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Sep 30, 2022
Foster Q3 2022 Earnings Report
Operating results were reported for the third quarter, with strategic portfolio changes impacting the financial information.
Key Takeaways
L.B. Foster reported third quarter net sales of $130.0 million, flat compared to the prior year, but up 8.7% organically. The company reported a net loss of $2.1 million, down $4.3 million from last year, while adjusted EBITDA was $9.3 million, up $4.9 million year-over-year.
Net sales were $130.0 million, unchanged from the prior year quarter.
Gross profit was $23.1 million, a $0.8 million increase from the prior year quarter.
Operating loss was $1.1 million, a decrease of $1.9 million from the prior year quarter.
Backlog totaled $272.8 million at quarter end, a 5-year high.
Foster
Foster
Forward Guidance
The Company anticipates IIJA-related funding will continue to be processed by the various agencies during 2022 and moving into 2023 and expects that many of its businesses may continue to directly benefit from infrastructure investment activity.
Positive Outlook
- Quotation activity and demand in core end markets continues to improve despite recessionary headwinds.
- Recent strategic portfolio changes will help maintain steady to improving demand for products.
- Increased quotation and order levels in the coatings component of its Steel Products and Measurement segment.
- Many businesses may continue to directly benefit from infrastructure investment activity, including funding benefits from U.S. Infrastructure Investment and Jobs Act (IIJA).
- Expects quotations and orders to further increase as a result of IIJA activity, with related revenue realized in 2023 and beyond.
Challenges Ahead
- Recessionary headwinds.
- Inflationary environment in labor and raw materials continues to pressure margins.
- Disruptions in raw materials, labor, supply chains, and service partner resources.
- Lingering COVID-19 related effects.
- A more significant recessionary environment in the Company’s key markets could adversely impact demand for its products and services despite the benefit of the government funding programs.