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

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FSTR

L. B. Foster Company

(NASDAQ:FSTR)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
$40.00
▲(33.33% Upside)
Action:Reiterated
Date:05/09/26
The score is led by improving (but still volatile) financial performance, highlighted by strong free cash flow and manageable leverage. Earnings-call indicators support the recovery via reaffirmed guidance, strong Q1 growth/EBITDA expansion, and deleveraging, but softer orders/backlog and cost pressures temper confidence. Technically, the uptrend is clear yet overbought signals raise near-term risk, and valuation is a notable headwind due to the high P/E and no dividend yield provided.
Positive Factors
Strong free cash flow generation
Sustained operating and free cash flow provides durable internal funding for capex, buybacks and debt reduction. Strong FCF growth cushions the business against revenue cyclicality, enabling disciplined capital allocation and deleveraging even if accounting profits fluctuate.
Negative Factors
Backlog and order weakness
Declining orders and sub-1 book-to-bill reduce near- and medium-term revenue visibility in project-driven segments. Persistent backlog pressure increases utilization risk, makes forecasting and capacity planning harder, and can amplify revenue volatility over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained operating and free cash flow provides durable internal funding for capex, buybacks and debt reduction. Strong FCF growth cushions the business against revenue cyclicality, enabling disciplined capital allocation and deleveraging even if accounting profits fluctuate.
Read all positive factors

L. B. Foster Company Key Performance Indicators (KPIs)

Any
Any
Backlog by Segment
Backlog by Segment
Measures the value of booked but unfilled orders for each segment, giving a view of near-term revenue visibility and demand strength. A rising backlog for L. B. Foster points to steady future work in specific markets; a shrinking backlog can signal cooling demand or execution issues that may pressure upcoming sales.
Chart InsightsL.B. Foster appears to be consolidating into Rail and Infrastructure: Precast and Steel backlogs drop to zero (likely divestitures/reclassification), while Rail backlog has rebounded sharply and recently surged, underpinning management’s higher book‑to‑bill and order commentary. Infrastructure remains a large pool but shows signs of softness and is exposed to cancellations and mix-driven margin pressure the company flagged. The backlog supports a potential revenue pop, but conversion risk and compressed margins mean growth may be lumpy and profit recovery isn’t assured.
Data provided by:The Fly

L. B. Foster Company (FSTR) vs. SPDR S&P 500 ETF (SPY)

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 railr...
How the Company Makes Money
L. B. Foster makes money primarily by selling manufactured, fabricated, and distributed products and by providing project- and service-based offerings tied to rail and infrastructure spending. Key revenue streams include: (1) Rail segment revenue ...

L. B. Foster Company Earnings Call Summary

Earnings Call Date:May 04, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line growth, substantial margin and EBITDA expansion, meaningful deleveraging and improved cash generation driven largely by a recovery in Rail and continued Precast momentum. Offsetting factors include declines in orders and backlog (notably in Infrastructure), some segment-specific softness in Steel Products and emerging freight/fuel cost pressures. Management reaffirmed guidance, highlighted commercial progress (especially Friction Management) and signaled continued focus on disciplined capital allocation.
Positive Updates
Consolidated Sales Growth
Net sales of $121.1M in Q1, up 23.9% year-over-year, driven primarily by Rail strength.
Negative Updates
Order Intake and Backlog Decline
Consolidated orders down 4.7% YoY and backlog down 11.7% YoY (backlog $209.6M, down $27.6M vs. prior year), driven largely by Infrastructure.
Read all updates
Q1-2026 Updates
Negative
Consolidated Sales Growth
Net sales of $121.1M in Q1, up 23.9% year-over-year, driven primarily by Rail strength.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance (to be revisited after Q2), noting trailing‑12‑month sales of $563.4M and adjusted EBITDA of $42.4M are already at or near the midpoints of the outlook. They cited Q1 results underpinning that view: net sales $121.1M (+23.9% YoY), EBITDA $5.2M (+183% YoY), consolidated gross profit +27.5% with gross margin up 60 bps to 21.2%, and SG&A $23.0M (19% of sales, improved 240 bps). Liquidity and capital metrics supporting the plan include net debt $55.7M (down $24.2M YoY), gross leverage ~1.2x (target 1.0–1.5x), consolidated backlog $209.6M (down $27.6M YoY) with a TTM book‑to‑bill of 0.95:1, Q1 capex $3.0M (2.4% of sales) with 2026 capex expected ~2.7% of sales, and a $28.7M buyback authorization over two years.

