L.B. Foster Delivers Strong Second Quarter Results Amid Challenging Market Conditions
L.B. Foster, a leading provider of infrastructure and industrial products, has reported a solid second quarter 2026, despite facing market challenges.
The company's cash generation reached $17.9 million, its highest level since 2017, while net debt was reduced by $13.5 million or 24.2% during the quarter. This reduction in debt levels and improving profitability resulted in a significant cut to the company's growth leverage, from 2.2 times last year to 1.0 times at quarter end.
"We're pleased with the second quarter and first half of the year," said John Kasel, President and CEO of L.B. Foster. "Along with our current robust backlog, we remain confident about the second half of the year."
The company's revenue in the second quarter declined by 3.5% due to sales being pulled forward to the first quarter, resulting in top line growth of 23.9%. However, sales for the six months increased by 7.6% over last year, reflecting the strong start to the year.
L.B. Foster also announced a strategic shift in the U.K. with the exit of certain non-core product lines within its Tew Engineering business. This move incurred $2.6 million of exit-related costs but is expected to improve the company's overall performance.
Adjusted EBITDA in the second quarter was down 4.7% from last year, driven by higher personnel costs, including incentive-based compensation expense. However, this is a small price to pay for the company's strong year-to-date performance, with adjusted EBITDA increasing by 19.6% compared to last year.
Sean Reilly, L.B. Foster's Chief Financial Officer, highlighted the company's consolidated results for the second quarter. "Our business can experience variability from quarter to quarter, given the timing of customer orders and shipment," he said. "On a year-to-date basis, our results continue to outperform last year, reflecting strong underlying demand across our business."
With its robust backlog and improving financial performance, L.B. Foster remains confident about the second half of the year. The company's ability to adapt to changing market conditions and make strategic decisions, such as the exit of non-core product lines, will be crucial in driving future growth.
