Operating margins remain constrained in the low single digits, reaching a nadir of -2.0% in 2025Q1, as the company struggles to achieve consistent economies of scale.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 563.36M | 540.01M | 530.76M | 543.74M | 497.5M | 513.62M | 497.41M | 616.43M | 626.97M | 536.38M | 483.51M | 624.52M | 607.19M | 597.96M | 588.54M | 590.93M | 475.05M | 381.96M | 512.59M | 508.98M | 389.79M | 353.48M | 297.87M | 264.27M | 257.95M | 282.24M | 264.61M | 241.92M | 219.5M | 220.3M | 243.1M |
| Revenue Growth % | 11.73% | 1.74% | -2.39% | 9.3% | -3.14% | 3.26% | -19.31% | -1.68% | 16.89% | 10.93% | -22.58% | 2.85% | 1.54% | 1.6% | -0.4% | 24.39% | 24.37% | -25.48% | 0.71% | 30.58% | 10.27% | 18.67% | 12.71% | 2.45% | -8.61% | 6.66% | 9.38% | 10.22% | -0.36% | -9.38% | -8.26% |
| Cost of Goods Sold | 444.06M | 426.26M | 412.7M | 431.7M | 407.89M | 427.32M | 402.4M | 495.49M | 509.81M | 433.13M | 393.16M | 490.87M | 485.6M | 482.02M | 496.27M | 488.77M | 400.47M | 322.1M | 432.37M | 432.6M | 338.2M | 313.49M | 267.25M | 232.53M | 228.48M | 248.69M | 221.39M | 200.34M | 184.1M | 188.6M | 208.9M |
| COGS % of Revenue | - | 78.94% | 77.76% | 79.39% | 81.99% | 83.2% | 80.9% | 80.38% | 81.31% | 80.75% | 81.31% | 78.6% | 79.97% | 80.61% | 84.32% | 82.71% | 84.3% | 84.33% | 84.35% | 84.99% | 86.76% | 88.69% | 89.72% | 87.99% | 88.58% | 88.11% | 83.67% | 82.81% | 83.87% | 85.61% | 85.93% |
| Gross Profit | 119.3M | 113.75M | 118.06M | 112.04M | 89.61M | 86.3M | 95.01M | 120.94M | 117.16M | 103.25M | 90.36M | 133.65M | 121.59M | 115.94M | 92.27M | 102.15M | 74.58M | 59.86M | 80.22M | 76.38M | 51.59M | 39.99M | 30.61M | 31.73M | 29.47M | 33.55M | 43.22M | 41.58M | 35.4M | 31.7M | 34.2M |
| Gross Margin % | 21.18% | 21.06% | 22.24% | 20.61% | 18.01% | 16.8% | 19.1% | 19.62% | 18.69% | 19.25% | 18.69% | 21.4% | 20.03% | 19.39% | 15.68% | 17.29% | 15.7% | 15.67% | 15.65% | 15.01% | 13.24% | 11.31% | 10.28% | 12.01% | 11.42% | 11.89% | 16.33% | 17.19% | 16.13% | 14.39% | 14.07% |
| Gross Profit Growth % | - | -3.65% | 5.37% | 25.03% | 3.83% | -9.16% | -21.44% | 3.23% | 13.47% | 14.27% | -32.4% | 9.92% | 4.88% | 25.65% | -9.67% | 36.96% | 24.6% | -25.38% | 5.02% | 48.05% | 29% | 30.65% | -3.53% | 7.69% | -12.17% | -22.37% | 3.95% | 17.45% | 11.67% | -7.31% | 6.88% |
| Operating Expenses | 93.44M | 91.87M | 97.55M | 102.94M | 96.82M | 81.83M | 79.37M | 87.35M | 94.78M | 87.51M | 95.55M | 104.89M | 84.51M | 74.37M | 69.61M | 70.06M | 41.24M | 35.5M | 40.97M | 37.4M | 33.66M | 31.07M | 27.88M | 26.94M | 26.48M | 29.59M | 36.3M | 32.25M | 28M | 24.6M | 26M |
| OpEx % of Revenue | - | 17.01% | 18.38% | 18.93% | 19.46% | 15.93% | 15.96% | 14.17% | 15.12% | 16.32% | 19.76% | 16.8% | 13.92% | 12.44% | 11.83% | 11.86% | 8.68% | 9.29% | 7.99% | 7.35% | 8.63% | 8.79% | 9.36% | 10.19% | 10.26% | 10.48% | 13.72% | 13.33% | 12.76% | 11.17% | 10.7% |
