10-Q · May 4, 2026
L.B. Foster Company reported strong Q1 2026 results, with revenues of $121.1 million, exceeding estimates by 16.1%, and an EPS of $0.14, beating expectations by 0.36. The Rail segment experienced significant growth,…
Earnings analysis · 10-Q
FSTR earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
L.B. Foster’s Q2 2026 revenue of $138.55 million beat consensus and gross margin expanded to 22.3%, while diluted EPS increased to $0.29 from $0.27 a year earlier. Earnings still missed the $0.41 estimate, and operating…
Read full summary
L.B. Foster’s Q2 2026 revenue of $138.55 million beat consensus and gross margin expanded to 22.3%, while diluted EPS increased to $0.29 from $0.27 a year earlier. Earnings still missed the $0.41 estimate, and operating income declined 19.9% due to higher costs and Tew Engineering exit charges. Management maintained 2026 sales guidance of $540 million-$580 million and free cash flow guidance of $15 million-$25 million. The filing reported no new risk-factor section and concluded disclosure controls were effective as of June 30, 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.29
- Gross margin
- 22.3%
What stood out
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Revenue beat consensus
Second-quarter revenue was $138.55 million, up from $121 million in Q1 2026 but down from $144 million in Q2 2025; revenue exceeded the $134.4884 million consensus estimate by approximately $4.1 million.
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Gross margin expanded
Gross margin improved to 22.3% from 21.2% in Q1 2026 and 21.5% in Q2 2025, a 1.1- and 0.8-percentage-point expansion, respectively.
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EPS improved year over year
Diluted EPS was $0.29 versus $0.14 in Q1 2026 and $0.27 in Q2 2025, but missed the $0.41 consensus estimate by $0.12.
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Full-year outlook maintained
The company reaffirmed 2026 sales guidance of $540 million-$580 million and free cash flow guidance of $15 million-$25 million, with capital spending expected at approximately 2.7% of sales.
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Repurchase capacity remains
The company had $28.687 million of remaining authorization under its $40 million share repurchase program as of June 30, 2026; 11,095 shares were withheld during June at an average price of $37.56 to pay vesting-related taxes.
What to watch
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Costs and exit charges pressured profit
Operating income declined 19.9% year over year despite revenue of $138.55 million, reflecting higher costs and charges associated with the Tew Engineering exit.
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EPS missed expectations
Diluted EPS of $0.29 was $0.12 below the $0.41 consensus estimate, indicating earnings conversion remained weaker than expected despite gross margin of 22.3%.
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Limited risk-factor update and FCF sensitivity
The filing states that Item 1A, Risk Factors, was not applicable, so it provides no quantified new risk-factor disclosures versus the prior report; however, the company’s 2026 free cash flow target remains only $15 million-$25 million while capital spending is expected at approximately 2.7% of sales.
Management's outlook
Management reaffirmed 2026 guidance for net sales of $540 million-$580 million, Adjusted EBITDA of $41 million-$46 million, capital spending of approximately 2.7% of sales, and free cash flow of $15 million-$25 million. No numeric EPS guidance was provided.
Earlier filings 4
10-K · March 5, 2026
L.B. Foster’s 10-K describes a two-segment strategy (Rail; Infrastructure) focused on engineered products, services and digital/condition-monitoring solutions and notes a geographic concentration in North America. The…
10-Q · November 3, 2025
L.B. Foster reported Q3 net sales of $138,286,000, roughly flat year-over-year (+$820,000 vs. $137,466,000) while gross profit declined to $31,066,000 (gross margin ~22.5% vs. 23.8% in Q3 2024). Operating income…
10-K · March 7, 2025
L.B. Foster frames itself as a diversified infrastructure supplier focused on engineered rail products, friction management, digital monitoring and precast/infrastructure solutions; Rail grew to 62% of net sales in 2024…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.