L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q1 2025 Earnings Presentation
35 slides from L.b. Foster's earnings presentation, May 6, 2025
Slide 1: L.B. Foster Company Earnings Presentation
L.B. Foster Company Earnings Presentation Nasdaq - FSTR May 6, 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 $ 540 $ 580 > Locations throughout North America, South America, Europe, and Asia Adj. EBITDA1 $ 42.0 $ 48.0 Capex as a % of sales ~2
Slide 4: Opening Remarks
Opening Remarks John Kasel President and CEO L.B. Foster Q1 2025 Earnings Presentation 4 May 6, 2025
Slide 5: Executive Summary – Quarter Highlights
Executive Summary – Quarter Highlights What we’ve accomplished… Where we’re going… Net sales of $97.8M down 2025 Guidance 21.3% YoY due to Reaffirmed softness in Rail Net debt1 up $4.9M YoY New orders1 of $149.1M; Net Sales Distribution; Infrastructure to $79.9M in line with up 12.6% YoY and up $540
Slide 6: Financial Review
Financial Review Bill Thalman Executive Vice President and CFO L.B. Foster Q1 2025 Earnings Presentation 6 May 6, 2025
Slide 7: First Quarter Results
First Quarter Results As of and for the quarter ended March 31, 2025: $ in millions, unless otherwise noted YoY Δ > Net sales down 21.3% driven by lower sales volume in the Rail segment which had an SALES 97.8 (26.5) exceptionally-strong first quarter last year GROSS PROFIT 20.2 (6.0) > Gross profit
Slide 8: Seasonality of Financial Performance
Seasonality of Financial Performance Financial results align with construction season and working capital cycles 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% 47.6% $25.0 $17.4 50.0% 44.6%
Slide 9: Rail, Technologies, and Services – Q1 Results
Rail, Technologies, and Services – Q1 Results Weaker results due primarily to soft Rail Distribution volumes; Friction Management sales up 11.0% YoY Rail, Technologies Technologies, Sales GP Margin and and Services Services (34.6)% (20) bps 100 25% 20% 75 15% 50 $83 10% 22.5% 22.3% 25 $54 5% 0 0% Q1
Slide 10: Infrastructure Solutions – Q1 Results
Infrastructure Solutions – Q1 Results Strong Precast Concrete demand drove improved results; Protective Coating backlog up 51.6% YoY Infrastructure Sales GP Margin Solutions +5.0% +40 bps 60 30% 25% 40 20% 15% 20 $42 $44 10% 18.2% 18.6% 5% 0 0% Q1 2024 Q1 2025 Q1 2024 Q1 2025 > Net sales increased b
Slide 11: Net Debt, Leverage, and Cash Flow
1 Net Debt , Leverage, and Cash Flow Net Debt1 and Gross Leverage Ratio1,2 following normal seasonal patterns Net Debt1 and Gross Leverage Ratio1,2 > First quarter net debt1 and Gross Leverage Ratio1,2 Per Credit Agreement ($ in millions) elevated sequentially due to seasonal working capital 3.0x 2.
Slide 12: 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 13: 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 0.95 : 1.00 0.94 : 1.00 $141 $149 $132 $137 $128 1.04 : 1.00 100 $124 $107 $98 $96 50 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Total Ne
Slide 14: Backlog Trends
1 Backlog Trends Consolidated Backlog 300 250 $250 $237 200 $222 $209 150 $186 100 50 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Rail, Technologies, and Services Backlog Infrastructure Solutions Backlog 150 175 125 150 125 $145 100 $115 $136 $135 100 $120 $123 75 $86 $89 $92 75 50 $62 50 25 25 0 0 Q1
Slide 15: Closing Remarks
Closing Remarks John Kasel President and CEO L.B. Foster Q1 2025 Earnings Presentation 15 May 6, 2025
Slide 16: Market and Business Outlook
Market and Business Outlook Projects supported by government funding paused in Q1; signs of improvement in backlog / Q2 quoting Government funding of New facility in Florida Renewed interest in large-scale investments for Continuing focus on and commissioned in Q1; domestic energy freight rail, tran
Slide 17: L.B. Foster Investment Thesis
L.B. Foster Investment Thesis Structural Improvement in Business portfolio transformation, organic growth and focused Profitability profitability initiatives manifesting in improved results Infrastructure pure play with a diverse set of avenues for Organic Growth Drivers in Place growth in multi-yea
Slide 18: Innovating to Solve Global Infrastructure Challenges
Innovating to Solve Global Infrastructure Challenges Maintaining full year financing guidance, with improving sales and profitability expected in Q2 2025 Financial Goals Financial Results 2025 Financial Guidance Established in December 2021 v. 2024 March 4, 2025 2021 2021 2024 Low High Low High Net
Slide 19: Thank you!
