Julio Romero

Chris Sakai

John Bair

Justin Bergner

Liam Burke

Joichi Sakai

- L.B. Foster has achieved a **540 basis point improvement** in margin since 2021 and reported a **2% organic sales increase** year-over-year in the most recent quarter, marking the first such increase in five quarters.  **[352825_2147197_1]** **[352825_2147197_3]**  The company's EBITDA has grown from **3.6% of sales ($19 million)** in 2021 to a trailing 12-month **6.1% of sales ($34 million)**, with a midpoint guidance of **$42 million** for the current year.  **[352825_2147197_3]** 
- The company anticipates strong growth in the second half of 2025, projecting **43% backlog growth** and **14% organic growth**.  **[352825_2147197_5]**  This growth is expected to be driven by increased government funding, including **30% of IIJA money spent** and significant **CRISI Grant funding**  **[352825_2147197_5]** **[352825_2147197_8]** , as well as potential railroad industry consolidation.  **[352825_2147197_7]** 
- L.B. Foster is actively executing a **$40 million share repurchase program** and aims to reduce its debt/EBITDA leverage from **2.2x** to a target range of **1x to 1.5x**.  **[352825_2147197_3]** **[352825_2147197_4]** **[352825_2147197_5]**  The company is currently trading at approximately **8x forward EBITDA** with a cash flow yield of around **7%**.  **[352825_2147197_4]**

L.B. Foster Highlights Margin Improvement and Growth Drivers at Small Cap Conference

- **FSTR reported strong Q2 2025 results**, with **net sales up 2.0% year-over-year to $143.6M** and Adjusted EBITDA increasing by **51.4% year-over-year**.  **[352825_2147178:2]**  The company's backlog reached **$270M**, an **8.1% increase year-over-year** and **13.8% sequentially**, with a **Q2 TTM book-to-bill ratio of 1.04:1.00**.  **[352825_2147178:2]** **[352825_2147178:7]** 
- The company reaffirmed its **2025 guidance**, projecting **net sales between $535M and $555M**, Adjusted EBITDA between **$40M and $44M**, and Free Cash Flow between **$15M and $25M**.  **[352825_2147178:2]**  Management expects **accelerated growth and profitability expansion in H2 2025**, with Adjusted EBITDA growth of **~43%** and organic sales growth of **~14%**.  **[352825_2147178:10]** 
- FSTR's strategic transformation has led to **structural improvement in profitability**, with TTM Q2 2025 gross margin at **22.1%** and Adjusted EBITDA margin at **6.8%**.  **[352825_2147178:4]**  This transformation involved divesting lower-margin businesses and acquiring higher-margin ones.  **[352825_2147178:3]** 
- The company continues its focus on **diligent debt management and shareholder returns**, with **net debt down $6.6M year-over-year to $77.4M** in Q2 2025.  **[352825_2147178:2]**  FSTR has **$36.7M remaining** under its share repurchase authorization through February 2028.  **[352825_2147178:6]**

FSTR Reports Strong Q2 2025 Results and Reaffirms Full-Year Guidance

- L. B. Foster Co. (FSTR) reported a **strong Q2 2025**, achieving **2% organic top-line growth** overall and a **51.4% increase in EBITDA** year-over-year, driven by **22.4% growth in its infrastructure business**.  **[352825_tx_375194_4]** 
- The company is undergoing a strategic transformation, shifting towards technology innovation, which has resulted in a **540 basis point improvement in profit margin** between 2021 and 2024 and significant growth in segments like total track monitoring (**273% growth**) and precast (**119% growth**) since 2021.  **[352825_tx_375194_1]** **[352825_tx_375194_3]** **[352825_tx_375194_11]** 
- Management anticipates continued strong performance in the second half of 2025, projecting **$41 million in free cash flow**, **43% adjusted EBITDA growth**, and **14% organic sales growth**, supported by a **36.8% increase in backlog**.  **[352825_tx_375194_5]** **[352825_tx_375194_7]** **[352825_tx_375194_8]** 
- L. B. Foster is actively returning capital to shareholders through a **$40 million share buyback program** and aims to maintain a leverage ratio between **1 and 1.5 times**.  **[352825_tx_375194_5]** **[352825_tx_375194_7]**

FOSTER L B (FSTR)