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L.B. Foster Company (FSTR) investor relations material

L.B. Foster Company Small-Cap Virtual Conference summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Small-Cap Virtual Conference summary18 Sep, 2025

Company Overview and Business Segments

  • Focuses on building North American infrastructure through two main segments: Rail Technologies and Services, and Infrastructure Solutions, both showing improved gross margins and growth platforms.

  • Completed a multi-year strategic transformation, divesting lower-margin businesses and acquiring higher-margin rail technologies and precast concrete companies to enhance profitability and growth potential.

  • About 90% of sales are in North America, with a legacy of 123 years and a public listing on NASDAQ; expanded presence in North America, UK, and select international markets, with 18 principal locations and approximately 1,050 employees.

  • Commissioned a new precast facility in Florida and exited the UK Automation & Materials Handling product line in 2025.

  • Emphasis on technology-based solutions for infrastructure and rail safety, with continued investment in innovation and operational efficiency.

Financial Performance and Strategic Progress

  • Net sales for 2024 reached $531M, with 2025 guidance set at $535M–$555M and adjusted EBITDA projected at $40M–$44M.

  • Achieved a 540 basis point margin improvement since 2021, with gross margin rising from 16.8% in 2021 to 22.2% in 2024 and further expansion expected in 2025.

  • Q2 2025 net sales grew 2.0% YoY, with infrastructure segment up 22.4% and rail segment down 11.2%.

  • Adjusted EBITDA increased 51.4% YoY in the latest quarter, with SG&A down 200 basis points and leverage reduced to 2.2x.

  • Free cash flow guidance for 2025 is $15M–$25M, with a targeted capex of ~2% of sales and trailing 12-month EBITDA at $34 million (6.1% of sales).

Capital Allocation and Growth Initiatives

  • Maintains a capital-light model, targeting 1–1.5x debt/EBITDA, with net debt reduced to $77.4M as of June 2025 and a gross leverage ratio of 2.2x.

  • Share repurchase program active, with 1.0% of shares repurchased in the quarter and $36.7M remaining authorized through February 2028.

  • Growth capital is about 2% of sales, split evenly between maintenance and expansion, with tuck-in acquisitions focused on precast concrete.

  • Renewed $150 million credit facility in June with favorable terms, supporting strategic execution.

  • Capital allocation priorities include debt reduction, growth investments, share repurchases, and opportunistic tuck-in acquisitions.

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Frequently asked questions

L.B. Foster Company is an American company that provides products and services for the transportation and construction industries. The company specializes in manufacturing and distributing rail and track components, including rail fastening systems, friction management products, and rail monitoring solutions. In addition to rail infrastructure, L.B. Foster also supplies construction materials such as steel piling, precast concrete products, and coatings. The company serves clients in sectors like railroads, transit, ports, and energy, offering solutions to improve infrastructure reliability and efficiency. The company is headquartered in Pittsburgh, Pennsylvania, and its shares are listed on the Nasdaq.

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