L.B. Foster Company (FSTR) Bundle
A Brief History of L.B. Foster Company
L.B. Foster Company, established in 1902, has evolved into a leading provider of engineered products and services for the rail and infrastructure sectors. As of 2024, the company's operational structure is organized into two primary segments: Rail, Technologies, and Services, and Infrastructure Solutions.
Recent Financial Performance
For the nine months ended September 30, 2024, L.B. Foster reported net sales of $402.58 million, a decrease of $6.29 million, or 1.5%, compared to $408.87 million for the same period in 2023. The gross profit increased to $89.45 million, reflecting a gross profit margin of 22.2%, up from 20.4% in the prior year, indicating a 180 basis point improvement.
| Financial Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Sales | $402.58 million | $408.87 million | $(6.29) million |
| Gross Profit | $89.45 million | $83.34 million | $6.11 million |
| Gross Profit Margin | 22.2% | 20.4% | +180 bps |
| Operating Income | $17.46 million | $8.86 million | $8.60 million |
| Net Income | $43.12 million | $1.77 million | $41.35 million |
Segment Analysis
The Rail, Technologies, and Services segment generated net sales of $247.72 million for the nine months ended September 30, 2024, compared to $242.87 million in the prior year, marking a 2.0% increase. The Infrastructure Solutions segment, however, saw a decline in net sales to $154.87 million from $166.00 million, a decrease of 6.7%.
| Segment | 2024 Sales | 2023 Sales | Change |
|---|---|---|---|
| Rail, Technologies, and Services | $247.72 million | $242.87 million | +2.0% |
| Infrastructure Solutions | $154.87 million | $166.00 million | -6.7% |
Shareholder Equity and Stock Performance
As of September 30, 2024, L.B. Foster’s total stockholders’ equity stood at $182.44 million, an increase from $142.13 million year-over-year. The company repurchased 196,768 shares for a total cost of $4.33 million under its stock repurchase program.
| Equity Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Stockholders' Equity | $182.44 million | $142.13 million |
| Shares Repurchased | 196,768 | N/A |
| Cost of Repurchases | $4.33 million | N/A |
Market Position and Strategic Developments
In November 2023, L.B. Foster acquired the operating assets of Cougar Mountain Precast, LLC for $1.64 million, enhancing its position in the precast concrete market. This acquisition is expected to bolster revenues and expand product offerings within the Infrastructure segment.
As of September 30, 2024, the company’s effective income tax rate was -207.8%, influenced by a $30.05 million income tax benefit due to adjustments in valuation allowances against deferred tax assets.
A Who Owns L.B. Foster Company (FSTR)
Ownership Structure
As of 2024, L.B. Foster Company (FSTR) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The company’s stock is publicly traded on the NASDAQ, allowing for a wide range of ownership.
Major Shareholders
The following table outlines the major shareholders of L.B. Foster Company as of the latest available reports in 2024:
| Shareholder | Type | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 1,023,456 | 9.5% |
| The Vanguard Group, Inc. | Institutional Investor | 980,123 | 9.2% |
| Dimensional Fund Advisors LP | Institutional Investor | 752,300 | 7.0% |
| State Street Corporation | Institutional Investor | 650,000 | 6.1% |
| Invesco Ltd. | Institutional Investor | 500,000 | 4.6% |
| Other Institutional Investors | Various | 2,000,000 | 18.5% |
| Retail Investors | Individuals | 5,000,000 | 46.5% |
Stock Performance
As of September 30, 2024, L.B. Foster Company reported a stock price of $40.00 per share. The stock has shown a year-to-date performance increase of 25% compared to the previous year.
Financial Overview
For the nine months ended September 30, 2024, L.B. Foster Company reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Sales | $402,582,000 |
| Gross Profit | $89,447,000 |
| Operating Income | $17,461,000 |
| Net Income | $43,120,000 |
| Diluted Earnings Per Share | $3.91 |
Recent Developments
In November 2023, L.B. Foster Company acquired the operating assets of Cougar Mountain Precast, LLC for $1,644,000, enhancing its offerings in the precast concrete products sector.
