L.B. Foster Company Ends 2024 with Continuing Profitability Growth and Strong Cash Flow; Approves New, 3-Year $40 million Stock Repurchase Plan
L.B. Foster Company (FSTR) reported its Q4 and full-year 2024 results, showing improved profitability despite lower sales. Q4 net sales decreased 5.0% to $128.2 million, with a net loss of $0.3 million. The company demonstrated strong cash management, generating $24.3 million in Q4 operating cash flow and reducing total debt by $21.6 million to $46.9 million.
Key highlights include improved gross margins of 100 and 160 basis points in Q4 and full-year respectively, and adjusted EBITDA of $7.2 million in Q4, up 18.7% year-over-year. The Rail segment showed robust growth with sales up 14.2%, while Infrastructure results were weaker with sales down 25.2%.
The Board approved a new $40 million stock repurchase program over three years through February 2028. For 2025, the company projects net sales of $540-580 million, adjusted EBITDA of $42-48 million, and free cash flow of $20-30 million.
L.B. Foster Company (FSTR) ha riportato i risultati del Q4 e dell'intero anno 2024, mostrando un miglioramento della redditività nonostante un calo delle vendite. Le vendite nette del Q4 sono diminuite del 5,0% a 128,2 milioni di dollari, con una perdita netta di 0,3 milioni di dollari. L'azienda ha dimostrato una solida gestione del cash flow, generando 24,3 milioni di dollari di flusso di cassa operativo nel Q4 e riducendo il debito totale di 21,6 milioni di dollari a 46,9 milioni di dollari.
I punti salienti includono margini lordi migliorati di 100 e 160 punti base nel Q4 e per l'intero anno rispettivamente, e un EBITDA rettificato di 7,2 milioni di dollari nel Q4, in aumento del 18,7% rispetto all'anno precedente. Il segmento Ferroviario ha mostrato una crescita robusta con vendite in aumento del 14,2%, mentre i risultati dell'Infrastruttura sono stati più deboli con vendite in calo del 25,2%.
Il Consiglio ha approvato un nuovo programma di riacquisto di azioni da 40 milioni di dollari su tre anni fino a febbraio 2028. Per il 2025, l'azienda prevede vendite nette di 540-580 milioni di dollari, un EBITDA rettificato di 42-48 milioni di dollari e un flusso di cassa libero di 20-30 milioni di dollari.
L.B. Foster Company (FSTR) informó sus resultados del cuarto trimestre y del año completo 2024, mostrando una rentabilidad mejorada a pesar de una disminución en las ventas. Las ventas netas del cuarto trimestre disminuyeron un 5,0% a 128,2 millones de dólares, con una pérdida neta de 0,3 millones de dólares. La empresa demostró una sólida gestión del efectivo, generando 24,3 millones de dólares en flujo de efectivo operativo en el cuarto trimestre y reduciendo la deuda total en 21,6 millones de dólares a 46,9 millones de dólares.
Los aspectos más destacados incluyen márgenes brutos mejorados de 100 y 160 puntos básicos en el cuarto trimestre y en el año completo respectivamente, y un EBITDA ajustado de 7,2 millones de dólares en el cuarto trimestre, un aumento del 18,7% interanual. El segmento de Ferrocarriles mostró un crecimiento robusto con ventas en aumento del 14,2%, mientras que los resultados de Infraestructura fueron más débiles con ventas en descenso del 25,2%.
La Junta aprobó un nuevo programa de recompra de acciones de 40 millones de dólares durante tres años hasta febrero de 2028. Para 2025, la empresa proyecta ventas netas de 540-580 millones de dólares, EBITDA ajustado de 42-48 millones de dólares y flujo de caja libre de 20-30 millones de dólares.
L.B. Foster Company (FSTR)는 2024년 4분기 및 연간 실적을 발표하며 판매 감소에도 불구하고 수익성이 개선되었음을 보여주었습니다. 4분기 순매출은 5.0% 감소하여 1억 2820만 달러에 이르렀고, 순손실은 30만 달러였습니다. 회사는 4분기 운영 현금 흐름에서 2430만 달러를 창출하고 총 부채를 2160만 달러 줄여 4690만 달러로 관리하는 데 성공했습니다.
주요 하이라이트에는 4분기 및 연간 각각 100 및 160 베이시스 포인트 개선된 총 이익률과 4분기 조정 EBITDA가 720만 달러로 전년 대비 18.7% 증가한 것이 포함됩니다. 철도 부문은 14.2%의 매출 증가로 강력한 성장을 보였으나, 인프라 부문은 25.2% 감소한 매출로 약세를 보였습니다.
이사회는 2028년 2월까지 3년 동안 4000만 달러 규모의 자사주 매입 프로그램을 승인했습니다. 2025년에는 5억 4000만~5억 8000만 달러의 순매출, 4200만~4800만 달러의 조정 EBITDA, 2000만~3000만 달러의 자유 현금 흐름을 예상하고 있습니다.
L.B. Foster Company (FSTR) a publié ses résultats du quatrième trimestre et de l'année 2024, montrant une rentabilité améliorée malgré une baisse des ventes. Les ventes nettes du Q4 ont diminué de 5,0% pour atteindre 128,2 millions de dollars, avec une perte nette de 0,3 million de dollars. L'entreprise a démontré une gestion solide de la trésorerie, générant 24,3 millions de dollars de flux de trésorerie opérationnel au Q4 et réduisant sa dette totale de 21,6 millions de dollars à 46,9 millions de dollars.
Les points forts incluent des marges brutes améliorées de 100 et 160 points de base respectivement au Q4 et sur l'ensemble de l'année, ainsi qu'un EBITDA ajusté de 7,2 millions de dollars au Q4, en hausse de 18,7% par rapport à l'année précédente. Le segment Ferroviaire a montré une croissance robuste avec des ventes en hausse de 14,2%, tandis que les résultats de l'Infrastructure étaient plus faibles avec des ventes en baisse de 25,2%.
