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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)

☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the quarterly period ended March 31, 2025
Or

☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the transition period from to
Commission File Number: 000-10436

L.B. Foster Company
(Exact name of registrant as specified in its charter)

Pennsylvania |  | 25-1324733
(State of Incorporation) |  | (I. R. S. Employer Identification No.)

415 Holiday Drive, Suite 100, Pittsburgh, Pennsylvania |  | 15220
(Address of principal executive offices) |  | (Zip Code)

(412) 928-3400
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class |  | Trading Symbol(s) |  | Name of each exchange on which registered
Common Stock, par value $0.01 |  | FSTR |  | Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ |  |  |  | Accelerated filer ☒
Non-accelerated filer ☐ |  |  |  | Smaller reporting company ☒
|  |  |  | Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of April 30, 2025, there were 10,559,308 shares of the registrant’s common stock, par value $0.01 per share, outstanding.

L.B. FOSTER COMPANY AND SUBSIDIARIES
INDEX

| Page
PART I. Financial Information |
Item 1. Financial Statements: |
Condensed Consolidated Balance Sheets | 3
Condensed Consolidated Statements of Operations | 4
Condensed Consolidated Statements of Comprehensive (Loss) Income | 5
Condensed Consolidated Statements of Cash Flows | 6
Condensed Consolidated Statements of Stockholders’ Equity | 7
Notes to Condensed Consolidated Financial Statements | 8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 21
Item 3. Quantitative and Qualitative Disclosures about Market Risk | 27
Item 4. Controls and Procedures | 27
PART II. Other Information | 28
Item 1. Legal Proceedings | 28
Item 1A. Risk Factors | 28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 28
Item 3. Defaults Upon Senior Securities | 28
Item 4. Mine Safety Disclosures | 28
Item 5. Other Information | 28
Item 6. Exhibits | 29
Signature | 30

2

Table of Contents
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
L.B. FOSTER COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

|  | March 31, 2025 |  | December 31, 2024
|  | (Unaudited) |  |
ASSETS |  |  |  |
Current assets: |  |  |  |
Cash and cash equivalents |  | $ | 2,612 |  |  | $ | 2,454 |
Accounts receivable - net (Note 5) |  | 57,132 |  |  | 64,978 |
Contract assets - net (Note 3) |  | 13,359 |  |  | 16,720 |
Inventories - net (Note 6) |  | 81,780 |  |  | 70,506 |
Other current assets |  | 9,433 |  |  | 6,947 |
Total current assets |  | 164,316 |  |  | 161,605 |
Property, plant, and equipment - net |  | 75,863 |  |  | 75,374 |
Operating lease right-of-use assets - net |  | 23,482 |  |  | 18,480 |
Other assets: |  |  |  |
Goodwill (Note 4) |  | 32,358 |  |  | 31,907 |
Other intangibles - net (Note 4) |  | 13,693 |  |  | 14,801 |
Deferred tax assets (Note 9) |  | 29,630 |  |  | 28,900 |
Other assets |  | 3,484 |  |  | 3,483 |
TOTAL ASSETS |  | $ | 342,826 |  |  | $ | 334,550 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |
Current liabilities: |  |  |  |
Accounts payable |  | $ | 37,257 |  |  | $ | 50,083 |
Deferred revenue (Note 3) |  | 10,126 |  |  | 10,205 |
Accrued payroll and employee benefits |  | 5,313 |  |  | 15,393 |
Current maturities of long-term debt (Note 7) |  | 151 |  |  | 167 |
Other accrued liabilities |  | 11,018 |  |  | 12,448 |
Total current liabilities |  | 63,865 |  |  | 88,296 |
Long-term debt (Note 7) |  | 82,347 |  |  | 46,773 |
Deferred tax liabilities (Note 9) |  | 1,112 |  |  | 1,150 |
Long-term operating lease liabilities |  | 20,112 |  |  | 14,709 |
Other long-term liabilities |  | 3,795 |  |  | 4,608 |
Stockholders’ equity: |  |  |  |
Common stock, par value $0.01, authorized 20,000,000 shares; shares issued at March 31, 2025 and December 31, 2024, 11,115,779; shares outstanding at March 31, 2025 and December 31, 2024, 10,507,469 and 10,573,432, respectively |  | 111 |  |  | 111 |
Paid-in capital |  | 41,823 |  |  | 43,550 |
Retained earnings |  | 165,469 |  |  | 167,579 |
Treasury stock - at cost, 608,310 and 542,347 common stock shares at March 31, 2025 and December 31, 2024, respectively |  | (14,736) |  |  | (11,208) |
Accumulated other comprehensive loss |  | (21,879) |  |  | (21,716) |
Total L.B. Foster Company stockholders’ equity |  | 170,788 |  |  | 178,316 |
Noncontrolling interest |  | 807 |  |  | 698 |
Total stockholders’ equity |  | 171,595 |  |  | 179,014 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |  | $ | 342,826 |  |  | $ | 334,550 |

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
3

Table of Contents
L.B. FOSTER COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Sales of goods |  | $ | 86,548 |  |  | $ | 104,463 |  |  |  |  |
Sales of services |  | 11,244 |  |  | 19,857 |  |  |  |  |
Total net sales |  | 97,792 |  |  | 124,320 |  |  |  |  |
Cost of goods sold |  | 66,938 |  |  | 81,542 |  |  |  |  |
Cost of services sold |  | 10,703 |  |  | 16,602 |  |  |  |  |
Total cost of sales |  | 77,641 |  |  | 98,144 |  |  |  |  |
Gross profit |  | 20,151 |  |  | 26,176 |  |  |  |  |
Selling and administrative expenses |  | 20,952 |  |  | 22,870 |  |  |  |  |
(Gain) on sale of former joint venture facility |  | — |  |  | (3,477) |  |  |  |  |
Amortization expense |  | 1,122 |  |  | 1,217 |  |  |  |  |
Operating (loss) income |  | (1,923) |  |  | 5,566 |  |  |  |  |
Interest expense - net |  | 1,143 |  |  | 1,125 |  |  |  |  |
Other income - net |  | (318) |  |  | (253) |  |  |  |  |
(Loss) income before income taxes |  | (2,748) |  |  | 4,694 |  |  |  |  |
Income tax (benefit) expense |  | (631) |  |  | 289 |  |  |  |  |
Net (loss) income |  | (2,117) |  |  | 4,405 |  |  |  |  |
Net loss attributable to noncontrolling interest |  | (7) |  |  | (31) |  |  |  |  |
Net (loss) income attributable to L.B. Foster Company |  | $ | (2,110) |  |  | $ | 4,436 |  |  |  |  |
Per share data attributable to L.B. Foster shareholders: |  |  |  |  |  |  |  |
Basic (loss) earnings per common share |  | $ | (0.20) |  |  | $ | 0.41 |  |  |  |  |
Diluted (loss) earnings per common share |  | $ | (0.20) |  |  | $ | 0.40 |  |  |  |  |
Basic weighted average shares outstanding |  | 10,540 |  |  | 10,762 |  |  |  |  |
Diluted weighted average shares outstanding |  | 10,540 |  |  | 10,985 |  |  |  |  |

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4

Table of Contents
L.B. FOSTER COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Unaudited)
(In thousands)

|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Net (loss) income |  | $ | (2,117) |  |  | $ | 4,405 |  |  |  |  |
Other comprehensive (loss) income, net of tax: |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  | 103 |  |  | (1,497) |  |  |  |  |
Unrealized (loss) gain on cash flow hedges, net of tax expense of $0 |  | (266) |  |  | 106 |  |  |  |  |
Reclassification of pension liability adjustments to earnings, net of tax expense of $0 and $4, respectively* |  | — |  |  | 25 |  |  |  |  |
Total comprehensive (loss) income |  | (2,280) |  |  | 3,039 |  |  |  |  |
Less comprehensive loss attributable to noncontrolling interest: |  |  |  |  |  |  |  |
Net loss attributable to noncontrolling interest |  | (7) |  |  | (31) |  |  |  |  |
Foreign currency translation adjustment |  | 116 |  |  | (17) |  |  |  |  |
Amounts attributable to noncontrolling interest |  | 109 |  |  | (48) |  |  |  |  |
Comprehensive (loss) income attributable to L.B. Foster Company |  | $ | (2,389) |  |  | $ | 3,087 |  |  |  |  |

* | Reclassifications out of “Accumulated other comprehensive loss” for pension obligations are charged to “Selling and administrative expenses” within the Condensed Consolidated Statements of Operations.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
5

Table of Contents
L.B. FOSTER COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)

|  | Three Months Ended March 31,
|  | 2025 |  | 2024
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |
Net (loss) income |  | $ | (2,117) |  |  | $ | 4,405 |
Adjustments to reconcile net (loss) income to cash used in operating activities: |  |  |  |
Deferred income taxes |  | (766) |  |  | (41) |
Depreciation |  | 2,305 |  |  | 2,374 |
Amortization |  | 1,122 |  |  | 1,217 |
Equity in income of nonconsolidated investments |  | (54) |  |  | — |
Gain on sales and disposals of property, plant, and equipment |  | — |  |  | (3,574) |
Stock-based compensation |  | 834 |  |  | 1,033 |
Change in operating assets and liabilities: |  |  |  |
Accounts receivable |  | 7,756 |  |  | (4,042) |
Contract assets |  | 3,691 |  |  | 5,136 |
Inventories |  | (11,083) |  |  | (12,756) |
Other current assets |  | (2,895) |  |  | (3,262) |
Other noncurrent assets |  | (5,236) |  |  | 675 |
Accounts payable |  | (12,649) |  |  | 3,200 |
Deferred revenue |  | (129) |  |  | (1,008) |
Accrued payroll and employee benefits |  | (10,129) |  |  | (11,599) |
Other current liabilities |  | (2,613) |  |  | (1,807) |
Other long-term liabilities |  | 5,827 |  |  | (1,395) |
Net cash used in operating activities |  | (26,136) |  |  | (21,444) |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |
Proceeds from the sale of property, plant, and equipment |  | — |  |  | 3,501 |
Capital expenditures on property, plant, and equipment |  | (2,575) |  |  | (2,712) |
Net cash (used in) provided by investing activities |  | (2,575) |  |  | 789 |
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |
Repayments of debt |  | (71,314) |  |  | (55,835) |
Proceeds from debt |  | 106,205 |  |  | 78,746 |
Treasury stock acquisitions |  | (6,071) |  |  | (1,613) |
Net cash provided by financing activities |  | 28,820 |  |  | 21,298 |
Effect of exchange rate changes on cash and cash equivalents |  | 49 |  |  | (55) |
Net increase in cash and cash equivalents |  | 158 |  |  | 588 |
Cash and cash equivalents at beginning of period |  | 2,454 |  |  | 2,560 |
Cash and cash equivalents at end of period |  | $ | 2,612 |  |  | $ | 3,148 |
Supplemental disclosure of cash flow information: |  |  |  |
Interest paid |  | $ | 1,010 |  |  | $ | 992 |
Income taxes paid |  | $ | 341 |  |  | $ | 303 |

