L.B. Foster Announces Second Quarter Results with Highest Second Quarter Operating Cash Flow Since 2017; Reaffirms Full Year 2026 Financial Guidance (Form 8-K)

L.B. Foster Announces Second Quarter Results with Highest Second Quarter Operating Cash Flow Since 2017; Reaffirms Full Year 2026 Financial Guidance

•Second quarter gross margin expanded 80 basis points to 22.3% despite 3.5% lower sales from last year

•First six months gross margin expanded 60 basis points to 21.8% on 7.6% higher sales over last year

•Second quarter net income increased $0.2 million over last year to $3.1 million; Adjusted EBITDA1 of $11.7 million declined $0.6 million, or 4.7%, from last year

•First six months net income increased $3.8 million over last year to $4.6 million; Adjusted EBITDA1 of $16.8 million increased $2.8 million, or 19.6%, over last year

•Generated quarterly operating cash flow of $17.9 million, improving Gross Leverage Ratio1 to 1.0x

•Backlog1 increased 17.4% during the quarter supporting the Company's reaffirmed 2026 guidance

PITTSBURGH, PA, August 10, 2026 - 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 second quarter operating results.

Second Quarter 2026 Highlights

						Three Months Ended June 30,												Change
						2026						2025						2026 vs. 2025
$ in thousands, unless otherwise noted:						(Unaudited)
Net sales						$	138,550					$	143,558					(3.5)		%
Operating income						6,151						7,678						(19.9)		%
Net income attributable to L.B. Foster Company						3,112						2,885						7.9		%
Adjusted EBITDA1						11,656						12,231						(4.7)		%
Net cash provided by operating activities						17,860						10,402						71.7		%
Free Cash Flow1						14,299						7,729						85.0		%
Total debt						47,993						81,628						(41.2)		%
Gross Leverage Ratio1						1.0x						2.2x						(1.2)x
New orders, net1						$	176,076					$	175,756					0.2		%
Backlog1						$	246,113					$	269,929					(8.8)		%

Financial Guidance

2026 Full Year Financial Guidance						Low						High
Net sales						$	540,000					$	580,000
Adjusted EBITDA1						$	41,000					$	46,000
Capital spending as a percent of sales						~2.7		%				~2.7		%
Free Cash Flow1						$	15,000					$	25,000

CEO Comments

John Kasel, President and Chief Executive Officer, commented, "We delivered another solid quarter, with record operating cash flow resulting in a 41.2% reduction in debt from the prior year and a gross leverage ratio declining by over 50% to 1.0x. We started the year with a strong first quarter, with sales growth of 23.9% over last year. Sales for the second quarter were down 3.5% compared to last year; however, year-to-date sales increased 7.6% over the prior

year, reflecting continued growth through the first six months of the year. Our business remains well-positioned and the $36.5 million sequential increase in the backlog gives us confidence in the outlook for growth in the second half of the year. Adjusted EBITDA declined 4.7% compared to the prior year quarter, primarily due to higher personnel costs and variable incentive-based compensation costs associated with our strong year-to-date performance. Despite the second quarter decline, year-to-date Adjusted EBITDA improved $2.8 million or 19.6%, compared to the prior year period."

Mr. Kasel continued, "Margin performance expanded across both segments during the quarter. In Rail, Technologies, and Services ("Rail"), gross margins improved 70 bps. The improvement was driven primarily by stronger profitability in Technology Services and Solutions ("TS&S"), as we have refocused the United Kingdom ("UK") business to prioritize shorter-term projects with higher profitability and lower working capital requirements. Furthering our strategic shift in the UK, we announced during the quarter the exit of certain product lines within our Tew Engineering business (the "Tew Exit"), incurring approximately $2.6 million of exit-related costs. Rail Products and Global Friction Management had lower gross profit margin during the quarter due to lower volumes and unfavorable business mix, respectively. Infrastructure Solutions ("Infrastructure") also delivered improved profitability, with margins expanding 80 bps compared to last year as Precast Concrete Products and Steel Products benefited from favorable sales mix and manufacturing efficiency."