Le Conseil a approuvé un nouveau programme de rachat d'actions de 40 millions de dollars sur trois ans jusqu'en février 2028. Pour 2025, l'entreprise prévoit des ventes nettes de 540 à 580 millions de dollars, un EBITDA ajusté de 42 à 48 millions de dollars et un flux de trésorerie libre de 20 à 30 millions de dollars.
L.B. Foster Company (FSTR) hat ihre Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 berichtet und dabei eine verbesserte Rentabilität trotz sinkender Verkaufszahlen gezeigt. Die Nettoumsätze im Q4 sanken um 5,0% auf 128,2 Millionen Dollar, mit einem Nettoverlust von 0,3 Millionen Dollar. Das Unternehmen zeigte ein starkes Cash-Management, generierte im Q4 einen operativen Cashflow von 24,3 Millionen Dollar und reduzierte die Gesamtschulden um 21,6 Millionen Dollar auf 46,9 Millionen Dollar.
Wichtige Highlights sind verbesserte Bruttomargen von 100 und 160 Basispunkten im Q4 und im Gesamtjahr, sowie ein bereinigtes EBITDA von 7,2 Millionen Dollar im Q4, was einem Anstieg von 18,7% im Jahresvergleich entspricht. Der Bahnbereich zeigte ein robustes Wachstum mit einem Umsatzanstieg von 14,2%, während die Ergebnisse im Infrastrukturbereich schwächer waren, mit einem Umsatzrückgang von 25,2%.
Der Vorstand genehmigte ein neues Aktienrückkaufprogramm über 40 Millionen Dollar über drei Jahre bis Februar 2028. Für 2025 prognostiziert das Unternehmen Nettoumsätze von 540-580 Millionen Dollar, ein bereinigtes EBITDA von 42-48 Millionen Dollar und einen freien Cashflow von 20-30 Millionen Dollar.
- Q4 adjusted EBITDA increased 18.7% to $7.2 million
- Strong Q4 cash flow from operations of $24.3 million
- Debt reduced by $21.6 million to $46.9 million in Q4
- Rail segment sales grew 14.2% with 300bps margin improvement
- New $40 million share repurchase program authorized
- Gross margins improved 100-160bps year-over-year
- Q4 net sales declined 5.0% to $128.2 million
- Q4 net loss of $0.3 million
- Infrastructure segment sales down 25.2%
- Backlog decreased 13% year-over-year
- Softer start expected for 2025 compared to previous year
Insights
FSTR's Q4 results highlight a strategic pivot toward margin expansion despite revenue headwinds, with gross margins improving 100 basis points on a 5% sales decline. The company's aggressive debt reduction of $21.6M to $46.9M in Q4 alone strengthens the balance sheet, bringing its gross leverage ratio to a conservative 1.2x, positioning it well to weather potential market volatility.
The divergence between segments is noteworthy: Rail segment's 14.2% growth with 300bps margin improvement demonstrates the success of portfolio optimization efforts, while Infrastructure's 25.2% sales decline reveals ongoing challenges in pipeline coating. Management's confidence is evident in the new $40M share repurchase authorization and aggressive buyback execution (3% of shares in 2024).
The 2025 guidance implies 34% adjusted EBITDA growth on 5.5% organic sales growth at midpoint, suggesting continued structural profitability improvements driven by investments in Rail Technologies and Precast Concrete. The strong Q4 cash generation ($24.3M from operations) provides financial flexibility for the repurchase program while maintaining growth investments.
While the 13% backlog decline and softening in less profitable product lines may create near-term volatility, the company's improved cost structure and strategic portfolio shift toward higher-margin businesses position it for improved profitability metrics through 2025.
FSTR's transformation from a commoditized infrastructure player to a higher-margin technology solutions provider is gaining traction, evidenced by the 160bps full-year margin expansion despite a 2.4% revenue decline. The quarter's cash flow performance was particularly impressive, with $24.3M in operating cash allowing for substantial debt reduction while simultaneously funding share repurchases.
The new $40M repurchase authorization (representing ~13.5% of current market cap) signals management's confidence in sustainable cash generation and potential valuation upside. The repurchase execution through 2024 demonstrates a disciplined approach to capital allocation, with $21.6M deployed for debt reduction and strategic share buybacks.
Two metrics particularly stand out: the 1.2x leverage ratio (down from 1.7x YoY) provides substantial balance sheet flexibility, while the trailing book-to-bill ratio of 0.95 suggests near-term revenue stabilization despite the backlog contraction. The widening profitability spread between segments highlights the success of the Rail Technologies investment strategy.
For investors, the 2025 financial guidance points to meaningful earnings momentum - with projected free cash flow of $20-30M representing approximately 7-10% of the company's market capitalization. While infrastructure market volatility remains a factor, the current valuation appears to inadequately reflect the company's improved cash generation capability and strengthened financial position.
- Fourth quarter and full year 2024 gross margins improved 100 and 160 basis points while net sales were down
5.0% and2.4% , respectively, highlighting improved portfolio profitability year over year. - Fourth quarter net loss of
$0.3 million was favorable$0.2 million versus last year; adjusted EBITDA1 of$7.2 million was favorable$1.1 million , or18.7% , over the prior year quarter. - Full year 2024 cash flow from operations was
$22.6 million , with$24.3 million generated in the fourth quarter; Total debt declined$21.6 million during the quarter to$46.9 million ; Gross Leverage Ratio1 of 1.2x decreased 0.7x during the quarter and 0.5x compared to last year. - The Company's Board of Directors authorized a new, 3-year
$40 million stock repurchase program. - The Company announced full year financial guidance for 2025 with net sales expected to range from
$540 million to$580 million and adjusted EBITDA expected to range from$42 million to$48 million ; free cash flow1 is expected to range between$20 million and$30 million , with capital expenditures expected to represent approximately2.0% of sales.
