PITTSBURGH – L.B. Foster Company (NASDAQ: FSTR), a provider of products and services for the transportation and energy infrastructure markets with a market capitalization of $311 million, announced today a series of executive transitions slated for the end of next year. According to InvestingPro data, the company trades at an attractive P/E ratio of 7.25 and has generated revenue of $537 million in the last twelve months.
Mr. Brian H. Kelly, currently serving as Executive Vice President – Human Resources and Administration, has informed the company of his intention to retire effective December 31, 2025. Starting January 1, 2025, Mr. Kelly will transition to the role of Executive Vice President and Senior Advisor to the Chief Executive Officer. In this capacity, he will assist in the handover of his duties and work on special projects as requested by the CEO.
In anticipation of Mr. Kelly’s retirement, the Board of Directors has approved the promotion of two senior executives. Ms. Jamie F. O’Neill will become Senior Vice President – Human Resources, and Ms. Sara Fay Rolli will be appointed Senior Vice President – Operational Administration. Both will report directly to the CEO and will begin their new roles on January 1, 2025. They are expected to absorb various responsibilities of Mr. Kelly in addition to their current duties.
In other recent news, L.B. Foster Company reported its third-quarter earnings for 2024, posting a gross margin of 23.8%, the highest in over a decade. Despite a 5.4% decline in sales totaling $137.5 million, the company managed to report a significant net income of $35.9 million, boosted by a favorable tax valuation adjustment. The company also saw an increase in adjusted EBITDA by 16.4% to $12.3 million, while cash generation remained strong, allowing for a net debt reduction to $65.4 million.
In terms of recent developments, the company's Rail segment experienced an 8.5% drop in revenue, while Infrastructure Solutions saw a slight revenue decline but a significant margin increase. However, L.B. Foster remains optimistic about growth prospects in Rail Technologies and Precast Concrete. The company has also lowered sales expectations slightly but maintained the midpoint for adjusted EBITDA projections.
According to analysts, the company expects ongoing improvements in profitability and cash generation into 2025, with targets for total sales set between $530 million and $540 million for the current year, and a goal of $580 million to $620 million for 2025.
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