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L. B. Foster Company (FSTR) AI Stock Analysis
L. B. Foster Company
(NASDAQ:FSTR)
FSTR scores moderately, led by improving financial footing (stronger recent free cash flow and reduced leverage) and a supportive earnings outlook with reaffirmed guidance. The score is held back by volatile profitability/top-line signals and a relatively rich valuation (P/E ~33) for a business with backlog/book-to-bill and project-timing variability. Technical indicators are mixed, adding limited near-term confirmation.
L. B. Foster Company Key Performance Indicators (KPIs)
Backlog by SegmentMeasures the value of booked but unfilled orders for each segment, giving a view of near-term revenue visibility and demand strength. A rising backlog for L. B. Foster points to steady future work in specific markets; a shrinking backlog can signal cooling demand or execution issues that may pressure upcoming sales.
The company’s backlog composition shifted materially after early 2023: Precast and Steel backlog essentially disappear from segment reporting while Infrastructure becomes the repository for large project work — but Infrastructure backlog has softened due to a notable order cancellation and lighter bridge/precast orders. By contrast Rail backlog rebuilt strongly into 2025 on Friction Management and late-year bookings, which underpins management’s constructive 2026 guidance; still, UK restructuring, precast start‑up costs and typical seasonality leave near‑term margin and early‑year cash risks despite improving order momentum.
The FlyL. B. Foster Company (FSTR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $377.13M
- Dividend Yield
- ―
- Average Volume (3M)
- 53.78K
- Price to Earnings (P/E)
- 32.9
- Beta (1Y)
- 1.35
- Revenue Growth
- 10.13%
- EPS Growth
- -67.50%
- Country
- US
- Employees
- 1,191
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Railroads
L. B. Foster Company Business Overview & Revenue Model
Company Description
L.B. Foster Company is a global provider of specialized, engineered, and manufactured solutions tailored for building and infrastructure development. Its "Rail, Technologies, and Services" division supplies new and used rail to diverse clients, inclu...
How the Company Makes Money
L. B. Foster makes money primarily by selling manufactured and distributed products and by providing related services to customers in rail and infrastructure end markets. Key revenue streams include: (1) Rail Products and Services: revenue from the s...
L. B. Foster Company Earnings Call Summary
The call emphasized strong balance sheet improvement, exceptional Q2 cash generation, meaningful year-to-date revenue and EBITDA growth, and margin expansion, offset by short-term quarterly revenue softness, higher SG&A/incentive costs, exit-related charges, and lumpiness in backlog driven by a canceled large order and softer Precast activity. Overall, management maintained guidance, highlighted liquidity and buyback optionality, and pointed to solid demand in several growth platforms (Global Friction Management, TS&S, Precast) and a sizable multi-year U.K. order that supports near-term execution.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management reaffirmed full-year guidance and highlighted a seasonal sales/EBITDA concentration in Q2–Q3, noting they expect to convert at least 80% of the $246.1M backlog this year; financial targets include free cash flow of $15M–$25M (midpoint $20M), capital spending of ~2.7% of sales (about $15M at the midpoint), and maintaining gross leverage in the 1.0x–1.5x range (gross leverage was 1.0x at quarter end with net debt of $42.2M); they also cited ~$71M of federal NOLs to limit cash taxes, $28.7M remaining buyback capacity, and said strong Q2 cash generation ($17.9M) and YTD results (sales $259.7M, adjusted EBITDA $16.8M) underpin the outlook.
L. B. Foster Company Financial Statement Overview
Summary
Financial quality is improving but still uneven. Recent cash generation is a standout (solid OCF/FCF in 2023–2025 and stronger again in TTM 2026), and leverage has moderated versus 2022 (debt-to-equity ~0.38–0.40). Offsetting this, profitability and growth are volatile, with TTM 2026 showing very low net margin and an extreme reported revenue decline, indicating cyclical demand and/or noisy comparability.
