L.B. Foster net sales jump 24% as rail segment demand surges

L.B. Foster Company (NASDAQ:FSTR) reported a robust first quarter for 2026, highlighted by a 23.9% year-over-year increase in net sales to $121.1 million.

The performance was powered by significant momentum in the company’s Rail, Technologies, and Services segment, which saw sales climb 38.4% compared to the prior-year period.

The Infrastructure Solutions segment also contributed to the growth, posting a 5.9% increase.

The top-line expansion translated into a substantial boost in profitability.

L.B. Foster reported net income of $1.5 million for the quarter, while EBITDA surged 183% to $5.2 million.

This operational leverage allowed the company to further strengthen its balance sheet, with gross leverage improving to 1.2x.

While the company’s backlog of $209.6 million was down 11.7% compared to the first quarter of 2025, it showed a healthy sequential increase of 10.7% from the end of 2025, suggesting a stabilizing demand environment.

Cash used in operating activities for the quarter was $10.4 million, typically reflecting seasonal working capital requirements.

Based on the strong quarterly results and current visibility into the project pipeline, management reaffirmed its full-year 2026 guidance.

L.B. Foster expects net sales to range between $540 million and $580 million, with adjusted EBITDA projected between $41 million and $46 million.