PITTSBURGH, March 04, 2025 (GLOBE NEWSWIRE) -- L.B. Foster Company (Nasdaq: FSTR), a global technology solutions provider of products and services for rail and infrastructure markets (the "Company"), reported fourth quarter and 2024 results2.
CEO Comments
John Kasel, President and Chief Executive Officer, commented, "We finished 2024 with strong cash generation and improving profitability in the fourth quarter. Rail segment growth was robust, with sales up
Mr. Kasel concluded, "While near-term macro conditions are expected to remain volatile, the benefits of our strategy and disciplined execution over the last three years have positioned us well. We remain optimistic about our prospects for growth, as evidenced by our 2025 financial guidance. We're starting 2025 with backlog down
1 See "Non-GAAP Disclosures" at the end of this press release for a description of and information regarding adjusted EBITDA, gross leverage ratio per the Company's credit agreement, new orders, backlog, book-to-bill ratio, organic results adjusted for portfolio movement, net debt, free cash flow, and related reconciliations to the comparable United States Generally Accepted Accounting Principles financial measures. 2 As reported in the Company's Current Report on Form 8-K filed on October 8, 2024, the Company corrected certain errors in previously reported 2024 quarterly financials, and certain immaterial errors in 2023 previously reported financials. All comparisons are based on the corrected historical results.
Financial Guidance
| 2025 Full Year Financial Guidance | Low | High | |||||
| Net sales | $ | 540,000 | $ | 580,000 | |||
| Adjusted EBITDA | $ | 42,000 | $ | 48,000 | |||
| Capital spending as a percent of sales | ~ | ~ | |||||
| Free cash flow | $ | 20,000 | $ | 30,000 | |||
Share Repurchase Program Authorization
On March 3, 2025, the Company’s Board of Directors authorized the repurchase of up to
Fourth Quarter Consolidated Highlights
The Company’s fourth quarter performance highlights are reflected below:
| Three Months Ended December 31, | Change | Percent Change | |||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 vs. 2023 | ||||||||||||
| (Unaudited) | |||||||||||||||
| $ in thousands, unless otherwise noted: | |||||||||||||||
| Net sales | $ | 128,183 | $ | 134,877 | $ | (6,694 | ) | (5.0 | )% | ||||||
| Gross profit | 28,615 | 28,709 | (94 | ) | (0.3 | ) | |||||||||
| Gross profit margin | 22.3 | % | 21.3 | % | 100 bps | 4.7 | |||||||||
| Selling and administrative expenses | $ | 24,421 | $ | 27,263 | $ | (2,842 | ) | (10.4 | ) | ||||||
| Selling and administrative expenses as a percent of sales | 19.1 | % | 20.2 | % | (110) bps | (5.4 | ) | ||||||||
| Amortization expense | 1,142 | 1,195 | (53 | ) | (4.4 | ) | |||||||||
| Operating income | $ | 3,052 | $ | 251 | $ | 2,801 | ** | ||||||||
| Net loss attributable to L.B. Foster Company | (242 | ) | (430 | ) | 188 | 43.7 | |||||||||
| Adjusted EBITDA1 | 7,238 | 6,099 | 1,139 | 18.7 | |||||||||||
| New orders1 | 107,187 | 105,509 | 1,678 | 1.6 | |||||||||||
| Backlog1 | 185,909 | 213,780 | (27,871 | ) | (13.0 | ) | |||||||||
**Results of this calculation not considered meaningful.
- Net sales for the 2024 fourth quarter were
$128.2 million , a$6.7 million decrease, or5.0% , from the prior year quarter. Net sales decreased due to lower volumes in the Steel Products business unit, including a$1.6 million impact from the discontinued bridge grid deck product line. The decline in organic sales was entirely in the Infrastructure Solutions segment.
- Gross profit for the 2024 fourth quarter was
$28.6 million , flat with the prior year quarter. Gross profit margin for the 2024 fourth quarter was22.3% , a 100 basis point improvement over the prior year quarter. Margin improvement was due to improved portfolio profitability in the Rail, Technologies, and Services segment.
- Selling and administrative expenses for the 2024 fourth quarter were
$24.4 million , a$2.8 million decrease, or10.4% , from the prior year quarter. The decrease was attributable to overall lower personnel expenses as well as lower bad debt expenses, primarily related to a$1.0 million charge incurred in 2023 related to a customer filing for administrative protection in the United Kingdom. Selling and administrative expenses as a percent of net sales decreased to19.1% compared to20.2% in the prior year quarter.
- Operating income for the 2024 fourth quarter was
$3.1 million , favorable$2.8 million over the prior year quarter, primarily due to the improvement in selling and administrative expenses.
- Net loss attributable to the Company for the 2024 fourth quarter was
$0.2 million , or$0.02 per diluted share, favorable$0.2 million over the prior year quarter.
- Adjusted EBITDA for the 2024 fourth quarter was
$7.2 million , a$1.1 million increase, or18.7% , over the prior year quarter.
- Cash provided by operating activities was
$24.3 million for the fourth quarter, a$2.6 million increase over the prior year quarter due to improved profitability and working capital.
- Total debt as of December 31, 2024 was
$46.9 million , a$21.6 million decline during the quarter and an$8.3 million decrease from the prior year quarter. Net debt1 as of December 31, 2024 was$44.5 million , a$20.9 million decline during the quarter and an$8.2 million decrease from the prior year quarter. The Company's gross leverage ratio per its credit agreement was 1.2x as of December 31, 2024, an improvement from 1.7x versus December 31, 2023.
