L.B. Foster Company (FSTR) AI Stock Analysis
FSTR AI stock analysis summary
AI ResearchL.B. Foster Company (FSTR) provides engineered products and services for rail, infrastructure, and construction projects. In FY2025, the company delivered revenue of $540.0M and net income of $7.5M, reflecting a 5-year revenue CAGR of 1.7%. Over the trailing twelve months, FSTR generated $558.4M in revenue with an operating margin of 6.3%.
- Market cap
- $362.2M
- Revenue (TTM)
- $558.4M
- P/E
- 32.5x fwd 17.3x
- 1Y return
- 29.0% S&P 500 16.8%
- Avg. target
- $44.00 27.8% vs last close
Bull case
- Free cash flow reached $25.2M in FY2025, supporting $16.5M in share buybacks.
- Analyst consensus expects current fiscal year EPS to grow 134.8% to $1.62 on revenue of $562.4M.
- FSTR outperformed the broader market with a 1-year return of 29.0% compared to 16.8% for the S&P 500.
Bear case
- Quarterly revenue fell 3.5% year-over-year in the latest quarter ended June 30, 2026.
- The company's trailing P/E ratio of 32.5x trades at a premium to the US-listed Industrials peer median of 24.8x.
- Cash reserves are limited at $5.8M relative to total debt of $70.3M as of June 30, 2026.
What L.B. Foster does
Headquartered in Pittsburgh, Pennsylvania, L.B. Foster Company operates three core segments: Rail, Technologies, and Services; Precast Concrete Products; and Steel Products and Measurement. The Rail, Technologies, and Services segment provides new and used rail, rail accessories like spikes, anchors, and tie plates, friction management systems, railroad condition monitoring equipment, and aftermarket services. Its Precast Concrete Products segment manufactures specialty precast solutions, including sound walls, bridge beams, box culverts, and precast concrete buildings for parks. The Steel Products and Measurement segment supplies additional specialized infrastructure solutions.
Growth and profitability
Revenue increased from $513.6M in FY2021 to $540.0M in FY2025, reflecting a 5-year CAGR of 1.7%. Gross margin expanded from 16.8% in FY2021 to 21.1% in FY2025, peaking at 22.2% in FY2024. Operating margin improved from 0.9% in FY2021 to 4.1% in FY2025, recovering from -1.4% in FY2022. Net income stood at $7.5M in FY2025, compared to $42.9M in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue fell 3.5% year-over-year, while quarterly earnings grew 7.4%. Trailing twelve months revenue totaled $558.4M with a net profit margin of 2.0% and EPS of $1.06.
Balance sheet and cash flow
As of June 30, 2026, L.B. Foster held $5.8M in cash and short-term investments against total debt of $70.3M, yielding net debt of $64.5M. The company maintains a current ratio of 2.00 and a debt-to-equity ratio of 0.40, with shareholders' equity at $178.0M and total assets of $334.2M. In FY2025, operating cash flow reached $35.6M and free cash flow was $25.2M. Cash allocation in FY2025 included $10.4M in capital expenditures and $16.5M in share buybacks.
Valuation and performance
FSTR trades at a trailing P/E of 32.5x, above the 24.8x median of its US-listed Industrials peers, while its forward P/E of 17.3x aligns closely with the peer median of 17.2x. Its enterprise value of $457.1M translates to an EV/EBITDA of 12.6x, below the peer median of 13.9x. The stock trades at a price-to-sales ratio of 0.6x compared to 1.5x for peers. Over the past year, FSTR gained 29.0%, outpacing the S&P 500 return of 16.8%, and over five years delivered 117.1% against 83.0% for the S&P 500.
What analysts expect
Wall Street coverage consists of 1 Hold rating with 0 Buy, 0 Strong Buy, 0 Sell, and 0 Strong Sell ratings. The mean price target is $44.00, representing upside of 27.8% over the last close of $34.43. For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.62, representing 134.8% growth, alongside revenue of $562.4M. Over the last four quarters, L.B. Foster exceeded EPS estimates 2 times. The next earnings date is November 2, 2026.
Key risks and what to watch
- The company carries net debt of $64.5M against cash and short-term investments of $5.8M.
- Revenue growth has been modest, reflecting a 5-year CAGR of 1.7% from FY2020 to FY2025.
- Earnings performance has been uneven, with the company beating EPS estimates in only 2 of the last 4 quarters.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this FSTR AI stock analysis
This page is an AI-written research summary of L.B. Foster Company (FSTR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: FSTR income statement, FSTR balance sheet, FSTR key metrics, FSTR analyst forecast, FSTR chart. See the FSTR stock overview for the latest quote and news.
FSTR AI stock analysis FAQ
What does L.B. Foster Company do?
L.B. Foster Company manufactures and distributes engineered infrastructure solutions through three divisions: Rail, Technologies, and Services; Precast Concrete Products; and Steel Products and Measurement.
Does L.B. Foster pay a dividend?
No dividend payments or yields are reported for L.B. Foster Company.
What is L.B. Foster's debt situation?
As of June 30, 2026, L.B. Foster had total debt of $70.3M and cash of $5.8M, resulting in net debt of $64.5M and a debt-to-equity ratio of 0.40.
What are analysts' price targets for FSTR?
The mean price target for FSTR is $44.00, which sits 27.8% above the stock's last close of $34.43 on October 16, 2026.