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L.B. Foster's Earnings and Revenues Surpass Estimates in Q2
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Key Takeaways
FSTR's Q2 adjusted EPS beat estimates, while revenue topped expectations despite a year-over-year decline.
Backlog rose 17.4% sequentially, supporting FSTR's growth expectations for the second half of 2026.
FSTR reaffirmed 2026 sales of $540-$580 million and adjusted EBITDA of $41-$46 million.
L.B. Foster Company’s (FSTR - Free Report) second-quarter 2026 adjusted earnings were 48 cents per share, topping the Zacks Consensus Estimate of 41 cents. On a reported basis, earnings were 29 cents per share compared with 27 cents a year ago.
The company logged revenues of $138.6 million for the quarter, down 3.5% year over year. Revenues surpassed the Zacks Consensus Estimate of $134.5 million by 3%. The year-over-year decline reflected lower sales in both the Rail, Technologies and Services and Infrastructure Solutions segments.
New orders were roughly $176.1 million in the reported quarter, up 0.2% year over year. Backlog was $246.1 million, down 8.8% from the prior-year quarter but up 17.4% sequentially.
L.B. Foster Company Price, Consensus and EPS Surprise
Sales from the Rail, Technologies, and Services segment fell 5.2% year over year in the reported quarter to $72 million. Rail Products sales declined 27.3% due to the timing of large orders, partly offset by growth in Global Friction Management and Technology Services and Solutions. Segment gross margin expanded 70 basis points (bps) to 20.6%.
Infrastructure Solutions segment sales were $66.5 million, down 1.5% year over year. Lower Steel Products sales were partly offset by growth in Precast Concrete Products. Segment gross margin improved 80 bps to 24.1% on favorable sales mix and manufacturing efficiency.
L.B. Foster’s Financials
L.B. Foster ended the second quarter with cash and cash equivalents of around $5.8 million. Total debt was roughly $48 million, down 41.2% from the prior-year quarter, while the gross leverage ratio improved to 1 from 2.2 a year ago.
Cash flow from operations was $17.9 million for the second quarter, up 71.7% year over year. Free cash flow increased 85% to $14.3 million.
FSTR’s Outlook
FSTR reaffirmed its 2026 financial guidance. It expects net sales in the range of $540-$580 million and adjusted EBITDA in the band of $41-$46 million.
Free cash flow is projected in the range of $15-$25 million for the year. Capital spending is expected to account for roughly 2.7% of sales.
The company said the $36.5 million sequential increase in backlog supports its growth expectations for the second half of 2026. At the midpoints, the sales and adjusted EBITDA guidance imply year-over-year growth of 3.7% and 11.3%, respectively.
FSTR Stock’s Price Performance
L.B. Foster’s shares are up 63.6% year to date compared with the Zacks Steel Producers industry’s 81.8% rise.
Image Source: Zacks Investment Research
FSTR’s Zacks Rank & Other Steel Producers Releases
Nucor Corporation (NUE - Free Report) reported second-quarter adjusted earnings of $4.84 per share, up from $1.73 reported in the prior quarter. The figure topped the Zacks Consensus Estimate of $4.57. NUE expects third-quarter 2026 earnings to rise, driven by higher pricing in Steel Mills and stronger volumes and pricing in Steel Products. Raw Materials earnings are projected to decline due to lower margins.
Steel Dynamics, Inc. (STLD - Free Report) reported adjusted earnings of $3.8 per share for the second quarter, up from $2.01 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $3.67 per share. Domestic steel and aluminum demand is expected to remain strong through 2026-27, supported by better orders, pricing and reshoring. Steel Dynamics expects aluminum profitability and volumes to rise sharply in second-half 2026 as utilization improves and startup costs ease.
Cleveland-Cliffs Inc. (CLF - Free Report) reported a second-quarter adjusted loss of 20 cents per share, narrower from 51 cents a year ago. The figure was narrower than the Zacks Consensus Estimate of a loss of 21 cents per share. Cleveland-Cliffs expects a strong second half of 2026, with third quarter adjusted EBITDA projected at about $575 million and fourth quarter expected to be even stronger. CLF maintained its full-year shipment and capex guidance while targeting leverage below 2.5x by mid-2027.