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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L.B. FOSTER COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(Dollars in thousands)

|  | Three Months Ended March 31, 2025
|  | Common Stock |  | Paid-in Capital |  | Retained Earnings |  | Treasury Stock |  | Accumulated Other Comprehensive Loss |  | Noncontrolling Interest |  | Total Stockholders’ Equity
Balance, December 31, 2024 |  | $ | 111 |  |  | $ | 43,550 |  |  | $ | 167,579 |  |  | $ | (11,208) |  |  | $ | (21,716) |  |  | $ | 698 |  |  | $ | 179,014 |
Net loss |  | — |  |  | — |  |  | (2,110) |  |  | — |  |  | — |  |  | (7) |  |  | (2,117) |
Other comprehensive loss, net of tax: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  | — |  |  | — |  |  | — |  |  | — |  |  | 103 |  |  | 116 |  |  | 219 |
Unrealized derivative loss on cash flow hedges |  | — |  |  | — |  |  | — |  |  | — |  |  | (266) |  |  | — |  |  | (266) |
Purchase of 168,911 common shares for treasury |  | — |  |  | — |  |  | — |  |  | (4,277) |  |  | — |  |  | — |  |  | (4,277) |
Issuance of 95,952 common shares, net of shares withheld for taxes |  | — |  |  | (2,561) |  |  | — |  |  | 749 |  |  | — |  |  | — |  |  | (1,812) |
Stock-based compensation |  | — |  |  | 834 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 834 |
Balance, March 31, 2025 |  | $ | 111 |  |  | $ | 41,823 |  |  | $ | 165,469 |  |  | $ | (14,736) |  |  | $ | (21,879) |  |  | $ | 807 |  |  | $ | 171,595 |

|  | Three Months Ended March 31, 2024
|  | Common Stock |  | Paid-in Capital |  | Retained Earnings |  | Treasury Stock |  | Accumulated Other Comprehensive Loss |  | Noncontrolling Interest |  | Total Stockholders’ Equity
Balance, December 31, 2023 |  | $ | 111 |  |  | $ | 43,111 |  |  | $ | 124,633 |  |  | $ | (6,494) |  |  | $ | (19,250) |  |  | $ | 724 |  |  | $ | 142,835 |
Net income (loss) |  | — |  |  | — |  |  | 4,436 |  |  | — |  |  | — |  |  | (31) |  |  | 4,405 |
Other comprehensive income, net of tax: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pension liability adjustment |  | — |  |  | — |  |  | — |  |  | — |  |  | 25 |  |  | — |  |  | 25 |
Foreign currency translation adjustment |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,497) |  |  | (17) |  |  | (1,514) |
Unrealized derivative gain on cash flow hedges |  | — |  |  | — |  |  | — |  |  | — |  |  | 106 |  |  | — |  |  | 106 |
Purchase of 16,555 common shares for treasury |  | — |  |  | — |  |  | — |  |  | (385) |  |  | — |  |  | — |  |  | (385) |
Issuance of 71,851 common shares, net of shares withheld for taxes |  | — |  |  | (2,278) |  |  | — |  |  | 1,050 |  |  | — |  |  | — |  |  | (1,228) |
Stock-based compensation |  | — |  |  | 1,033 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,033 |
Balance, March 31, 2024 |  | $ | 111 |  |  | $ | 41,866 |  |  | $ | 129,069 |  |  | $ | (5,829) |  |  | $ | (20,616) |  |  | $ | 676 |  |  | $ | 145,277 |

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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L.B. FOSTER COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in thousands, except share data)
Note 1. Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all estimates and adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. This Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in L.B. Foster Company’s Annual Report on Form 10-K for the year ended December 31, 2024. In this Quarterly Report on Form 10-Q, references to “we,” “us,” “our,” and the “Company” refer collectively to L.B. Foster Company and its consolidated subsidiaries.
Recently Issued Accounting Standards
In November 2023, the FASB issued Accounting Standards Update 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires enhanced disclosures regarding significant segment expenses that are regularly reviewed by the chief operating decision maker (“CODM”) and included in each reported measure of segment operating income or loss, including an amount for “other segment items” by reportable segment and a description of its composition. ASU 2023-07 also requires entities to disclose the title and position of the CODM and an explanation of how the CODM uses reported measures of segment operating income or loss to assess performance and allocate resources. The Company adopted this guidance for the interim period ended March 31, 2025 and applied the guidance retrospectively to all periods presented in the financial statements contained in this Quarterly Report on Form 10-Q. The expanded disclosures of the provision of ASU 2023-07 are included in Note 2. ASU 2023-07 affects only disclosures with no impacts to the Company’s financial condition, results of operations, and cash flows.
In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and disaggregation of income tax expense and income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of ASU 2023-09, but expects this ASU to only impact its disclosures with no impacts to its consolidated financial condition, results of operations, and cash flows.
In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”), which requires entities to provide more detailed disaggregation of expenses in the income statement, focusing on the nature of the expenses rather than their function. The new disclosures will require public business entities to disclose in the notes to the financial statements, at each interim and annual reporting period, specific information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each expense caption presented on the face of the income statement, and the total amount of an entity's selling expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and may be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on the consolidated financial statements.
Note 2. Business Segments
The Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company determines its operating segments based on how the Company's Chief Operating Decision Maker, the Company's President and Chief Executive Officer, manages the businesses, including resource allocation and operating decisions. The Company is organized into two operating segments, which represent the individual businesses that are run separately within this operational structure.
Operating segments are evaluated on their segment operating income contribution to the Company’s consolidated results. The Company considers the aggregation of operating segments into reporting segments based on the nature of offerings, nature of production services, the type or class of customer for products and services, methods used to distribute products and services, and economic and regulatory environment conditions.
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The Company has two reportable segments: Rail, Technologies, and Services (“Rail”), and Infrastructure Solutions (“Infrastructure”). The Company’s segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred, (b) whose operating results are regularly reviewed by the CODM, who uses such information to make decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available. The CODM uses segment operating income to determine resources to allocate to each segment (including personnel and financial resources) during the annual budgeting process. The CODM evaluates segment performance regularly by comparing the segment operating income to the budgeted measure.
Segment operating income includes reportable segment gross profit and direct expenses such as salaries, benefits, restructuring, research and development, professional and purchased services expenditures, amortization expense, bad debt expense, and other segment expenses. Additionally, segment operating income includes allocated corporate operating expenses associated with central services such as quality, logistics, environmental health and safety, information technology, insurance, and human resources. Other corporate functional costs that are associated with the operating segments are also allocated to the segments such as finance, marketing, credit and collections, and treasury functions. Operating expenses related to corporate headquarter functions are allocated to each segment based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. Management believes the allocation of corporate operating expenses provides an accurate presentation of how the segments utilize corporate support activities. This provides the CODM meaningful segment profitability information to support operating decisions and the allocation of resources.
Certain corporate costs are separately managed on a consolidated basis and are not allocated to the operating segments. These corporate costs include public company costs such as listing fees, audit fees, compliance costs, insurance costs, and Board of Directors fees. Additionally, certain corporate executive management costs, including costs of the corporate executive leadership team, and corporate management stock-based compensation expenses are not allocated to the operating segments. Finally, interest expense, income taxes, and certain other items included in other income - net, which are managed on a consolidated basis, are not allocated to the operating segments.
The operating results of the Company’s reportable segments were as follows for the periods presented:

|  | Three Months Ended March 31, 2025
|  | Rail, Technologies, and Services |  | Infrastructure Solutions |  | Total
Net sales |  | $ | 54,015 |  |  | $ | 43,777 |  |  | $ | 97,792 |
Less: |  |  |  |  |  |
Cost of sales |  | (41,986) |  |  | (35,655) |  |  | (77,641) |
Selling and administrative employment costs |  | (7,399) |  |  | (5,564) |  |  | (12,963) |
Purchased services(1) |  | (1,673) |  |  | (1,358) |  |  | (3,031) |
General administrative costs(2) |  | (1,993) |  |  | (1,342) |  |  | (3,335) |
Amortization expense |  | (820) |  |  | (302) |  |  | (1,122) |
Segment operating income (loss) |  | $ | 144 |  |  | $ | (444) |  |  | $ | (300) |
Reconciliation of segment operating loss |  |  |  |  |  |
Total segment operating loss |  |  |  |  |  | $ | (300) |
Interest expense - net |  |  |  |  |  | (1,143) |
Other income - net |  |  |  |  |  | 318 |
Public company costs |  |  |  |  |  | (1,154) |
Corporate executive management costs |  |  |  |  |  | (220) |
Corporate management stock-based compensation |  |  |  |  |  | (278) |
Other corporate expenses - net |  |  |  |  |  | 29 |
Loss before income taxes |  |  |  |  |  | $ | (2,748) |

