L.B. Foster Reports Strong Q4 Finish to 2025

Infrastructure Solutions segment drives growth, Rail margins decline amid restructuring costs

Mar. 3, 2026 at 4:18pm

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L.B. Foster (NASDAQ:FSTR) executives highlighted a sharp fourth-quarter finish to 2025, driven by strong sales growth in both operating segments, improved SG&A leverage, and meaningful cash generation that reduced net debt and supported ongoing share repurchases. Fourth-quarter net sales were $160.4 million, up 25.1% year over year, with both the Rail and Infrastructure Solutions segments posting significant growth. However, gross margin declined 260 basis points to 19.7% due to weaker Rail margins tied to the TS&S business in the U.K. and an unfavorable mix shift. The company also reported $2.2 million in restructuring costs related to the U.K. downsizing.

Why it matters

L.B. Foster's strong fourth-quarter performance capped off a year of divergent results between its Rail and Infrastructure Solutions segments. The company's ability to generate significant cash flow and reduce debt levels provides financial flexibility, while ongoing share repurchases demonstrate management's confidence in the business. However, the margin pressure in the Rail segment, particularly in the U.K. operations, remains a concern and will be an area to watch going forward.

The details

Fourth-quarter net sales were $160.4 million, up 25.1% year over year, with the Rail segment's sales up 23.7% and Infrastructure Solutions up 27.3%. Gross profit increased 10.6%, but gross margin declined 260 basis points to 19.7% due to weaker Rail margins tied to the TS&S business in the U.K. and an unfavorable mix shift. The company also reported $2.2 million in restructuring costs related to the U.K. downsizing. Adjusted EBITDA for the quarter was $13.7 million, up 89% from the prior year. Operating cash flow in the fourth quarter was $22.2 million, and the company repurchased $3.3 million of stock while reducing net debt by $16.9 million.

  • L.B. Foster reported its fourth-quarter 2025 results on March 3, 2026.

The players

L.B. Foster

A diversified infrastructure solutions provider offering products and services to the transportation, energy, and construction markets, headquartered in Pittsburgh, Pennsylvania.

John Kasel

President and CEO of L.B. Foster.

Bill Thalman

Chief Financial Officer of L.B. Foster.

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