Start here if you're new
what it is
L.B. Foster sells rail and infrastructure products that keep tracks, bridges, and industrial sites working.
how it gets paid
Last year L.B. Foster made $540M in revenue. Rail Products was the main engine at $189M, or about 35% of sales.
why it's growing
Revenue grew 1.7% last year. EPS was $0.47, up 17% vs. prior year, and gross margin was 21.6%.
what just happened
Latest quarter revenue near ~$135M (~¼ of $540M) — not $380M / +175% vs. prior year. Valuation still screens rich at ~62.7x trailing P/E.
At a glance
C++ balance sheet — some cracks in the foundation
10/100 earnings predictability — expect surprises
62.7x trailing p/e — you're paying up for this one
20.2% return on capital — every dollar works hard here
$3.89 fy2024 eps est
xvary composite: 45/100 — below average
What they do
L.B. Foster sells rail and infrastructure products that keep tracks, bridges, and industrial sites working.
This is a parts-and-problems business. When your rail line or bridge system needs a fix, you do not shop for vibes. You call the vendor that already knows the asset. That stickiness shows up in a 20.2% return on capital (how much profit each invested dollar earns, so what: the business can still produce solid returns despite a 5.9% operating margin).
How they make money
$540M
annual revenue · their business grew +1.7% last year
Rail Products
$189M
Global Friction Management
$86M
Technology Services and Solutions
$81M
Infrastructure Technologies
$184M
The products that matter
rail track and services
Rail Products
$189M · ~35% of revenue
This matches the Rail Products row on the revenue bridge (same as basics). The old $297M / 55% cut did not reconcile to that table.
~35% of revenue
friction, tech services, infrastructure
Non-rail segments (bridge)
$351M · ~65% combined
Global Friction Management, Technology Services, and Infrastructure Technologies sum to the rest of the $540M base. Growth rates vary by line; use filings for segment vs. prior year — the old $243M / +25% stub did not match these rows.
diversification
Key numbers
62.7x
trailing p/e
P/E → price compared with last year's profit → so what: you are paying a premium multiple for a company that only recently got earnings back on track.
20.2%
return on capital
Return on capital → profit earned on the money used in the business → so what: this turnaround is producing better returns than the margin line suggests.
5.9%
operating margin
Operating margin → profit left after running the business → so what: there is profit here, but not enough to absorb many mistakes.
$84M
long-term debt
Debt → money the company owes over time → so what: average balance sheet quality matters more when your market cap is only about $281M.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $84M (23% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for FSTR right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Quarter revenue near ~$135M — the stock still asks you to pay 62.7x trailing earnings.
EPS was $0.47, up 17% vs. prior year, and gross margin was 21.6%. The quarter says execution improved. The valuation says investors already noticed.
$135M
revenue (Q)
$0.47
eps (Q)
21.6%
gross margin (Q)
the number that mattered
Project timing moves a ~$281M mcap name hard — but quarter revenue belongs near ~$135M, not $380M.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
Your #1 risk is domestic rail exposure staying heavy while backlog and margin both move the wrong way.
med
rail concentration
Rail Products is about $189M (~35% of $540M on this bridge). The page still flags a tough domestic rail backdrop.
If rail weakens further, the largest named row on the bridge is exposed first.
med
margin compression
Q4 gross margin fell 260 basis points to 19.7% even as revenue beat expectations by 25.1%.
That's the bad version of operating leverage — more sales, less cushion.
med
valuation reset
A 62.7x trailing p/e gives you very little forgiveness for a business with a 5.9% operating margin and a C++ balance sheet.
If execution stays messy, the multiple can compress before earnings improve.
med
guidance miss
Management set 2026 targets of $540M–$580M in sales and $41M–$46M in EBITDA. That is now the bar.
Missing either side of that range would pressure the mix-shift thesis fast.
About $189M of annual revenue sits in Rail Products on this bridge, and the latest quarter showed 19.7% gross margin after a 260-basis-point drop. That is not much room for execution mistakes.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
q1 2027 earnings
Expected around May 2026. Analysts estimate a loss of ($0.18) per share, so the bar is low but not invisible.
margin
gross margin recovery
Q4 gross margin was 19.7% after a 260-basis-point drop. If that number keeps sliding, revenue growth will not matter much.
segment mix
infrastructure versus rail
On the ~$540M revenue bridge, Rail Products is ~35% (~$189M); the infrastructure / friction / services lines make up the rest. Watch whether the non-rail bundle keeps growing faster than rail.
guidance
2026 sales and ebitda targets
Watch the $540M–$580M sales target and $41M–$46M EBITDA target set on March 3. Those are the numbers that would justify the valuation story.
Analyst rankings
earnings predictability
10 / 100
These results swing around. In human-speak, analysts do not have a clean read on the next few quarters.
average price target
$32.00
Four analysts see modest upside from $28.20. In human-speak, they see some room, not a dramatic rerating.
source: institutional data
Institutional activity
institutional ownership data for FSTR is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$28
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive