L.B. Foster Company reported its third‑quarter 2025 financial results, showing net sales of $138.3 million, a 0.6 % increase from $137.5 million in the same quarter of 2024.
Adjusted EBITDA fell 7.9 % to $11.4 million from $12.3 million year‑over‑year, while free cash flow reached $26.4 million. The company used $22.9 million to reduce debt and repurchased $4.7 million of common shares.
Gross profit margin declined 130 basis points to 22.5 %. Net income attributable to L.B. Foster Company dropped 87.9 % to $4.4 million from $35.9 million in Q3 2024, largely because the prior year included a $30 million tax valuation allowance adjustment.
Segment performance: Rail sales decreased 2.2 % to $135.8 million, while Infrastructure sales increased 4.4 % to $138.3 million. The Precast Concrete segment experienced lower volumes and an unfavorable sales mix, contributing to margin compression.
The company’s rail backlog increased 58.2 % year‑over‑year, whereas the infrastructure backlog fell 10.9 % due to cancellations of longer‑term orders.
Management projected that fourth‑quarter adjusted EBITDA would rise 115 % on a 25 % sales growth at the midpoint of guidance, and free cash flow for Q4 was expected to be about $12 million. The company reiterated its share‑repurchase program and targeted a gross leverage ratio of 1.0x‑1.5x by year‑end.
The company missed analyst estimates for revenue and earnings per share. Revenue of $138.3 million fell short of the $153.59 million consensus, and EPS of $0.40–$0.42 was below the $0.61 estimate.
Management cited supply‑chain constraints and economic uncertainty as headwinds, while noting that strong demand in the rail sector and ongoing cost‑control initiatives support a positive outlook for the remainder of the year.
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