L. B. Foster Company (FSTR) AI Stock Analysis

• Market Cap: $283.73M
• Dividend Yield: N/A
• Average Volume (3M): 24.09K
• Price to Earnings (P/E): 61.2
• Beta (1Y): 1.42
• Revenue Growth: -5.51%
• EPS Growth: -88.11%
• Country: US
• Employees: 1,057
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.40
• Shares Outstanding: 10,393,009
• 10 Day Avg. Volume: 27,641
• 30 Day Avg. Volume: 24,092
• PEG Ratio: <0.01
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 22.46
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 12.96
• 1Y Price Target: $33.00
• Price Target Upside: 21.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.18
• Revenue Forecast (FY): $540.83M

• Rating: 73 Outperform
• Price Target: $30.00 ▲(10.70% Upside)

L. B. Foster Company shows a solid financial recovery with strong cash flow and revenue growth. The stock's undervaluation and positive technical indicators further support its potential. However, challenges in profitability and mixed earnings call results slightly temper the outlook.

L. B. Foster Company Business Overview & Revenue Model

Company Description

L.B. Foster Company provides engineered and manufactured products and services for the building and infrastructure projects worldwide. The company's Rail, Technologies, and Services segment offers new rail to passenger and short line freight railroads, industrial companies, and rail contractors; used rails; rail accessories, including track spikes and anchors, bolts, angle bars, tie plates, and other products; power rail, direct fixation fasteners, coverboards, and special accessories; and trackwork products, as well as engineers and manufactures insulated rail joints and related accessories. This segment also provides friction management products and application systems, railroad condition monitoring systems and equipment, wheel impact load detection systems, wayside data collection and management systems, track fasteners, and engineered concrete railroad ties; and aftermarket services. Its Precast Concrete Products segment offers a range of specialty precast concrete products, such as sound walls, burial vaults, bridge beams, box culverts, septic tanks, and other custom pre-stressed products for use in transportation and general infrastructure markets. This segment also manufactures precast concrete buildings for use as restrooms, concession stands, and protective storage buildings in national, state, and municipal parks. The company's Steel Products and Measurement segment provides bridge decking, bridge railing, structural steel fabrications, expansion joints, bridge forms, and other products for highway construction and repair. This segment also produces threaded pipe products for industrial water well, irrigation, and oil and gas markets, as well as offers pipe coatings for oil and gas pipelines and utilities, and precision measurement systems for the oil and gas market. The company markets its products directly, as well as through a network of agents. L.B. Foster Company was founded in 1902 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

L. B. Foster Company generates revenue through multiple streams, primarily by selling its engineered products to the rail and construction industries. Key revenue sources include the sale of rail products such as rail ties, trackwork, and signaling systems, as well as precast concrete solutions for various construction applications. Additionally, the company earns income from service contracts related to project management and technical support. Strategic partnerships with major construction and rail industry players further bolster its revenue, allowing for larger project completions and consistent demand for its specialized products. Overall, L. B. Foster's diversified product offerings and strong industry relationships are critical to its financial success.

L. B. Foster Company Financial Statement Overview

Summary

L. B. Foster Company demonstrates a solid recovery in revenue and cash flow growth, with stable gross margins. While profitability remains a challenge, the company maintains a balanced debt profile and strong equity position. Continued focus on improving net margins and returns on equity could enhance overall financial performance.

Income Statement

The company shows a positive trend in revenue growth with a 16.2% increase in TTM, recovering from a decline in the previous year. Gross profit margin is stable at around 21.8%, indicating efficient cost management. However, the net profit margin is relatively low at 0.96%, suggesting limited profitability. EBIT and EBITDA margins have improved but remain modest, reflecting operational challenges.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.48, indicating a balanced approach to leveraging. Return on equity is low at 2.78%, suggesting limited returns for shareholders. The equity ratio stands at 52.3%, showing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