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L.B. Foster's Earnings and Revenues Surpass Estimates in Q2
Key Takeaways
L.B. Foster Company’s (FSTR - Free Report) second-quarter 2026 adjusted earnings were 48 cents per share, topping the Zacks Consensus Estimate of 41 cents. On a reported basis, earnings were 29 cents per share compared with 27 cents a year ago.
The company logged revenues of $138.6 million for the quarter, down 3.5% year over year. Revenues surpassed the Zacks Consensus Estimate of $134.5 million by 3%. The year-over-year decline reflected lower sales in both the Rail, Technologies and Services and Infrastructure Solutions segments.
New orders were roughly $176.1 million in the reported quarter, up 0.2% year over year. Backlog was $246.1 million, down 8.8% from the prior-year quarter but up 17.4% sequentially.
L.B. Foster Company Price, Consensus and EPS Surprise
L.B. Foster Company price-consensus-eps-surprise-chart | L.B. Foster Company Quote
FSTR’s Segment Highlights
Sales from the Rail, Technologies, and Services segment fell 5.2% year over year in the reported quarter to $72 million. Rail Products sales declined 27.3% due to the timing of large orders, partly offset by growth in Global Friction Management and Technology Services and Solutions. Segment gross margin expanded 70 basis points (bps) to 20.6%.
Infrastructure Solutions segment sales were $66.5 million, down 1.5% year over year. Lower Steel Products sales were partly offset by growth in Precast Concrete Products. Segment gross margin improved 80 bps to 24.1% on favorable sales mix and manufacturing efficiency.
L.B. Foster’s Financials
L.B. Foster ended the second quarter with cash and cash equivalents of around $5.8 million. Total debt was roughly $48 million, down 41.2% from the prior-year quarter, while the gross leverage ratio improved to 1 from 2.2 a year ago.
Cash flow from operations was $17.9 million for the second quarter, up 71.7% year over year. Free cash flow increased 85% to $14.3 million.
FSTR’s Outlook
FSTR reaffirmed its 2026 financial guidance. It expects net sales in the range of $540-$580 million and adjusted EBITDA in the band of $41-$46 million.
Free cash flow is projected in the range of $15-$25 million for the year. Capital spending is expected to account for roughly 2.7% of sales.
The company said the $36.5 million sequential increase in backlog supports its growth expectations for the second half of 2026. At the midpoints, the sales and adjusted EBITDA guidance imply year-over-year growth of 3.7% and 11.3%, respectively.
FSTR Stock’s Price Performance
L.B. Foster’s shares are up 63.6% year to date compared with the Zacks Steel Producers industry’s 81.8% rise.
FSTR’s Zacks Rank & Other Steel Producers Releases
FSTR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nucor Corporation (NUE - Free Report) reported second-quarter adjusted earnings of $4.84 per share, up from $1.73 reported in the prior quarter. The figure topped the Zacks Consensus Estimate of $4.57. NUE expects third-quarter 2026 earnings to rise, driven by higher pricing in Steel Mills and stronger volumes and pricing in Steel Products. Raw Materials earnings are projected to decline due to lower margins.
Steel Dynamics, Inc. (STLD - Free Report) reported adjusted earnings of $3.8 per share for the second quarter, up from $2.01 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $3.67 per share. Domestic steel and aluminum demand is expected to remain strong through 2026-27, supported by better orders, pricing and reshoring. Steel Dynamics expects aluminum profitability and volumes to rise sharply in second-half 2026 as utilization improves and startup costs ease.
Cleveland-Cliffs Inc. (CLF - Free Report) reported a second-quarter adjusted loss of 20 cents per share, narrower from 51 cents a year ago. The figure was narrower than the Zacks Consensus Estimate of a loss of 21 cents per share. Cleveland-Cliffs expects a strong second half of 2026, with third quarter adjusted EBITDA projected at about $575 million and fourth quarter expected to be even stronger. CLF maintained its full-year shipment and capex guidance while targeting leverage below 2.5x by mid-2027.