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L. B. Foster Company
(NASDAQ:FSTR)
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Rating:63Neutral
Price Target:
$42.00
▼(-0.94% Downside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by improving fundamentals—especially strong recent cash generation and reduced leverage—supported by a constructive earnings call with reaffirmed guidance. Offsetting that, earnings/revenue volatility and weaker backlog indicators reduce confidence in durability, while technicals are bearish and valuation (P/E ~35.7 with no dividend yield provided) offers limited margin of safety.
Positive Factors
Improving Cash Generation and Lower Leverage
Stronger operating cash flow and substantially lower leverage improve financial resilience, reduce interest and refinancing risk, and give L.B. Foster greater flexibility to fund operations, investment, and shareholder returns through infrastructure cycles.
Negative Factors
Volatile Profitability and Weak Trailing Margin
Uneven earnings and a very thin trailing net margin indicate that profitability remains sensitive to project timing, mix, and operating costs. This limits confidence that recent improvements represent a durable earnings base through a full infrastructure cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Cash Generation and Lower Leverage
Stronger operating cash flow and substantially lower leverage improve financial resilience, reduce interest and refinancing risk, and give L.B. Foster greater flexibility to fund operations, investment, and shareholder returns through infrastructure cycles.
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
$400.59M
Dividend YieldN/A
Average Volume (3M)91.96K
Price to Earnings (P/E)34.9
Beta (1Y)1.40
Revenue Growth10.13%
EPS Growth-67.50%
CountryUS
Employees1,191
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)1.09
Shares Outstanding10,519,763
10 Day Avg. Volume70,140
30 Day Avg. Volume91,957
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.74
Revenue Forecast (FY)$553.17M
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:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call emphasized strong balance sheet improvement, exceptional Q2 cash generation, meaningful year-to-date revenue and EBITDA growth, and margin expansion, offset by short-term quarterly revenue softness, higher SG&A/incentive costs, exit-related charges, and lumpiness in backlog driven by a canceled large order and softer Precast activity. Overall, management maintained guidance, highlighted liquidity and buyback optionality, and pointed to solid demand in several growth platforms (Global Friction Management, TS&S, Precast) and a sizable multi-year U.K. order that supports near-term execution.Positive Updates
Strong Quarterly Cash Generation
Generated $17.9 million of operating cash flow in Q2 — the highest Q2 level since 2017 — an improvement of $7.5 million versus prior year; year-to-date operating cash flow improved by $23.2 million versus prior year.
Negative Updates
Q2 Revenue Decline
Net sales for Q2 were $138.6 million, down 3.5% year-over-year, driven primarily by order timing in the Rail Products business (Rail sales down 5.2% to $72 million). Management attributes some of the decline to orders pulled into Q1.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Cash Generation
Generated $17.9 million of operating cash flow in Q2 — the highest Q2 level since 2017 — an improvement of $7.5 million versus prior year; year-to-date operating cash flow improved by $23.2 million versus prior year.
Read all positive updates
Company Guidance
Management reaffirmed full-year guidance and highlighted a seasonal sales/EBITDA concentration in Q2–Q3, noting they expect to convert at least 80% of the $246.1M backlog this year; financial targets include free cash flow of $15M–$25M (midpoint $20M), capital spending of ~2.7% of sales (about $15M at the midpoint), and maintaining gross leverage in the 1.0x–1.5x range (gross leverage was 1.0x at quarter end with net debt of $42.2M); they also cited ~$71M of federal NOLs to limit cash taxes, $28.7M remaining buyback capacity, and said strong Q2 cash generation ($17.9M) and YTD results (sales $259.7M, adjusted EBITDA $16.8M) underpin the outlook.L. B. Foster Company Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 558.35M | 540.01M | 530.76M | 543.74M | 497.50M | 513.62M |
| Gross Profit | 119.27M | 113.75M | 118.06M | 112.04M | 89.61M | 86.30M |
| EBITDA | 33.56M | 34.76M | 33.52M | 21.73M | 9.12M | 21.43M |
| Net Income | 11.38M | 7.54M | 42.95M | 1.46M | -45.56M | 3.63M |
Balance Sheet | ||||||
| Total Assets | 334.15M | 330.37M | 334.55M | 312.40M | 365.31M | 342.60M |
| Cash, Cash Equivalents and Short-Term Investments | 5.78M | 4.35M | 2.45M | 2.56M | 2.88M | 10.37M |
| Total Debt | 70.32M | 67.02M | 61.65M | 67.14M | 106.04M | 43.53M |
| Total Liabilities | 155.25M | 155.10M | 155.54M | 169.57M | 227.71M | 158.99M |
| Stockholders Equity | 178.02M | 175.28M | 178.32M | 142.11M | 137.18M | 183.09M |
Cash Flow | ||||||
| Free Cash Flow | 41.62M | 25.20M | 12.84M | 32.44M | -18.21M | -5.68M |
| Operating Cash Flow | 58.77M | 35.62M | 22.63M | 36.96M | -10.58M | -1.06M |
| Investing Cash Flow | -11.70M | -10.37M | -6.31M | 2.49M | -56.42M | 17.82M |
| Financing Cash Flow | -45.40M | -23.54M | -16.23M | -39.30M | 60.24M | -13.90M |
L. B. Foster Company Technical Analysis
Negative
42.40
Price Trends
41.65
Negative
38.60
Negative
33.61
Positive
Market Momentum
-1.11
Positive
37.91
Neutral
24.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSTR, the sentiment is Negative. The current price of 42.4 is above the 20-day moving average (MA) of 39.91, above the 50-day MA of 41.65, and above the 200-day MA of 33.61, indicating a neutral trend. The MACD of -1.11 indicates Positive momentum. The RSI at 37.91 is Neutral, neither overbought nor oversold. The STOCH value of 24.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $50.26B | 39.94 | 11.36% | 0.37% | 13.43% | 10.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $400.59M | 34.94 | 6.49% | ― | 10.13% | -67.50% | |
59 Neutral | $1.42B | 13.31 | 6.57% | 2.53% | -25.64% | -52.74% | |
55 Neutral | $2.37B | 6.93 | 31.93% | 3.29% | -18.95% | 260.48% | |
54 Neutral | $241.67M | -18.43 | 21.95% | ― | -0.50% | 47.71% | |
47 Neutral | $11.41M | -0.84 | -51.59% | ― | 14.38% | 91.00% |
* Industrials Sector Average
FSTR
L. B. Foster Company
38.08
14.09
58.73%
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8.94%
WAB
Westinghouse Air Brake Technologies
297.57
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RVSN
Rail Vision Ltd.
5.21
-6.27
-54.63%
L. B. Foster Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
L.B. Foster announces rail leadership succession and transition
Positive
Jul 30, 2026
On July 30, 2026, L.B. Foster Company announced executive changes aimed at supporting its rail and infrastructure strategy, including leadership succession in its Rail segment. Effective August 1, 2026, Vice President – Global Friction Manag...
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.