L.B. Foster Reports Modest Sales Growth and Strong Cash Flow

L. B. Foster Company ( (FSTR) ) has released its Q3 earnings. Here is a breakdown of the information L. B. Foster Company presented to its investors.

L.B. Foster Company is a global technology solutions provider specializing in products and services for the rail and infrastructure markets, with operations spanning North America, South America, Europe, and Asia.

In its fiscal third quarter of 2025, L.B. Foster reported modest sales growth and robust cash generation, with a 0.6% increase in sales compared to the previous year. The company highlighted a significant increase in its backlog, particularly in the Rail segment, which saw a 58.2% rise.

Key financial metrics for the quarter included a 13.3% increase in operating income and a 17.9% rise in net cash provided by operating activities. However, net income dropped significantly due to a favorable tax valuation adjustment in the prior year. The company’s free cash flow improved by 21.7%, and total debt was reduced by 14.3%.

Looking ahead, L.B. Foster anticipates strong performance in the fourth quarter, driven by increased demand and backlog in the Rail segment. The company expects a 115% increase in Adjusted EBITDA and a 25% growth in sales, continuing its strategic focus on cost management and leveraging its cash generation capabilities.

Overall, L.B. Foster remains optimistic about its financial outlook, projecting continued sales momentum and profitability improvements into 2026, supported by a strong backlog and strategic execution in both its Rail and Infrastructure segments.