(1) Purchased services costs include contractor services, insurance expenditures, rental expense, and legal services.
(2) General administrative costs generally include office supplies, utilities, advertising, bad debt expense, depreciation and restructuring expenditures.
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|  | Three Months Ended March 31, 2024
|  | Rail, Technologies, and Services |  | Infrastructure Solutions |  | Total
Net sales |  | $ | 82,623 |  |  | $ | 41,697 |  |  | $ | 124,320 |
Less: |  |  |  |  |  |
Cost of sales |  | (64,052) |  |  | (34,092) |  |  | (98,144) |
Selling and administrative employment costs |  | (7,482) |  |  | (5,818) |  |  | (13,300) |
Purchased services(1) |  | (1,939) |  |  | (1,578) |  |  | (3,517) |
General administrative costs(2) |  | (1,501) |  |  | (1,251) |  |  | (2,752) |
Amortization expense |  | (871) |  |  | (346) |  |  | (1,217) |
Segment operating income (loss) |  | $ | 6,778 |  |  | $ | (1,388) |  |  | $ | 5,390 |
Reconciliation of segment operating income |  |  |  |  |  |
Total segment operating income |  |  |  |  |  | $ | 5,390 |
Gain on sale of former joint venture facility |  |  |  |  |  | 3,477 |
Interest expense - net |  |  |  |  |  | (1,125) |
Other income - net |  |  |  |  |  | 253 |
Public company costs |  |  |  |  |  | (1,219) |
Corporate executive management costs |  |  |  |  |  | (1,407) |
Corporate management stock-based compensation |  |  |  |  |  | (599) |
Other corporate expenses |  |  |  |  |  | (76) |
Income before income taxes |  |  |  |  |  | $ | 4,694 |

(1) Purchased services costs include contractor services, insurance expenditures, rental expense, and legal services.
(2) General administrative costs generally include office supplies, utilities, advertising, bad debt expense, depreciation and restructuring expenditures.
For the three months ended March 31, 2024, the Company sold a former joint venture facility located in Magnolia, Texas, generating a $3,477 gain on sale recorded in “Gain on sale of former joint venture facility” which is included as a component of corporate operating income.
Reconciliations of reportable depreciation and amortization and expenditures for long-lived assets to the Company’s consolidated totals are as follows for the periods ended March 31:

|  |  |  | Three Months Ended March 31, 2025
|  |  |  | Depreciation/Amortization |  | Expenditures for Long-Lived Assets
Rail, Technologies, and Services |  |  |  | $ | 1,168 |  |  | $ | 427 |
Infrastructure Solutions |  |  |  | 1,764 |  |  | 2,038 |
Reportable segments total |  |  |  | $ | 2,932 |  |  | $ | 2,465 |
Corporate |  |  |  | 495 |  |  | 110 |
Total |  |  |  | $ | 3,427 |  |  | $ | 2,575 |

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|  |  |  | Three Months Ended March 31, 2024
|  |  |  | Depreciation/Amortization |  | Expenditures for Long-Lived Assets
Rail, Technologies, and Services |  |  |  | $ | 1,221 |  |  | $ | 536 |
Infrastructure Solutions |  |  |  | 1,911 |  |  | 2,033 |
Reportable segments total |  |  |  | $ | 3,132 |  |  | $ | 2,569 |
Corporate |  |  |  | 459 |  |  | 143 |
Total |  |  |  | $ | 3,591 |  |  | $ | 2,712 |

The following table summarizes the Company's total assets by reportable segment for the following periods:

|  | March 31, 2025 |  | December 31, 2024
Rail, Technologies, and Services |  | $ | 149,333 |  |  | $ | 158,859 |
Infrastructure Solutions |  | 131,689 |  |  | 123,755 |
Reportable segments total |  | 281,022 |  |  | 282,614 |
Corporate |  | 61,804 |  |  | 51,936 |
Total |  | $ | 342,826 |  |  | $ | 334,550 |

On August 30, 2023, the Company announced the discontinuation of its Bridge Products grid deck product line (“Bridge Exit”) which was reported in the Steel Products business unit within Infrastructure. The Bedford, PA based operations supporting the product line expect to complete any remaining customer obligations in 2025. For the three months ended March 31, 2025 and 2024, the product line had $501 and $810 in sales, respectively. The Company does not expect to incur additional material exit costs in 2025.
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Note 3. Revenue
The following table summarizes the Company’s sales by major product and service line for the periods presented:

|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Rail Products |  | $ | 29,319 |  |  | $ | 53,038 |  |  |  |  |
Global Friction Management |  | 15,563 |  |  | 14,022 |  |  |  |  |
Technology Services and Solutions |  | 9,133 |  |  | 15,563 |  |  |  |  |
Rail, Technologies, and Services |  | 54,015 |  |  | 82,623 |  |  |  |  |
Precast Concrete Products |  | 28,204 |  |  | 21,091 |  |  |  |  |
Steel Products |  | 15,573 |  |  | 20,606 |  |  |  |  |
Infrastructure Solutions |  | 43,777 |  |  | 41,697 |  |  |  |  |
Total net sales |  | $ | 97,792 |  |  | $ | 124,320 |  |  |  |  |

The majority of the Company’s revenue is from products transferred and services rendered to customers at a point in time. The Company recognizes revenue at the point in time at which the customer obtains control of the product or service, which is generally when the product title passes to the customer upon shipment or the service has been rendered to the customer. In limited cases, title does not transfer and revenue is not recognized until the customer has received the products at a designated physical location.
Net sales by the timing of the transfer of goods and services was as follows for the periods presented:

|  | Three Months Ended March 31, 2025
|  | Rail, Technologies, and Services |  | Infrastructure Solutions |  |  |  | Total
Point in time |  | $ | 44,925 |  |  | $ | 28,627 |  |  |  |  | $ | 73,552 |
Over time |  | 9,090 |  |  | 15,150 |  |  |  |  | 24,240 |
Total net sales |  | $ | 54,015 |  |  | $ | 43,777 |  |  |  |  | $ | 97,792 |
|  | Three Months Ended March 31, 2024
|  | Rail, Technologies, and Services |  | Infrastructure Solutions |  |  |  | Total
Point in time |  | $ | 65,539 |  |  | $ | 29,657 |  |  |  |  | $ | 95,196 |
Over time |  | 17,084 |  |  | 12,040 |  |  |  |  | 29,124 |
Total net sales |  | $ | 82,623 |  |  | $ | 41,697 |  |  |  |  | $ | 124,320 |

The Company’s performance obligations under long-term agreements with its customers are generally satisfied over time. Over time revenue is primarily comprised of transit infrastructure and technology services and solutions projects within the Rail segment, precast concrete buildings within the Precast Concrete Products division in the Infrastructure segment, and long-term bridge projects within the Steel Products division in the Infrastructure segment. Revenue under these long-term agreements is generally recognized over time, either using an input measure based upon the proportion of actual costs incurred to estimated total project costs or an input measure based upon actual labor costs as a percentage of estimated total labor costs, depending upon which measure the Company believes best depicts the Company’s performance to date under the terms of the contract, or an output method, specifically units delivered, based upon certain customer acceptance and delivery requirements. The use of an input or an output measure to recognize revenue is determined based on what is most appropriate given the nature of the work performed and terms of the associated agreement.
Accounting for these long-term agreements involves the use of various techniques to estimate total revenues and costs. The Company estimates profit on these long-term agreements as the difference between total estimated revenues and expected costs to complete a contract and recognizes that profit over the life of the contract. As a result of management's reviews of contract-related estimates the Company makes adjustments to contract estimates that impact our revenue and profit totals. Changes in estimates are primarily attributed to updated considerations, including economic conditions and historic contract patterns, resulting in changes to anticipated revenue from existing contracts. During the three months ended March 31, 2025 and March 31, 2024, reductions to net sales stemming from changes in actual and expected values of certain commercial contracts and settlements of such contracts were not significant. The Company’s estimates related to these long-term agreements are further described in “Note 3. Revenue” of the Notes to the Company’s Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year ended December 31, 2024.
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Revenue recognized over time was as follows for the periods presented:

|  | Three Months Ended March 31, |  | Percentage of Total Net Sales Three Months Ended March 31,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Over time input method |  | $ | 7,742 |  |  | $ | 13,143 |  |  | 7.9 | % |  | 10.6 | %
Over time output method |  | 16,498 |  |  | 15,981 |  |  | 16.9 |  |  | 12.9 |
Total over time sales |  | $ | 24,240 |  |  | $ | 29,124 |  |  | 24.8 | % |  | 23.4 | %

The timing of revenue recognition, billings, and cash collections results in billed receivables, costs in excess of billings (included in “Contract assets - net”), and billings in excess of costs (contract liabilities), included in “Deferred revenue” within the Condensed Consolidated Balance Sheets.
The following table sets forth the Company’s contract assets:

|  | Contract Assets
Balance as of December 31, 2024 |  | $ | 16,720 |
Net additions to contract assets |  | 1,935 |
Transfers from contract asset balance to accounts receivable |  | (5,296) |
Balance as of March 31, 2025 |  | $ | 13,359 |

The following table sets forth the Company’s contract liabilities:

|  | Contract Liabilities
Balance as of December 31, 2024 |  | $ | 1,991 |
Revenue recognized from contract liabilities |  | (798) |
Increase in billings in excess of cost, excluding revenue recognized |  | 599 |
Balance as of March 31, 2025 |  | $ | 1,792 |

The Company has established policies regarding allowance for credit losses associated with contract assets, which includes standalone reserve assessments for its long term, complex contracts as needed as well as detailed regular review and updates to contract margins, progress, and value. A standard reserve threshold is applied to contract assets related to short term, less complex contracts. Management also regularly reviews collection patterns and future expected collections and makes necessary revisions to allowance for credit losses related to contract assets.
As of March 31, 2025, the Company had approximately $237,215 of remaining performance obligations, which is also referred to as backlog. Approximately 10.1% of the March 31, 2025 backlog was related to projects that are anticipated to extend beyond March 31, 2026.
Note 4. Goodwill and Other Intangible Assets
The following table presents the changes in goodwill balance by reportable segment for the period presented:

|  | Rail, Technologies, and Services |  | Infrastructure Solutions |  |  |  | Total
Balance as of December 31, 2024 |  | $ | 20,231 |  |  | $ | 11,676 |  |  |  |  | $ | 31,907 |
Foreign currency translation impact |  | 451 |  |  | — |  |  |  |  | 451 |
Balance as of March 31, 2025 |  | $ | 20,682 |  |  | $ | 11,676 |  |  |  |  | $ | 32,358 |

