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L. B. Foster Company (FSTR) Q3 2026 Earnings Report
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FSTR Q3 2026 EPS Results
- Actual EPS
- $0.64
- Consensus EPS
- $0.60
- Beat/Miss
- Beat by +$0.04
- One Year Ago EPS
- $0.40
FSTR Q3 2026 Revenue Results
- Actual Revenue
- $168.00M
- Expected Revenue
- $152.19M
- Beat/Miss
- Beat by +$15.80M
- YoY Revenue Growth
- +21.48%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- Before Open
- Conference Call
- Wednesday, November 4, 2026
FSTR Upcoming Earnings
L. B. Foster Company's next earnings date is estimated for March 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
FSTR Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported substantial revenue, EBITDA, order, cash flow, and debt-reduction gains; raised sales and free cash flow guidance; highlighted favorable end markets and growth opportunities; and completed a strategic Dulworth acquisition. The main challenges were gross-margin pressure from mix, higher SG&A costs, several project-timing-related order and sales declines, and lower backlog in certain areas.
Company Guidance
For 2026, L.B. Foster now expects sales of approximately $570 million-$590 million and free cash flow of $20 million-$28 million, with Adjusted EBITDA expected between $42 million-$45 million; capital spending is expected to be approximately 2%-2.2% of sales in 2026. The Dulworth-based business is expected to generate revenue of approximately $18 million per annum and provide an EBITDA contribution, including synergy benefits, of approximately $6.5 million-$7.5 million after integration activities estimated to take 12-18 months, with guidance assuming no material impact from the acquisition in Q4.
- Strong Third-Quarter Revenue and Adjusted EBITDA GrowthThird-quarter net sales were $168 million, up 21.5% year over year, driven by higher volumes in both segments. Adjusted EBITDA increased 15.1% to $13.1 million, driven by higher sales volumes and continued focus on profitability.
- Robust Cash Generation and Debt ReductionThird-quarter operating cash flow was $23.6 million, supported by improved operating results and lower working capital. Debt declined to $28.7 million, the lowest level in more than a decade, while net debt ended the quarter at $21.4 million, down $20.8 million from the second quarter.
- Improved Leverage and Tax PositionThe gross leverage ratio improved to 0.6 times from 1.6 times a year ago, reflecting higher earnings and continued debt reduction. The company also has approximately $64 million in federal NOLs available to minimize cash taxes for the next several years.
- Healthy Orders and Backlog VisibilityConsolidated orders increased $41 million, or 35.7%, year over year. Excluding the prior-year $19 million Summit order cancellation, new orders still improved 16.7%. Backlog was $234.7 million at quarter end, providing visibility for the remainder of the year.
- Rail Technologies and Services Segment GrowthThird-quarter Rail, Technologies, and Services sales increased 32.3% to $102.9 million. Rail Products sales rose $24.4 million, or 54.6%, due to strong customer demand, while Technology Services and Solutions sales increased $2.7 million, or 22.7%, due to short-term project work in the U.K. Global Friction Management sales were down 9% in the quarter but increased 13.8% year to date.
- Infrastructure Solutions GrowthInfrastructure Solutions sales increased $4.6 million, or 7.6%, year over year. Precast Concrete sales rose $3.9 million, or 9%, reflecting continued demand, while Steel Products sales increased $0.7 million, or 4.1%, primarily due to higher Protective Coatings volumes. Infrastructure gross profit increased $0.9 million.
- Year-to-Date Sales and EBITDA ExpansionYear-to-date sales increased 12.7% to $427.7 million, with Rail sales up 20.2% and Infrastructure sales up 3.6%. Year-to-date Adjusted EBITDA increased 17.6% to $29.9 million, driven by higher volumes and gross profit improvement.
- Free Cash Flow Guidance RaisedThe company raised full-year sales and free cash flow guidance and narrowed its Adjusted EBITDA range. It now expects sales of approximately $570 million-$590 million, free cash flow of $20 million-$28 million, and Adjusted EBITDA of $42 million-$45 million.
- Dulworth Enterprises Acquisition Expands Precast PlatformThe company completed its acquisition of Dulworth Enterprises on October 28. The Rice, Texas-based business specializes in residential Precast Concrete wastewater products and the Aeris aerobic treatment system. The acquisition expands manufacturing capabilities, adds proprietary technology, strengthens the company's presence in the Southeast, and complements existing offerings.
- Expected Dulworth Revenue and EBITDA ContributionThe Dulworth-based business is expected to generate approximately $18 million of annual revenue and an EBITDA contribution of approximately $6.5 million-$7.5 million, including synergy benefits, after integration activities estimated to take 12-18 months.
- Favorable End-Market Conditions and Growth PipelineManagement reported stable rail market conditions supported by federal infrastructure, maintenance, and safety programs. Infrastructure end-market developments remain favorable, with a healthy pipeline of project opportunities and bidding activity. Management also cited attractive Precast Concrete growth opportunities, active project pipelines, continued customer investment, and strong bidding activity.
- Continued Investment in Growth PlatformsThe company remains committed to investing in its growth platforms and organic growth initiatives. Capital spending is expected to be approximately 2%-2.2% of sales in 2026, and share repurchases remain part of the capital allocation strategy, with $28.7 million remaining under the buyback authorization through February 2028.
- International Growth Opportunity in Global Friction ManagementManagement said Global Friction Management is seeing growth opportunities outside North America, particularly in Western Europe, with initial benefits beginning in the third quarter and expected to continue into next year.
- Precast Growth With Limited Data Center ExposureManagement said Precast Concrete is experiencing strong growth in its buildings business and in regions including the South and Southeast. Less than 2% of overall company sales are in data centers, with the heaviest exposure in Precast Concrete.
FSTR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 09, 2027 | 2026 (Q4) | 0.59- | 0.22 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 0.600.64 | 0.4 | 60.00% (+0.24) | |
| Aug 10, 2026 | 2026 (Q2) | 0.410.29 | 0.27 | 7.41% (+0.02) | |
| May 04, 2026 | 2026 (Q1) | -0.210.14 | -0.2 | 170.00% (+0.34) | |
| Mar 03, 2026 | 2025 (Q4) | 0.660.22 | -0.02 | 1200.00% (+0.24) | |
| Nov 03, 2025 | 2025 (Q3) | 0.610.40 | 3.27 | -87.77% (-2.87) | |
| Aug 11, 2025 | 2025 (Q2) | 0.500.27 | 0.26 | 3.85% (+0.01) | |
| May 06, 2025 | 2025 (Q1) | 0.04-0.20 | 0.4 | -150.00% (-0.60) | |
| Mar 04, 2025 | 2024 (Q4) | 0.28-0.02 | -0.04 | 50.00% (+0.02) | |
| Nov 07, 2024 | 2024 (Q3) | 0.493.27 | 0.05 | 6440.00% (+3.22) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
