L.B. Foster profit rises on higher gross margin

L B Foster

10/08/2026 12:39

Overview
US rail and infrastructure solutions provider's Q2 sales fell 3.5% yr/yr, gross margin expanded
Net income for Q2 rose 7.9% yr/yr, adjusted EBITDA declined 4.7%
Company reduced debt by $33.6 mln yr/yr, driven by strong operating cash flow

Outlook
L.B. Foster reaffirms 2026 net sales guidance of $540 mln to $580 mln
Company maintains 2026 adjusted EBITDA outlook of $41 mln to $46 mln
Company expects robust project pipeline and backlog to support growth in H2 2026

Result Drivers
MARGIN EXPANSION - Co said gross margin improved due to favorable business mix in both Rail and Infrastructure segments
HIGHER COSTS - Adjusted EBITDA declined due to increased personnel and incentive-based compensation costs
RAIL SEGMENT SHIFT - Rail segment profitability benefited from focus on higher-margin, shorter-term UK projects, partially offset by exit costs

Company press release: ID:nGNX9pYx3v

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$138.55 mln
$134.49 mln (2 Analysts)
Q2 EPS
 
$0.29
 
Q2 Gross Margin
 
22.30%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for L B Foster Co is $34.00, about 17.6% below its August 7 closing price of $41.27
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
Aug 10 - Germany's GEA Group Q2 revenue rises, lifts revenue growth outlook
Aug 7 - Canada's Taiga Building Products Q2 sales fall on lower commodity prices
Aug 7 - Expion360 Q2 gross margin rises as product mix shifts to higher-margin items

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)