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Sep 30, 2025
Foster Q3 2025 Earnings Report
Foster posted modest sales growth in Q3 2025, driven by Infrastructure, while profitability declined mainly due to mix and cost pressures.
Key Takeaways
L.B. Foster achieved a slight revenue increase in Q3 2025, supported by strength in Infrastructure, but saw a decline in gross profit and net income. Strong free cash flow enabled debt reduction and share repurchases, setting the stage for an anticipated strong Q4 finish.
Revenue rose 0.6% year-over-year to $138.3 million, led by a 4.4% increase in Infrastructure segment sales.
Net income fell to $4.4 million from $35.9 million, primarily due to a $30 million tax valuation benefit in Q3 2024.
Free cash flow reached $26.4 million, helping reduce total debt by $22.9 million and enabling share buybacks.
Adjusted EBITDA declined 7.9% to $11.4 million due to margin pressures in Infrastructure.
Revenue by Segment
Forward Guidance
L.B. Foster expects a strong Q4 with improved profitability and sales growth, driven by demand recovery in Rail and sustained Infrastructure momentum.
Positive Outlook
- Q4 Adjusted EBITDA expected to rise ~115% YoY.
- Q4 sales projected to grow ~25%.
- Free cash flow of ~$12M expected in Q4.
- Improved Rail demand and higher backlog support stronger results.
- Focus on SG&A efficiency and debt reduction continues.
Challenges Ahead
- Infrastructure backlog down 10.9% due to long-term order cancellations.
- Rail margins under pressure from volume timing and mix.
- Adjusted EBITDA for Q3 declined 7.9%.
- Net income dropped due to one-time tax benefit in 2024.
- Sales growth remains modest outside of Infrastructure segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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