The Company performs goodwill impairment tests annually during the fourth quarter, and also performs interim goodwill impairment tests if it is determined that it is more likely than not that the fair value of a reporting unit is less than the carrying amount. Qualitative factors are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount, which includes the impacts of current economic conditions, including but not limited to concerns related to inflation, tariffs, labor markets, supply chains, and changes in trade policy. However, these factors can be unpredictable and are subject to change. No interim goodwill impairment test was required as a result of the evaluation of qualitative factors as of March 31, 2025. However, future impairment charges could result if future projections diverge unfavorably from current expectations.
The following table sets forth the components of the Company’s intangible assets for the periods presented:
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|  | March 31, 2025 |  |
|  | Weighted Average Amortization Period In Years |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Amount |  |
Patents |  | 10 |  | $ | 310 |  |  | $ | (201) |  |  | $ | 109 |  |  |
Customer relationships |  | 12 |  | 28,311 |  |  | (20,737) |  |  | 7,574 |  |  |
Trademarks and trade names |  | 13 |  | 8,007 |  |  | (5,378) |  |  | 2,629 |  |  |
Technology |  | 9 |  | 32,695 |  |  | (29,496) |  |  | 3,199 |  |  |
Favorable lease |  | 6 |  | 327 |  |  | (145) |  |  | 182 |  |  |
|  |  |  | $ | 69,650 |  |  | $ | (55,957) |  |  | $ | 13,693 |  |  |

|  | December 31, 2024
|  | Weighted Average Amortization Period In Years |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Amount
Patents |  | 10 |  | $ | 308 |  |  | $ | (198) |  |  | $ | 110 |
Customer relationships |  | 13 |  | 28,006 |  |  | (19,958) |  |  | 8,048 |
Trademarks and trade names |  | 13 |  | 7,974 |  |  | (5,219) |  |  | 2,755 |
Technology |  | 9 |  | 32,616 |  |  | (28,923) |  |  | 3,693 |
Favorable lease |  | 6 |  | 327 |  |  | (132) |  |  | 195 |
|  |  |  | $ | 69,231 |  |  | $ | (54,430) |  |  | $ | 14,801 |

Note 5. Accounts Receivable
Changes in reserves for uncollectible accounts are recorded as part of “Selling and administrative expenses” in the Condensed Consolidated Statements of Operations, and a net expense was recorded of $191 and $396 for the three months ended March 31, 2025 and 2024, respectively. The changes in reserves for uncollectible accounts are net of recoveries of previous write-offs of $203 for the three months ended March 31, 2025.
The Company established the allowance for credit losses by calculating the amount to reserve based on the age of a given trade receivable and considering historical collection patterns, bad debt expense experience, expected future trends of collections, current and expected market conditions, and any other relevant subjective adjustments as needed. Management maintains high-quality credit review practices and positive customer relationships that mitigate credit risks. The Company’s reserves are regularly reviewed and revised as necessary.
The following table sets forth the Company’s allowance for credit losses:

|  | Allowance for Credit Losses
Balance as of December 31, 2024 |  | $ | 1,127 |
Current period provision |  | 394 |
Write-off against allowance |  | (6) |
Recoveries of previous write-offs |  | (203) |
Balance as of March 31, 2025 |  | $ | 1,312 |

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Note 6. Inventory
Inventory is valued at average cost or net realizable value, whichever is lower. The Company’s components of inventory are summarized in the following table for the periods presented:

|  | March 31, 2025 |  | December 31, 2024
Finished goods |  | $ | 45,458 |  |  | $ | 37,238 |
Work-in-process |  | 7,287 |  |  | 6,717 |
Raw materials |  | 29,035 |  |  | 26,551 |
Inventories - net |  | $ | 81,780 |  |  | $ | 70,506 |

Note 7. Long-Term Debt and Related Matters
Long-term debt consisted of the following:

|  | March 31, 2025 |  | December 31, 2024
Revolving credit facility |  | $ | 82,067 |  |  | $ | 46,467 |
Finance leases and financing agreements |  | 431 |  |  | 473 |
Total |  | 82,498 |  |  | 46,940 |
Less current maturities |  | (151) |  |  | (167) |
Long-term portion |  | $ | 82,347 |  |  | $ | 46,773 |

On August 13, 2021, the Company, its domestic subsidiaries, and certain of its Canadian and United Kingdom subsidiaries (collectively, the “Borrowers”), entered into the Fourth Amended and Restated Credit Agreement (the “Credit Agreement”) with PNC Bank, N.A., Citizens Bank, N.A., Wells Fargo Bank, National Association, Bank of America, N.A., and BMO Harris Bank, National Association. The Credit Agreement, as amended, modifies the prior amended revolving credit facility, on terms more favorable to the Company and extends the maturity from April 30, 2024 to August 13, 2026. The Credit Agreement provides for a five-year, revolving credit facility that permits aggregate borrowings of the Borrowers up to $130,000 with a sublimit of the equivalent of $25,000 U.S. dollars that is available to the Canadian and United Kingdom borrowers in the aggregate. The Credit Agreement’s incremental loan feature permits the Company to increase the available commitments under the facility by up to an additional $50,000 subject to the Company’s receipt of increased commitments from existing or new lenders and the satisfaction of certain conditions. On August 12, 2022, the Company entered into a second amendment to its Credit Agreement (the “Second Amendment”) which added an additional tier to the pricing grid and provided for the conversion from LIBOR-based to SOFR-based borrowings.
Borrowings under the Credit Agreement, as amended, will bear interest at rates based upon either the base rate or SOFR rate plus applicable margins. The Credit Agreement includes two financial covenants: (a) Maximum Gross Leverage Ratio, defined as the Company’s consolidated Indebtedness (as defined in the Credit Agreement) divided by the Company’s consolidated EBITDA, which must not exceed (i) 3.25 to 1.00 for all testing periods other than during an Acquisition Period (as defined in the Credit Agreement), and (ii) 3.50 to 1.00 for all testing periods occurring during an Acquisition Period, and (b) Minimum Consolidated Fixed Charge Coverage Ratio, defined as the Company’s consolidated EBITDA divided by the Company’s Fixed Charges (as defined in the Credit Agreement), which must be more than 1.05 to 1.00. As of March 31, 2025, the Company was in compliance with the covenants in the Credit Agreement, as amended, and had outstanding letters of credit of approximately $755.
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Note 8. (Loss) Earnings Per Common Share
(Share amounts in thousands)
The following table sets forth the computation of basic and diluted (loss) earnings per common share for the periods indicated:

|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Numerator for basic and diluted (loss) earnings per common share: |  |  |  |  |  |  |  |
Net (loss) income attributable to L.B. Foster Company |  | $ | (2,110) |  |  | $ | 4,436 |  |  |  |  |
Denominator: |  |  |  |  |  |  |  |
Weighted average shares outstanding |  | 10,540 |  |  | 10,762 |  |  |  |  |
Denominator for basic earnings per common share |  | 10,540 |  |  | 10,762 |  |  |  |  |
Effect of dilutive securities: |  |  |  |  |  |  |  |
Stock compensation plans |  | — |  |  | 223 |  |  |  |  |
Dilutive potential common shares |  | — |  |  | 223 |  |  |  |  |
Denominator for diluted (loss) earnings per common share - adjusted weighted average shares outstanding |  | 10,540 |  |  | 10,985 |  |  |  |  |
Basic (loss) earnings per common share |  | $ | (0.20) |  |  | $ | 0.41 |  |  |  |  |
Diluted (loss) earnings per common share |  | $ | (0.20) |  |  | $ | 0.40 |  |  |  |  |

There were 498 anti-dilutive shares for the three months ended March 31, 2025.
Note 9. Income Taxes
For the three months ended March 31, 2025 and 2024, the Company recorded an income tax benefit of $631 on pre-tax losses of $2,748 and an income tax expense of $289 on pre-tax income of $4,694, respectively, for an effective income tax rate of 23.0% and 6.2%, respectively. The Company's effective income tax rate for the three months ended March 31, 2025 differed from the federal statutory rate of 21% primarily due to state income taxes, nondeductible expenses and the discrete impact of excess tax benefits related to share-based compensation, offset by the impact of pre-tax losses in foreign jurisdictions with full valuation allowances for which no income tax benefit was recognized. Changes in pre-tax income projections, combined with the seasonal nature of our businesses, could also impact the effective income tax rate each quarter.
Note 10. Stock-Based Compensation
The Company recorded stock-based compensation expense of $834 and $1,033 for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, unrecognized compensation expense for awards that the Company expects to vest approximated $4,028. The Company will recognize this unrecognized compensation expense over a weighted average 1.4 years through February 13, 2027.
As of March 31, 2025, the Company had stock awards issued pursuant to the 2022 Equity and Incentive Compensation Plan (the "Equity and Incentive Plan") and its predecessor, the 2006 Omnibus Incentive Compensation Plan (the "Omnibus Plan"). No stock options are outstanding under either the Omnibus Plan or Equity and Incentive Plan and, as such, there was no stock-based compensation expense related to stock options recorded for the three months ended March 31, 2025 and 2024.
Non-Employee Director Fully-Vested and Restricted Stock Awards
Since May 2018, non-employee directors have been awarded shares of the Company’s common stock on each date the non-employee directors were elected at the annual shareholders’ meeting to serve as directors, subject to a one-year vesting requirement. The Deferred Compensation Plan for Non-Employee Directors under the Omnibus Plan and, by amendment, under the Equity and Incentive Compensation Plan, which permits non-employee directors of the Company to defer receipt of earned cash and/or stock compensation for service on the Board into deferred stock units. Under the terms of the 2022 Equity and Incentive Compensation Plan, a non-employee Board member may elect to receive fully vested stock in lieu of quarterly cash compensation.
Restricted Stock and Performance-Based Stock and Share Units
Under the Equity and Incentive Compensation Plan and Omnibus Plan, the Company grants certain employees restricted stock and performance-based stock and share units. The forfeitable restricted stock awards granted generally time-vest ratably over a three-year period, unless indicated otherwise by the underlying restricted stock award agreement. Performance unit awards are offered annually under separate three-year long-term incentive programs, unless indicated otherwise by the underlying performance unit award
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agreement. Performance units are subject to forfeiture and will be converted into common stock based upon the Company’s performance relative to performance measures and conversion multiples as defined in the underlying program.
The following table summarizes the restricted stock, deferred stock units, and performance-based stock and share unit activity for the periods presented:

|  | Restricted Stock |  |  |  | Performance-Based Stock and Share Units |  | Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2024 |  | 203,552 |  |  |  |  | 534,521 |  |  | $ | 16.31 |
Vested |  | (72,662) |  |  |  |  | (88,641) |  |  | 14.61 |
Cancelled and forfeited |  | (1,167) |  |  |  |  | (45,524) |  |  | 13.06 |
Outstanding as of March 31, 2025 |  | 129,723 |  |  |  |  | 400,356 |  |  | $ | 16.57 |

