L.B. Foster Company: A Small Speculative Position

A finance expert, with experience at Bloomberg, has analyzed an article about L.B. Foster Company (NASDAQ:FSTR) and concludes that the shares have climbed in price after a previous negative outlook. The expert suggests taking a small, speculative position in the company.

L.B. Foster Company (NASDAQ: FSTR) reported mixed second-quarter (Q2) results, but the company's outlook for 2025 has been well-received by investors, leading to a 2% increase in its stock price. The company's adjusted earnings per share (EPS) of $0.27 missed the consensus forecast of $0.59, and revenue of $143.56 million fell short of the $146.79 million estimate, but both figures represented year-over-year (YoY) increases of 2.0% and 2.0%, respectively [2].

Despite the earnings shortfall, L.B. Foster's Adjusted EBITDA jumped 51.4% to $12.2 million, driven primarily by the Infrastructure segment, which saw organic sales rise 22.4%, led by a 36.0% surge in Precast Concrete sales [2]. The company's backlog also climbed 8.1% YoY to $269.9 million, indicating strong order momentum and potential future growth [2].

For 2025, L.B. Foster expects revenue in the range of $535 million to $555 million, aligning with the $540.1 million analyst consensus. The company projects a 25.1% increase in Adjusted EBITDA compared to last year, alongside 2.7% organic sales growth [2]. Management also expects a gross leverage ratio of 1.0x to 1.5x by year-end, down from 2.2x at quarter end [2].

Analysts remain bullish on L.B. Foster, with an average rating of "buy" and no "sell" or "strong sell" recommendations. The stock recently traded at 12 times the next 12-month earnings, compared to a P/E of 11 three months ago [1].

A finance expert with experience at Bloomberg has analyzed the company's recent performance and suggests taking a small, speculative position in L.B. Foster, citing the company's strong Q2 results, robust backlog, and optimistic 2025 outlook [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXF0EA81:0-engineering-company-l-b-foster-s-q2-adjusted-ebitda-up-51-4-backlog-rises-8-1/
[2] https://investorshub.advfn.com/market-news/article/14433/l-b-foster-posts-mixed-q2-results-but-lifts-2025-outlook-shares-edge-higher