L.B. Foster Q3 sales rise on segment growth
FSTR•L.B. Foster's third-quarter sales rose 21.5% year over year to $168 million, while gross margin fell to 20.5%. The company forecast 2026 net sales of $570 million to $590 million and adjusted EBITDA of $42 million to $45 million.
1. Quarterly results
L.B. Foster said third-quarter sales increased 21.5% year over year to $168 million, above the $152.19 million consensus estimate. Net income rose 55.4%, driven by higher operating income and lower interest expense.
2. Margins and outlook
Gross margin declined to 20.5%, which the company attributed to increased sales in lower-margin Rail Distribution and UK businesses. Higher volumes across its Rail and Infrastructure segments drove sales growth, while selling and administrative expenses fell as a percentage of sales. The company completed its acquisition of Dulworth's wastewater precast and Aeris aerobic treatment systems business, and expects 2026 net sales of $570 million to $590 million and adjusted EBITDA of $42 million to $45 million.