During the three months ended March 31, 2025, the Company made no grants of restricted stock or performance-based stock and share units.
Note 11. Fair Value Measurements
The Company determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below.
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
SOFR-based interest rate swaps - To reduce the impact of interest rate changes on outstanding variable-rate debt, the Company amended and entered into forward-starting SOFR-based interest rate swaps with notional values totaling $20,000 and $20,000 effective August 12, 2022 and August 31, 2022, respectively. The August 12, 2022 interest rate swap expired on March 1, 2025. The August 31, 2022 interest rate swap expires on August 13, 2026. The fair value of the interest rate swaps are based on market-observable forward interest rates and represents the estimated amount that the Company would pay to terminate the agreements. As such, the swap agreements are classified as Level 2 within the fair value hierarchy. As of March 31, 2025 and December 31, 2024, the interest rate swaps were recorded in “Other current assets” when the interest rate swaps’ fair market value are in an asset position, and “Other accrued liabilities” when in a liability position within our Condensed Consolidated Balance Sheets.

|  | Fair Value Measurements at Reporting Date |  |  | Fair Value Measurements at Reporting Date
|  | March 31, 2025 |  | Level 1 |  | Level 2 |  | Level 3 |  |  | December 31, 2024 |  | Level 1 |  | Level 2 |  | Level 3
Interest rate swaps |  | $ | 164 |  |  | $ | — |  |  | $ | 164 |  |  | $ | — |  |  |  | $ | 430 |  |  | $ | — |  |  | $ | 430 |  |  | $ | — |
Total assets |  | $ | 164 |  |  | $ | — |  |  | $ | 164 |  |  | $ | — |  |  |  | $ | 430 |  |  | $ | — |  |  | $ | 430 |  |  | $ | — |

The $20,000 interest rate swap agreements that became effective August 2022 are accounted for as cash flow hedges and the objective of the hedges is to offset the expected interest variability on payments associated with the interest rate on our debt. The gains and losses related to the interest rate swaps are reclassified from “Accumulated other comprehensive loss” in our Condensed Consolidated Balance Sheets and included in “Interest expense - net” in our Condensed Consolidated Statements of Operations as the interest expense from our debt is recognized.
For the three months ended March 31, 2025 and 2024, the Company recognized interest income of $218 and $337, respectively, from interest rate swaps.
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Note 12. Retirement Plans
The Company has two defined contribution retirement plans that cover its hourly and salaried employees in the United States. Employees are eligible to participate in the appropriate plan based on employment classification. The Company’s contributions to the defined contribution plans are governed by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the Company’s policy and investment guidelines applicable to each respective plan. The Company’s policy is to contribute at least the minimum in accordance with the funding standards of ERISA. The Company maintains one defined contribution plan for its employees in Canada. In the United Kingdom, the Company maintains two defined contribution plans and a defined benefit plan, which is frozen. These plans are discussed in further detail below.
On May 23, 2024, the Company's Board of Directors approved the termination of the frozen L.B. Foster Company Merged Retirement Plan (the “US DB Plan”) and the Portec Rail Products (UK) Limited Pension Scheme (the “UK DB Plan”). At such time, the Company notified all plan participants of the Company's intentions to terminate and fully settle the obligations. During the fourth quarter of 2024, the Company completed the termination of the US DB Plan. In January 2025, the Company entered into an insurance buy-in contract with a third party insurer which resulted in an exchange of plan assets of the UK DB Plan for an annuity that covers our future projected benefit obligations. The Company expects the buy out of the plan and transfer of future benefit obligations of plan participants to be completed in early 2026. The Company does not expect to make any further contributions to the UK DB Plan.
United Kingdom Defined Benefit Plan
Net periodic pension costs were as follows for the periods presented:

|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Interest cost |  | $ | 62 |  |  | $ | 56 |  |  |  |  |
Expected return on plan assets |  | (83) |  |  | (94) |  |  |  |  |
Amortization of prior service costs and transition amount |  | 6 |  |  | 6 |  |  |  |  |
Recognized net actuarial loss |  | 10 |  |  | 8 |  |  |  |  |
Net periodic pension income |  | $ | (5) |  |  | $ | (24) |  |  |  |  |

Defined Contribution Plans
The Company sponsors five defined contribution plans for hourly and salaried employees across its domestic and international facilities. The following table summarizes the expense associated with the contributions made to these plans for the periods presented:

|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
United States |  | $ | 713 |  |  | $ | 551 |  |  |  |  |
Canada |  | 70 |  |  | 76 |  |  |  |  |
United Kingdom |  | 271 |  |  | 281 |  |  |  |  |
|  | $ | 1,054 |  |  | $ | 908 |  |  |  |  |