Mr. Kasel concluded, "Our second quarter cash generation of $17.9 million enabled us to reduce total debt by $11.7 million during the quarter and by $33.6 million compared to the prior year quarter. As we look to the balance of the year, our backlog of $246.1 million improved 17.4% during the quarter, reflecting robust bidding activity, particularly within our Rail segment. We are encouraged by the level of project opportunities in the pipeline and believe order activity remains supportive of our growth expectations for the balance of the year. Accordingly, we are reaffirming our full-year financial guidance for 2026, with the midpoints for sales and Adjusted EBITDA representing year-over-year growth of 3.7% and 11.3% respectively. Our guidance continues to assume the current geopolitical landscape will not have a significant impact on the domestic economy, as has been the case thus far. We remain focused on executing our strategy and we are confident in our ability to manage the business in a volatile environment should it develop."

Second Quarter 2026 Consolidated Results

The Company's second quarter performance highlights are reflected below:

						Three Months Ended June 30,												Change						Percent Change
						2026						2025						2026 vs. 2025						2026 vs. 2025
$ in thousands, unless otherwise noted:						(Unaudited)
Net sales						$	138,550					$	143,558					$	(5,008)					(3.5)		%
Gross profit						30,874						30,900						(26)						(0.1)
Gross profit margin						22.3		%				21.5		%				80 bps						3.7
Selling and administrative expenses						$	24,105					$	22,382					$	1,723					7.7
Selling and administrative expenses as a percent of sales						17.4		%				15.6		%				180 bps						11.5
Amortization expense						618						840						(222)						(26.4)
Operating income						$	6,151					$	7,678					$	(1,527)					(19.9)
Net income attributable to L.B. Foster Company						3,112						2,885						227						7.9
Adjusted EBITDA1						11,656						12,231						(575)						(4.7)
New orders, net1						176,076						175,756						320						0.2
Backlog1						246,113						269,929						(23,816)						(8.8)

•Net sales for the 2026 second quarter decreased $5.0 million, or 3.5%, from the prior year quarter, driven by lower sales in both segments. Rail declined $4.0 million, or 5.2%, while Infrastructure declined $1.0 million, or 1.5%.

•Gross profit for the 2026 second quarter was flat compared to the prior year quarter. Rail gross profit declined $0.3 million, as benefits from favorable business mix were offset by $2.1 million of costs associated with the Tew Exit, compared to $1.1 million of costs associated with the exit of the UK Automation and Materials

Handling product line (the "AMH Exit") in the prior year quarter. Infrastructure gross profit improved $0.3 million driven by favorable business mix. Gross margins improved 80 basis points to 22.3%.

•Selling and administrative expenses for the 2026 second quarter increased $1.7 million, or 7.7%, over the prior year quarter, primarily due to increased employment costs, including higher variable incentive-based compensation costs. Selling and administrative expenses as a percentage of net sales increased 180 basis points to 17.4%.

•Operating income for the 2026 second quarter decreased $1.5 million, or 19.9%, from the prior year quarter. The decline was driven by higher exit costs and selling and administrative expenses offset in part by favorable gross profit business mix and lower amortization expense.

•Net income attributable to the Company for the 2026 second quarter improved $0.2 million, or 7.9%, over the prior year quarter due reduced interest expense and a lower effective income tax rate.

•Adjusted EBITDA for the 2026 second quarter decreased $0.6 million, or 4.7%, from the prior year quarter. Adjusted EBITDA for the second quarter of 2026 was adjusted for $2.6 million of costs primarily associated with the Tew Exit, while the second quarter of 2025 was adjusted for $1.4 million of costs associated with the AMH Exit.

•Cash provided by operating activities totaled $17.9 million in the 2026 second quarter, favorable $7.5 million compared to $10.4 million in the prior year quarter.

•Total debt as of June 30, 2026 was $48.0 million, decreasing by $33.6 million from the prior year quarter and by $11.7 million during the quarter. The reduction is due to strong Free Cash Flow generation and lower working capital requirements during the period. The Company's Gross Leverage Ratio per its credit facility was 1.0x as of June 30, 2026, down from 2.2x last year, reflecting higher profitability and disciplined capital deployment.

•New orders, net for the 2026 second quarter increased $0.3 million, or 0.2%, over the prior year quarter, driven by growth of 4.0% in Infrastructure, partially offset by a decline of 1.9% in Rail. The trailing twelve month book-to-bill ratio1 was 0.96 : 1.00. Backlog decreased $23.8 million, or 8.8%, from the prior year quarter driven primarily from an order cancellation last year in Infrastructure and lower backlog in Precast Concrete Products ("Precast"). This was partially offset by an 8.2% increase in Rail backlog. Backlog increased $36.5 million, or 17.4%, during the quarter driven by orders activity in Rail.