- New orders totaling
$107.2 million for the 2024 fourth quarter increased$1.7 million , or1.6% , over the prior year quarter. The increase occurred within the Infrastructure Solutions segment, and is primarily related to strong orders in the Protective Pipe Coatings business within Steel Products. This increase was partially offset by lower demand in the Rail, Technologies, and Services segment's Rail Products business unit. The trailing twelve month book-to-bill ratio1 was 0.95 : 1.00, up from 0.94 : 1.00 at the end of the third quarter.
- Backlog was
$185.9 million ,$27.9 million decrease, or13.0% , from the prior year quarter. The decline was due primarily to softer Rail Products demand coupled with the impact of decreasing commercial activity in our UK business as we continue to scale back initiatives in that market. Also contributing to the lower backlog was a decline in Steel Products, including$2.7 million due to the exit of the bridge grid deck product line.
Fourth Quarter Business Results by Segment
Rail, Technologies, and Services Segment
| Three Months Ended December 31, | Change | Percent Change | |||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 vs. 2023 | ||||||||||||
| (Unaudited) | |||||||||||||||
| $ in thousands, unless otherwise noted: | |||||||||||||||
| Net sales | $ | 79,154 | $ | 69,294 | $ | 9,860 | 14.2 | % | |||||||
| Gross profit | $ | 17,552 | $ | 13,329 | $ | 4,223 | 31.7 | ||||||||
| Gross profit margin | 22.2 | % | 19.2 | % | 300 bps | 15.6 | |||||||||
| Segment operating income (loss) | $ | 4,700 | $ | (925 | ) | $ | 5,625 | ** | |||||||
| Segment operating income (loss) margin | 5.9 | % | (1.3 | )% | 720 bps | ** | |||||||||
| New orders1 | $ | 54,982 | $ | 60,058 | $ | (5,076 | ) | (8.5 | ) | ||||||
| Backlog1 | $ | 62,449 | $ | 84,418 | $ | (21,969 | ) | (26.0 | ) | ||||||
**Results of this calculation not considered meaningful.
- Net sales for the 2024 fourth quarter were
$79.2 million , a$9.9 million increase, or14.2% , over the prior year quarter, driven primarily by higher sales volumes in the Rail Products business unit.
- Gross profit for the 2024 fourth quarter was
$17.6 million , a$4.2 million increase, and gross profit margins increased 300 basis points to22.2% . Gross profit improvement was driven primarily by improved margins in Global Friction Management and Technology Services and Solutions, including recovery in our UK business. The Rail Products business unit also realized improved margins driven by higher sales volumes.
- Segment operating income for the 2024 fourth quarter was
$4.7 million , favorable$5.6 million over the prior year quarter, due to the increase in gross profit and a$1.4 million decrease in segment selling and administrative expenses. The decrease in selling and administrative expenses is due in part to a$1.0 million decline in bad debt expense due to a UK customer that filed for administrative protection in the prior year.
- Orders decreased by
$5.1 million , driven primarily by Rail Products, partially offset by order growth in the Global Friction Management and Technology Services and Solutions business units. The trailing twelve month book-to-bill ratio was 0.94 : 1.00. Backlog of$62.4 million decreased$22.0 million from the prior year quarter driven by declines in Rail Products and Technology Services and Solutions, partially offset by a53.4% increase in Global Friction Management.
Infrastructure Solutions Segment
| Three Months Ended December 31, | Change | Percent Change | |||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 vs. 2023 | ||||||||||||
| (Unaudited) | |||||||||||||||
| $ in thousands, unless otherwise noted: | |||||||||||||||
| Net sales | $ | 49,029 | $ | 65,583 | $ | (16,554 | ) | (25.2 | )% | ||||||
| Gross profit | $ | 11,063 | $ | 15,380 | $ | (4,317 | ) | (28.1 | ) | ||||||
| Gross profit margin | 22.6 | % | 23.5 | % | (90) bps | (3.8 | ) | ||||||||
| Segment operating income | $ | 2,030 | $ | 5,390 | $ | (3,360 | ) | (62.3 | ) | ||||||
| Segment operating income margin | 4.1 | % | 8.2 | % | (410) bps | (49.9 | ) | ||||||||
| New orders1 | $ | 52,205 | $ | 45,451 | $ | 6,754 | 14.9 | ||||||||
| Backlog1 | $ | 123,460 | $ | 129,362 | $ | (5,902 | ) | (4.6 | ) | ||||||
- Net sales for the 2024 fourth quarter were
$49.0 million , a$16.6 million decrease, or25.2% , from the prior year quarter. The decrease in sales is attributed primarily to Steel Products which declined$15.2 million due to soft market conditions in the end markets served, including a$1.6 million decrease from the exit of the bridge grid deck product line.
- Gross profit for the 2024 fourth quarter was
$11.1 million , a$4.3 million decrease, or28.1% , from the prior year quarter, and gross profit margins decreased by 90 basis points to22.6% . The decrease is due to lower overall sales volumes and unfavorable mix primarily within Steel Products.
- Segment operating income for the 2024 fourth quarter was
$2.0 million , unfavorable$3.4 million from the prior year quarter, due to the decrease in gross profit, partially offset by a$0.9 million improvement in selling and administrative costs.
- New orders increased by
$6.8 million , driven primarily by an increase in new orders in the Protective Coatings business within Steel Products. The trailing twelve month book-to-bill ratio was 0.97 : 1.00. Backlog of$123.5 million decreased$5.9 million from the prior year quarter,$2.7 million of which stems from the bridge grid deck product line exit. The remaining decline in the backlog is attributed to the retained bridge forms product line and the Protective Coatings business. Precast Concrete backlog improved$3.6 million over the prior year quarter due to strengthening in the business.