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Note 13. Commitments and Contingent Liabilities
Product Liability Claims
The Company is subject to product warranty claims that arise in the ordinary course of its business. For certain manufactured products, the Company maintains a product warranty accrual as a percentage of cost of sales. In addition, the product warranty accrual is adjusted periodically based on the identification or resolution of known individual product warranty claims.
Union Pacific Railroad (“UPRR”) Concrete Tie Matter
On March 13, 2019, the Company and its subsidiary, CXT Incorporated (“CXT”), entered into a Settlement Agreement (the “Settlement Agreement”) with UPRR to resolve the then-pending litigation in the matter of Union Pacific Railroad Company v. L.B. Foster Company and CXT Incorporated, Case No. CI 15-564, in the District Court for Douglas County, Nebraska. Under the Settlement Agreement, the Company and CXT agreed to pay UPRR the aggregate amount of $50,000 without pre-judgment interest, which began with a $2,000 immediate payment, and with the remaining $48,000 paid in installments over a six-year period commencing on the effective date of the Settlement Agreement through December 2024 pursuant to a Promissory Note. As of December 31, 2024 the UPRR Settlement Agreement has been fully paid and UPRR's purchase obligations under this Agreement have been satisfied.
Environmental and Legal Proceedings
The Company is subject to national, state, foreign, provincial, and/or local laws and regulations relating to the protection of the environment. The Company’s efforts to comply with environmental regulations may have an adverse effect on its future earnings.
On June 5, 2017, a General Notice Letter was received from the United States Environmental Protection Agency (“EPA”) indicating that the Company may be a potentially responsible party (“PRP”) regarding the Portland Harbor Superfund Site cleanup along with numerous other companies. More than 140 other companies received such a notice. The Company and a predecessor owned and operated a facility near the harbor site for a period prior to 1982. The net present value and undiscounted costs of the selected remedy throughout the harbor site are estimated by the EPA to be approximately $1.1 billion and $1.7 billion respectively, and the remedial work is expected to take as long as 13 years to complete. Other estimates indicate that these costs may increase given that the remedy will not be initiated or completed for several years. The Company is reviewing the basis for its identification by the EPA and the nature of the historic operations of a Company predecessor near the site. Additionally, the Company executed a PRP agreement which provides for a private allocation process among almost 100 PRPs in a working group whose work is ongoing and involves a process that will ultimately conclude a proposed allocation of liability for cleanup of the site and various sub-areas. The Company does not have any individual risk sharing agreements in place with respect to the site, and was only associated with the site from 1976 to when it purchased the stock of a company whose assets it sold in 1982 and which was dissolved in 1994. On March 26, 2020, the EPA issued a Unilateral Administrative Order to two parties requiring them to perform remedial design work for that portion of the Harbor Superfund Site that includes the area closest to the facility; the Company was not a recipient of this Unilateral Administrative Order. On December 2, 2024, the Company and many other PRPs received a Special Notice Letter ("SNL") from the EPA regarding a formal initiation of negotiations for the investigation and cleanup of the Portland Harbor Superfund Site and requesting a "good faith offer" from certain PRPs as to remediation and reimbursement of costs within 120 days, which, if accepted, would lead to a formal Consent Decree which may not be entered under the EPA's proposed schedule until fall of 2026 or by March 2027. The deadline for a response has been extended to May 30, 2025. The Company cannot predict the ultimate impact of these proceedings and the SNLs because of the large number of PRPs involved throughout the harbor site, the size and extent of the site, the degree of contamination of various wastes, varying environmental impacts throughout the harbor site, the scarcity of data related to the facility once operated by the Company and a predecessor, potential comparative liability between the allocation parties and regarding non-participants, and the speculative nature of the remediation costs. Based upon information currently available, management does not believe that the Company’s alleged PRP status regarding the Portland Harbor Superfund Site or other compliance with the present environmental protection laws will have a material adverse effect on the financial condition, results of operations, cash flows, competitive position, or capital expenditures of the Company. As more information develops and the allocation process is completed, and given the resolution of factors like those described above, an unfavorable resolution could have a material adverse effect. As of March 31, 2025 and December 31, 2024, the Company maintained environmental reserves approximating $1,755 and $1,796, respectively.
Restructuring Costs
In August 2024, the Company announced an enterprise restructuring program aligned with its strategy to reduce costs and enable investment in its growth platforms. The restructuring action has been completed as of December 31, 2024 and no additional costs are expected to be incurred. As of December 31, 2024, the Company's restructuring liability was $687, a majority of which was paid out during the first quarter of 2025.
Other Legal Matters
The Company is also subject to other legal proceedings and claims that arise in the ordinary course of its business. Legal actions are subject to inherent uncertainties, and future events could change management’s assessment of the probability or estimated amount of potential losses from pending or threatened legal actions. Based on available information, it is the opinion of management that the
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ultimate resolution of pending or threatened legal actions, both individually and in the aggregate, will not result in losses having a material adverse effect on the Company’s financial position or liquidity as of March 31, 2025.
If management believes that, based on available information, it is at least reasonably possible that a material loss (or additional material loss in excess of any accrual) will be incurred in connection with any legal actions, the Company discloses an estimate of the possible loss or range of loss, either individually or in the aggregate, as appropriate, if such an estimate can be made, or discloses that an estimate cannot be made. Based on the Company’s assessment as of March 31, 2025, no such disclosures were considered necessary.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Dollars in thousands, except share data)
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Many of the forward-looking statements provide management's current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Sentences containing words such as “believe,” “intend,” “plan,” “may,” “expect,” “should,” “could,” “anticipate,” “estimate,” “predict,” “project,” or their negatives, or other similar expressions of a future or forward-looking nature generally should be considered forward-looking statements. Forward-looking statements in this Quarterly Report on form 10-Q are based on management's current expectations and assumptions about future events that involve inherent risks and uncertainties and may concern, among other things, the Company’s expectations relating to our strategy, goals, projections, and plans regarding our financial position, liquidity, capital resources, and results of operations and decisions regarding our strategic growth initiatives, market position, and product development. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. The Company cautions readers that various factors could cause the actual results of the Company to differ materially from those indicated by forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: a continuation or worsening of the adverse economic conditions in the markets we serve, including recession, the continued volatility in the prices for oil and gas, tariffs or trade wars, inflation, project delays, and budget shortfalls, or otherwise; volatility in the global capital markets, including interest rate fluctuations, which could adversely affect our ability to access the capital markets on terms that are favorable to us; restrictions on our ability to draw on our credit agreement, including as a result of any future inability to comply with restrictive covenants contained therein; a decrease in freight or transit rail traffic; environmental matters and the impact of environmental regulations, including any costs associated with any remediation and monitoring of such matters; the risk of doing business in international markets, including compliance with anti-corruption and bribery laws, foreign currency fluctuations and inflation, global shipping disruptions, the imposition of increased or new tariffs, and trade restrictions or embargoes; our ability to effectuate our strategy, including cost reduction initiatives, and our ability to effectively integrate acquired businesses or to divest businesses, such as the acquisition of VanHooseCo Precast LLC, and to realize anticipated benefits; costs of and impacts associated with shareholder activism; the timeliness and availability of materials from our major suppliers, as well as the impact on our access to supplies of customer preferences as to the origin of such supplies, such as customers’ concerns about conflict minerals; labor disputes; cybersecurity risks such as data security breaches, malware, ransomware, “hacking,” and identity theft, which could disrupt our business and may result in misuse or misappropriation of confidential or proprietary information, and could result in the disruption or damage to our systems, increased costs and losses, or an adverse effect to our reputation, business or financial condition; the continuing effectiveness of our ongoing implementation of an enterprise resource planning system; changes in current accounting estimates and their ultimate outcomes; the adequacy of internal and external sources of funds to meet financing needs, including our ability to negotiate any additional necessary amendments to our credit agreement or the terms of any new credit agreement, the Company’s ability to manage its working capital requirements and indebtedness; domestic and international taxes, including estimates that may impact taxes; domestic and foreign government regulations, including tariffs; our ability to maintain effective internal controls over financial reporting (“ICFR”) and disclosure controls and procedures, as well as our ability to reestablish effective disclosure controls and procedures; any change in policy or other change due to the results of the UK’s 2024 parliamentary election and the U.S. 2024 Presidential election that could affect UK or U.S. business conditions; other geopolitical conditions, including the ongoing conflicts between Russia and Ukraine, conflicts in the Middle East, and increasing tensions between China and Taiwan; a lack of or delay in state or federal funding for new infrastructure projects; an increase in manufacturing or material costs, including volatility in steel prices; the loss of future revenues from current customers; any future global health crises, and the related social, regulatory, and economic impacts and the response thereto by the Company, our employees, our customers, and national, state, or local governments, including any governmental travel restrictions; and risks inherent in litigation and the outcome of litigation and product warranty claims. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. Significant risks and uncertainties that may affect the operations, performance, and results of the Company’s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024, or as updated and/or amended by our other current or periodic filings with the Securities and Exchange Commission.
The forward-looking statements in this report are made as of the date of this report and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by the federal securities laws.
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General Overview and Business Update
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 is organized and operates in two reporting segments: Rail, Technologies, and Services (“Rail”) and Infrastructure Solutions (“Infrastructure”).
Product Line Exit
On August 30, 2023, the Company announced the discontinuation of its Bridge Products grid deck product line (“Bridge Exit”) which was reported in the Steel Products business unit within Infrastructure. The Bedford, PA based operations supporting the product line expects to complete any remaining customer obligations in 2025. For the three months ended March 31, 2025 and 2024, the product line had $501 and $810 in sales, respectively.
Results of Operations
First Quarter 2025 Compared to First Quarter 2024

|  | Three Months Ended March 31, |  | Change |  |
|  | 2025 |  | 2024 |  | 2025 vs. 2024 |  |  |  |
Net sales |  | $ | 97,792 |  |  | $ | 124,320 |  |  | $ | (26,528) |  |  |  |  |
Gross profit |  | 20,151 |  |  | 26,176 |  |  | (6,025) |  |  |  |  |
Gross profit margin |  | 20.6 | % |  | 21.1 | % |  | (50) bps |  |  |  |
Expenses: |  |  |  |  |  |  |  |  |  |
Selling and administrative expenses |  | $ | 20,952 |  |  | $ | 22,870 |  |  | $ | (1,918) |  |  |  |  |
Selling and administrative expenses as a percent of sales |  | 21.4 | % |  | 18.4 | % |  | 300 bps |  |  |  |
(Gain) on sale of former joint venture facility |  | — |  |  | (3,477) |  |  | 3,477 |  |  |  |
Amortization expense |  | 1,122 |  |  | 1,217 |  |  | (95) |  |  |  |  |
Operating (loss) income |  | $ | (1,923) |  |  | $ | 5,566 |  |  | $ | (7,489) |  |  |  |  |
Operating (loss) income margin |  | (2.0) | % |  | 4.5 | % |  | (650) bps |  |  |  |
Interest expense - net |  | $ | 1,143 |  |  | $ | 1,125 |  |  | $ | 18 |  |  |  |  |
Other income - net |  | (318) |  |  | (253) |  |  | (65) |  |  |  |  |
(Loss) income before income taxes |  | $ | (2,748) |  |  | $ | 4,694 |  |  | $ | (7,442) |  |  |  |  |
Income tax (benefit) expense |  | (631) |  |  | 289 |  |  | (920) |  |  |  |  |
Net (loss) income |  | $ | (2,117) |  |  | $ | 4,405 |  |  | $ | (6,522) |  |  |  |  |
Net loss attributable to noncontrolling interest |  | (7) |  |  | (31) |  |  | 24 |  |  |  |  |
Net (loss) income attributable to L.B. Foster Company |  | $ | (2,110) |  |  | $ | 4,436 |  |  | $ | (6,546) |  |  |  |  |
Diluted (loss) earnings per common share |  | $ | (0.20) |  |  | $ | 0.40 |  |  | $ | (0.60) |  |  |  |  |

Results Summary
Net sales for the three months ended March 31, 2025 decreased $26,528, or 21.3%, from the prior year quarter. The decrease in sales was driven by $28,608, or 34.6%, in the Rail segment, partially offset by a $2,080, or 5.0% increase in the Infrastructure segment.
Gross profit for the three months ended March 31, 2025 decreased $6,025, or 23.0%, from the prior year quarter and gross profit margins decreased 50 basis points to 20.6%. The decline in gross profit and gross profit margin is due to lower sales volumes associated with the Rail segment, which has historically been the more profitable segment.
Selling and administrative expenses for the three months ended March 31, 2025 decreased by $1,918, or 8.4%, from the prior year quarter, due primarily to decreased personnel costs and professional services expenditures. Selling and administrative expenses as a percent of net sales increased to 21.4% from 18.4% in the prior year quarter due to lower sales volumes.
Net interest expense increased $18 for the three months ended March 31, 2025 compared to the prior year quarter. The Company's outstanding debt balance was $82,498 as of March 31, 2025, compared to $78,085 as of March 31, 2024.
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The Company’s effective income tax rate for the three months ended March 31, 2025 was 23.0%, compared to 6.2% in the prior year quarter. The Company's effective income tax rate for the three months ended March 31, 2025 differed from the statutory rate of 21% primarily due to state income taxes, nondeductible expenses and the discrete impact of excess tax benefits related to share-based compensation, offset by the impact of pre-tax losses in foreign jurisdictions with full valuation allowances for which no income tax benefit was recognized.
Net loss attributable to the Company for the three months ended March 31, 2025 was $2,110, or $0.20 per diluted share, compared to net income in the prior year quarter of $4,436, or $0.40 per diluted share. Net loss for the three months ended March 31, 2025 was primarily driven by decreased sales volumes and lower gross profit, offset in part by a decrease in selling and administrative expenses. Net income for the three months ended March 31, 2024 included the $3,477 gain on the sale of the former joint venture facility in Magnolia, Texas.
Results of Operations - Segment Analysis
Rail, Technologies, and Services

|  | Three Months Ended March 31, |  | Change |  | Percent Change
|  | 2025 |  | 2024 |  | 2025 vs. 2024 |  | 2025 vs. 2024
Net sales |  | $ | 54,015 |  |  | $ | 82,623 |  |  | $ | (28,608) |  |  | (34.6 | %)
Gross profit |  | $ | 12,029 |  |  | $ | 18,571 |  |  | $ | (6,542) |  |  | (35.2) |
Gross profit margin |  | 22.3 | % |  | 22.5 | % |  | (20) | bps |  | (0.9) |
Segment operating income |  | $ | 144 |  |  | $ | 6,778 |  |  | $ | (6,634) |  |  | (97.9) |
Segment operating income margin |  | 0.3 | % |  | 8.2 | % |  | (790) | bps |  | (96.8) |

