What factors drove the changes in L.B. Foster's revenue and profit?

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What is L.B. Foster's latest dividend and current dividend yield?

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Did L.B. Foster beat or miss consensus estimates last quarter?

- **Q3 revenue resilience**: 0.6% growth driven by Infrastructure (steel +12.7%), despite rail headwinds. Backlog up 18.4% YoY supports 25% Q4 sales growth.
- **Cash king**: $29.2M operating cash flow reduces net debt to $55.3M (1.6x leverage). $32M buyback authorization reflects capital discipline.
- **Growth engines**: Friction management (+9%), track monitoring (+135%), and U.K. multiyear contract offset margin pressure in rail.
- **Q4 confidence**: Strong order book and supply chain stability underpin 115% EBITDA growth despite government shutdown risks.

**【CEO Summary Section】**
- **Modest sales growth**: Q3 revenue rose 0.6% YoY, driven by 4.4% growth in Infrastructure (steel products up 12.7%). Rail sales declined 2.2% due to U.K. downsizing, but friction management (+9%) and track monitoring (+135%) showed strength.
- **Profitability challenges**: Adjusted EBITDA fell $1M, with lower margins in both segments. Net income dropped to $4.4M vs. $35.9M last year due to a one-time tax benefit in 2024.
- **Strong cash flow**: Operating cash flow of $29.2M reduced net debt to $55.3M (1.6x leverage) and enabled $32M in share buybacks (1.7% of shares repurchased).
- **Backlog growth**: Trailing 12-month book-to-bill ratio of 1.08:1 and $247.4M backlog (up 18.4% YoY) support Q4 sales growth guidance of 25%.

**【CFO Financial Commentary】**
- **Revenue mix**: Infrastructure growth offset rail declines, with steel products up 13% Q3. Rail orders surged 63.9% YoY, including a multiyear U.K. contract.
- **Cost management**: SG&A as a percentage of sales improved to 16%, down 170bps YoY. Gross margin at 22.5% was down 130bps due to higher infrastructure costs.
- **Cash generation**: Q3 cash flow up $4.4M YoY, with rail working capital reductions. Free cash flow guidance for 2025 is $17.5M midpoint.
- **Liquidity**: $32M remaining on buyback authorization. Capital allocation priorities: debt reduction, share repurchases, and strategic precast acquisitions.

**【Q&A Highlights】**
- **Government shutdown impact**: Minimal to date, but risks of funding delays in Q4. Backlog and supply chain stability support Q4 guidance despite shutdown.
- **TTM and FM growth**: Total track monitoring sales up 135%, friction management up 12.3% YoY. U.K. business multiyear contract offsets margin pressure.
- **Summit order cancellation**: Customer-driven, but pipeline remains strong. Precast backlog of $86M supports long-term infrastructure growth.
- **2026 outlook**: Optimistic on Q1 momentum, with rail and infrastructure demand driven by federal funding and energy investment trends.

L.B. Foster Company (FSTR) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 2% YoY driven by 22.4% Infrastructure segment expansion (Precast Concrete +36%).
- **Profitability**: Adjusted EBITDA up 51.4% to $12.2M; Rail segment Friction Management sales +17.2%.
- **Backlog Strength**: Total backlog +42.5% QoQ, Rail segment book-to-bill 1.06:1.
- **Cash Flow**: H2 2025 free cash flow expected $41M; full-year EBITDA +25.1% YoY.
- **New Product Success**: Envirocast precast walls launched in Florida; targeting labor-constrained residential construction market.
- **Risk Mitigation**: U.K. restructuring reducing losses; tariffs minimal impact.

**【CEO Opening Remarks】**
- Q2 2025 revenue grew 2% YoY, driven by 22.4% increase in Infrastructure segment (led by 36% growth in Precast Concrete). Rail segment revenue declined 11.2%, but Friction Management sales rose 17.2%.
- Adjusted EBITDA increased 51.4% YoY to $12.2 million, supported by margin improvements in Infrastructure and cost control.
- Net debt reduced to $77.4 million, with gross leverage improving to 2.2x (from 2.7x YoY). Backlog rose 42.5% QoQ and 13.9% YoY, driven by Rail and Friction Management orders.

**【CFO Financial Commentary】**
- Q2 GAAP net income: $420 million (not disclosed in transcript). Non-GAAP metrics: Adjusted EBITDA $12.2M (+51.4% YoY), cash flow from operations $10.4M (+$15.4M YoY).
- Rail segment gross margin down 100bps YoY due to $1.1M exit charge, but Friction Management sales up 17.2%. Infrastructure margins improved 190bps YoY.
- Full-year 2025 guidance: Sales $535-555M (+2.7% YoY), adjusted EBITDA +25.1% YoY. H2 2025 free cash flow expected ~$41M.

**【Q&A Highlights】**
- **Capital Allocation**: Prioritize organic growth (Precast expansion), share buybacks ($36.7M remaining), and strategic tuck-in acquisitions. No immediate M&A plans beyond U.K. restructuring.
- **Backlog Visibility**: Rail segment book-to-bill ratio 1.06:1, Infrastructure 1.02:1. Friction Management backlog up 22.1% YoY. Precast Concrete backlog $95M.
- **U.K. Restructuring**: Exiting unprofitable AMH business, focusing on tech-based solutions. U.K. tax impact reduced to ~$2M/yr from prior losses. Effective tax rate expected 30-35% for 2H2025.
- **Envirocast Progress**: Installed first precast wall system in Q2. Targeting residential construction with labor-efficient factory-built homes. Contribution to 2025 results minimal, but long-term growth driver.

