L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q2 2025 Earnings Presentation
40 slides from L.b. Foster's earnings presentation, Aug 11, 2025
Slide 1: L.B. Foster Company Earnings Presentation
L.B. Foster Company Earnings Presentation Nasdaq - FSTR August 11, 2025
Slide 2: Safe Harbor Disclaimer
Safe Harbor Disclaimer Safe Harbor Statement Non-GAAP Financial Measures This earnings 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 $ 535 $ 555 > Locations throughout North America, South America, Europe, and Asia Adj. EBITDA1 $ 40.0 $ 44.0 Capex as a % of sales ~2
Slide 4: Opening Remarks
Opening Remarks John Kasel President and CEO L.B. Foster Q2 2025 Earnings Presentation 4 August 11, 2025
Slide 5: Executive Summary – Quarter Highlights
Executive Summary – Quarter Highlights What we’ve accomplished… Where we’re going… Net sales of $143.6M up Updated 2025 Guidance 2.0% YoY; Infrastructure up Cash flow from operations 22.4%; Rail down 11.2% of $10.4M favorable New orders1 of $175.8M, Net Sales $15.4M YoY up 2.8% YoY $535M - $555M Gro
Slide 6: Financial Review
Financial Review Bill Thalman Executive Vice President and CFO L.B. Foster Q2 2025 Earnings Presentation 6 August 11, 2025
Slide 7: Second Quarter Results
Second Quarter Results As of and for the quarter ended June 30, 2025: > Net sales up 2.0% YoY driven by Infrastructure $ in millions, unless otherwise noted YoY Δ offsetting Rail softness SALES 143.6 2.8 > Gross profit up 1.3% YoY despite $1.1M product line exit costs, with margins down 20 GROSS PRO
Slide 8: Historical Seasonality of Financial Performance
Historical Seasonality of Financial Performance Financial Results and Working Capital Needs Typically Align with Customers' Construction Season 1 Net Sales Q1/Q4 v. Q2/Q3 - Construction Season Free Cash Flow H1 v. H2 - Working Capital Seasonality 75.0% $50.0 $44.0 $37.3 55.4% 52.6% 54.0% 52.4% 53.6%
Slide 9: Rail, Technologies, and Services – Q2 Results
Rail, Technologies, and Services – Q2 Results Profitability Impacted by Volume / Product Line Exit; Backlog1 up 42.5% Sequentially due to Rail Distribution Rail,Technologies, Rail, Technologies Sales GP Margin and Services and Services (11.2)% (100) bps 100 25% 20% 75 15% 50 $86 10% 20.9% 19.9% $76
Slide 10: Infrastructure Solutions – Q2 Results
Infrastructure Solutions – Q2 Results Growth in Sales and Profitability Driven by Precast Concrete and Protective Coatings Infrastructure Sales GP Margin Solutions +22.4% +40 bps 30% 60 25% 20% 40 $68 15% $55 22.9% 23.3% 10% 20 5% 0 0% Q2 2024 Q2 2025 Q2 2024 Q2 2025 > Net sales increased 22.4% with
Slide 11: Year to Date Results
Year to Date Results As of and for the six months ended June 30, 2025: > Sales down 9.0% driven by 22.7% lower Rail YoY Δ $ in millions, unless otherwise stated sales, partially offset by 14.9% higher Infrastructure sales (35.1% for Precast) SALES 241.4 (23.8) > Gross profit down $5.6M with margins
Slide 12: Net Debt, Leverage, and Cash Flow
1 Net Debt , Leverage, and Cash Flow Net Debt1 and Gross Leverage Ratio1,2 Favorable YoY with Improving Leverage Expected through Year End Net Debt1 and Gross Leverage Ratio1,2 1 1,2 > Net debt and Gross Leverage Ratio in line with Per Credit Agreement expectations with deferred working capital need
Slide 13: Capital Allocation Priorities
Capital Allocation Priorities Relentless Pursuit of Shareholder Returns with Prudent Capital Allocation Capital Allocation Investment for Growth Debt Reduction Growth Capital Expenditures 1 > Target maintaining Gross Leverage Ratio between > Targeting ~2.0% of sales for maintenance and to support ~1
Slide 14: New Orders, Revenue, and Book-to-Bill Ratios
1 1 New Orders , Revenue, and Book-to-Bill Ratios Consolidated New Orders, Revenue, and TTM Book-to-Bill Ratio ($ in millions) 200 150 $171 0.93 : 1.00 0.94 : 1.00 $176 1.04 : 1.00 0.95 : 1.00 $141 $149 $144 $137 $128 1.04. : 1.00 100 $107 $98 $96 50 0 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total N
Slide 15: Backlog Trends
1 Backlog Trends Consolidated Backlog 300 250 $270 $250 $237 200 $209 150 $186 100 50 0 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Rail, Technologies, and Services Backlog Infrastructure Solutions Backlog 150 175 125 150 $131 $145 $115 125 $135 $139 100 100 $120 $123 75 $89 $92 75 50 $62 50 25 25 0 0 Q
Slide 16: Closing Remarks
Closing Remarks John Kasel President and CEO L.B. Foster Q2 2025 Earnings Presentation 16 August 11, 2025
Slide 17: Market and Business Outlook
Market and Business Outlook Demand Improvement Expected to Continue in Rail and Civil Infrastructure End Markets Government funding of Continuing focus on and New Precast facility in Renewed interest in large-scale investments in funding of railroad Florida delivered first order domestic energy infr
Slide 18: Innovating to Solve Global Infrastructure Challenges
Innovating to Solve Global Infrastructure Challenges Organic Growth and Profitability Expansion Expected to Continue Through Balance of 2025 Financial Results 2025 Goals Established in 2025 Financial Guidance 2021 v. 2024 December 2021 August 11, 2025 2021 2024 Low High Low High Net sales $514M $531
Slide 19: Thank you!
