L.B. Foster Company (FSTR) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales reached $160.4M, up 25.1% year-over-year, the highest Q4 sales since 2018, with Infrastructure up 27.3% and Rail up 23.7%.

• Q4 net income was $2.4M, a $2.7M improvement year-over-year; Adjusted EBITDA rose 89% to $13.7M.

• Full-year 2025 net sales were $540M, up 1.7%, with Infrastructure up 14.9% and Rail down 6.5%.

• Adjusted EBITDA for 2025 was $39.1M, up $5.5M year-over-year, with lower SG&A expenses supporting profitability.

• Operating cash flow for 2025 was $35.6M, up $13M from the prior year, supporting a $16M reduction in total debt.

Financial highlights

• Q4 gross profit was $31.6M, up 10.6% year-over-year, but gross margin declined 260 bps to 19.7% due to UK Rail weakness and higher rail product sales volume.

• Q4 SG&A expenses were $23.1M, down $1.3M (5.2%), with SG&A as a percentage of sales improving 470 bps to 14.4%.

• Q4 operating income rose 156.7% year-over-year to $7.8M.

• Q4 operating cash flow was $22.2M; capital expenditures were $2.4M, and $3.3M was spent on stock repurchases.

• Net debt reduced by $16M in Q4, ending at $38.4M; gross leverage ratio improved to 1.0x.

Outlook and guidance

• 2026 guidance anticipates net sales of $540M–$580M and Adjusted EBITDA of $41M–$46M.

• Free cash flow for 2026 is projected at $15M–$25M, with CapEx targeted at 2.7% of sales, mainly for Precast Concrete and Rail Technologies investments.

• Backlog at year-end 2025 was $189.3M, up 1.8% year-over-year, with rail backlog up and infrastructure backlog down due to a major order cancellation.

• Backlog increased 15% in the first two months of 2026, with gains in both segments.

• Expecting a more typical seasonal revenue cadence in 2026, with strongest quarters in Q2 and Q3.