First quarter net sales totaled $121.1 million , up 23.9% over last year; Rail segment sales growth was exceptionally strong improving 38.4% , while Infrastructure sales were also favorable up 5.9% . First quarter net income of $1.5 million was up $3.6 million over last year; EBITDA 1 of $5.2 million was up $3.3 million over last year driven by volume and strong gross profit expansion; Selling and administrative expenses as a percentage of sales were 19.0% for the quarter, favorable 240 bps versus last year. Cash flow used in operations in the quarter was $10.4 million , a $15.7 million improvement over last year; Gross Leverage Ratio 1 was 1.2x at quarter end significantly improved compared to 2.5x last year. 2026 financial guidance reaffirmed with sales growth and profitability expansion expected for the year. PITTSBURGH, May 04, 2026 (GLOBE NEWSWIRE) -- L.B. Foster Company (Nasdaq: FSTR), a global technology solutions provider of products and services for the rail and infrastructure markets (the "Company"), today reported its 2026 first quarter operating results. First Quarter 2026 Highlights Three Months Ended March 31, Change 2026 2025 2026 vs. 2025 $ in thousands, unless otherwise noted: (Unaudited) Net sales $ 121,144 $ 97,792 23.9 % Operating income (loss) 2,045 (1,923 ) 206.3 % Net income (loss) attributable to L.B. Foster Company 1,500 (2,110 ) 171.1 % EBITDA 1 5,157 1,822 183.0 % Net cash used in operating activities (10,438 ) (26,136 ) 60.1 % Free Cash Flow 1 (13,398 ) (28,711 ) 53.3 % Total debt 59,684 82,498 (27.7 )% Gross Leverage Ratio 1 1.2x 2.5x (1.3 )x New orders, net 1 $ 142,086 $ 149,064 (4.7 )% Backlog 1 $ 209,573 $ 237,215 (11.7 )% Financial Guidance Update 2026 Full Year Financial Guidance Low High Net sales $ 540,000 $ 580,000 Adjusted EBITDA 1 $ 41,000 $ 46,000 Capital spending as a percent of sales ~2.7 % ~2.7 % Free Cash Flow 1 $ 15,000 $ 25,000 CEO Comments John Kasel, President and Chief Executive Officer, commented, "We carried the favorable momentum generated at the end of 2025 into our first quarter, posting strong growth and profitability expansion across the business. Both segments delivered exceptional results in the quarter, led by Rail sales growth of 38.4%, reflecting a strong recovery in domestic Rail demand compared to last year's weaker start to the year. Sales volumes were higher across all Rail business units, with Rail Products and Friction Management up 40.8% and 39.5%, respectively. Technology Services and Solutions ("TS&S") sales were also up 29.1% on increased short-term project work in the United Kingdom ("UK"). Infrastructure segment sales were up 5.9% on continuing robust demand for Precast Concrete with sales up 17.2% over last year, partially offset by 14.4% lower Steel Products sales due to soft bridge forms volume." Mr. Kasel continued, "The strong sales volume growth delivered robust profitability improvement over last year, with EBITDA of $5.2 million up $3.3 million, or 183.0%. Consolidated gross margins of 21.2% improved 60 bps over last year with the improvement realized in Infrastructure, reflecting higher volumes, improved business mix, and better manufacturing execution in our Precast Concrete business. Rail gross margins were slightly lower due to the significantly higher Rail Distribution sales volumes this year. We continued leveraging our operating cost structure, with selling and administrative expenses as a percentage of sales declining 240 bps to 19.0%. This is despite a $0.7 million accelerated non-cash stock compensation expense related to management equity plan awards made to retirement-eligible employees. Our normal working capital cycle increased total debt $16.9 million during the quarter to $59.7 million. However, total debt was down $22.8 million compared to last year, with the lower debt level and improved profitability reducing gross leverage to 1.2x compared to 2.5x last year." Mr. Kasel concluded, "As expected, we're off to a great start to the year and remain optimistic about our prospects for continuing progress in 2026. While the first quarter backlog is down 11.7% compared to last year, order rates increased significantly in the back half of the quarter resulting in a 10.7% increase in backlog during the quarter. Project bidding activity has been robust and we believe order rates will continue to improve as the year progresses. The government funding programs that support our customer project work remain active, and there are no signs of disruption in funding like we experienced last year. We're also seeing early signs that the actions we've taken in the UK Rail business are translating into improvements in 2026. Accordingly, we're reaffirming our financial guidance for 2026, with the midpoints for sales and Adjusted EBITDA representing year over year growth of 3.7% and 11.3%, respectively. It should be noted that our guidance assumes the current volatile geopolitical landscape does not have a significant impact on the do