| Selling, General & Admin | 90.64M | 88.56M | 96.4M | 97.62M | 82.66M | 76M | 73.64M | 0 | 87.68M | 80.52M | 85.98M | 92.65M | 79.81M | 71.26M | 66.65M | 67.24M | 42.59M | 35.5M | 40.97M | 37.4M | 33.66M | 31.07M | 27.88M | 26.94M | 26.48M | 29.59M | 30.91M | 27.76M | 24.9M | 21.9M | 22.8M |
| SG&A % of Revenue | - | 16.4% | 18.16% | 17.95% | 16.61% | 14.8% | 14.81% | - | 13.98% | 15.01% | 17.78% | 14.84% | 13.14% | 11.92% | 11.32% | 11.38% | 8.96% | 9.29% | 7.99% | 7.35% | 8.63% | 8.79% | 9.36% | 10.19% | 10.26% | 10.48% | 11.68% | 11.47% | 11.34% | 9.94% | 9.38% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.61M | 2.65M | 2.24M | 3.51M | 3.94M | 3.1M | 3.15M | 2.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | 0.42% | 0.42% | 0.42% | 0.73% | 0.63% | 0.51% | 0.53% | 0.5% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.81M | 3.31M | 1.15M | 5.31M | 14.16M | 5.84M | 5.73M | 84.73M | -42.94M | 367K | 1.52M | 5.58M | 674K | 0 | 664K | 2.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.39M | 4.49M | 3.1M | 2.7M | 3.2M |
| Operating Income | 25.85M | 21.89M | 20.51M | 9.11M | -7.21M | 4.47M | 15.63M | 33.59M | -20.56M | 15.74M | -5.2M | 28.76M | 37.08M | 41.57M | 23.32M | 31.47M | 32M | 26.77M | 39.25M | 38.98M | 17.93M | 8.92M | 2.73M | 4.8M | 2.99M | 3.96M | 6.92M | 9.33M | 7.4M | 7.1M | 8.2M |
| Operating Margin % | 4.59% | 4.05% | 3.86% | 1.67% | -1.45% | 0.87% | 3.14% | 5.45% | -3.28% | 2.93% | -1.07% | 4.61% | 6.11% | 6.95% | 3.96% | 5.33% | 6.74% | 7.01% | 7.66% | 7.66% | 4.6% | 2.52% | 0.92% | 1.81% | 1.16% | 1.4% | 2.62% | 3.86% | 3.37% | 3.22% | 3.37% |
| Operating Income Growth % | - | 6.69% | 125.24% | 226.38% | -261.17% | -71.4% | -53.46% | 263.4% | -230.61% | 402.96% | -118.06% | -22.44% | -10.8% | 78.26% | -25.9% | -1.63% | 19.5% | -31.78% | 0.69% | 117.35% | 100.96% | 226.41% | -42.99% | 60.29% | -24.52% | -42.72% | -25.81% | 26.04% | 4.23% | -13.41% | 20.59% |
| EBITDA | 37.77M | 34.34M | 34.59M | 24.37M | 7.57M | 18.36M | 29.21M | 47.98M | -1.96M | 35.58M | 18.3M | 41.01M | 49.66M | 51.57M | 26.28M | 34.29M | 41.27M | 35.49M | 48.15M | 47.6M | 24.08M | 14.19M | 8.01M | 10M | 8.84M | 9.61M | 12.31M | 13.82M | 10.5M | 9.8M | 11.4M |
| EBITDA Margin % | 6.71% | 6.36% | 6.52% | 4.48% | 1.52% | 3.57% | 5.87% | 7.78% | -0.31% | 6.63% | 3.78% | 6.57% | 8.18% | 8.62% | 4.47% | 5.8% | 8.69% | 9.29% | 9.39% | 9.35% | 6.18% | 4.02% | 2.69% | 3.79% | 3.43% | 3.4% | 4.65% | 5.71% | 4.78% | 4.45% | 4.69% |
| EBITDA Growth % | 40.22% | -0.73% | 41.95% | 221.8% | -58.75% | -37.16% | -39.12% | 2542.92% | -105.52% | 94.46% | -55.38% | -17.43% | -3.71% | 96.23% | -23.36% | -16.91% | 16.27% | -26.28% | 1.15% | 97.7% | 69.64% | 77.2% | -19.93% | 13.13% | -7.93% | -21.95% | -10.96% | 31.62% | 7.14% | -14.04% | 18.75% |
| D&A (Non-Cash Add-back) | 11.92M | 12.45M | 14.08M | 15.26M | 14.78M | 13.89M | 13.58M | 14.39M | 18.59M | 19.84M | 23.49M | 12.24M | 12.58M | 10M | 2.96M | 2.82M | 9.27M | 8.72M | 8.9M | 8.62M | 6.14M | 5.27M | 5.28M | 5.21M | 5.85M | 5.64M | 5.39M | 4.49M | 3.1M | 2.7M | 3.2M |
