L.B. Foster Company (FSTR) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 rose 23.9% year-over-year to $121.1 million, led by a 38.4% increase in Rail segment sales and a 5.9% rise in Infrastructure, with gross profit up 27.5% to $25.7 million and EBITDA up 183% to $5.2 million.

• Net income reached $1.5 million, reversing a prior year loss, and diluted EPS was $0.14–$0.15.

• Gross margin improved by 60 basis points to 21.2%, and selling and administrative expenses as a percentage of sales declined by 240 basis points to 19.0%.

• Operating cash flow improved by $15.7 million year-over-year, with net cash used in operations at $10.4 million.

• Backlog decreased 11.7% year-over-year but increased 10.7% sequentially, with strong order momentum late in the quarter.

Financial highlights

• SG&A expenses were $23.0 million, up 9.9%, but improved as a percentage of sales to 19.0%.

• Operating income was $2.0 million, up from a loss of $1.9 million last year.

• Gross leverage ratio improved to 1.2x from 2.5x last year; net debt at $55.7 million.

• Free cash flow was negative $13.4 million, improved from negative $28.7 million last year.

• Book-to-bill ratio for Q1 TTM was 0.95:1.00.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net sales expected between $540–$580 million and adjusted EBITDA $41–$46 million.

• Management expects stronger performance in Q2/Q3 due to seasonality and ongoing robust bidding activity.

• Free cash flow guidance for 2026 is $15–$25 million; capital expenditures targeted at 2.7% of sales.

• Guidance assumes no significant impact from current geopolitical volatility.