Foster Q1 2022 Earnings Report
Key Takeaways
L.B. Foster reported a net loss of $1.6 million for Q1 2022, with diluted loss per share at $0.15. Despite a decrease in net sales compared to the previous year, new orders increased by 17.7% and backlog grew by 16.4% sequentially. The company faced challenges including raw material inflation and supply chain disruptions, impacting margins.
New orders increased by 17.7% year-over-year, totaling $135.4 million.
Backlog increased to $244.6 million, up 1.9% compared to the prior year quarter.
Net sales decreased by 14.9% year-over-year to $98.8 million, but increased by 3.7% excluding the divested Piling division.
Net loss was $1.6 million, or $0.15 per diluted share, an increased loss of $0.03 per diluted share from the prior year quarter.
Foster
Foster
Forward Guidance
The Company expects sequential revenue growth of at least 25% and an improving revenue outlook as the year progresses, assuming supply chains do not deteriorate further.
Positive Outlook
- Strong order backlog should translate into sequential revenue growth.
- Improving revenue outlook as the year progresses.
- Benefits from infrastructure investment activity, including funding from the U.S. Infrastructure Investment and Jobs Act (IIJA).
- Anticipated increase in quotations and orders as IIJA-related funding is processed.
- Expectation of improving trend in margins as the year progresses due to pricing actions and improvements in order fulfillment.
Challenges Ahead
- Operating environment remains challenging.
- Supply chain and order fulfillment challenges persist.
- Margins continue to be impacted by inflation in key raw materials, particularly steel.
- Overall quotation activity and demand in rail markets still below pre-pandemic levels.
- Potential persistence of disruptions in raw materials, labor, supply chains, and COVID-19 related effects throughout 2022 and possibly longer.