| EBIT | 25.95M | 22.3M | 19.44M | 6.47M | -5.66M | 7.55M | 17.74M | 29.76M | -20.52M | 18.12M | -140.62M | -46.2M | 39.32M | 44.62M | 24.37M | 33.27M | 32.97M | 26.77M | 45.27M | 38.98M | 17.93M | 8.21M | 4.21M | 4.8M | 2.99M | 5.1M | 6.92M | 9.33M | 8.5M | 7.9M | 8.2M |
| Net Interest Income | -4.6M | -4.89M | -4.99M | -5.53M | -3.34M | -2.96M | -3.76M | -4.91M | -6.13M | -8.07M | -6.32M | -4.17M | 18K | 174K | -90K | -301K | -600K | -503K | 680K | -4.03M | -3.39M | -2.47M | -1.8M | -2.25M | -2.59M | -3.56M | -4.23M | 0 | -1.6M | 0 | -2.4M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 307K | 228K | 206K | 530K | 659K | 452K | 321K | 403K | 789K | 2.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 4.6M | 4.89M | 4.99M | 5.53M | 3.34M | 2.96M | 3.76M | 4.91M | 6.15M | 8.38M | 6.55M | 4.38M | 512K | 485K | 542K | 622K | 1M | 1.29M | 2M | 4.03M | 3.39M | 2.47M | 1.8M | 2.25M | 2.59M | 3.56M | 4.23M | 2.98M | 1.6M | 1.4M | 2.4M |
| Other Income/Expense | -4.28M | -4.47M | -6.07M | -8.16M | -1.79M | 119K | -1.65M | -9.45M | -50.47M | -5.69M | -141.97M | -79.34M | -1.86M | 2.54M | 1.17M | 3.13M | 747K | 1.13M | 4.03M | 129.53M | -2.15M | -1.19M | -330K | -935K | -10.63M | -1.74M | -1.72M | -2.05M | 1.2M | -1.2M | -1.7M |
| Pretax Income | 21.57M | 17.42M | 14.45M | 944K | -9M | 4.59M | 13.98M | 24.14M | -26.71M | 8.04M | -147.17M | -50.58M | 39.06M | 44.12M | 23.83M | 33.94M | 32.74M | 25.48M | 43.28M | 168.51M | 15.79M | 7.74M | 2.4M | 3.86M | -7.64M | 1.09M | 5.2M | 7.28M | 7.4M | 5.2M | 6.5M |
| Pretax Margin % | 3.83% | 3.23% | 2.72% | 0.17% | -1.81% | 0.89% | 2.81% | 3.92% | -4.26% | 1.5% | -30.44% | -8.1% | 6.43% | 7.38% | 4.05% | 5.74% | 6.89% | 6.67% | 8.44% | 33.11% | 4.05% | 2.19% | 0.81% | 1.46% | -2.96% | 0.39% | 1.96% | 3.01% | 3.37% | 2.36% | 2.67% |
| Income Tax | 10.55M | 10M | -28.4M | -355K | 36.68M | 1.12M | -11.84M | -23.84M | 4.46M | 3.93M | -5.51M | -6.13M | 13.4M | 14.85M | 11.48M | 11.04M | 12.25M | 9.76M | 15.53M | 57.79M | 5.07M | 2.3M | 924K | 1.7M | -2.61M | 457K | 2.08M | 2.66M | 3M | 1.9M | 2.6M |
| Effective Tax Rate % | 48.89% | 57.4% | -196.59% | -37.61% | -407.75% | 24.38% | -84.69% | -98.74% | -16.69% | 48.86% | 3.74% | 12.12% | 34.32% | 33.66% | 48.19% | 32.54% | 37.41% | 38.28% | 35.89% | 34.29% | 32.14% | 29.78% | 38.44% | 43.98% | 34.18% | 41.77% | 40.01% | 36.57% | 40.54% | 36.54% | 40% |
| Net Income | 11.15M | 7.54M | 42.95M | 1.46M | -45.56M | 3.63M | 7.58M | 42.57M | -31.17M | 4.11M | -141.66M | -44.45M | 25.66M | 29.29M | 16.19M | 22.89M | 20.49M | 15.73M | 27.75M | 110.69M | 13.53M | 5.43M | 1.48M | 3.44M | -11.42M | 637K | 3.49M | 2.5M | 4.4M | 3.3M | 3.9M |
| Net Margin % | 1.98% | 1.4% | 8.09% | 0.27% | -9.16% | 0.71% | 1.52% | 6.91% | -4.97% | 0.77% | -29.3% | -7.12% | 4.23% | 4.9% | 2.75% | 3.87% | 4.31% | 4.12% | 5.41% | 21.75% | 3.47% | 1.54% | 0.5% | 1.3% | -4.43% | 0.23% | 1.32% | 1.03% | 2% | 1.5% | 1.6% |