Thank you! L.B. Foster Q2 2025 Earnings Presentation We look forward to discussing our Q3 2025 results in early November 2025. L.B. Foster Q2 2025 Earnings Presentation 19 August 11, 2025
Slide 20: Appendix
Appendix L.B. Foster Q2 2025 Earnings Presentation 20 August 11, 2025
Slide 21: Condensed Balance Sheet - Assets
Condensed Balance Sheet - Assets Assets June 30, 2025 December 31, 2024 ($ in millions) Current assets: Cash and cash equivalents $ 4.2 $ 2.5 Accounts receivable - net 71.4 65.0 Contract assets 13.0 16.7 Inventories - net 75.4 70.5 Other current assets 9.5 6.9 Total current assets $ 173.5 $ 161.6 Pr
Slide 22: Condensed Balance Sheet – Liabilities and Equity
Condensed Balance Sheet – Liabilities and Equity Liabilities and Stockholders' Equity June 30, 2025 December 31, 2024 ($ in millions) Current liabilities: Accounts payable $ 39.9 $ 50.1 Deferred revenue 9.0 10.2 Other accrued liabilities 19.5 27.8 Current maturities of long-term debt 0.2 0.2 Total c
Slide 23: Condensed Income Statement – Q2
Condensed Income Statement – Q2 Three Months Ended June Three Months Ended June Delta 30, 2025 30, 2024 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 143.6 $ 140.8 $ 2.8 2.0 % Gross profit 30.9 21.5% 30.5 21.7% 0.4 1.3 % SG&A 22.4 15.6% 24.8 17.6% (2.4) (9.8)% Amortizat
Slide 24: Condensed Income Statement – YTD
Condensed Income Statement – YTD Six Months Ended June Six Months Ended June Delta 30, 2025 30, 2024 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 241.4 $ 265.1 $ (23.8) (9.0)% Gross profit 51.1 21.2% 56.7 21.4% (5.6) (9.9)% SG&A 43.3 18.0% 47.7 18.0% (4.4) (9.1)% Amort
Slide 25: Condensed Cash Flows
Condensed Cash Flows Six Months Ended June Six Months Ended June 30, 2025 30, 2024 ($ in millions) Net income and other non-cash items from operations $ 12.6 $ 12.2 Receivables (5.5) (22.5) Contract assets 4.8 8.5 Inventory (4.9) (7.0) Payables and deferred revenue (11.4) 1.1 Trade working capital s
Slide 26: New Orders and Backlog
New Orders and Backlog New Orders Entered – Three Months Ended June 30, June 30, ($ in millions) Delta 2025 2024 Rail, Technologies, and Services $ 114.3 $ 117.0 $ (2.7) (2.3) % Infrastructure Solutions 61.4 54.0 7.4 13.7 Total $ 175.8 $ 171.0 $ 4.8 2.8 % Note figures may not foot due to rounding. L
Slide 27: New Orders and Backlog
New Orders and Backlog New Orders Entered – Six Months Ended June 30, June 30, ($ in millions) Delta 2025 2024 Rail, Technologies, and Services $ 197.6 $ 200.7 $ (3.1) (1.6)% Infrastructure Solutions 127.2 102.6 24.6 23.9 Total $ 324.8 $ 303.4 $ 9.4 2.3 % Backlog – Three Months Ended June 30, June 3
Slide 28: Segment Results – Q2
Segment Results – Q2 Three Months Ended Three Months Ended Delta Segment Sales June 30, 2025 June 30, 2024 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 76.0 $ 85.6 $ (9.6) (11.2)% Infrastructure Solutions 67.6 55.2 12.4 22.4 % Total $ 143.6 $ 140.8 $ 2.8 2.0 % Three Months Ended Three
Slide 29: Segment Results – YTD
Segment Results – YTD Six Months Ended Six Months Ended Delta Segment Sales June 30, 2025 June 30, 2024 ($ in millions) $ $ $ % Rail, Technologies, and Services 130.0 168.2 (38.2) (22.7)% Infrastructure Solutions 111.4 96.9 14.5 14.9 % Total $ 241.4 $ 265.1 $ (23.8) (9.0)% Six Months Ended Six Month
Slide 30: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Trailing twelve Three Months Ended Six Months Ended months ended June 30, June 30, June 30, ($ in millions) 2025 2024 2025 2024 2025 Net income, as reported $ 2.8 $ 2.8 $ 0.7 $ 7.2 $ 36.3 Interest expense - net 1.5 1.5 2.6 2.6 5.0 Income tax expense (benefit) 3.4 0.
