L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q4 2024 Earnings Presentation
37 slides from L.b. Foster's earnings presentation, Mar 4, 2025
Slide 1: Q4 2024 Earnings Presentation
L.B. Foster Company Q4 2024 Earnings Presentation Nasdaq - FSTR March 4, 2025
Slide 2: Safe Harbor Disclaimer
Safe Harbor Disclaimer Safe Harbor Statement Non-GAAP Financial Measures This investor presentation discloses the following non-GAAP measures: This presentation may contain “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section
Slide 3: L.B. Foster Overview
L.B. Foster Overview Innovating to solve global infrastructure challenges 2025 Guidance3 Low High > Founded in 1902, headquartered in Pittsburgh, Pennsylvania Revenue $ 540 $ 580 Adj. EBITDA1 $ 42.0 $ 48.0 > Locations throughout North America, South America, Europe, and Asia Capex as a % of sales ~2
Slide 4: Opening Remarks
Opening Remarks John Kasel President and CEO L.B. Foster Q4 2024 Earnings Presentation 4 March 4, 2025
Slide 5: Executive Summary – Q4 2024 Highlights
Executive Summary – Q4 2024 Highlights What we’ve accomplished… Net debt1 down $20.9M Operating income of New orders1 of $107.2M, in Q4 to $44.5M Net sales of $128.2M $3.1M, up $2.8M YoY up $1.7M YoY down 5.0% YoY (1.2% due from lower SG&A Gross Leverage Ratio1 to bridge grid exit1) Backlog1,2 at $1
Slide 6: Executive Summary – Full Year Highlights
Executive Summary – Full Year Highlights What we’ve accomplished… Where we're going… Net sales of $530.8M Final $8M Union Pacific 2025 Guidance down 2.4% YoY; organic payment made in 2024 sales1 up $0.8M Net Sales $540M - $580M Net debt1 down $8.2M in Board of Directors Gross profit of $118.1M 2024;
Slide 7: Financial Review
Financial Review Bill Thalman Executive Vice President and CFO L.B. Foster Q4 2024 Earnings Presentation 7 March 4, 2025
Slide 8: Fourth Quarter Results
Fourth Quarter Results As of and for the quarter ended December 31, 2024: YoY Δ $ in millions, unless otherwise noted > Net sales declined 5.0%, with 3.8% due to SALES 128.2 (6.7) organic sales1 decline in Infrastructure and 1.2% due to Bridge product line exit GROSS PROFIT 28.6 (0.1) > Gross profit
Slide 9: Year over Year Change in Sales and Adj. EBITDA
1 Year over Year Change in Sales and Adj. EBITDA Changes to Net Sales Changes to Adjusted EBITDA1 ($ in millions) ($ in millions) 150 10 $5.1M $1.6M 125 $134.9 $128.2 8 $0.1 $1.0 $7.2 100 6 $6.1 75 4 50 4.5% of 5.6% of sales sales 2 25 0 0 Q4 2023 Adj. Legacy Business Product Line Exit Q4 2024 Adj.
Slide 10: Sales and Gross Profit Trend – Trailing Quarters
Sales and Gross Profit Trend – Trailing 4 Quarters 1 1,2 1 Sales and YoY Organic Growth Gross Profit ($ in millions) 175 40 23.8% 24% 22.3% 22.0% 150 21.7% 22% (3)% 35 21.2% 21.3% 21.1% $148 $147 (6)% $33 $33 $141 (4)% 20.2% $31 $135 +17% $137 125 $31 20% $128 $124 30 $29 $29 Gross Profit ($ in mill
Slide 11: Rail, Technologies, and Services – Q4 Results
Rail, Technologies, and Services – Q4 Results Higher Volumes in Rail Products / Rail Technologies and UK Business Recovery Driving Improvement Rail, Technologies Technologies, Sales GP Margin and and Services Services +14.2% 300 bps 100 25% 20% 75 15% 50 $79 10% 22.2% $69 19.2% 25 5% 0 0% Q4 2023 Q4
Slide 12: Infrastructure Solutions – Q4 Results
Infrastructure Solutions – Q4 Results Lower Volumes Across Steel Products Drove Infrastructure Sales Decline and Margin Contraction Infrastructure Sales GP Margin Solutions (25.2)% (90) bps 75 30% 25% 50 20% 15% $66 23.5% 22.6% 25 $49 10% 5% 0 0% Q4 2023 Q4 2024 Q4 2023 Q4 2024 > Net sales decreased
