L. B. Foster Company ( (FSTR) ) has released its Q4 earnings. Here is a breakdown of the information L. B. Foster Company presented to its investors.
L.B. Foster Company, a global technology solutions provider for rail and infrastructure markets, has reported its financial results for the fourth quarter and full year 2024, showcasing continued profitability growth and strong cash flow. The company also announced a new three-year $40 million stock repurchase plan.
The company’s fourth quarter results highlighted improved gross margins despite a decline in net sales. The fourth quarter saw a net loss of $0.3 million, which was an improvement over the previous year, and an adjusted EBITDA increase of 18.7%. For the full year, L.B. Foster reported cash flow from operations of $22.6 million and a significant reduction in total debt. The company also provided financial guidance for 2025, with expectations of net sales between $540 million and $580 million and adjusted EBITDA between $42 million and $48 million.
Key financial metrics for the fourth quarter included a 5.0% decrease in net sales to $128.2 million, while gross profit remained stable with a margin improvement of 100 basis points. The company reduced its selling and administrative expenses by 10.4%, contributing to a favorable operating income of $3.1 million. The Rail, Technologies, and Services segment experienced a 14.2% increase in net sales, while the Infrastructure Solutions segment saw a 25.2% decline.
The company’s strategic initiatives have led to structural improvements in profitability and economic profit generation. Despite a softer start expected for 2025, L.B. Foster remains optimistic about its growth prospects, driven by investments in Rail Technologies and Precast Concrete. The company plans to continue its balanced approach to capital allocation, including the new stock repurchase program, reflecting confidence in its future.
Looking ahead, L.B. Foster is well-positioned to capitalize on its strategic investments and expects to see growth in adjusted EBITDA and organic sales in 2025. The company will closely monitor federal infrastructure investment support and remains committed to delivering shareholder value through disciplined execution of its strategic playbook.