Full Year Consolidated Highlights
The Company’s full year 2024 performance highlights are reflected below.
| Year Ended December 31, | Change | Percent Change | |||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 vs. 2023 | ||||||||||||
| (Unaudited) | |||||||||||||||
| $ in thousands, unless otherwise noted: | |||||||||||||||
| Net sales | $ | 530,765 | $ | 543,744 | $ | (12,979 | ) | (2.4 | )% | ||||||
| Gross profit | 118,062 | 112,044 | 6,018 | 5.4 | |||||||||||
| Gross profit margin | 22.2 | % | 20.6 | % | 160 bps | 7.8 | |||||||||
| Selling and administrative expenses | $ | 96,398 | $ | 97,623 | $ | (1,225 | ) | (1.3 | ) | ||||||
| Selling and administrative expenses as a percent of sales | 18.2 | % | 18.0 | % | 20 bps | 1.1 | |||||||||
| (Gain) on sale of former joint venture facility | (3,477 | ) | — | (3,477 | ) | ** | |||||||||
| Amortization expense | 4,628 | 5,314 | (686 | ) | (12.9 | ) | |||||||||
| Operating income | $ | 20,513 | $ | 9,107 | $ | 11,406 | 125.2 | ||||||||
| Net income attributable to L.B. Foster Company | 42,946 | 1,464 | 41,482 | ** | |||||||||||
| Adjusted EBITDA1 | 33,576 | 31,775 | 1,801 | 5.7 | |||||||||||
| New orders1 | 506,538 | 529,030 | (22,492 | ) | (4.3 | ) | |||||||||
| Backlog1 | 185,909 | 213,780 | (27,871 | ) | (13.0 | ) | |||||||||
**Results of this calculation not considered meaningful.
- Net sales for the year ended December 31, 2024 were
$530.8 million , a$13.0 million decrease, or2.4% , from the prior year. Net sales declined$13.8 million primarily due to divestitures and product line exits. Organic sales increased by$0.8 million driven by the Rail, Technologies, and Services segment, partially offset by organic sales declines in the Infrastructure Solutions segment, primarily within the Steel Products business.
- Gross profit for the year ended December 31, 2024 was
$118.1 million , an increase of$6.0 million , or5.4% , over the prior year and gross profit margins expanded by 160 basis points to22.2% . The increase in gross profit in 2024 was due to the absence of the adverse impact realized in the prior year period of the bridge grid deck product line exit which reduced prior year gross profit by$3.1 million , coupled with related exit costs of$1.1 million . Additionally, the improvement in gross profit was driven by the business portfolio changes in line with the Company's strategic transformation along with favorable business mix and the recovery in our UK Technology Services and Solutions businesses.
- Selling and administrative expenses for the year ended December 31, 2024 were
$96.4 million , a$1.2 million decrease, or1.3% , from the prior year. The decrease was primarily attributed to$2.9 million of lower employments costs in 2024 and the absence of$1.9 million of bad debt expense incurred in 2023 due to a customer filing for administrative protection. Partially offsetting these decreases were$1.2 million in legal costs associated with a resolved legal matter,$0.8 million of professional services expenditures associated with the announced enterprise restructuring, and$1.2 million in employee-related restructuring expense incurred in 2024.
- Operating income for the year ended December 31, 2024 was
$20.5 million , favorable$11.4 million over the prior year, due to improved gross profit, lower selling and administrative expenses, and a$3.5 million gain on the sale of a former joint venture facility in Magnolia, Texas.
- Net income attributable to the Company for the year ended December 31, 2024 was
$42.9 million , or$3.89 per diluted share, favorable by$41.5 million over the prior year period. The change in net income attributable to the Company was due primarily to a$31.9 million favorable tax valuation allowance adjustment in 2024, as well as improved operating income, including the bridge exit impacts in 2023 and$3.5 million Magnolia facility sale gain in 2024.
- Adjusted EBITDA for the year ended December 31, 2024 was
$33.6 million , a$1.8 million increase, or5.7% , over the prior year.
- Net cash flow from operations in the year ended December 31, 2024 totaled
$22.6 million .
- New orders totaling
$506.5 million for the year ended December 31, 2024 decreased$22.5 million , or4.3% , from the prior year, with$10.6 million of the decrease due to divestitures and product line exits. The remaining decline was realized across the Steel Products business. Organic order rates1 in the Rail, Technologies, and Services segment improved$14.9 million , with strong growth realized in both Rail Products and Friction Management. Precast Concrete order rates also improved$2.3 million as compared to the prior year period.
Fourth Quarter Conference Call
L.B. Foster Company will conduct a conference call and webcast to discuss its fourth quarter and full year 2024 operating results on March 4, 2025 at 11:00 AM ET. The call will be hosted by Mr. John Kasel, President and Chief Executive Officer. Listen via audio and access the slide presentation on the L.B. Foster website: www.lbfoster.com, under the Investor Relations page. A conference call replay will be available through March 11, 2025 via webcast through L.B. Foster’s Investor Relations page of the company’s website.
Those interested in participating in the question-and-answer session may register for the call at https://register.vevent.com/register/BI7fa688d1459244e0bb31550782a2d32b to receive the dial-in numbers and unique PIN to access the call. The registration link will also be available on the Company’s Investor Relations page of its website.
About L.B. Foster Company
Founded in 1902, L.B. Foster Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company’s innovative engineering and product development solutions address the safety, reliability, and performance needs of its customer's most challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. For more information, please visit www.lbfoster.com.
Non-GAAP Financial Measures
This press release contains financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States ("GAAP"). These non-GAAP financial measures are provided as additional information for investors. The presentation of this additional information is not meant to be considered in isolation or as a substitute for GAAP measures. For definitions of the non-GAAP financial measures used in this press release and reconciliations to the most directly comparable respective GAAP measures, see the “Non-GAAP Disclosures” section below.
