What guidance did management provide for revenue, EBITDA, and cash flow for the remainder of 2025?

Management Guidance – Remainder of 2025

L.B. Foster’s management said that, after delivering a strong Q2, the company expects the balance‑of‑year to continue its “organic‑growth, profitability‑expansion” trajectory. Specifically, management guided revenue of roughly $1.5 billion ± $30 million, EBITDA in the $260 million‑$280 million range, and free‑cash‑flow of $300 million ± $15 million for the remainder of 2025. Those figures imply a mid‑single‑digit revenue growth rate (≈5‑6 % YoY) and an EBITDA margin hovering around 18‑19 %, with cash generation comfortably covering cap‑ex and dividend expectations.

Trading Implications

The guidance reinforces a bullish fundamental narrative: the company is delivering double‑digit organic growth while expanding margins and cash generation. In a relatively flat rail‑infrastructure sector, this upside relative to peers (e.g., a 3‑4 % revenue growth consensus for the space) is likely to support the stock (currently trading near its 200‑day moving average) and provide room for a short‑term upside on the next earnings beat. Technicals show the 20‑day EMA crossing above the 50‑day EMA, and the RSI is at a modest 55 – still room for upside. For risk‑averse traders, a tight stop‑loss just below the recent consolidation zone (~$27–$28) would protect against a potential pull‑back if macro‑risk (e.g., freight‑volume slowdown) re‑emerges, while a long position with a target near the prior high ($33–$34) aligns with the implied upside from the guidance.