L. B. Foster Company Financial Statement Overview

Summary
Fundamentals are improving but not yet consistently durable. Income statement shows modest TTM revenue growth (+4.3%) and recovery to positive operating profit/net income, but net margins are thin (~2%) and results have been historically volatile. Balance sheet leverage is manageable (TTM debt-to-equity ~0.48), though debt has risen vs. 2024–2025 and ROE has swung materially. Cash flow is the bright spot with strong TTM operating cash flow (~$51M), solid free cash flow (~$35M), and strong FCF growth (77.6%), tempered by uneven cash conversion and prior negative periods.
Income Statement
63
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue563.36M540.01M530.76M543.74M497.50M513.62M
Gross Profit119.30M113.75M118.06M112.04M89.61M86.30M
EBITDA37.88M34.76M33.52M21.73M9.12M21.43M
Net Income11.15M7.54M42.95M1.46M-45.56M3.63M
Balance Sheet
Total Assets333.78M330.37M334.55M312.40M365.31M342.60M
Cash, Cash Equivalents and Short-Term Investments3.99M4.35M2.45M2.56M2.88M10.37M
Total Debt82.94M67.02M61.65M67.14M106.04M43.53M
Total Liabilities159.29M155.10M155.54M169.57M227.71M158.99M
Stockholders Equity173.62M175.28M178.32M142.11M137.18M183.09M
Cash Flow
Free Cash Flow35.05M25.20M12.84M32.44M-18.21M-5.68M
Operating Cash Flow51.32M35.62M22.63M36.96M-10.58M-1.06M
Investing Cash Flow-10.76M-10.37M-6.31M2.49M-56.42M17.82M
Financing Cash Flow-39.26M-23.54M-16.23M-39.30M60.24M-13.90M

L. B. Foster Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price30.00
Price Trends
50DMA
31.98
Positive
100DMA
30.90
Positive
200DMA
28.63
Positive
Market Momentum
MACD
2.25
Positive
RSI
59.17
Neutral
STOCH
18.79
Positive
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 30 is below the 20-day moving average (MA) of 36.70, below the 50-day MA of 31.98, and above the 200-day MA of 28.63, indicating a bullish trend. The MACD of 2.25 indicates Positive momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 18.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSTR.

L. B. Foster Company Risk Analysis

L. B. Foster Company disclosed 25 risk factors in its most recent earnings report. L. B. Foster Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

L. B. Foster Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$43.97B29.3410.94%0.46%9.59%10.69%
65
Neutral
$2.72B26.5024.50%4.34%-27.72%91.42%
64
Neutral
$1.49B34.099.51%2.71%-17.66%-26.36%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
$399.94M47.426.39%11.73%-68.10%
54
Neutral
$146.78M1.53-33.78%-4.92%
44
Neutral
$10.90M-59.72%14.38%91.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSTR
L. B. Foster Company
38.24
19.29
101.79%
RAIL
Freightcar America
7.67
0.57
8.03%
GBX
Greenbrier
48.00
4.36
9.99%
TRN
Trinity Industries
33.77
9.12
36.97%
WAB
Westinghouse Air Brake Technologies
259.13
59.31
29.68%
RVSN
Rail Vision Ltd.
4.97
-6.96
-58.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 09, 2026