L.B. Foster Company (FSTR) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 21.5% to $167.996M; Adjusted EBITDA increased 15.1% to $13.1M, and net income attributable to shareholders rose 55.4% to $6.764M.

• Nine-month sales increased 12.7% to $427.690M, Adjusted EBITDA rose 17.6% to $29.9M, and attributable net income reached $11.376M.

Financial highlights

• Q3 gross profit increased $3.360M to $34.426M, while gross margin fell 200 bps to 20.5% on unfavorable Rail mix.

• SG&A was $23.7M, or 14.1% of sales, down 190 bps as a share of sales YoY.

• Q3 operating cash flow was $23.6M versus $29.2M YoY; nine-month operating cash flow rose to $30.975M from $13.447M.

• Nine-month operating income increased to $18.276M from $14.050M, and diluted EPS rose to $1.07 from $0.47.

Outlook and guidance

• FY2026 guidance: sales $570M–$590M, Adjusted EBITDA $42M–$45M, free cash flow $20M–$28M, and capital spending 2.0%–2.2% of sales.

• Sales guidance rose on higher Rail Distribution and UK volume expectations; free cash flow guidance increased, while the Adjusted EBITDA range narrowed around its original midpoint.

• Guidance assumes no material Dulworth impact and excludes purchase-accounting adjustments and transaction costs.

• Q4 guidance assumes no material Dulworth contribution, given the late-quarter close, seasonally slower construction activity, and integration work.