Slide 13: Full Year 2024 Results
Full Year 2024 Results As of and for the year ended December 31, 2024: YoY Δ $ in millions, unless otherwise stated > Net sales decreased 2.5% from divestitures and SALES 530.8 (13.0) product line exits1 with organic sales essentially flat with prior year GROSS PROFIT 118.1 6.0 > Gross margins expan
Slide 14: Net Debt, Leverage and Cash Flow
1 Net Debt , Leverage and Cash Flow Strong Operating Cash Flow Generated in 2024 Exceeded Our Expectations 1 Net Debt and Gross Leverage Ratio 1,2 > Strong Q4 operating cash flow of $24.3M drove Per Credit Agreement ($ in millions) decline in net debt1 and Gross Leverage Ratio2 3.0x 2.7x 100 2.5x 90
Slide 15: Capital Allocation Priorities
Capital Allocation Priorities Relentless Pursuit of Shareholder Returns with Prudent Capital Allocation Capital Allocation Investment for Growth Debt Reduction Growth Capital Expenditures 1 > Target maintaining Gross Leverage Ratio between > Targeting ~2.0% of sales for maintenance and to support ~1
Slide 16: New Orders, Revenue and Book-to-Bill Ratios
1 1 New Orders , Revenue and Book-to-Bill Ratios Consolidated New Orders, Revenue, and TTM Book-to-Bill Ratio ($ in millions) 200 150 0.97 : 1.00 $171 0.93 : 1.00 0.94 : 1.00 0.94 : 1.00 0.95 : 1.00 $135 $132 $141 $137 100 $124 $128 $106 $107 $96 50 0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Total Ne
Slide 17: Backlog Trends
1,2 Backlog Trends Consolidated Backlog 300 250 $250 200 $222 $214 $209 150 $186 100 50 0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Rail, Technologies, and Services Backlog Infrastructure Solutions Backlog 150 $200 125 $150 100 $115 $129 $136 $135 75 $86 $89 $100 $120 $123 $84 50 $62 $50 25 0 $0 Q4 20
Slide 18: Closing Remarks
Closing Remarks John Kasel President and CEO L.B. Foster Q4 2024 Earnings Presentation 18 March 4, 2025
Slide 19: Market and Business Outlook
Market and Business Outlook Tariff / Government Funding Uncertainty Creating Current Cautionary Environment in Certain Markets Government funding of On track to commission Renewed interest in large-scale investments for Continuing focus on and facility in Florida to domestic energy freight rail, tra
Slide 20: L.B. Foster Investment Thesis
L.B. Foster Investment Thesis Structural Improvement in Business portfolio transformation, organic growth and focused Profitability profitability initiatives manifesting in improved results Infrastructure pure play with a diverse set of avenues for Organic Growth Drivers in Place growth in multi-yea
Slide 21: Innovating to Solve Global Infrastructure Challenges
Innovating to Solve Global Infrastructure Challenges Our Strategic Transformation Journey... Financial Results 2025 Financial Goals 2025 Financial Guidance 2021 v. 2024 Established in December 2021 March 4, 2025 2021 2024 Low High Low High Net sales $514M $531M Net sales $580M $620M Net sales $540M
Slide 22: Thank you!
Thank you! L.B. Foster Q4 2024 Earnings Presentation We look forward to discussing our Q1 2025 results in early May 2025. L.B. Foster Q4 2024 Earnings Presentation 22 March 4, 2025
Slide 23: Appendix
Appendix L.B. Foster Q4 2024 Earnings Presentation 23 March 4, 2025
Slide 24: Condensed Balance Sheet - Assets
Condensed Balance Sheet - Assets December 31, 2024 December 31, 2023 Assets ($ in millions) Current assets: Cash and cash equivalents $ 2.5 $ 2.6 Accounts receivable - net 65.0 53.5 Contract assets 16.7 29.5 Inventories - net 70.5 73.1 Other current assets 6.9 8.7 Total current assets $ 161.6 $ 167.
