L.B. Foster Co (FSTR) Reports 11.8% Increase in Q3 2023 Net Sales and 22.2% Rise in Gross Profit
Third quarter net sales of $145.3 million, up 11.8% year over year.
Gross profit of $28.2 million, up 22.2% year over year.
Net income of $0.5 million, favorable $2.6 million year over year.
Net debt reduced by $16.9 million during the quarter to $68.7 million.
On November 7, 2023, L.B. Foster Co (NASDAQ:FSTR) released its third quarter 2023 earnings report, showcasing a significant increase in net sales and gross profit. The company's net sales reached $145.3 million, marking an 11.8% increase year over year. Gross profit also saw a substantial rise, reaching $28.2 million, up 22.2% year over year. The company's net income was favorable by $2.6 million year over year, standing at $0.5 million.
Financial Performance and Highlights
L.B. Foster Co (NASDAQ:FSTR) reported third quarter adjusted EBITDA of $10.6 million, up 14.2% year over year. The company's strong cash flow generation reduced net debt by $16.9 million during the quarter to $68.7 million at quarter end. The Gross Leverage Ratio improved to 2.0x at quarter end compared to 2.5x last quarter and 3.3x at last year's comparable quarter end.
John Kasel, President and Chief Executive Officer, commented, Our third quarter results adjusted for non-routine items reflect the continuing favorable impact of our strategic transformation. Net adjusted sales growth for the quarter remained robust at 10.0% year over year with strong organic growth realized across all three segments, led by our Precast Concrete business at 24.2%."
Financial Guidance
The company updated its full year financial guidance to narrow ranges and maintain midpoints for both sales and adjusted EBITDA. The updated net sales guidance ranges from $530,000 to $540,000, and the adjusted EBITDA guidance ranges from $29,000 to $31,000.
Segment Performance
The Rail, Technologies, and Services Segment reported net sales of $86.9 million, up 12.3% over the prior year quarter. The Precast Concrete Products Segment reported net sales of $38.6 million, up 33.9% over the third quarter of 2022. However, the Steel Products and Measurement Segment saw a decrease in net sales by 16.7% compared to the prior year quarter.
L.B. Foster Co (NASDAQ:FSTR) remains optimistic about the growth prospects for its key domestic end markets but is somewhat more cautious on the foreseeable outlook in the U.K. given current conditions.
Explore the complete 8-K earnings release (here) from L.B. Foster Co for further details.
This article first appeared on GuruFocus.