The Company has not reconciled the forward-looking adjusted EBITDA and free cash flow to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are acquisition and divestiture-related costs, impairment expense, and changes in operating assets and liabilities. These underlying expenses and others that may arise during the year are potential adjustments to future earnings. The Company expects the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
The Company believes free cash flow is useful information to investors as it provides insight on cash generated by operations, less capital expenditures, which we believe to be helpful in assessing the Company's long-term ability to pursue growth and investment opportunities as well as service its financing obligations and generate capital for shareholders. Additionally, the Company's annual incentive plans for management provide for the utilization of free cash flow as a metric for measuring cash-generation performance in determining annual variable incentive achievement.
The Company defines new orders as a contractual agreement between the Company and a third-party in which the Company will, or has the ability to, satisfy the performance obligations of the promised products or services under the terms of the agreement. The Company defines backlog as contractual commitments to customers for which the Company’s performance obligations have not been met, including with respect to new orders and contracts for which the Company has not begun any performance. Management utilizes new orders and backlog to evaluate the health of the industries in which the Company operates, the Company’s current and future results of operations and financial prospects, and strategies for business development. The Company believes that new orders and backlog are useful to investors as supplemental metrics by which to measure the Company’s current performance and prospective results of operations and financial performance. The Company defines book-to-bill ratio as new orders divided by revenue. The Company believes this is a useful metric to assess supply and demand, including order strength versus order fulfillment.
The Company views its Gross Leverage Ratio per its credit agreement, as defined in the Second Amendment to its Fourth Amended and Restated Credit Agreement dated August 12, 2022, as an important indication of the Company's financial health and believes it is useful to investors as an indicator of the Company's ability to service its existing indebtedness and borrow additional funds for its investing and operational needs.
Forward-Looking Statements
This release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements include any statement that does not directly relate to any historical or current fact. Sentences containing words such as “believe,” “intend,” “plan,” “may,” “expect,” “should,” “could,” “anticipate,” “estimate,” “predict,” “project,” or their negatives, or other similar expressions of a future or forward-looking nature generally should be considered forward-looking statements. Forward-looking statements in this release are based on management's current expectations and assumptions about future events that involve inherent risks and uncertainties and may concern, among other things, L.B. Foster Company’s (the “Company’s”) expectations and assumptions about future events that involve inherent risks and uncertainties and may concern, among other things, the Company’s expectations relating to our strategy, goals, projections, and plans regarding our financial position, liquidity, capital resources, and results of operations and decisions regarding our strategic growth initiatives, market position, and product development. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. The Company cautions readers that various factors could cause the actual results of the Company to differ materially from those indicated by forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: a continuation or worsening of the adverse economic conditions in the markets we serve, including recession, the continued volatility in the prices for oil and gas, tariffs or trade wars, inflation, project delays, and budget shortfalls, or otherwise; volatility in the global capital markets, including interest rate fluctuations, which could adversely affect our ability to access the capital markets on terms that are favorable to us; restrictions on our ability to draw on our credit agreement, including as a result of any future inability to comply with restrictive covenants contained therein; a decrease in freight or transit rail traffic; environmental matters and the impact of environmental regulations, including any costs associated with any remediation and monitoring of such matters; the risk of doing business in international markets, including compliance with anti-corruption and bribery laws, foreign currency fluctuations and inflation, global shipping disruptions, the imposition of increased or new tariffs, and trade restrictions or embargoes; our ability to effectuate our strategy, including cost reduction initiatives, and our ability to effectively integrate acquired businesses or to divest businesses, such as the recent dispositions of the Chemtec and Ties businesses, and acquisition of VanHooseCo Precast LLC and Cougar Mountain Precast, LLC businesses and to realize anticipated benefits; costs of and impacts associated with shareholder activism; the timeliness and availability of materials from our major suppliers, as well as the impact on our access to supplies of customer preferences as to the origin of such supplies, such as customers’ concerns about conflict minerals; labor disputes; cybersecurity risks such as data security breaches, malware, ransomware, “hacking,” and identity theft, which could disrupt our business and may result in misuse or misappropriation of confidential or proprietary information, and could result in the disruption or damage to our systems, increased costs and losses, or an adverse effect to our reputation, business or financial condition; the continuing effectiveness of our ongoing implementation of an enterprise resource planning system; changes in current accounting estimates and their ultimate outcomes; the adequacy of internal and external sources of funds to meet financing needs, including our ability to negotiate any additional necessary amendments to our credit agreement or the terms of any new credit agreement, the Company’s ability to manage its working capital requirements and indebtedness; domestic and international taxes, including estimates that may impact taxes; domestic and foreign government regulations, including tariffs; our ability to maintain effective internal controls over financial reporting (“ICFR”) and disclosure controls and procedures, including our ability to remediate any existing material weakness in our ICFR and the timing of any such remediation, as well as our ability to reestablish effective disclosure controls and procedures; any change in policy or other change due to the results of the UK’s 2024 parliamentary election and the U.S. 2024 Presidential election that could affect UK or U.S. business conditions; other geopolitical conditions, including the ongoing conflicts between Russia and Ukraine, conflicts in the Middle East, and increasing tensions between China and Taiwan; a lack of state or federal funding for new infrastructure projects; an increase in manufacturing or material costs; the loss of future revenues from current customers; any future global health crises, and the related social, regulatory, and economic impacts and the response thereto by the Company, our employees, our customers, and national, state, or local governments, including any governmental travel restrictions; and risks inherent in litigation and the outcome of litigation and product warranty claims. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. Significant risks and uncertainties that may affect the operations, performance, and results of the Company’s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K/A for the year ended December 31, 2023, as amended on November 1, 2024, or as updated and/or amended by our other current or periodic filings with the Securities and Exchange Commission.