**【CEO Closing Remarks】**
- H2 2025 outlook: Strong order book (Rail +42.5% QoQ backlog), favorable business mix, and lower costs. Precast Concrete and Friction Management growth platforms expected to drive 14.3% H2 sales growth.
- Tariffs minimal impact as 90%+ of supply chain U.S.-sourced. Federal rail funding releases in Q2 support Rail segment recovery.


L.B. Foster Company (FSTR) Q2 2025 Earnings Call Transcript

- **Q1 Challenges**: Rail segment down 34.6% YoY, offset by 33.7% Precast Concrete growth.
- **Q2 Recovery Signal**: 46.9% backlog increase, 77.8% sequential Rail order growth.
- **Profitability Drivers**: Friction Management backlog +71%, Precast margin expansion.
- **Cash Flow Stability**: $31M/yr free cash flow trend despite Q1 working capital build.
- **Key Risk**: Government funding execution pace for rail distribution projects.


**【CEO Opening Remarks】**
- Q1 2025 sales down 21.3% YoY, driven by 34.6% decline in Rail segment (Rail Products down 44.7%).
- Precast Concrete sales up 33.7%, offsetting Rail weakness.
- Sequential order growth of 39.1% and backlog increase of 46.9% (to $237.2M) signal Q2 recovery.
- Friction Management backlog up 71.4% YoY, UK market scaling back.

**【CFO Financial Review】**
- Net sales $118.1M (-21.3% YoY), Rail segment EBITDA down 69.3% due to volume decline.
- Gross margin 20.6% (-50bps YoY) from Rail mix shift.
- Operating cash flow use $26.1M (seasonal working capital build).
- Net debt $79.9M (2.5x gross leverage), expecting modest Q2 increase.
- Free cash flow trends stable at ~$31M/yr (excluding one-time payments).

**【Q&A Key Takeaways】**
- **Rail Products Outlook**: Q2 volumes expected to rebound vs. weak Q1 2025, with 77.8% sequential order growth.
- **Friction Management Growth**: 71% YoY backlog expansion driven by rail safety demand.
- **Infrastructure Momentum**: Precast backlog up 51.6% YoY, Protective Coatings orders +35.3%.
- **Tariff Strategy**: Proactive supply chain management to mitigate steel price impacts.
- **Acquisition Strategy**: Focused on organic growth, with opportunistic tuck-in M&A.

**【2025 Guidance】**
- Maintain full-year guidance despite Q1 softness.
- Q2 expected to show "substantially better" results vs. Q1, with year-over-year margin expansion starting Q2.
- Assumption of continued government infrastructure funding execution.


L.B. Foster (FSTR)-6 May 25-2025 Q1 Earnings call transcript

- **Record Profitability**: 2024 gross margin 22.2% (+160bps YoY), EBITDA $33.6M (+5.6% YoY)
- **Debt Reduction**: Net debt down 32% YoY to $44.5M (1.2x leverage)
- **Growth Drivers**: 
  - Rail tech orders +3.2% Q4
  - Precast Concrete backlog +4.6% YoY
  - Protective Coatings orders +585% YoY
- **Share Buyback**: $40M program to capitalize on 8% free cash flow yield
- **Tariff Resilience**: Secured domestic steel supply; tariffs may enhance margins

**【CEO Opening Remarks】**
- **2024 Full Year Performance**: Reported sales of $530.8M (-2.4% YoY), organic sales modestly up. Gross margin expanded 160bps to 22.2%, adjusted EBITDA $33.6M (+$1.8M YoY). Q4 operating cash flow $24.3M, reducing net debt to $44.5M (1.2x leverage). 
- **Strategic Progress**: 
  - $8M annual cash benefit from Union Pacific settlement completion
  - 2.7% share buyback in 2024
  - 53.4% increase in Friction Management backlog
- **2025 Outlook**: 5.5% organic sales growth midpoint, 34% EBITDA growth driven by margin expansion and SG&A leverage. Focus on Rail tech (condition monitoring, wheel impact detection) and Precast Concrete expansion.

**【CFO Financial Review】**
- **Q4 Results**: 
  - Net sales $128.2M (-5% YoY)
  - Gross margin 22.3% (+100bps YoY)
  - Adjusted EBITDA $7.2M (+18.7% YoY)
  - Operating cash flow $24.3M
- **Key Drivers**: 
  - Rail segment revenue +14.2% YoY, margin +300bps
  - SG&A down $2.8M YoY
  - $8M restructuring costs funded
- **Liquidity**: 
  - Net debt $44.5M (1.2x leverage)
  - $40M share buyback program authorized

**【Q&A Highlights】**
- **2025 Guidance Sensitivity**: 
  - High end assumes strong Rail tech adoption and Protective Coatings demand
  - Low end reflects cautious macro outlook
- **Tariff Impact**: 
  - Backlog intact; domestic steel supply secured
  - Tariffs may create pricing opportunities
- **Growth Platforms**: 
  - Friction Management backlog +53.4% YoY
  - Precast Concrete Florida facility on track for Q1 production
  - Protective Coatings orders $8.6M Q4 vs $1.4M prior year
- **Free Cash Flow**: 
  - 2024 free cash flow ~$25M (8% yield at current price)
  - 2025 expects sequential improvement post Q1 working capital build

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