Rail segment net sales for the three months ended March 31, 2025 decreased $28,608, or 34.6%, from the prior year quarter. The decrease was primarily due to the decline in the Rail Products business unit which declined by $23,719, or 44.7%, due to the timing of large orders in the Rail Distribution product line and an exceptionally strong prior year. Technology Services and Solutions sales decreased by $6,430 due to the Company scaling back initiatives in the United Kingdom and softness in the domestic markets served. The Global Friction Management business unit sales improved $1,541, or 11.0%, due to improved demand in domestic markets served.
The Rail segment's gross profit decreased by $6,542, or 35.2%, from the prior year quarter, and gross profit margins declined 20 basis points to 22.3%. The Rail Products and Technology Services and Solutions business units gross profit declined by $4,231 and $3,241, respectively, due to lower volumes and slightly unfavorable business mix. Partially offsetting these declines was an improvement in the Global Friction Management gross profit of $930, due to higher volumes.
Segment operating income decreased by $6,634 from the prior year quarter. The decrease was driven by a decline in gross profit associated with lower sales volumes.
New orders of $83,252 for the three months ended March 31, 2025 decreased 0.6% from the prior year quarter due to order level declines in the Rail Products and Technology Services and Solutions business units, declining by 5.2% and 30.6%, respectively. Partially offsetting these declines was a 28.3% increase in new orders in our Global Friction Management business unit. Segment backlog of $91,724 as of March 31, 2025 increased 6.6% over the prior year quarter. The increase is attributed to a 22.1% increase in the Rail Products business and a 71.4% increase in the Global Friction Management business, partially offset by a decline of 47.5% in our Technology Services and Solutions business as we scale back initiatives in the United Kingdom.
Infrastructure Solutions

|  | Three Months Ended March 31, |  | Change |  | Percent Change
|  | 2025 |  | 2024 |  | 2025 vs. 2024 |  | 2025 vs. 2024
Net sales |  | $ | 43,777 |  |  | $ | 41,697 |  |  | $ | 2,080 |  |  | 5.0 | %
Gross profit |  | $ | 8,122 |  |  | $ | 7,605 |  |  | $ | 517 |  |  | 6.8 |
Gross profit margin |  | 18.6 | % |  | 18.2 | % |  | 40 | bps |  | 1.7 |
Segment operating loss |  | $ | (444) |  |  | $ | (1,388) |  |  | $ | 944 |  |  | (68.0) |
Segment operating loss margin |  | (1.0) | % |  | (3.3) | % |  | 230 | bps |  | (69.1) |

The Infrastructure segment net sales for the three months ended March 31, 2025 increased by $2,080, or 5.0%, over the prior year quarter. The increase in net sales was attributable to the Precast Concrete Products business unit which increased $7,113, or 33.7%,
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which was partially offset by a $5,033, or 24.4%, decline in the Steel Products business unit due to timing of orders in the Protective Coatings businesses.
The Infrastructure segment's gross profit for the three months ended March 31, 2025 increased by $517, or 6.8%, due primarily to strength in the Precast Concrete Products business. Gross profit margins of 18.6% increased 40 basis points over the prior year quarter due to improved volumes in Precast Concrete and favorable business mix in the Steel Products business unit.
Segment operating loss for the three months ended March 31, 2025 was favorable by $944 compared to the prior year quarter due to improvements in gross profit and a decrease in selling and administrative expenses.
For the three months ended March 31, 2025, the Infrastructure segment had new orders of $65,812, an increase of 35.3%, over the prior year quarter. The increase is due to our Precast Concrete Products business unit which increased by 20.0% over the prior year quarter, and our Steel Products business unit which increased by 71.8% over the prior year quarter due to new order strength in our Protective Coatings business. Backlog as of March 31, 2025, was $145,491, a 6.8% increase over the prior year quarter, driven by both business units.
Corporate

|  | Three Months Ended March 31, | Change |  | Percent Change
|  | 2025 |  | 2024 |  | 2025 vs. 2024 |  | 2025 vs. 2024
(Gain) on sale of former joint venture facility |  | $ | — |  |  | $ | (3,477) |  |  | $ | 3,477 |  |  | (100.0) | %
Public company costs |  | 1,154 |  |  | 1,219 |  |  | (65) |  |  | (5.3) |
Corporate executive management costs |  | 220 |  |  | 1,407 |  |  | (1,187) |  |  | (84.4) |
Corporate management stock-based compensation |  | 278 |  |  | 599 |  |  | (321) |  |  | (53.6) |
Other |  | (29) |  |  | 76 |  |  | (105) |  |  | (138.2) |
Unallocated corporate expense (income) - net |  | $ | 1,623 |  |  | $ | (176) |  |  | $ | 1,799 |  |  | **

** Results are not considered meaningful
Unallocated corporate expense - net for the three months ended March 31, 2025 was $1,623 compared to unallocated corporate income - net for the three months ended March 31, 2024 which was $176. The unallocated corporate income - net for the three months ended March 31, 2024 included the $3,477 gain on the sale of the former joint venture facility in Magnolia, Texas. Corporate executive management costs decreased from the prior year quarter due to a decrease in professional service expenditures.
Liquidity and Capital Resources
The Company’s principal sources of liquidity are its existing cash and cash equivalents, cash generated by operations, and the available capacity under the revolving credit facility, which provides for a total commitment of up to $130,000, of which $47,178 was available for borrowing as of March 31, 2025, subject to covenant restrictions. The Company’s primary needs for liquidity relate to working capital requirements for operations, capital expenditures, debt service obligations, tax obligations, outstanding purchase obligations, acquisitions, restructuring payments, and to support the share repurchase program. The Company’s total debt, including finance leases, was $82,498 and $46,940 as of March 31, 2025 and December 31, 2024, respectively, and was primarily comprised of borrowings under its revolving credit facility.
The following table reflects available funding capacity as of March 31, 2025:

|  | March 31, 2025
Cash and cash equivalents |  |  |  | $ | 2,612 |
Credit agreement: |  |  |  |
Total availability under the credit agreement |  | 130,000 |  |  |
Outstanding borrowings on revolving credit facility |  | (82,067) |  |  |
Letters of credit outstanding |  | (755) |  |  |
Net availability under the revolving credit facility |  |  |  | 47,178 |
Total available funding capacity |  |  |  | $ | 49,790 |

As of March 31, 2025, we were in compliance with all covenants of the Credit Agreement and have $49,790 available funding capacity.
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The Company’s operating cash flows are impacted from period to period by fluctuations in working capital needs, as well as its overall profitability. While the Company places an emphasis on working capital management in its operations, factors such as its business mix, commercial terms, and market conditions as well as seasonality may impact its working capital. The Company regularly assesses its receivables and contract assets for collectability and realization, and provides allowances for credit losses where appropriate. The Company believes that its reserves for credit losses are appropriate as of March 31, 2025, but adverse changes in the economic environment and adverse financial conditions of its customers may impact certain of its customers’ ability to access capital and compensate the Company for its products and services, as well as impact demand for its products and services.
The changes in cash and cash equivalents for the three months ended March 31, 2025 and 2024 were as follows:

|  | Three Months Ended March 31,
|  | 2025 |  | 2024
Net cash used in operating activities |  | $ | (26,136) |  |  | $ | (21,444) |
Net cash (used in) provided by investing activities |  | (2,575) |  |  | 789 |
Net cash provided by financing activities |  | 28,820 |  |  | 21,298 |
Effect of exchange rate changes on cash and cash equivalents |  | 49 |  |  | (55) |
Net increase in cash and cash equivalents |  | $ | 158 |  |  | $ | 588 |