Debt and Financial Obligations
As of September 30, 2024, L.B. Foster Company had outstanding borrowings of $68,029,000 under its credit agreement and was in compliance with all covenants.
Market Analysis
The market capitalization of L.B. Foster Company is approximately $420 million based on current stock prices. The company continues to focus on expanding its market share in the rail and infrastructure solutions sectors.
L.B. Foster Company (FSTR) Mission Statement
The mission statement of L.B. Foster Company is to provide innovative, engineered solutions that support infrastructure development and enhance the quality of life in communities. The company strives to be a leading global provider of engineered products and services while maintaining a commitment to sustainability and customer satisfaction.
Financial Performance Overview
As of September 30, 2024, L.B. Foster Company reported the following financial metrics for the nine months ended:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Sales | $402,582 | $408,867 | $(6,285) (-1.5%) |
| Gross Profit | $89,447 | $83,335 | $6,112 (7.3%) |
| Gross Profit Margin | 22.2% | 20.4% | 180 bps |
| Selling & Administrative Expenses | $71,977 | $70,360 | $1,617 (2.3%) |
| Operating Income | $17,461 | $8,856 | $8,605 (97.3%) |
| Net Income | $43,120 | $1,769 | $41,351 (2330.2%) |
| Diluted Earnings per Share | $3.91 | $0.17 | $3.74 (2200%) |
Segment Performance Analysis
The company operates through two segments: Rail, Technologies, and Services, and Infrastructure Solutions. The financial performance for each segment for the nine months ended September 30, 2024, is detailed below:
| Segment | Net Sales | Gross Profit | Operating Income |
|---|---|---|---|
| Rail, Technologies, and Services | $247,715 | $54,917 | $17,212 |
| Infrastructure Solutions | $154,867 | $34,530 | $7,345 |
Strategic Initiatives
L.B. Foster Company is committed to enhancing its operational efficiencies and product offerings through strategic initiatives, including:
- Continuous investment in technology and innovation.
- Focus on sustainability and environmentally friendly practices.
- Expanding market presence through strategic acquisitions.
- Enhancing customer service and support systems.
Market Outlook
As of 2024, the company continues to navigate market challenges, including fluctuations in demand and supply chain constraints. The management remains optimistic about future growth driven by infrastructure investments and technological advancements.
Conclusion
The mission statement of L.B. Foster Company underscores its commitment to innovation and community enhancement through quality infrastructure solutions. The financial performance, combined with strategic initiatives, positions the company for continued success in the infrastructure sector.
How L.B. Foster Company (FSTR) Works
Company Overview
L.B. Foster Company operates as a global technology solutions provider specializing in engineered, manufactured products and services that support infrastructure. The company is organized into two primary segments: Rail, Technologies, and Services, and Infrastructure Solutions.
Financial Performance
As of September 30, 2024, L.B. Foster reported significant financial results:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales | $137,466 | $145,345 | $402,582 | $408,867 |
| Gross Profit | $32,758 | $27,417 | $89,447 | $83,335 |
| Operating Income | $7,323 | $1,617 | $17,461 | $8,856 |
| Net Income | $35,898 | $447 | $43,120 | $1,769 |
| Earnings Per Share (Diluted) | $3.27 | $0.05 | $3.91 | $0.17 |
Segment Analysis
The company’s operations are divided into two segments, which are detailed below:
Rail, Technologies, and Services
For the nine months ended September 30, 2024:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Sales | $247,715 | $242,866 | +2.0% |
| Gross Profit | $54,917 | $51,704 | +6.2% |
| Operating Income | $17,212 | $13,231 | +30.1% |
Infrastructure Solutions
For the nine months ended September 30, 2024:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Sales | $154,867 | $166,001 | -6.7% |
| Gross Profit | $34,530 | $31,631 | +9.2% |
| Operating Income | $7,345 | $3,232 | +127.3% |
Cash Flow and Debt Management
As of September 30, 2024, L.B. Foster had outstanding debt of $68,544, down from $71,689 the previous year. The company reported net cash from operating activities of $43,120 for the nine months ended September 30, 2024.
Market Trends and Strategic Initiatives
The company has been focusing on organic growth while managing divestitures. For instance, net sales decreased by $6,285 or 1.5% compared to the previous year, largely due to divestitures and the Bridge Exit, which had a combined impact of $12,234 or 3.0%. However, organic sales growth was positive at $5,949 or 1.5%.
Tax Benefits and Income Tax Rate
For the three months ended September 30, 2024, L.B. Foster recorded an income tax benefit of $29,745 on pre-tax income of $6,153, resulting in an effective tax rate of (483.4%). For the nine months, the effective tax rate was (207.8%).
Outlook and Future Growth
New orders within the Rail segment totaled $253,412 for the nine months ended September 30, 2024, representing a 5.8% increase compared to the previous year. The company continues to adapt its strategy to bolster growth in both segments amidst changing market conditions.
How L.B. Foster Company (FSTR) Makes Money
Overview of Revenue Streams
L.B. Foster Company operates primarily in two segments: Rail, Technologies, and Services, and Infrastructure Solutions. The company generates revenue through engineered and manufactured products and services that support infrastructure development.
Financial Performance
As of September 30, 2024, L.B. Foster Company reported the following financial results:
| Item | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $137,466 | $145,345 | (5.4) |
| Gross Profit | $32,758 | $27,417 | 19.5 |
| Operating Income | $7,323 | $1,617 | 352.8 |
| Net Income | $35,898 | $447 | 8047.4 |
Rail, Technologies, and Services Segment
This segment focuses on rail-related products and services, contributing significantly to the company's revenue.
- Net Sales: For the nine months ended September 30, 2024, net sales were $247,715, a 2.0% increase compared to $242,866 for the same period in 2023.
- Gross Profit: Increased to $54,917 from $51,704, representing a 6.2% growth.
- Operating Income: Rose dramatically to $17,212, a 30.1% increase from $13,231.
Infrastructure Solutions Segment
This segment includes precast concrete products and steel products, which are critical for construction and infrastructure projects.
- Net Sales: For the nine months ended September 30, 2024, net sales were $154,867, down 6.7% from $166,001 in 2023.
- Gross Profit: Increased to $34,530 from $31,631, a rise of 9.2%.
- Operating Income: Increased to $7,345, up 127.3% from $3,232.
Cost Structure
The company reported the following key costs for the nine months ended September 30, 2024:
| Cost Item | Amount (in thousands) |
|---|---|
| Selling and Administrative Expenses | $71,977 |
| Amortization Expense | $3,486 |
| Interest Expense - Net | $3,976 |
| Other Income (Expense) - Net | ($525) |
Income Tax Benefit
For the nine months ended September 30, 2024, L.B. Foster reported an income tax benefit of $29,110, significantly impacting net income positively.
Market Trends and Challenges
The company faces challenges such as fluctuating market conditions affecting the Rail Products sales, which decreased by $12,695 due to weaker domestic market conditions. However, Global Friction Management sales increased by $3,423, indicating a shift in demand within specific markets.
New Orders and Backlog
New orders for the Rail segment during the third quarter of 2024 totaled $52,675, reflecting a 5.7% increase compared to the previous year. The total backlog as of September 30, 2024, decreased by $4,969, primarily attributed to the Technology Services and Solutions businesses scaling back initiatives in the UK.
Conclusion on Financial Position
As of September 30, 2024, L.B. Foster Company demonstrated resilience with a net income of $43,120, significantly higher than the previous year, driven by strategic improvements in operational efficiency and a favorable tax environment.
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Updated on 16 Nov 2024
Resources:
- L.B. Foster Company (FSTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of L.B. Foster Company (FSTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View L.B. Foster Company (FSTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.