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L. B. Foster Company
(NASDAQ:FSTR)
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Rating:67Neutral
Price Target:
$46.00
▲(53.33% Upside)
Action:Reiterated
Date:05/23/26
The score is driven mainly by improving financial performance (especially stronger free cash flow) and a favorable technical trend (price above major moving averages with positive momentum). These positives are tempered by expensive valuation (high P/E) and demand/visibility risks highlighted on the earnings call (backlog decline and book-to-bill below 1), despite reaffirmed guidance and improved leverage.
Positive Factors
Cash generation
Consistent trailing‑12‑month operating cash flow and substantial free cash flow growth provide durable internal funding for capex, buybacks and debt reduction. Strong FCF supports financial flexibility across cycles and funds investments without sole reliance on external capital.
Negative Factors
Backlog & order trends
Declining backlog and a book‑to‑bill below 1 reduce near‑term revenue visibility and signal choppy project demand in Infrastructure. For a project‑driven business, sustained softer orders can pressure utilization and make revenue and margin planning less predictable over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent trailing‑12‑month operating cash flow and substantial free cash flow growth provide durable internal funding for capex, buybacks and debt reduction. Strong FCF supports financial flexibility across cycles and funds investments without sole reliance on external capital.
Read all positive factors
L. B. Foster Company Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyL. B. Foster Company (FSTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$450.66M
Dividend YieldN/A
Average Volume (3M)104.53K
Price to Earnings (P/E)39.4
Beta (1Y)1.46
Revenue Growth11.73%
EPS Growth-68.10%
CountryUS
Employees1,057
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)1.09
Shares Outstanding10,458,680
10 Day Avg. Volume85,621
30 Day Avg. Volume104,535
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)1.60
Price to Sales (P/S)0.52
P/FCF Ratio11.10
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit4.31
Enterprise Value/Ebitda13.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.55
Revenue Forecast (FY)$556.55M
L. B. Foster Company Business Overview & Revenue Model
Company Description
L.B. Foster Company is a global provider of specialized, engineered, and manufactured solutions tailored for building and infrastructure development. Its "Rail, Technologies, and Services" division supplies new and used rail to diverse clients, in...
How the Company Makes Money
L.B. Foster makes money primarily by selling manufactured and distributed products and by providing project-based services tied to rail and civil infrastructure spending. Revenue is generated across two reportable segments. (1) Rail, Technologies,...
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
Positive
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
Income Statement
63
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 563.36M | 540.01M | 530.76M | 543.74M | 497.50M | 513.62M |
| Gross Profit | 119.30M | 113.75M | 118.06M | 112.04M | 89.61M | 86.30M |
| EBITDA | 38.09M | 34.76M | 33.52M | 21.73M | 9.12M | 21.43M |
| Net Income | 11.15M | 7.54M | 42.95M | 1.46M | -45.56M | 3.63M |
Balance Sheet | ||||||
| Total Assets | 333.78M | 330.37M | 334.55M | 312.40M | 365.31M | 342.60M |
| Cash, Cash Equivalents and Short-Term Investments | 3.99M | 4.35M | 2.45M | 2.56M | 2.88M | 10.37M |
| Total Debt | 82.94M | 67.02M | 61.65M | 67.14M | 106.04M | 43.53M |
| Total Liabilities | 159.29M | 155.10M | 155.54M | 169.57M | 227.71M | 158.99M |
| Stockholders Equity | 173.62M | 175.28M | 178.32M | 142.11M | 137.18M | 183.09M |
Cash Flow | ||||||
| Free Cash Flow | 35.05M | 25.20M | 12.84M | 32.44M | -18.21M | -5.68M |
| Operating Cash Flow | 51.32M | 35.62M | 22.63M | 36.96M | -10.58M | -1.06M |
| Investing Cash Flow | -10.76M | -10.37M | -6.31M | 2.49M | -56.42M | 17.82M |
| Financing Cash Flow | -39.26M | -23.54M | -16.23M | -39.30M | 60.24M | -13.90M |
L. B. Foster Company Technical Analysis
Neutral
30.00
Price Trends
39.69
Positive
34.68
Positive
31.14
Positive
Market Momentum
1.32
Positive
53.31
Neutral
57.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSTR, the sentiment is Neutral. The current price of 30 is below the 20-day moving average (MA) of 42.91, below the 50-day MA of 39.69, and below the 200-day MA of 31.14, indicating a neutral trend. The MACD of 1.32 indicates Positive momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 57.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $44.49B | 37.03 | 10.94% | 0.46% | 9.59% | 10.69% | |
67 Neutral | $450.66M | 39.39 | 6.39% | ― | 11.73% | -68.10% | |
64 Neutral | $2.71B | 10.70 | 24.50% | 4.34% | -27.72% | 91.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $1.47B | 13.74 | 9.51% | 2.71% | -25.62% | -52.74% | |
57 Neutral | $178.36M | 10.18 | -33.78% | ― | -4.92% | ― | |
44 Neutral | $10.45M | -0.60 | -59.72% | ― | 14.38% | 91.00% |
* Industrials Sector Average
FSTR
L. B. Foster Company
42.76
18.47
76.04%
RAIL
Freightcar America
8.97
0.03
0.34%
GBX
Greenbrier
47.54
-7.25
-13.24%
TRN
Trinity Industries
34.12
6.28
22.56%
WAB
Westinghouse Air Brake Technologies
262.19
48.87
22.91%
RVSN
Rail Vision Ltd.
4.77
-5.45
-53.37%
L. B. Foster Company Corporate Events
Executive/Board ChangesShareholder Meetings
L.B. Foster Shareholders Reelect Board, Back Governance Measures
Positive
May 22, 2026
At its annual meeting of shareholders held on May 21, 2026, L.B. Foster Company’s investors elected all six director nominees—Raymond T. Betler, John F. Kasel, John E. Kunz, David J. Meyer, Diane B. Owen, and Bruce E. Thompson—to...
Business Operations and StrategyExecutive/Board Changes
L.B. Foster Announces Key Executive Leadership Transitions
Positive
May 21, 2026
On May 21, 2026, L.B. Foster Company announced that its board had approved a series of executive promotions effective June 1, 2026, reshaping its senior leadership team to support strategy execution and shareholder returns. Executive Vice Presiden...
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.