Slide 25: Condensed Balance Sheet – Liabilities and Equity
Condensed Balance Sheet – Liabilities and Equity December 31, 2024 December 31, 2023 Liabilities and Stockholders' Equity ($ in millions) Current liabilities: Accounts payable $ 50.1 $ 39.5 Deferred revenue 10.2 12.5 Other accrued liabilities 27.7 42.4 Current maturities of long-term debt 0.2 0.1 To
Slide 26: Condensed Income Statement – Q4
Condensed Income Statement – Q4 Three Months Ended Three Months Ended Delta December 31, 2024 December 31, 2023 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 128.2 $ 134.9 $ (6.7) (5.0)% Gross profit 28.6 22.3% 28.7 21.3% (0.1) (0.3)% SG&A 24.4 19.1% 27.3 20.2% (2.8) (1
Slide 27: Condensed Income Statement – Full Year
Condensed Income Statement – Full Year Year Ended December 31, Year Ended December 31, Delta 2024 2023 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 530.8 $ 543.7 $ (13.0) (2.4)% Gross profit 118.1 22.2% 112.0 20.6% 6.0 5.4 % SG&A 96.4 18.2% 97.6 18.0% (1.2) (1.3)% (Gai
Slide 28: Condensed Cash Flows
Condensed Cash Flows Year Ended Year Ended ($ in millions) December 31, 2024 December 31, 2023 Net income and other non-cash items from operations $ 27.2 $ 21.5 Receivables (12.3) 27.4 Contract assets 12.4 1.8 Inventory 2.4 (6.6) Payables and deferred revenue 8.2 (7.4) Trade working capital subtotal
Slide 29: New Orders and Backlog
New Orders and Backlog New Orders Entered – Three Months Ended ($ in millions) December 31, 2024 December 31, 2023 Delta Rail, Technologies, and Services $ 55.0 $ 60.1 $ (5.1) (8.5)% Infrastructure Solutions 52.2 45.5 6.8 14.9 % Total $ 107.2 $ 105.5 $ 1.7 1.6 % New Orders Entered – Year Ended ($ in
Slide 30: Segment Results – Q4
Segment Results – Q4 Three Months Ended Three Months Ended Segment Sales Delta December 31, 2024 December 31, 2023 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 79.2 $ 69.3 $ 9.9 14.2 % Infrastructure Solutions 49.0 65.6 (16.6) (25.2)% Total $ 128.2 $ 134.9 $ (6.7) (5.0)% Three Months E
Slide 31: Segment Results – Full Year
Segment Results – Full Year Year Ended Year Ended Segment Sales Delta December 31, 2024 December 31, 2023 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 326.9 $ 312.2 $ 14.7 4.7 % Infrastructure Solutions 203.9 231.6 (27.7) (12.0)% Total $ 530.8 $ 543.7 $ (13.0) (2.4)% Year Ended Year En
Slide 32: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, December 31, December 31, December 31, ($ in millions) 2024 2023 2024 2023 2021 Net (loss) income, as reported $ (0.3) $ (0.5) $ 42.8 $ 1.3 $ 3.5 Interest expense - net 1.0 1.1 5.0 5.5 3.0 Income tax expense (b
Slide 33: Non-GAAP Measure: Funding Capacity & Free Cash Flow
Non-GAAP Measure: Funding Capacity & Free Cash Flow ($ in millions) December 31, 2024 Cash and cash equivalents $ 2.5 Total availability under the credit facility 130.0 Outstanding borrowings on revolving credit facility (46.5) Letters of credit outstanding (1.4) Net availability under the revolving
Slide 34: Non-GAAP Measure: Net Debt
1 Non-GAAP Measure: Net Debt December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2024 2024 2024 2024 2023 2023 2023 2023 ($ in millions) Total debt $ 46.9 $ 68.5 $ 87.2 $ 78.1 $ 55.3 $ 71.7 $ 89.5 $ 80.1 Less: cash and cash equivalents (2.5) (3.1) (4.0) (3.1)
Slide 35: Non-GAAP Measure: Adj. Results for Non-routine Items
Non-GAAP Measure: Adj. Results for Non-routine Items Three Months Ended ($ in millions) September 30, 2023 Net sales, as reported $ 145.3 Bridge grid deck exit impact 2.0 Net sales, as adjusted $ 147.3 Gross profit, as reported $ 27.4 Bridge grid deck exit impact 3.9 Gross profit, as adjusted $ 31.3
Slide 36: Non-GAAP Measure: Organic Sales
Non-GAAP Measure: Organic Sales Three Months Percent Percent Change in Consolidated Organic Sales Ended Change Year Ended Change ($ in millions) December 31, December 31, 2023 net sales, as reported $ 134.9 $ 543.7 Decrease from divestitures and exit (1.6) (1.2)% (13.8) (2.5)% Change due to organic
Slide 37: Non-GAAP Measure: Organic Sales
Non-GAAP Measure: Organic Sales Three Months Percent Change in Consolidated Sales Ended Change ($ in millions) September 30, 2023 net sales, as adjusted $ 145.3 Increase (decrease) from divestitures and exit 0.6 0.4 % Change due to organic sales decline (8.5) (5.9)% 2024 net sales, as reported $ 137