L.B. Foster Company (FSTR) 17th Annual Midwest IDEAS Conference summary

Leadership and Organizational Changes

• CFO role transitioned to Sean Reilly, with Bill Thalman moving to COO to drive growth initiatives.

• Leadership emphasizes a simplified, focused portfolio and disciplined capital allocation, prioritizing debt reduction, growth investments, share repurchases, and strategic acquisitions.

Business Segments and Market Positioning

• Operates in two main segments: rail technologies/services and infrastructure (concrete and steel products), with a focus on technology-driven safety and efficiency solutions.

• Rail Products holds approximately 42% market share in North America, Rail Technologies has 18%, and Precast Concrete Products maintain a 14% share in a $600M addressable market, with substantial runway for growth in the broader $14B precast products market.

• Growth platforms such as Global Friction Management, Total Track Monitoring, and Precast have shown strong sales and margin expansion since 2021.

Strategic Transformation and Growth

• Completed portfolio transformation with over seven divestitures since 2021, exiting low-margin and commodity businesses and shifting toward scalable, higher-margin businesses.

• Focused on organic growth, investing 2.7% of sales into capital programs, above historical levels.

• Adjusted gross profit margin expanded from 16.8% in 2021 to 21.7% TTM Q2 2026, with adjusted EBITDA margin rising from 3.6% to 7.5%.

• Share repurchase program active through February 2028, with $28.7M remaining authorization and a 9.3% reduction in outstanding shares since Feb 2023.

• Capital-light model and strong cash generation support disciplined capital allocation and shareholder returns.