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Jun 30, 2023
Foster Q2 2023 Earnings Report
L.B. Foster's second quarter operating results showed increasing momentum, with profitability guidance increased.
Key Takeaways
L.B. Foster reported a strong second quarter with net sales up 12.6% year-over-year and gross profit up 38.5%. The company increased its adjusted EBITDA guidance for 2023, reflecting improved profitability.
Net sales increased by 12.6% year-over-year, driven by organic growth and acquisitions.
Gross profit rose by 38.5% year-over-year, with gross margins improving to 21.8%.
Adjusted EBITDA increased by 72.9% year-over-year, reaching $10.6 million.
New orders increased by 29.9% year-over-year, resulting in a record backlog of $290.1 million.
Foster
Foster
Forward Guidance
L.B. Foster anticipates continued growth, driven by infrastructure investment programs and a strong backlog. The company is raising its profitability outlook for 2023 while maintaining its sales guidance.
Positive Outlook
- Expected tailwinds from government infrastructure investment programs.
- Increasing orders and backlog in the majority of businesses.
- Record backlog of $290.1 million.
- Optimistic outlook for 2023 and beyond.
- Profitability outlook for 2023 is raised.
Challenges Ahead
- Isolated weakness in the U.K. market.
- Decline of $5.5 million from the Ties divestiture.
- Increased use of cash by operating activities.
- Increased selling and administrative expenses.
- Seasonal working capital requirements.