to noncontrolling interest (8 ) (7 ) \n Net income (loss) attributable to L.B. Foster Company $ 1,500 $ (2,110 ) \n \n Per share data attributable to L.B. Foster shareholders: \n Basic earnings per common share: $ 0.15 $ (0.20 ) \n Diluted earnings (loss) per common share: $ 0.14 $ (0.20 ) \n \n Basic weighted average shares outstanding 10,197 10,540 \n Diluted weighted average shares outstanding 10,584 10,540 \n\n\n\n\n\n L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) \n \n March 31, 2026 December 31, 2025 \n (Unaudited) \n ASSETS \n Current assets: \n Cash and cash equivalents $ 3,991 $ 4,348 \n Accounts receivable - net 77,907 80,551 \n Contract assets - net 3,640 6,395 \n Inventories - net 68,479 60,219 \n Other current assets 8,192 5,358 \n Total current assets 162,209 156,871 \n Property, plant, and equipment - net 77,347 77,183 \n Operating lease right-of-use assets - net 27,181 28,309 \n Other assets: \n Goodwill 32,733 33,062 \n Other intangibles - net 10,901 11,526 \n Deferred tax assets 20,497 20,355 \n Other assets 2,915 3,066 \n TOTAL ASSETS $ 333,783 $ 330,372 \n LIABILITIES AND STOCKHOLDERS’ EQUITY \n Current liabilities: \n Accounts payable $ 44,092 $ 52,519 \n Deferred revenue 8,670 5,900 \n Accrued payroll and employee benefits 6,579 11,346 \n Current maturities of long-term debt 145 153 \n Other accrued liabilities 13,466 14,003 \n Total current liabilities 72,952 83,921 \n Long-term debt 59,539 42,603 \n Deferred tax liabilities 871 903 \n Long-term operating lease liabilities 23,258 24,266 \n Other long-term liabilities 2,669 2,681 \n Stockholders' equity: \n Common stock 111 111 \n Paid-in capital 39,507 44,782 \n Retained earnings 176,624 175,124 \n Treasury stock (20,541 ) (23,852 ) \n Accumulated other comprehensive loss (22,081 ) (20,889 ) \n Total L.B. Foster Company stockholders’ equity 173,620 175,276 \n Noncontrolling interest 874 722 \n Total stockholders’ equity 174,494 175,998 \n TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 333,783 $ 330,372 \n\n\n\n Non-GAAP Disclosures (Unaudited) \n \n\nThis earnings release discloses earnings before interest, taxes, depreciation,\nand amortization (“EBITDA”), adjusted EBITDA, and free cash flow. The\nCompany believes that EBITDA is useful to investors as a supplemental way to\nevaluate the ongoing operations of the Company’s business since EBITDA may\nenhance investors’ ability to compare historical periods as it adjusts for\nthe impact of financing methods, tax law and strategy changes, and\ndepreciation and amortization. In addition, EBITDA is a financial measure that\nmanagement and the Company’s Board of Directors use in their financial and\noperational decision-making and in the determination of certain compensation\nprograms. Adjusted EBITDA adjusts for certain charges to EBITDA from\ncontinuing operations that the Company believes are unusual, non-recurring,\nunpredictable, or non-cash. In the three months ended March 31, 2026 and three\nmonths ended March 31, 2025, the Company made no adjustments to EBITDA.\n\nNon-GAAP financial measures are not a substitute for GAAP financial results\nand should only be considered in conjunction with the Company’s financial\ninformation that is presented in accordance with GAAP. The following tables\npresent quantitative reconciliations of EBITDA and Free Cash Flow (in\nthousands):\n\n Three Months Ended March 31, \n 2026 2025 \n \n EBITDA Reconciliation \n Net income (loss), as reported $ 1,492 $ (2,117 ) \n Interest expense - net 851 1,143 \n Income tax benefit (81 ) (631 ) \n Depreciation expense 2,277 2,305 \n Amortization expense 618 1,122 \n Total EBITDA $ 5,157 $ 1,822 \n\n\n\n Three Months Ended March 31, \n 2026 2025 \n (Unaudited) \n Free Cash Flow Reconciliation \n Net cash used in operating activities $ (10,438 ) $ (26,136 ) \n Less capital expenditures on property, plant, and equipment (2,960 ) (2,575 ) \n Free Cash Flow $ (13,398 ) $ (28,711 ) \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/c97c8b49-331b-4522-8337-bcc49c5154e7)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-05-04T11:30:01.061863361Z","server_sent_at_ms":1777894201061},"received_at":"2026-05-04T11:30:01.117Z","source_url":"https://www.globenewswire.com/news-release/2026/05/04/3286587/32958/en/l-b-foster-company-announces-strong-sales-growth-and-profitability-expansion-in-2026-first-quarter-reaffirms-full-year-2026-financial-guidance.html"},"analysis":{"id":"13637","press_release_id":"18825","analysis_json":{"industry":{"label":"Capital Goods","sector":"Industrials"},"redFlags":["Backlog decreased 11.7% year-over-year to $209.6 million","Cash used in operations was $10.4 million for the quarter","Normal working capital cycle increased total debt $16.9 million during the quarter"],"eventType":"earnings","narrative":"L.B. Foster reported Q1 2026 net sales of $121.1 million, up 23.9% year-over-year, driven by a 38.4% increase in Rail segment sales.