| Net Income Growth % | -69.35% | -82.43% | 2833.47% | 103.21% | -1356.59% | -52.18% | -82.19% | 236.58% | -857.79% | 102.9% | -218.73% | -273.23% | -12.41% | 80.94% | -29.29% | 11.73% | 30.3% | -43.32% | -74.93% | 718.13% | 148.99% | 267.16% | -56.98% | 130.11% | -1893.41% | -81.75% | 39.43% | -43.11% | 33.33% | -15.38% | -18.75% |
| Net Income (Continuing) | 11.03M | 7.42M | 42.84M | 1.3M | -45.68M | 3.47M | 25.82M | 47.97M | -30.59M | 5.36M | -141.66M | -44.45M | 25.66M | 29.28M | 14.76M | 21.61M | 19.71M | 15.73M | 27.75M | 110.72M | 10.71M | 4.85M | 1.48M | 2.16M | -5.03M | 1.3M | 3.12M | 4.62M | 5.1M | 3.8M | 3.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 72K | -18.24M | -5.41M | 0 | 0 | 0 | 0 | 0 | 0 | 1.42M | 0 | 0 | 0 | 0 | 0 | 0 | 586K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 874K | 722K | 698K | 724K | 420K | 518K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.05 | 0.69 | 3.89 | 0.13 | -4.25 | 0.34 | 0.71 | 4.09 | -3.01 | 0.39 | -13.79 | -4.33 | 2.48 | 2.85 | 1.58 | 2.22 | 1.98 | 1.53 | 2.57 | 10.09 | 1.25 | 0.52 | 0.14 | 0.35 | -1.20 | 0.07 | 0.37 | 0.25 | 0.43 | 0.32 | 0.39 |
| EPS Growth % | -68.88% | -82.26% | 2892.31% | 103.06% | -1350% | -52.11% | -82.64% | 235.88% | -871.79% | 102.83% | -218.48% | -274.6% | -12.98% | 80.38% | -28.83% | 12.12% | 29.41% | -40.47% | -74.53% | 707.2% | 140.38% | 271.43% | -60% | 129.17% | -1814.29% | -81.08% | 48% | -41.86% | 34.38% | -17.95% | -20.41% |
| EPS (Basic) | - | 0.73 | 4.01 | 0.14 | -4.25 | 0.34 | 0.72 | 4.09 | -3.01 | 0.40 | -13.79 | -4.33 | 2.51 | 2.88 | 1.60 | 2.24 | 2.01 | 1.55 | 2.60 | 10.39 | 1.30 | 0.54 | 0.15 | 0.36 | -1.20 | 0.07 | 0.37 | 0.26 | 0.44 | 0.32 | 0.39 |
| Diluted Shares Outstanding | 10.58M | 10.88M | 11.05M | 10.99M | 10.72M | 10.75M | 10.67M | 10.64M | 10.36M | 10.48M | 10.27M | 10.25M | 10.33M | 10.26M | 10.23M | 10.31M | 10.35M | 10.3M | 10.81M | 10.97M | 10.82M | 10.45M | 10.57M | 9.83M | 9.52M | 9.1M | 9.43M | 10.01M | 10.23M | 10.29M | 10.36M |
| Basic Shares Outstanding | 10.2M | 10.37M | 10.72M | 10.8M | 10.72M | 10.62M | 10.54M | 10.41M | 10.36M | 10.33M | 10.27M | 10.25M | 10.22M | 10.18M | 10.12M | 10.21M | 10.22M | 10.17M | 10.67M | 10.65M | 10.41M | 10.06M | 9.87M | 9.56M | 9.52M | 9.1M | 9.43M | 9.63M | 10M | 10.12M | 10M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 5.24% | 4.23% | 6.36% | 4.46% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical Commodity Margin Compression
According to recent financial disclosures, L.B. Foster experienced significant revenue fluctuations, with growth rates swinging from a 21.3% contraction in 2025Q1 to a 25.1% expansion by 2025Q4, highlighting the inherent instability of its project-based revenue model within the North American industrial and rail infrastructure markets.
