Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - L.B. Foster Company (NASDAQ:FSTR) reported second-quarter earnings that fell short of analyst expectations, but shares gained 2% as the company provided an upbeat outlook for the remainder of 2025.
The global technology solutions provider for rail and infrastructure markets posted adjusted earnings of $0.27 per share, missing the analyst consensus of $0.59.
Revenue came in at $143.56 million, slightly below estimates of $146.79 million but up 2.0% YoY. Despite the earnings miss, the company reported significant improvement in profitability with Adjusted EBITDA increasing 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 John Kasel, President and Chief Executive Officer.
"The improved results in the quarter were realized primarily in our Infrastructure segment with organic sales up 22.4%, led by 36.0% higher Precast Concrete sales."
The company’s backlog grew to $269.9 million, up 8.1% compared to the prior year, with Rail backlog increasing 13.9%. This growth was driven by Rail Products (up 28.4%) and Global Friction Management (up 22.1%).
For fiscal year 2025, L.B. Foster expects revenue between $535 million and $555 million, in line with the consensus estimate of $540.1 million. The company’s revised guidance midpoints assume a 25.1% increase in Adjusted EBITDA versus last year on 2.7% organic sales growth.
The company’s gross leverage ratio improved to 2.2x at quarter end, down from 2.7x last year, with management targeting a range of 1.0x-1.5x by year end.
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