Engineering company L.B. Foster's Q2 adjusted EBITDA up 51.4%, backlog rises 8.1%

Overview

• L.B. Foster Q2 net income rises 1.3% yr/yr to $2.8 mln

• Adjusted EBITDA for Q2 up 51.4% driven by Infrastructure segment

• Company backlog increases 8.1% yr/yr, indicating potential future growth

Outlook

• L.B. Foster expects 2025 full-year net sales between $535 mln and $555 mln

• Company anticipates 2025 adjusted EBITDA between $40 mln and $44 mln

• L.B. Foster forecasts $15 mln to $25 mln in free cash flow for 2025

• Company sees strong organic sales growth continuing in second half of 2025

Result Drivers

• PRECAST CONCRETE - Sales in Precast Concrete business unit up 36%, driving Infrastructure segment growth

• RAIL BACKLOG - Rail backlog increased 13.9% yr/yr, despite 11.2% decline in Rail sales

• EXPENSE LEVERAGE - SG&A expenses decreased, contributing to improved operating income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for L B Foster Co is $29.00, about 23.9% above its August 8 closing price of $22.08

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX1j5kq