Q2 2026 L B Foster Co Earnings Call Transcript
Key Points
- Strong cash generation of $17.9 million in Q2, the highest second-quarter level since 2017.
- Net debt reduced by 24.2% during the quarter and 45.5% year-over-year, with gross leverage cut to 1.0 times from 2.2 times.
- Year-to-date sales increased 7.6% and adjusted EBITDA grew 19.6%, driven by strong demand across both segments.
- Global Friction Management sales grew 18.1% in Q2, and Technology Services and Solutions sales were up 66.9%.
- Backlog improved 17.4% sequentially from Q1, with rail backlog up 8.2% year-over-year, supported by a large UK order.
- Q2 revenue declined 3.5% due to order timing in rail products, with sales pulled forward to Q1.
- Adjusted EBITDA in Q2 was down 4.7% year-over-year, impacted by higher personnel and incentive-based compensation costs.
- Infrastructure backlog decreased $34.5 million year-over-year, partly due to a $19 million order cancellation and softer precast orders.
- Consolidated backlog was down 8.8% year-over-year, with infrastructure book-to-bill at 0.85 to 1.
- The company incurred $2.6 million in exit-related costs for non-core product lines in the UK, impacting profitability.
Good day, and welcome to the LB Foster second-quarter 2026 earnings conference call. At this time all participants are in a listen-only mode. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker, Lisa Durante, Director of Financial Reporting and Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to LB Foster's second-quarter of 2026 earnings call. My name is Lisa Durante, the company's Director of Financial Reporting and Investor Relations. Our President and CEO, John Kasel; and our Chief Financial Officer, Sean Reilly, will be presenting our second-quarter operating results, market outlook, and business developments this morning.
We'll start the call with John providing his perspective on the company's second quarter performance. Sean will then review the company's second quarter financial results. John will provide
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