Slide 31: Non-GAAP Measure: Adj. EBITDA Margin & Net Income Margin
Non-GAAP Measure: Adj. EBITDA Margin & Net Income Margin Twelve months ended: December 31, December 31, ($ in millions) 2021 2024 Net income, as reported $ 3.5 $ 42.8 Interest expense - net 3.0 5.0 Income tax expense (benefit) 1.1 (28.4) Depreciation expense 8.1 9.5 Amortization expense 5.8 4.6 Tota
Slide 32: Non-GAAP Measure: Funding Capacity
Non-GAAP Measure: Funding Capacity June 30, 2025 ($ in millions) Cash and cash equivalents $ 4.2 Total availability under the credit facility 150.0 Outstanding borrowings on revolving credit facility (81.0) Letters of credit outstanding (0.9) Net availability under the revolving credit facility1 $ 6
Slide 33: Non-GAAP Measure: Free Cash Flow
Non-GAAP Measure: Free Cash Flow Twelve months ended: December 31, December 31, ($ in millions) 2021 2024 Net cash (used in) provided by operating activities $ (0.8) $ 22.6 Less capital expenditures on property, plant, and equipment (4.6) (9.8) Free cash flow $ (5.4) $ 12.8 Six months ended: Decembe
Slide 34: Non-GAAP Measure: Net Debt
1 Non-GAAP Measure: Net Debt June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, 2025 2025 2024 2024 2024 2024 2023 2023 ($ in millions) Total debt $ 81.6 $ 82.5 $ 46.9 $ 68.5 $ 87.2 $ 78.1 $ 55.3 $ 71.7 Less: cash and cash equivalents (4.2) (2.6) (2.5) (3.1)
Slide 35: Non-GAAP Measure: Adjusted EBITDA by Quarter
Non-GAAP Measure: Adjusted EBITDA by Quarter Three Months Ended March 31, June 30, September 30, December 31, ($ in millions) 2021 2021 2021 2021 Net (loss) income, as reported $ (1.3) $ 2.9 $ 2.2 $ (0.4) Interest expense - net 0.9 0.9 0.7 0.5 Income tax (benefit) expense (0.3) 1.1 0.7 (0.4) Depreci
Slide 36: Non-GAAP Measure: Adjusted EBITDA by Quarter
Non-GAAP Measure: Adjusted EBITDA by Quarter Three Months Ended March 31, June 30, September 30, December 31, ($ in millions) 2022 2022 2022 2022 Net (loss) income, as reported $ (1.6) $ 2.0 $ (2.1) $ (44.0) Interest expense - net 0.4 0.4 1.0 1.6 Income tax (benefit) expense (0.5) 0.8 (0.2) 36.5 Dep
Slide 37: Non-GAAP Measure: Adjusted EBITDA by Quarter
Non-GAAP Measure: Adjusted EBITDA by Quarter Three Months Ended March 31, June 30, September 30, December 31, ($ in millions) 2023 2023 2023 2023 Net (loss) income, as reported $ (2.2) $ 3.5 $ 0.4 $ (0.5) Interest expense - net 1.4 1.6 1.4 1.1 Income tax (benefit) expense (0.5) 0.6 (0.1) (0.3) Depre
Slide 38: Non-GAAP Measure: Adjusted EBITDA by Quarter
Non-GAAP Measure: Adjusted EBITDA by Quarter Three Months Ended March 31, June 30, September 30, December 31, ($ in millions) 2024 2024 2024 2024 Net income (loss), as reported $ 4.4 $ 2.8 $ 35.9 $ (0.3) Interest expense - net 1.1 1.5 1.4 1.0 Income tax expense (benefit) 0.3 0.3 (29.7) 0.7 Depreciat
Slide 39: Non-GAAP Measure: Adjusted Gross Profit
Non-GAAP Measure: Adjusted Gross Profit Consolidated Adjusted Gross Profit Three Months Ended ($ in millions) June 30, 2025 June 30, 2024 Net sales, as reported $ 143.6 $ 140.8 Gross profit, as reported 30.9 30.5 Gain on asset sale — (0.8) AMH exit costs 1.1 — Gross profit, as adjusted $ 32.0 $ 29.7
Slide 40: Non-GAAP Measure: Adjusted Gross Profit
Non-GAAP Measure: Adjusted Gross Profit Rail Adjusted Gross Profit Three Months Ended ($ in millions) June 30, 2025 June 30, 2024 Net sales, as reported $ 76.0 $ 85.6 Gross profit, as reported 15.1 17.9 AMH exit costs 1.1 — Gross profit, as adjusted $ 16.2 $ 17.9 Gross profit margin, as reported 19.