Second Quarter 2026 Business Results by Segment

Rail, Technologies, and Services Segment

						Three Months Ended June 30,												Change						Percent Change
$ in thousands, unless otherwise noted:						2026						2025						2026 vs. 2025						2026 vs. 2025
Net sales						$	72,012					$	75,973					$	(3,961)					(5.2)		%
Gross profit						$	14,811					$	15,132					$	(321)					(2.1)
Gross profit margin						20.6		%				19.9		%				70 bps						3.5
Segment operating income						$	2,989					$	3,747					$	(758)					(20.2)
Segment operating income margin						4.2		%				4.9		%				(70) bps						(14.3)
New orders, net1						$	112,207					$	114,345					$	(2,138)					(1.9)
Backlog1						$	141,395					$	130,709					$	10,686					8.2

•Net sales for the 2026 second quarter decreased $4.0 million, or 5.2%, from the prior year quarter. Rail Products net sales declined $13.0 million, or 27.3%, primarily due to the timing of large orders. This decline was partially offset by an increase of $3.7 million, or 18.1%, in Global Friction Management driven by strong domestic demand and an increase of $5.3 million, or 66.9%, in TS&S driven by short-term project work in the UK.

•Gross profit for the 2026 second quarter decreased $0.3 million, or 2.1%, from the prior year quarter, primarily due to lower sales volumes in Rail Products, which impacted gross profit by $2.2 million. Partially offsetting this decline were gross profit improvements of $0.6 million in Global Friction Management, driven by higher sales volumes, and $1.2 million in TS&S, reflecting favorable business mix. TS&S incurred $2.1 million of costs associated with the Tew Exit in the current period compared to $1.1 million of costs associated with the AMH Exit in the prior year quarter. Gross profit margins improved 70 basis points to 20.6% reflecting improved business mix.

•Segment operating income for the 2026 second quarter decreased $0.8 million, or 20.2%, from the prior year quarter driven by the decline in gross profit coupled with higher selling and administrative expenses.

•New orders, net for the 2026 second quarter decreased $2.1 million, or 1.9%, from the prior year quarter primarily due to timing of large orders associated with Rail Products which declined 20.0%. Global Friction Management and TS&S improved 27.8% and 126.4%, respectively. The trailing twelve month book-to-bill ratio1 was 1.03 : 1.00. Backlog increased $10.7 million over the prior year quarter due primarily to a large order received in our UK business.

Infrastructure Solutions Segment

						Three Months Ended June 30,												Change						Percent Change
$ in thousands, unless otherwise noted:						2026						2025						2026 vs. 2025						2026 vs. 2025
Net sales						$	66,538					$	67,585					$	(1,047)					(1.5)		%
Gross profit						$	16,063					$	15,768					$	295					1.9
Gross profit margin						24.1		%				23.3		%				80 bps						3.4
Segment operating income						$	6,571					$	6,766					$	(195)					(2.9)
Segment operating income margin						9.9		%				10.0		%				(10) bps						1.0
New orders, net1						$	63,869					$	61,411					$	2,458					4.0
Backlog1						$	104,718					$	139,220					$	(34,502)					(24.8)

•Net sales for the 2026 second quarter decreased $1.0 million, or 1.5%, from the prior year quarter. The decline was driven by $2.0 million, or 9.3%, in Steel Products, which was partially offset by sales growth of $0.9 million, or 2.1%, in Precast.

•Gross profit for the 2026 second quarter increased $0.3 million, or 1.9%, over the prior year quarter. Precast gross profit improved $0.6 million due to improved business mix. Steel Products gross profit declined $0.3 million due to lower sales volumes. Gross profit margins improved 80 basis points to 24.1%.

•Segment operating income for the 2026 second quarter declined $0.2 million from the prior year quarter due to an increase in selling and administrative expenses offset in part by improved gross profit.

•New orders, net for the 2026 second quarter increased $2.5 million, or 4.0%, over the prior year quarter, due primarily to a 73.3% increase in Steel Products stemming from strong Protective Coatings demand. This was partially offset by a 15.4% decrease in Precast. The trailing twelve month book-to-bill ratio1 was 0.85 : 1.00, which included a large order cancellation last year. Backlog was down $34.5 million from the prior year quarter due to the order cancellation in the Steel Products business coupled with a decline of 17.1% in Precast.

