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Dec 31, 2023

Foster Q4 2023 Earnings Report

L.B. Foster exceeded 2023 guidance, delivered strong cash flow, improved leverage, and returned capital to shareholders.

Key Takeaways

L.B. Foster's Q4 2023 results showed a decrease in net sales by 1.7% year-over-year to $134.9 million, but gross margins expanded by 200 basis points to 21.5%. The company experienced a net loss of $0.5 million, but cash flow from operations was strong at $22.1 million. The company realigned financial reporting structure through two reportable business segments: Rail, Technologies and Services and Infrastructure Solutions.

Net sales decreased by 1.7% year-over-year, but increased organically by 7.7%.

Gross margins expanded by 200 basis points to 21.5%.

Net loss was $0.5 million, a favorable change of $43.5 million over the prior year quarter.

Cash flow from operations was $22.1 million, a $13.8 million increase over the prior year quarter.

Total Revenue
$135M
Previous year: $137M
-1.7%
EPS
-$0.04
Previous year: $0.19
-121.1%
Adjusted EBITDA
$6.1M
Backlog
$214M
Previous year: $272M
-21.5%
Gross Profit
$29M
Previous year: $26.8M
+8.5%
Cash and Equivalents
$2.56M
Previous year: $2.88M
-11.2%
Free Cash Flow
$19.9M
Previous year: $5.19M
+284.1%
Total Assets
$313M
Previous year: $365M
-14.3%

Foster

Foster

Forward Guidance

The Company announced full year financial guidance for 2024 with net sales expected to range from $525.0 million to $560.0 million, adjusted EBITDA ranging from $34.0 million to $39.0 million, and free cash flow ranging from $12.0 million to $18.0 million.

Positive Outlook

  • Net sales expected to range from $525.0 million to $560.0 million
  • Representing organic growth of approximately 0.0% to 6.0%
  • Adjusted EBITDA ranging from $34.0 million to $39.0 million
  • Representing approximately 6.5% to 7.0% of sales
  • Free cash flow ranging from $12.0 million to $18.0 million