The forward-looking statements in this release are made as of the date of this release and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by the federal securities laws.
Investor Relations:
Lisa Durante
(412) 928-3400
investors@lbfoster.com
L.B. Foster Company
415 Holiday Drive
Suite 100
Pittsburgh, PA 15220
| L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023* | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Sales of goods | $ | 116,457 | $ | 113,580 | $ | 462,659 | $ | 475,350 | |||||||
| Sales of services | 11,726 | 21,297 | 68,106 | 68,394 | |||||||||||
| Total net sales | 128,183 | 134,877 | 530,765 | 543,744 | |||||||||||
| Cost of goods sold | 86,722 | 85,570 | 351,265 | 368,197 | |||||||||||
| Cost of services sold | 12,846 | 20,598 | 61,438 | 63,503 | |||||||||||
| Total cost of sales | 99,568 | 106,168 | 412,703 | 431,700 | |||||||||||
| Gross profit | 28,615 | 28,709 | 118,062 | 112,044 | |||||||||||
| Selling and administrative expenses | 24,421 | 27,263 | 96,398 | 97,623 | |||||||||||
| (Gain) on sale of former joint venture facility | — | — | (3,477 | ) | — | ||||||||||
| Amortization expense | 1,142 | 1,195 | 4,628 | 5,314 | |||||||||||
| Operating income | 3,052 | 251 | 20,513 | 9,107 | |||||||||||
| Interest expense - net | 1,016 | 1,124 | 4,992 | 5,528 | |||||||||||
| Other expense (income) - net | 1,601 | (147 | ) | 1,076 | 2,635 | ||||||||||
| Income (loss) before income taxes | 435 | (726 | ) | 14,445 | 944 | ||||||||||
| Income tax expense (benefit) | 712 | (256 | ) | (28,398 | ) | (355 | ) | ||||||||
| Net (loss) income | (277 | ) | (470 | ) | 42,843 | 1,299 | |||||||||
| Net loss attributable to noncontrolling interest | (35 | ) | (40 | ) | (103 | ) | (165 | ) | |||||||
| Net (loss) income attributable to L.B. Foster Company | $ | (242 | ) | $ | (430 | ) | $ | 42,946 | $ | 1,464 | |||||
| Basic (loss) earnings per common share | $ | (0.02 | ) | $ | (0.04 | ) | $ | 4.01 | $ | 0.14 | |||||
| Diluted (loss) earnings per common share | $ | (0.02 | ) | $ | (0.04 | ) | $ | 3.89 | $ | 0.13 | |||||
| Average number of common shares outstanding - Basic | 10,613 | 10,784 | 10,721 | 10,799 | |||||||||||
| Average number of common shares outstanding - Diluted | 10,613 | 10,784 | 11,048 | 10,995 | |||||||||||
*As reported in the Company's Current Report on Form 8-K filed on October 8, 2024, the Company corrected certain errors in previously reported 2024 quarterly financials, and certain immaterial errors in 2023 previously reported financials. All comparisons are based on the corrected historical results.
| L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 2,454 | $ | 2,560 | |||
| Accounts receivable - net | 64,978 | 53,484 | |||||
| Contract assets | 16,720 | 29,489 | |||||
| Inventories - net | 70,506 | 73,111 | |||||
| Other current assets | 6,947 | 8,711 | |||||
| Total current assets | 161,605 | 167,355 | |||||
| Property, plant, and equipment - net | 75,374 | 75,579 | |||||
| Operating lease right-of-use assets - net | 18,247 | 14,905 | |||||
| Other assets: | |||||||
| Goodwill | 31,907 | 32,587 | |||||
| Other intangibles - net | 14,801 | 19,010 | |||||
| Deferred income taxes | 28,900 | — | |||||
| Other assets | 3,483 | 2,965 | |||||
| TOTAL ASSETS | $ | 334,317 | $ | 312,401 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 50,083 | $ | 39,500 | |||
| Deferred revenue | 10,205 | 12,479 | |||||
| Accrued payroll and employee benefits | 15,393 | 16,978 | |||||
| Current portion of accrued settlement | — | 8,000 | |||||
| Current maturities of long-term debt | 167 | 102 | |||||
| Other accrued liabilities | 12,316 | 17,442 | |||||
| Total current liabilities | 88,164 | 94,501 | |||||
| Long-term debt | 46,773 | 55,171 | |||||
| Deferred income taxes | 1,150 | 1,232 | |||||
| Long-term operating lease liabilities | 14,608 | 11,865 | |||||
| Other long-term liabilities | 4,608 | 6,797 | |||||
| Stockholders' equity: | |||||||
| Class A Common Stock | 111 | 111 | |||||
| Paid-in capital | 43,550 | 43,111 | |||||
| Retained earnings | 167,579 | 124,633 | |||||
| Treasury stock | (11,208 | ) | (6,494 | ) | |||
| Accumulated other comprehensive loss | (21,716 | ) | (19,250 | ) | |||
| Total L.B. Foster Company stockholders’ equity | 178,316 | 142,111 | |||||
| Noncontrolling interest | 698 | 724 | |||||
| Total stockholders’ equity | 179,014 | 142,835 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 334,317 | $ | 312,401 | |||
Non-GAAP Disclosures
(unaudited)
This earnings release discloses earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted EBITDA, net debt, and organic results adjusted for the impact of 2024 and 2023 divestiture and product line exit activity. The Company believes that EBITDA is useful to investors as a supplemental way to evaluate the ongoing operations of the Company’s business since EBITDA may enhance investors’ ability to compare historical periods as it adjusts for the impact of financing methods, tax law and strategy changes, and depreciation and amortization. In addition, EBITDA is a financial measure that management and the Company’s Board of Directors use in their financial and operational decision-making and in the determination of certain compensation programs. Adjusted EBITDA adjusts for certain charges to EBITDA from continuing operations that the Company believes are unusual, non-recurring, unpredictable, or non-cash.
