L.B. Foster profit rises on higher gross margin
FSTR•Outlook
L.B. Foster reaffirmed its 2026 net sales guidance of $540 million to $580 million.
The company maintained its 2026 adjusted EBITDA outlook of $41 million to $46 million.
It said a robust project pipeline and backlog are expected to support growth in the second half of 2026.
Quarterly results
L.B. Foster, a U.S. rail and infrastructure solutions provider, said second-quarter sales fell 3.5% year over year while gross margin expanded.
Net income for the quarter rose 7.9% year over year, while adjusted EBITDA declined 4.7%.
The company also reduced debt by $33.6 million year over year, driven by strong operating cash flow.
Drivers of the quarter
- Margin expansion — The company said gross margin improved due to a favorable business mix in both its Rail and Infrastructure segments.
- Higher costs — Adjusted EBITDA declined because of increased personnel and incentive-based compensation costs.
- Rail segment shift — Rail segment profitability benefited from a focus on higher-margin, shorter-term U.K. projects, partially offset by exit costs.