\n\nThe company returned to profitability with net income of $1.5 million compared to a loss last year, while EBITDA increased 183% to $5.2 million and gross leverage improved to 1.2x.\n\nManagement reaffirmed full-year 2026 guidance for net sales of $540M-$580M and Adjusted EBITDA of $41M-$46M despite an 11.7% decline in backlog.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"L.B. Foster swings to profit on 24% sales surge; leverage drops to 1.2x."},"keyFigures":{"eps":0.15,"revenue":"$121.1 million","guidance":"FY2026 Net sales $540M-$580M, Adjusted EBITDA $41M-$46M","revenueYoy":"23.9%","customDimensions":{"ebitda":"$5.2 million","netIncome":"$1.5 million","bookToBill":"0.95 : 1.00","grossLeverageRatio":"1.2x"}},"quotedText":"We carried the favorable momentum generated at the end of 2025 into our first quarter, posting strong growth and profitability expansion across the business.","namedEntities":{"people":[{"name":"John Kasel","role":"President and Chief Executive Officer"},{"name":"Lisa Durante","role":"Investor Relations Contact"}],"products":["Rail Products","Friction Management","Technology Services and Solutions","Precast Concrete","Steel Products"],"companies":[{"name":"L.B. Foster Company","ticker":"FSTR"}],"dollarAmounts":[{"amount":"$121.1 million","context":"Q1 2026 net sales"},{"amount":"$1.5 million","context":"Q1 2026 net income"},{"amount":"$5.2 million","context":"Q1 2026 EBITDA"},{"amount":"$540,000","context":"FY2026 sales guidance low (in thousands)"},{"amount":"$580,000","context":"FY2026 sales guidance high (in thousands)"},{"amount":"$41,000","context":"FY2026 Adjusted EBITDA guidance low (in thousands)"},{"amount":"$46,000","context":"FY2026 Adjusted EBITDA guidance high (in thousands)"}]},"materialImpact":{"score":4,"reasoning":"Revenue surged 23.9% year-over-year to $121.1 million and net income swung to a profit of $1.5 million from a prior-year loss. EBITDA grew 183% and gross leverage improved significantly to 1.2x, indicating a strong operational turnaround and deleveraging."},"tickerRelevance":{"others":[],"primary":"FSTR"},"globalImportance":30,"audienceRelevance":20,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"mid-cap earnings beat","sectorWeight":"industrials","turnaroundIndicator":true}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"L.B. Foster reported Q1 2026 net sales of $121.1 million, up 23.9% year-over-year, driven by a 38.4% increase in Rail segment sales.\n\nThe company returned to profitability with net income of $1.5 million compared to a loss last year, while EBITDA increased 183% to $5.2 million and gross leverage improved to 1.2x.\n\nManagement reaffirmed full-year 2026 guidance for net sales of $540M-$580M and Adjusted EBITDA of $41M-$46M despite an 11.7% decline in backlog.","key_figures":{"eps":0.15,"revenue":"$121.1 million","guidance":"FY2026 Net sales $540M-$580M, Adjusted EBITDA $41M-$46M","revenueYoy":"23.9%","customDimensions":{"ebitda":"$5.2 million","netIncome":"$1.5 million","bookToBill":"0.95 : 1.00","grossLeverageRatio":"1.2x"}},"named_entities":{"people":[{"name":"John Kasel","role":"President and Chief Executive Officer"},{"name":"Lisa Durante","role":"Investor Relations Contact"}],"products":["Rail Products","Friction Management","Technology Services and Solutions","Precast Concrete","Steel Products"],"companies":[{"name":"L.B. Foster Company","ticker":"FSTR"}],"dollarAmounts":[{"amount":"$121.1 million","context":"Q1 2026 net sales"},{"amount":"$1.5 million","context":"Q1 2026 net income"},{"amount":"$5.2 million","context":"Q1 2026 EBITDA"},{"amount":"$540,000","context":"FY2026 sales guidance low (in thousands)"},{"amount":"$580,000","context":"FY2026 sales guidance high (in thousands)"},{"amount":"$41,000","context":"FY2026 Adjusted EBITDA guidance low (in thousands)"},{"amount":"$46,000","context":"FY2026 Adjusted EBITDA guidance high (in thousands)"}]},"model_name":"glm-4.7","prompt_hash":"sha256:a2703c5a1b5285fe","schema_hash":"sha256:1f8af1196c7db48c","created_at":"2026-05-04T13:26:32.795Z","global_importance":30,"audience_relevance":20,"importance_components":{"tickerTier":"mid-cap","eventGravity":"mid-cap earnings beat","sectorWeight":"industrials","turnaroundIndicator":true}},"durationMs":191693,"modelName":"glm-4.7"}}