The erratic top-line performance suggests that FSTR remains highly susceptible to the timing of large-scale infrastructure contracts and cyclical rail maintenance budgets. Investors should monitor whether the recent revenue acceleration is sustainable or merely a reflection of lumpy project recognition that fails to translate into consistent long-term growth.
As reported in quarterly filings, the company's gross margin has remained largely range-bound between 19.7% and 23.8%, indicating that FSTR struggles to exert meaningful pricing power or achieve the economies of scale necessary to offset the volatility of raw material costs in its steel-heavy product segments.
The inability to consistently expand gross margins above the low-20% threshold suggests that the company's value-added technology offerings are not yet sufficiently scaled to dilute the impact of commodity-sensitive distribution lines. This structural limitation appears to keep the firm tethered to the cyclicality of its input costs, preventing a breakout in profitability.
Based on the provided income statement data, operating margins have frequently dipped into low single digits, reaching a nadir of -2.0% in 2025Q1, which demonstrates a lack of meaningful operating leverage as SG&A expenses continue to consume a disproportionate share of the company's gross profit generation.
The persistent overhead burden suggests that FSTR has yet to optimize its cost structure following recent divestitures of non-core assets. Without a more significant reduction in fixed costs or a substantial shift in revenue mix toward higher-margin services, operating income will likely remain highly sensitive to minor fluctuations in volume.
Analysis of the reported figures reveals that net income is frequently distorted by non-operating items and significant quarterly swings, such as the 26.1% net margin observed in 2024Q3, which appears to be an outlier rather than a reflection of the company's core operational earnings power.
The inconsistency in bottom-line performance warrants further investigation into the impact of one-time charges and accounting adjustments inherent in percentage-of-completion revenue recognition. Investors should be cautious of relying on headline EPS, as the underlying quality of earnings appears compromised by the company's historical reliance on non-recurring gains.
While management emphasizes a pivot toward technology, the income statement data suggests that FSTR remains fundamentally a commodity-exposed industrial player, as evidenced by the 2025Q1 operating loss that occurred despite the company's ongoing efforts to streamline its portfolio and focus on higher-margin rail maintenance technologies.
Short-term margin compression risks remain elevated if raw material prices spike or if infrastructure spending slows due to macroeconomic headwinds. The market's skepticism regarding the company's transition to a tech-enabled service provider appears grounded in the continued dominance of lower-margin, cyclical segments within the consolidated financial results.
Quick answers to the most common questions about buying FSTR stock.
For fiscal year 2025, L.B. Foster Company (FSTR) reported total revenue of $540.0M. This represents a 122.1% increase compared to $243.1M in 1996.
L.B. Foster Company (FSTR) is profitable, generating $7.5M in net income for the fiscal year ending 2025 with a net profit margin of 1.4%.
L.B. Foster Company (FSTR) reported an operating income of $21.9M, resulting in an operating profit margin of 4.1%. This margin reflects the operational efficiency of the business before interest and taxes.
L.B. Foster Company (FSTR) generated $113.8M in gross profit for the year, representing a gross profit margin of 21.1%. This demonstrates the company's core pricing power and production efficiency.