Thank you! L.B. Foster Q1 2025 Earnings Presentation We look forward to discussing our Q2 2025 results in early August 2025. L.B. Foster Q1 2025 Earnings Presentation 19 May 6, 2025
Slide 20: Appendix
Appendix L.B. Foster Q1 2025 Earnings Presentation 20 May 6, 2025
Slide 21: Condensed Balance Sheet - Assets
Condensed Balance Sheet - Assets Assets March 31, 2025 December 31, 2024 ($ in millions) Current assets: Cash and cash equivalents $ 2.6 $ 2.5 Accounts receivable - net 57.1 65.0 Contract assets 13.4 16.7 Inventories - net 81.8 70.5 Other current assets 9.4 6.9 Total current assets $ 164.3 $ 161.6 P
Slide 22: Condensed Balance Sheet – Liabilities and Equity
Condensed Balance Sheet – Liabilities and Equity Liabilities and Stockholders' Equity March 31, 2025 December 31, 2024 ($ in millions) Current liabilities: Accounts payable $ 37.3 $ 50.1 Deferred revenue 10.1 10.2 Other accrued liabilities 16.3 27.8 Current maturities of long-term debt 0.2 0.2 Total
Slide 23: Condensed Income Statement – Q1
Condensed Income Statement – Q1 Three Months Ended Three Months Ended Delta March 31, 2025 March 31, 2024 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 97.8 $ 124.3 $ (26.5) (21.3)% Gross profit 20.2 20.6% 26.2 21.1% (6.0) (23.0)% SG&A 21.0 21.4% 22.9 18.4% (1.9) (8.4)%
Slide 24: Condensed Cash Flows
Condensed Cash Flows Three months ended Three months ended March 31, 2025 March 31, 2024 ($ in millions) Net (loss) income and other non-cash items from operations $ 1.3 $ 5.4 Receivables 7.8 (4.0) Contract assets 3.7 5.1 Inventory (11.1) (12.8) Payables and deferred revenue (12.8) 2.2 Trade working
Slide 25: New Orders and Backlog
New Orders and Backlog New Orders Entered – Three Months Ended March 31, March 31, December 31, ($ in millions) YoY Delta Seq. Delta 2025 2024 2024 Rail, Technologies, and Services $ 83.3 $ 83.7 $ 55.0 $ (0.5) (0.6) % $ 28.3 51.4 % Infrastructure Solutions 65.8 48.6 52.2 17.2 35.3 13.6 26.1 Total $
Slide 26: Segment Results – Q1
Segment Results – Q1 Three Months Ended Three Months Ended Delta Segment Sales March 31, 2025 March 31, 2024 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 54.0 $ 82.6 $ (28.6) (34.6)% Infrastructure Solutions 43.8 41.7 2.1 5.0 % Total $ 97.8 $ 124.3 $ (26.5) (21.3)% Three Months Ended T
Slide 27: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Trailing twelve Three months ended March 31, months ended March 31, ($ in millions) 2025 2024 2025 Net (loss) income, as reported $ (2.1) $ 4.4 $ 36.3 Interest expense - net 1.1 1.1 5.0 Income tax (benefit) expense (0.6) 0.3 (29.3) Depreciation expense 2.3 2.4 9.4 A
Slide 28: 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 29: Non-GAAP Measure: Funding Capacity
Non-GAAP Measure: Funding Capacity March 31, 2025 ($ in millions) Cash and cash equivalents $ 2.6 Total availability under the credit facility 130.0 Outstanding borrowings on revolving credit facility (82.1) Letters of credit outstanding (0.8) Net availability under the revolving credit facility1 $
Slide 30: 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 31: Non-GAAP Measure: Net Debt
1 Non-GAAP Measure: Net Debt March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, 2025 2024 2024 2024 2024 2023 2023 2023 ($ in millions) Total debt $ 82.5 $ 46.9 $ 68.5 $ 87.2 $ 78.1 $ 55.3 $ 71.7 $ 89.5 Less: cash and cash equivalents (2.6) (2.5) (3.1) (4.0)
Slide 32: 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 33: 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 34: 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 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) 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