Income Statement
56NeutralBalance Sheet
67PositiveCash Flow
74Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 558.35M | 540.01M | 530.76M | 543.74M | 497.50M | 513.62M |
| Gross Profit | 119.27M | 113.75M | 118.06M | 112.04M | 89.61M | 86.30M |
| EBITDA | 36.31M | 34.76M | 33.52M | 21.73M | 9.12M | 21.43M |
| Net Income | 11.38M | 7.54M | 42.95M | 1.46M | -45.56M | 3.63M |
Balance Sheet | ||||||
| Total Assets | 334.15M | 330.37M | 334.55M | 312.40M | 365.31M | 342.60M |
| Cash, Cash Equivalents and Short-Term Investments | 5.78M | 4.35M | 2.45M | 2.56M | 2.88M | 10.37M |
| Total Debt | 70.32M | 67.02M | 61.65M | 67.14M | 106.04M | 43.53M |
| Total Liabilities | 155.25M | 155.10M | 155.54M | 169.57M | 227.71M | 158.99M |
| Stockholders Equity | 178.02M | 175.28M | 178.32M | 142.11M | 137.18M | 183.09M |
Cash Flow | ||||||
| Free Cash Flow | 41.62M | 25.20M | 12.84M | 32.44M | -18.21M | -5.68M |
| Operating Cash Flow | 58.77M | 35.62M | 22.63M | 36.96M | -10.58M | -1.06M |
| Investing Cash Flow | -11.70M | -10.37M | -6.31M | 2.49M | -56.42M | 17.82M |
| Financing Cash Flow | -45.40M | -23.54M | -16.23M | -39.30M | 60.24M | -13.90M |
L. B. Foster Company Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSTR, the sentiment is Neutral. The current price of 35.85 is above the 20-day moving average (MA) of 35.46, below the 50-day MA of 36.64, and below the 200-day MA of 35.86, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 76.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSTR.
L. B. Foster Company Risk Analysis
L. B. Foster Company disclosed 25 risk factors in its most recent earnings report. L. B. Foster Company reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksL. B. Foster Company Peers Comparison
Overall Rating
WAB74Outperform
TRN63Neutral- FSTR62Neutral
GBX59Neutral
RAIL50Neutral
RVSN37Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| WAB | 74Outperform | $46.92B | 34.65 | 12.17% | 0.42% | 13.25% | 16.83% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| TRN | 63Neutral | $2.30B | 7.12 | 29.87% | 4.21% | -2.38% | 248.96% |
| FSTR | 62Neutral | $377.13M | 32.89 | 6.49% | ― | 10.13% | -67.50% |
| GBX | 59Neutral | $1.21B | 15.30 | 4.73% | 3.38% | -23.97% | -60.98% |
| RAIL | 50Neutral | $136.74M | -10.43 | 21.95% | ― | -0.50% | 47.71% |
| RVSN | 37Underperform | $6.03M | -0.45 | -70.18% | ― | 191.88% | 51.03% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FSTR | L. B. Foster Company | 35.85 | 8.91 | 33.07% | |
| RAIL | Freightcar America | 4.17 | -4.46 | -51.71% | |
| GBX | Greenbrier Companies | 39.01 | -1.68 | -4.14% | |
| TRN | Trinity Industries, Inc. | 29.46 | 3.89 | 15.19% | |
| WAB | Westinghouse Air Brake Technologies Corporation | 279.60 | 75.63 | 37.08% | |
| RVSN | Rail Vision Ltd. | 2.75 | -10.02 | -78.47% |
L. B. Foster Company Corporate Events
L.B. Foster expands wastewater footprint with Dulworth acquisition
PositiveL.B. Foster Company’s wholly owned subsidiary CXT Incorporated has acquired the operating assets of Dulworth Enterprises, Inc., a privately held business based in Rice, Texas that focuses on residential wastewater precast products and Aeris aer...
L.B. Foster announces rail leadership succession and transition
PositiveOn July 30, 2026, L.B. Foster Company announced executive changes aimed at supporting its rail and infrastructure strategy, including leadership succession in its Rail segment. Effective August 1, 2026, Vice President – Global Friction Manageme...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 30, 2026