L.B. Foster (FSTR) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, March 3, 2026 astatine 9:05 AM CST 37 min read

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Tuesday, March 3, 2026 astatine 8:30 a.m. ET

• President & Chief Executive Officer — John F. Kasel

• Executive Vice President & Chief Financial Officer — William M. Thalman

• Vice President, Corporate Development, Investor Relations, & Treasurer — Lisa M. Gordon

We volition commencement the telephone with John providing his position connected the company's 4th fourth and afloat twelvemonth 2025 performance. Bill volition past reappraisal the company's 4th fourth fiscal results. Some statements we are making are forward-looking and correspond our existent presumption of our markets and concern today. These forward-looking statements bespeak our opinions lone arsenic of the day of this presentation, and we undertake nary work to revise oregon publically merchandise the results of immoderate revisions to these statements successful airy of caller information, but arsenic required by securities law. For much elaborate risks, uncertainties, and assumptions relating to our forward-looking statements, delight spot the disclosures successful our net merchandise and presentation.

We volition besides sermon non-GAAP fiscal metrics and promote you to cautiously work our disclosures and reconciliation tables provided wrong today's net merchandise and presumption arsenic you see these metrics. So with that, fto maine crook the telephone implicit to John.

John F. Kasel: Thanks, Lisa. Hello, everybody. Thank you for joining america contiguous for our 4th fourth net call. I volition statesman my comments connected Slide 5, covering the highlights of the quarter. During past year's quarter's reporting cycle, we indicated that our accrued backlog should present a beardown 4th quarter, and I americium pleased to study we wrapped up 2025 with exceptional income growth, robust profitability expansion, and beardown currency generation. Truly a fantastic decorativeness to the year. Net income of $160.4 cardinal were up 25.1% implicit past year. This was the highest 4th fourth income since 2018. Both segments delivered important income maturation successful Q4 with Rail up 23.7% and Infrastructure up 27.3%.

Gross nett was up 10.6%, portion gross borderline of 19.7% was down 260 ground points owed to weaker Rail margins chiefly related to our TS& S concern successful the UK. Coupled with greater measurement of Rail products, we delivered beardown leverage of SG&A expenses, which were down $1.3 cardinal oregon 5.2% from past year's quarter. The Q4 SG&A percent of income improved 470 ground points to 14.4%. Adjusted EBITDA of $13.7 cardinal was up a singular $6.4 cardinal oregon 89%, with the accrued gross nett and little SG&A expenses delivering the betterment versus past year. In enactment with our seasonal moving superior cycle, we besides delivered a beardown 4th of currency generation, with operating currency totaling $22.2 million.