L.B. Foster Q3 sales rise on segment growth

Overview

• US rail and infrastructure supplier's Q3 sales rose 21.5% yr/yr, gross margin declined to 20.5%

• Q3 net income rose 55.4% yr/yr, driven by higher operating income and lower interest expense

• Company completed acquisition of Dulworth's wastewater precast and Aeris aerobic treatment systems business

Outlook

• L.B. Foster sees 2026 full-year net sales between $570 mln and $590 mln

• Company expects 2026 full-year adjusted EBITDA of $42 mln to $45 mln

Result Drivers

• SEGMENT GROWTH - Co said Q3 sales growth was driven by higher volumes across both Rail and Infrastructure segments

• LOWER-MARGIN MIX - Gross margin decline attributed to increased sales in lower-margin Rail Distribution and UK businesses

• OPERATING DISCIPLINE - Co said reduced selling and administrative expense as a percent of sales reflected operating discipline and sales growth

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

• Wall Street's median 12-month price target for L B Foster Co is $42.00, about 15.2% above its November 3 closing price of $36.46

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)