Cash Flow from Operating Activities
During the three months ended March 31, 2025, net cash used in operating activities was $26,136, compared to cash used in operating activities of $21,444 during the prior year quarter. For the three months ended March 31, 2025, net income and adjustments to reconcile net income from operating activities provided $1,324, compared to $5,414 in the prior year quarter. Working capital and other assets and liabilities were a use of $27,460 in the current period, compared to a use of $26,858 in the prior year quarter. The change in operating cash flow for the three months ended March 31, 2025 versus the three months ended March 31, 2024 was largely driven by accounts payable, which used $12,649 during the current quarter compared to the $3,200 provided in the prior year quarter. Changes in payment timing can impact accounts payable in any given quarter; however, overall working capital needs are typically higher in the first quarter of the year due to seasonality.
Cash Flow from Investing Activities
Capital expenditures for the three months ended March 31, 2025 and 2024 were $2,575 and $2,712, respectively. Capital expenditures in both periods primarily relate to general plant and operational improvements throughout the Company, as well as organic growth initiatives including investments that are being made in our new facility in Lake County, Florida. During the three months ended March 31, 2024, the Company's divestiture of the facility and land of its former joint venture in Magnolia, Texas (the “Magnolia Sale”) generated a cash inflow of $3,501.
Cash Flow from Financing Activities
During the three months ended March 31, 2025 the Company had an increase in outstanding debt of $34,891 compared to $22,911 increase during the three months ended March 31, 2024. The higher increase in debt for the three months ended March 31, 2025 versus three months ended March 31, 2024 was driven by an increase in cash used in operating activities, primarily due to higher seasonal working capital needs as well as organic growth initiatives and the absence of the cash inflow from the Magnolia Sale.
The Board of Directors previously authorized the repurchase of up to $15,000 of the Company’s common shares until February 2025, pursuant to the terms of the previously disclosed stock repurchase program adopted March 3, 2023, as amended August 5, 2024. During the three months ended March 31, 2025, the Company repurchased 113,169 shares for $3,123 under this program through February 2025. The Company repurchased a total of 547,679 shares of its stock for $12,241 since the program's inception through February 2025.
On March 3, 2025, the Company's Board of Directors approved a new authorization to repurchase up to $40,000 of the Company's common stock in open market transactions and/or 10b5-1 trading plans through February 29, 2028. As of March 31, 2025, the Company repurchased 55,742 shares for $1,154 under this program.
Under both programs, the Company repurchased a total of 168,911 shares for $4,277 during the three months ended March 31, 2025. From February 2023 through March 31, 2025, the Company repurchased a total of 603,421 shares of its stock for $13,395 under both programs.
Repurchases of shares of the Company’s common stock may be made from time to time in the open market or in such other manner as determined by the Company. The timing of the repurchases and the actual amount repurchased will depend on a variety of factors, including the market price of the Company’s shares, general market and economic conditions, and other factors. The stock repurchase
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program does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time.
Financial Condition
As of March 31, 2025, the Company had $2,612 in cash and cash equivalents and $47,178 of availability under its revolving credit facility, subject to covenant restrictions. As of March 31, 2025, approximately $1,361 of the Company’s cash and cash equivalents were held in non-domestic bank accounts.
The Company’s principal uses of cash in recent years have been to fund its operations, including capital expenditures, repurchase of shares, acquisitions, funding the now complete UPRR Settlement Agreement, and service indebtedness. The Company views its short and long-term liquidity as being dependent on its results of operations, changes in working capital needs, and its borrowing capacity.
On August 13, 2021, the Company, its domestic subsidiaries, and certain of its Canadian and United Kingdom subsidiaries (collectively, the “Borrowers”), entered into the Fourth Amended and Restated Credit Agreement (the “Credit Agreement”) with PNC Bank, N.A., Citizens Bank, N.A., Wells Fargo Bank, National Association, Bank of America, N.A., and BMO Harris Bank, National Association. The Credit Agreement, as amended, modifies the prior amended revolving credit facility, on terms more favorable to the Company and extends the maturity from April 30, 2024 to August 13, 2026. The Credit Agreement provides for a five-year, revolving credit facility that permits aggregate borrowings of the Borrowers up to $130,000 with a sublimit of the equivalent of $25,000 U.S. dollars that is available to the Canadian and United Kingdom borrowers in the aggregate. The Credit Agreement’s incremental loan feature permits the Company to increase the available commitments under the facility by up to an additional $50,000 subject to the Company’s receipt of increased commitments from existing or new lenders and the satisfaction of certain conditions. On August 12, 2022, the Company entered into a second amendment to its Credit Agreement (the “Second Amendment”) which added an additional tier to the pricing grid and provided for the conversion from LIBOR-based to SOFR-based borrowings. For a discussion of the terms and availability of the credit facilities, please refer to Note 7 of the Notes to Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q.
To reduce the impact of interest rate changes on outstanding variable-rate debt, the Company amended and entered into SOFR-based interest rate swaps with notional values totaling $20,000 and $20,000, effective August 12, 2022 and August 31, 2022, respectively, at which point the agreements effectively converted a portion of the debt from variable to fixed-rate borrowings during the term of the swap contract. The August 12, 2022 interest rate swap expired on March 1, 2025. The August 31, 2022 interest rate swap expires on August 13, 2026.
Backlog
Although backlog is not necessarily indicative of future operating results, the following table provides the backlog by segment:

|  | Backlog
|  | March 31, 2025 |  | December 31, 2024 |  | March 31, 2024
Rail, Technologies, and Services |  | $ | 91,724 |  |  | $ | 62,449 |  |  | $ | 86,038 |
Infrastructure Solutions |  | 145,491 |  |  | 123,460 |  |  | 136,223 |
Total backlog |  | $ | 237,215 |  |  | $ | 185,909 |  |  | $ | 222,261 |

While a considerable portion of the Company’s business is backlog driven, certain businesses, including the Global Friction Management business unit, are not driven by backlog and therefore have insignificant levels of backlog throughout the year. Backlog increased by $14,954 over the prior year quarter due to increases throughout our portfolio.
Critical Accounting Estimates
The Condensed Consolidated Financial Statements have been prepared in conformity with US GAAP. The preparation of the Condensed Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amount of assets, liabilities, revenues, and expenses, and the related disclosure of contingent assets and liabilities. As a result, actual results could differ from these estimates. The Company has concluded that there have been no significant changes to its critical accounting policies or estimates as described in its Annual Report on Form 10-K for the year ended December 31, 2024.
Non-GAAP Financial Measures
In accordance with SEC rules, the Company provides descriptions of the non-GAAP financial measures included in this filing and reconciliations to the most closely related GAAP financial measures. The Company believes that these measures provide useful perspective on underlying business trends and results and a supplemental measure of year-over-year results. The non-GAAP financial measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes and may, therefore, also be useful to investors as they are a view of our business results through the eyes of
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management. These non-GAAP financial measures are not intended to be considered by the user in place of the related GAAP financial measure, but rather as supplemental information to our business results. These non-GAAP financial measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted.
The Company defines new orders as a contractual agreement between the Company and a third-party in which the Company will, or has the ability to, satisfy the performance obligations of the promised products or services under the terms of the agreement. The Company defines backlog as contractual commitments to customers for which the Company’s performance obligations have not been met, including with respect to new orders and contracts for which the Company has not begun any performance. Management utilizes new orders and backlog to evaluate the health of the industries in which the Company operates, the Company’s current and future results of operations and financial prospects, and strategies for business development. The Company believes that new orders and backlog are useful to investors as supplemental metrics by which to measure the Company’s current performance and prospective results of operations and financial performance.
Non-GAAP financial measures are not a substitute for GAAP financial results and should only be considered in conjunction with the Company’s financial information that is presented in accordance with GAAP.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
This item is not applicable to a smaller reporting company.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
L.B. Foster Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of March 31, 2025. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of such date to provide reasonable assurance that the information required to be disclosed by the Company in reports filed under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to management, including the Chief Executive Officer, Chief Financial Officer, or person performing such functions, as appropriate to allow timely decisions regarding disclosure.
Remediation of Material Weakness
As previously disclosed in our Quarterly Reports on Form 10-Q/A for the quarters ended March 31, 2024 and June 30, 2024, in our Annual Report on Form 10-K/A for the year ended December 31, 2023, and in our Annual Report on Form 10-K for the year ended December 31, 2024, the Company concluded its controls related to the accounting for, and disclosure of, non-recurring complex transactions were not effective as of the conclusion of such periods. This material weakness resulted in a material error in the Company’s previously issued Unaudited Condensed Consolidated Financial Statements, which was subsequently corrected in the amendments for the year ending December 31, 2023 and quarterly periods ending March 31, 2024 and June 30, 2024.
Management has designed and implemented a new process and control to remediate the material weakness related to the accounting for, and disclosure of, non-recurring complex transactions. As a part of the remediation process, the Company established a policy to enhance the review and documentation of these non-recurring complex transactions and where appropriate engage a qualified third-party accounting consultant to review and analyze the financial impact for these transactions when they arise, to ensure proper accounting for and disclosure of these transactions.
The above mentioned control has been in operation for a sufficient period of time for management to be able to conclude that this control is operating effectively. Accordingly, as of March 31, 2025, management believes the material weakness has been remediated.
Changes in Internal Control Over Financial Reporting
Other than the remediation of the material weakness described above, there were no changes to our “internal control over financial reporting” (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended March 31, 2025.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
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PART II. OTHER INFORMATION
(Dollars in thousands, except share data)
Item 1. Legal Proceedings
See Note 13 of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
Item 1A. Risk Factors
This item is not applicable to a smaller reporting company.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The Board of Directors previously authorized the repurchase of up to $15,000 of the Company’s common shares until February 2025, pursuant to the terms of the previously disclosed stock repurchase program adopted March 3, 2023, as amended August 5, 2024. On March 3, 2025, the Company's Board of Directors authorized the repurchase of up to $40,000 of the Company's common stock in open market transactions and/or 10b5-1 trading plans through February 29, 2028. Repurchases of shares of the Company’s common stock may be made from time to time in the open market or in such other manner as determined by the Company. The timing of the repurchases and the actual amount repurchased will depend on a variety of factors, including the market price of the Company’s shares, general market and economic conditions, and other factors. The stock repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time.
The Company’s purchases of equity securities for the three months ended March 31, 2025 were as follows:

|  | Total number of shares purchased (1) |  | Average price paid per share |  | Total number of shares purchased as part of publicly announced plans or programs |  | Approximate dollar value of shares that may yet be purchased under the plans or programs
January 1, 2025 - January 31, 2025 |  | 59,480 |  | $ | 27.36 |  |  | 57,853 |  | $ | 4,299 |
February 1, 2025 - February 28, 2025 |  | 113,568 |  |  | 27.85 |  |  | 52,116 |  |  | — |
March 1, 2025 - March 31, 2025 |  | 61,214 |  | 21.08 |  |  | 58,942 |  | 38,846 |
Total |  | 234,262 |  | $ | 25.32 |  |  | 168,911 |  | $ | 38,846 |

1.During the current period, 65,351 shares were withheld by the Company to pay taxes upon vesting of stock.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
This item is not applicable to the Company.
Item 5. Other Information
Trading Arrangements
None of the Company’s directors or “officers,” as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, during the Company’s fiscal quarter ended March 31, 2025.
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Item 6. Exhibits
See Exhibit Index below.
Exhibit Index

Exhibit Number |  | Description
*31.1 |  | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2 |  | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
*32.0 |  | Certification of Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS |  | XBRL Instance Document-the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
*101.SCH |  | XBRL Taxonomy Extension Schema Document.
*101.CAL |  | XBRL Taxonomy Extension Calculation Linkbase Document.
*101.DEF |  | XBRL Taxonomy Extension Definition Linkbase Document.
*101.LAB |  | XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE |  | XBRL Taxonomy Extension Presentation Linkbase Document.
*104 |  | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

* | Exhibits marked with an asterisk are filed herewith.

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|  |  | L.B. FOSTER COMPANY
|  |  | (Registrant)
Date: | May 6, 2025 |  | By: /s/ William M. Thalman
|  |  | William M. Thalman
|  |  | Executive Vice President
|  |  | and Chief Financial Officer
|  |  | (Duly Authorized Officer of Registrant)

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