First Six Months Consolidated Highlights

						Six Months Ended June 30,												Change						Percent Change
						2026						2025						2026 vs. 2025						2026 vs. 2025
$ in thousands, unless otherwise noted:						(Unaudited)
Net sales						$	259,694					$	241,350					$	18,344					7.6		%
Gross profit						56,570						51,051						5,519						10.8
Gross profit margin						21.8		%				21.2		%				60 bps						2.8
Selling and administrative expenses						$	47,138					$	43,334					$	3,804					8.8
Selling and administrative expenses as a percent of sales						18.2		%				18.0		%				20 bps						1.1
Amortization expense						1,236						1,962						(726)						(37.0)
Operating income						$	8,196					$	5,755					$	2,441					42.4
Net income attributable to L.B. Foster Company						4,612						775						3,837						**
Adjusted EBITDA1						16,813						14,053						2,760						19.6
New orders, net1						318,162						324,820						(6,658)						(2.0)
Backlog1						246,113						269,929						(23,816)						(8.8)

**Results of this calculation are not meaningful for presentation purposes.

•Net sales for the first six months of 2026 increased $18.3 million, or 7.6%, over the prior year period. The increase was driven by Rail sales growth of $16.8 million, or 12.9%, led by Global Friction Management and TS&S which increased $9.8 million, or 27.4%, and $8.0 million, or 46.7%, respectively. Rail Products modestly declined $1.0 million, or 1.4%, due to the timing of large orders. Infrastructure sales improved $1.5 million, or 1.4%. The improvement was driven primarily by Precast with sales growth of $5.8 million, or 7.8%, offset in part by Steel Products which declined $4.2 million, or 11.5%.

•Gross profit for the first six months of 2026 increased $5.5 million, or 10.8%, over the prior year period driven by improved volumes and business mix in Rail which increased $3.8 million. Rail gross profit for the first six months of 2026 includes $2.1 million of Tew Exit costs and for the first six months of 2025 includes $1.1 million of AMH Exit costs. Infrastructure gross profit improved $1.7 million due to favorable business mix and manufacturing efficiency. Gross margins improved 60 basis points to 21.8%.

•Selling and administrative expenses for the first six months of 2026 increased $3.8 million, or 8.8%, over the prior year period, primarily due to higher employment costs including higher variable incentive-based compensation costs, and a $0.5 million accelerated non-cash stock compensation expense related to management equity plan awards made to retirement-eligible employees. Selling and administrative expenses for the first six months of 2026 included $0.5 million of costs primarily related to the Tew Exit compared to the first six months of 2025 which included $0.3 million of AMH Exit costs. Selling and administrative expenses as a percentage of net sales increased 20 basis points to 18.2%.

•Operating income for the first six months of 2026 improved $2.4 million over the prior year period. The improvement was primarily driven by higher gross profit, and lower amortization expense partially offset by an increase in selling and administrative expenses.

•Net income attributable to the Company for the first six months of 2026 improved $3.8 million over the prior year period driven by higher operating income, reduced interest expense, and a lower effective income tax rate.

•Adjusted EBITDA for the first six months of 2026 improved $2.8 million, 19.6%, over the prior year period and was adjusted for $2.6 million of costs primarily associated with the Tew Exit. The first six months of 2025 was adjusted for the $1.4 million of costs associated with the AMH Exit.

•Cash provided by operating activities totaled $7.4 million for the first six months of 2026, a $23.2 million improvement compared to cash used in operating activities of $15.7 million in the prior year period.

•New orders, net for the first six months of 2026 decreased $6.7 million, or 2.0%, from the prior year period, with declines realized in both segments.

Second Quarter Conference Call

L.B. Foster Company will conduct a conference call and webcast to discuss its second quarter 2026 operating results on Monday, August 10, 2026 at 8:30 AM ET. The call will be hosted by Mr. John Kasel, President and Chief Executive Officer. Listen via audio and access the slide presentation on the L.B. Foster website: www.lbfoster.com, under the Investor Relations page. A conference call replay will be available through August 17, 2026 via webcast through L.B. Foster's Investor Relations page of the company's website.

Those interested in participating in the question-and-answer session may register for the call at https://register-conf.media-server.com/register/BIdea38bbc6c734820bb921a17baf8c605 to receive the dial-in numbers and unique PIN to access the call. The registration link will also be available on the Company's Investor Relations page of its website.

About L.B. Foster Company

Founded in 1902, L.B. Foster Company is a global technology solutions provider of products and services for the rail and infrastructure markets. The Company's innovative engineering and product development solutions address the safety, reliability, and performance needs of its customers' most challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. For more information, please visit www.lbfoster.com.

Non-GAAP Financial Measures