L.B. Foster (NASDAQ:FSTR) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

L.B. Foster (NASDAQ:FSTR) posted its earnings results on Wednesday. The basic materials company reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.04, FiscalAI reports. L.B. Foster had a net margin of 2.35% and a return on equity of 8.96%. The firm had revenue of $168.00 million during the quarter, compared to analysts’ expectations of $152.19 million.

Here are the key takeaways from L.B. Foster’s conference call:

• Third-quarter sales rose 21.5% to $168 million, and Adjusted EBITDA increased 15.1% to $13.1 million, supported by higher volumes in both segments. Operating cash flow was $23.6 million, helping reduce quarter-end debt to $28.7 million.
• L.B. Foster raised its 2026 sales guidance to $570 million–$590 million and free cash flow guidance to $20 million–$28 million, while narrowing its Adjusted EBITDA range to $42 million–$45 million.
• Consolidated gross margin declined 200 basis points to 20.5%, primarily because of a higher mix of lower-margin Rail Distribution and U.K. sales. Backlog was $234.7 million, down 5.1% year over year, though management cited healthy project activity and demand.
• The company completed its acquisition of Dulworth Enterprises, expanding its precast wastewater business and geographic reach. Dulworth is expected to contribute about $18 million in annual revenue and $6.5 million–$7.5 million in Adjusted EBITDA, including synergies, after integration estimated to take 12–18 months; management expects no material fourth-quarter impact.

L.B. Foster Stock Performance

FSTR opened at $39.07 on Friday. L.B. Foster has a twelve month low of $25.66 and a twelve month high of $45.81. The firm has a market capitalization of $411.02 million, a PE ratio of 30.29, a PEG ratio of 0.64 and a beta of 1.17. The company has a current ratio of 2.00, a quick ratio of 1.15 and a debt-to-equity ratio of 0.27. The firm’s 50-day moving average price is $36.69 and its 200 day moving average price is $36.00.

L.B. Foster News Roundup

Here are the key news stories impacting L.B. Foster this week:

• Positive Sentiment: Third-quarter EPS of $0.64 topped the $0.60 consensus, while revenue of $168 million exceeded estimates of about $152 million. The company also raised its full-year sales outlook and reported debt reduction. L.B. Foster Q3 Earnings Climb 55%; Raises FY26 Sales Outlook
• Positive Sentiment: L.B. Foster’s $52.2 million Dulworth acquisition expands its precast-concrete and residential wastewater businesses, offering additional growth opportunities. FSTR Expands Precast Concrete Business With Dulworth Acquisition
• Neutral Sentiment: Sidoti raised its FY2026 EPS estimate to $1.84 from $1.79 and FY2028 to $2.70 from $2.54, but the revisions were mixed across individual quarters. L.B. Foster analyst estimates
• Negative Sentiment: Sidoti lowered its FY2027 EPS forecast to $1.99 from $2.17, including cuts to its Q2 and Q3 2027 estimates. The near-term earnings downgrades may temper optimism despite the strong Q3 and higher FY2028 forecast. L.B. Foster analyst estimates

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Weiss Ratings cut shares of L.B. Foster from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, October 8th. Wall Street Zen lowered shares of L.B. Foster from a “strong-buy” rating to a “hold” rating in a research note on Saturday, August 15th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $32.00.

L.B. Foster Company Profile

L.B. Foster Company (NASDAQ: FSTR) is a Pittsburgh-based manufacturer and supplier of products, technologies and services used in transportation and industrial infrastructure. The company serves customers primarily in the rail, construction and energy markets, providing solutions designed to support the construction, maintenance and operation of critical infrastructure.

In its rail business, L.B. Foster offers rail and track products such as rail joints, fastening systems, track components and related maintenance solutions.