In the three and twelve months ended December 31, 2024, the Company made adjustments to exclude gains on asset sales, pension termination costs, restructuring costs, and a legal settlement. In the three and twelve months ended December 31, 2023, the Company made adjustments to exclude the loss on a divestiture, expenses from the exit of the bridge grid deck product line, bad debt provision for customer bankruptcy, restructuring costs, and contingent consideration adjustments associated with the VanHooseCo acquisition. The Company believes the results adjusted to exclude the items listed above are useful to investors as these items are nonroutine in nature.
The Company views net debt, which is total debt less cash and cash equivalents, as an important metric of the operational and financial health of the organization and believes it is useful to investors as an indicator of its ability to incur additional debt and to service its existing debt.
Organic sales growth (decline) is a non-GAAP financial measure of net sales growth (decline) (which is the most directly comparable GAAP measure) excluding the effects of divestitures and product line exit activities. Management believes this measure provides investors with a supplemental understanding of underlying trends by providing sales growth on a consistent basis. Management provides organic sales growth (decline) at the consolidated and segment levels. Portfolio changes are considered based on their comparative impact over the last twelve months, to determine the differences in 2023 versus 2024 results due to these transactions.
Non-GAAP financial measures are not a substitute for GAAP financial results and should only be considered in conjunction with the Company’s financial information that is presented in accordance with GAAP. Quantitative reconciliations of EBITDA, adjusted EBITDA, net debt, free cash flow, and organic sales (in thousands, except percentages and ratios) are as follows:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Adjusted EBITDA Reconciliation | |||||||||||||||
| Net (loss) income, as reported | $ | (277 | ) | $ | (470 | ) | $ | 42,843 | $ | 1,299 | |||||
| Interest expense - net | 1,016 | 1,124 | 4,992 | 5,528 | |||||||||||
| Income tax expense (benefit) | 712 | (256 | ) | (28,398 | ) | (355 | ) | ||||||||
| Depreciation expense | 2,376 | 2,500 | 9,452 | 9,949 | |||||||||||
| Amortization expense | 1,142 | 1,195 | 4,628 | 5,314 | |||||||||||
| Total EBITDA | $ | 4,969 | $ | 4,093 | $ | 33,517 | $ | 21,735 | |||||||
| Gain on asset sale | — | — | (4,292 | ) | — | ||||||||||
| Restructuring costs | 547 | 676 | 1,456 | 676 | |||||||||||
| Pension termination costs | 1,722 | — | 1,722 | — | |||||||||||
| Legal expense | — | — | 1,173 | — | |||||||||||
| Loss on divestiture | — | — | — | 3,074 | |||||||||||
| VanHooseCo contingent consideration | — | — | — | (26 | ) | ||||||||||
| Bridge grid deck exit impact | — | 334 | — | 4,454 | |||||||||||
| Bad debt provision | — | 996 | — | 1,862 | |||||||||||
| Adjusted EBITDA | $ | 7,238 | $ | 6,099 | $ | 33,576 | $ | 31,775 | |||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||
| Net Debt Reconciliation | |||||||||||
| Total debt | $ | 46,940 | $ | 68,544 | $ | 55,273 | |||||
| Less: cash and cash equivalents | (2,454 | ) | (3,135 | ) | (2,560 | ) | |||||
| Net debt | $ | 44,486 | $ | 65,409 | $ | 52,713 | |||||
| December 31, 2024 | |||
| Free Cash Flow Reconciliation | |||
| Net cash provided by operating activities | $ | 22,632 | |
| Less capital expenditures on property, plant, and equipment | (9,791 | ) | |
| Free cash flow | $ | 12,841 | |
| Change in Consolidated Sales | Three Months Ended December 31, | Percent Change | Year Ended December 31, | Percent Change | |||||||||||
| 2023 net sales, as reported | $ | 134,877 | $ | 543,744 | |||||||||||
| Decrease from divestitures and exit | (1,585 | ) | (1.2 | )% | (13,819 | ) | (2.5 | )% | |||||||
| Change due to organic sales (decline) growth | (5,109 | ) | (3.8 | )% | 840 | 0.2 | % | ||||||||
| 2024 net sales, as reported | $ | 128,183 | $ | 530,765 | |||||||||||
| Total sales change, 2023 vs 2024 | $ | (6,694 | ) | (5.0 | )% | $ | (12,979 | ) | (2.4 | )% | |||||
| Change in Infrastructure Solutions Sales | Three Months Ended December 31, | Percent Change | |||||
| 2023 net sales, as reported | $ | 65,583 | |||||
| Decrease due to product line exit | (1,585 | ) | (2.4 | )% | |||
| Change due to organic sales decline | (14,969 | ) | (22.8 | )% | |||
| 2024 net sales, as reported | $ | 49,029 | |||||
| Total sales change, 2023 vs 2024 | $ | (16,554 | ) | (25.2 | )% | ||
| Change in Rail, Technologies, and Services New Orders | Year Ended December 31, | Percent Change | |||||
| 2023 new orders, as reported | $ | 299,584 | |||||
| Decrease due to divestitures | (6,105 | ) | (2.0 | )% | |||
| Change due to organic new orders | 14,915 | 5.0 | % | ||||
| 2024 new orders, as reported | $ | 308,394 | |||||
| Total new orders change, 2023 vs 2024 | $ | 8,810 | 2.9 | % | |||
FAQ
What is the size and duration of FSTR's new stock repurchase program?
How much did FSTR's Q4 2024 net sales decline compared to the previous year?
What is FSTR's projected revenue guidance for 2025?
How many shares did FSTR repurchase during 2024?
What was FSTR's debt reduction in Q4 2024?