The company exhibits strong free cash flow growth of 55.4% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.54, showing adequate cash flow relative to earnings. The free cash flow to net income ratio is high at 0.95, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	507.82M	530.76M	543.74M	497.50M	513.62M	497.41M
Gross Profit	110.73M	118.06M	112.04M	89.61M	86.30M	95.01M
EBITDA	28.93M	33.52M	21.73M	9.12M	21.43M	31.32M
Net Income	4.89M	42.95M	1.46M	-45.56M	3.63M	7.58M
Balance Sheet
Total Assets	333.89M	334.55M	312.40M	365.31M	342.60M	370.39M
Cash, Cash Equivalents and Short-Term Investments	3.51M	2.45M	2.56M	2.88M	10.37M	7.56M
Total Debt	84.43M	61.65M	67.14M	106.04M	43.53M	58.54M
Total Liabilities	158.29M	155.54M	169.57M	227.71M	158.99M	193.56M
Stockholders Equity	174.80M	178.32M	142.11M	137.18M	183.09M	176.83M
Cash Flow
Free Cash Flow	27.72M	12.84M	32.44M	-18.21M	-5.68M	7.74M
Operating Cash Flow	37.73M	22.63M	36.96M	-10.58M	-1.06M	16.92M
Investing Cash Flow	-10.36M	-6.31M	2.49M	-56.42M	17.82M	-8.04M
Financing Cash Flow	-27.28M	-16.23M	-39.30M	60.24M	-13.90M	-15.30M

L. B. Foster Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSTR, the sentiment is Positive. The current price of 27.1 is above the 20-day moving average (MA) of 26.84, above the 50-day MA of 26.85, and above the 200-day MA of 23.38, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 86.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSTR.

L. B. Foster Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	75 Outperform	$34.84B	29.61	11.07%	0.46%	4.40%	14.60%
FSTR	73 Outperform	$283.73M	61.17	2.74%	―	-5.51%	-88.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GBX	60 Neutral	$1.32B	6.72	14.03%	2.70%	-8.66%	27.14%
TRN	55 Neutral	$2.11B	22.92	10.04%	4.63%	-33.03%	-44.18%
RAIL	46 Neutral	$164.88M	―	―	―	-6.00%	-12.45%
RVSN	39 Underperform	$21.29M	-0.98	-74.03%	―	―	―

L. B. Foster Company Corporate Events

L.B. Foster Reports Modest Sales Growth and Strong Cash Flow

L.B. Foster Company is a global technology solutions provider specializing in products and services for the rail and infrastructure markets, with operations spanning North America, South America, Europe, and Asia.

L.B. Foster Announces Board Member Retirement

L.B. Foster Company announced that on September 4, 2025, Ms. Janet Lee retired from its Board of Directors, leading to a reduction in the Board’s size from eight to seven members. Ms. Lee’s departure was not due to any disagreement with the company but was prompted by her new role as General Counsel at Synopsys, Inc., following its acquisition of ANSYS, Inc., where she was previously employed.

The most recent analyst rating on (FSTR) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on L. B. Foster Company stock, see the FSTR Stock Forecast page.

L.B. Foster Reports Strong Q2 2025 Performance

L.B. Foster Company is a global technology solutions provider specializing in products and services for the rail and infrastructure markets, with a presence in North America, South America, Europe, and Asia. In its latest earnings report, L.B. Foster announced a strong performance for the second quarter of 2025, highlighted by a 51.4% increase in Adjusted EBITDA and a 2.0% rise in organic sales, primarily driven by the Precast Concrete business unit. The company’s backlog grew by 8.1%, with significant contributions from the Rail segment, which saw a 13.9% increase in backlog. Notably, the Infrastructure segment experienced a 22.4% increase in sales, led by a 36.0% rise in Precast Concrete sales. Despite a decline in Rail segment sales, the company achieved a 67.9% increase in operating income, attributed to higher gross profit and reduced selling and administrative expenses. Looking ahead, L.B. Foster anticipates continued organic sales growth and profitability improvements, supported by a robust backlog and strategic initiatives aimed at enhancing shareholder returns through the remainder of 2025.

L.B. Foster’s Earnings Call Highlights Growth Amid Challenges

L.B. Foster Company recently held its earnings call, presenting a generally positive outlook despite some challenges. The company reported a return to sales growth and significant improvements in backlog and EBITDA, which were highlighted as key achievements. However, concerns remain regarding the Rail segment and the U.K. market. On a positive note, the successful negotiation of the revolving credit facility and improved leverage ratios indicate a strong financial position moving forward.