FSTR - Earnings call transcript Q4 2024

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Operator

Thank you for standing by. And welcome to the L.B. Foster's Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now, I'd like to introduce your host for today's program, Lisa Durante, Investor Relations Manager. Please go ahead.

Lisa Durante

operator. you, Thank and everyone, L.B. Good welcome morning, to fourth of earnings XXXX call. Foster's quarter is My company's Investor Durante, Relations the name Lisa Manager.

on our fourth results, Our perspectives year up market and and financial President this his Bill lbfoster.com. then at questions. Today's presenting perspective Officer, will our results. our were morning. We'll XXXX discuss Chief quarter quarter our and this CEO, comments. earnings with open will in the posted outlook then slide company's review John our website on performance. closing Thalman, Kasel; start Investor the on will Bill disclosures morning the John business developments, the Relations his outlook and with full John and company for market and call, financial and page Financial release on accessed fourth company's presentation developments can operating We'll providing along be quarter fourth session be

the morning Our will this presentation. comments slides follow in earnings the

making of are only as except and business this securities statements these as release to opinions our we revise our no represent reflect information, undertake in today. the new to results These or statements date and of we of view are the presentation, of of markets Some any obligation current revisions forward-looking laws. our looking, and statements publicly forward light by required

release assumptions as our you release within statements, consider our forward-looking encourage and earnings and to and read please disclosures relating metrics, risks, metrics. also presentation. We'll you tables and earnings disclosures uncertainties discuss in carefully presentation, provided these the For our more non-GAAP today's detailed to reconciliation and see financial

John. the turn me let that, call over with to So

John Kasel

earnings our begin for everyone. for today call. Slide the remarks highlights Lisa, you on quarter. Thank fourth hello joining the covering X, Thanks, I'll of us my and quarter

the our we're $X.X of are cash generation. In let improved strategic $XX improving translating we normal improvement with years all, totaling on or points generated was with by at generation, economic half gross working pleased quarter, to indication, say up delivered portfolio. profitability was These margins of a were the million last the XX.X% with cash XX.X%, net that noting from debt line half our in million, SG&A was XXX of QX in of profitability quarter reduce sales, $X.X year deployed our results a we strong the are the primarily in of basis profit generation the EBITDA lower to end. me million $XX.X execution over cycle, delivering second last million X Adjusted and highlighting lower finished capital last of to with XXXX. $XX.X XXXX. clear XXXX, with up expenses X% year. In versus the solid playbook the quarter how quarter strong fourth million and over Cash second also cash of very million First operating $XX.X

margins our despite for the while X.X% $X.X and the year. X.Xx to are line XX.X%, year As X.Xx. activity, sales. Improved million quarter, to year. Highlights of a margins increased result the $XX.X In X. came from the profitability, from $XXX.X divestiture gross points lower impressive Reported ratio debt on last an in an EBITDA a X.Xx strategy, our were start of basis full at improvement and up were organic sales improving million Slide adjusted XXX This modestly. sales results as million levels leverage of of expanded is with lower down gross result the from full gross

of buyback progress outstanding with Solid operating XXXX. X.X% in quarter on in improve program cash repurchased leverage our to make flow stock shares us debt, the reduce allowed and

very year going our pleased Pacific strategy generation with progress by all, I'm team's We XXXX. and executing our $X improving XXXX, funding All in Union per the in accomplishments made cash settlement million we also in the finalized have forward.

well, now about quarter on positioned our year, of capital priorities, update details new some million has strategic the to and we're the playbook a for our and optimistic at beyond. Bill come program. will includes $XX cover I'll our Bill. well buyback an outlook end the for and as allocation execution XXXX. Over growth financial as prospects which disciplined you, with the Our us remarks in on for closing 'XX back and stock markets continuing

William Thalman

quarter my on begin X. fourth Slide John. comments covering Thanks, Morning highlights I'll everyone. the

to additional X% driven along of quarter As provide sales X.X%, always, year's excluded last by impact million the to QX segment due organic EBITDA versus cost last organic XX.X% to sales on on reflects operating Infrastructure restructuring Adjusted the charge portfolio in to $X of and EBITDA points segment. SG&A $X.X the appendix quarter. U.S. from our U.S. the with million expenses. Operating the results, year were from last pension over resulting million million for the deployment strong lower year. million the the in million primarily $XX.X $X.X last by for improved million, cash terminate year's sales adjusted up some non-GAAP $X.X our fourth defined U.K. and to I'll basis both expense million SG&A organic This bad result in margins presentation. Slide adjusted to driven plan. X versus fourth $X.X up plans, Restructuring schedules performance declined later Rail XX.X%. defined in quarter, $X.X and $X.X more information the a benefit lower lower in on settlement due pension sales, were Despite a was of due XXX million million, the up million, the segment. in of benefit costs charge personnel QX costs the was color year, a XX.X%, quarter related funding expanded $XXX.X cash at from the included last cover lower were year. and sales of in profitability $X.X financial an down the debt the reconciliations. Net gross costs Rail $XX.X the including taken to and decline due EBITDA.

sales our realize The period. the to portfolio legacy increase primarily is over Bridge time profitability Grid business improved Deck gross continues from organic as wind the our a lower here due well improvements also the in year-over-year. Slide to year-over-year continue businesses. down, businesses in as our a EBITDA, last lower are margins quarter, improved the contributed to highlights We contributing X the over impact operating to profit sales XX which on strong longer profitability quarterly years. and Despite Reflected in legacy favorable work, costs.

year-over-year, by an sales mix. improved margins We improved realize driven continue to

recent Our Rail is and and profit on within margins driving growth lower Precast organic greater slightly economic focus Concrete sales higher in Technologies translating on quarters. generation into

trend this line continue, expect focus with We strategic sales with our a playbook, on driving to in in XXXX. growth organic

I'll of up quarter. couple segment lines. the organic results cover driven product on next monitoring with slides, increase entire XX.X% and revenues year. in the for the The over volumes quarter by of key Slide total track Rail million friction management, Starting products, and Fourth $XX.X last were was XX. drivers On totaling rail higher

orders volumes, Rail the with improved in rail recovery ongoing sales, addition XXX year. Rail points our of decreased backlog segment margins growth XX% down part in decline in business. orders U.K. X.X%, coupled in last basis by was of by Fourth our platforms, the U.K. driven the quarter improvements Products. Rail business due higher Rail was strategy. large realized and the In entirely our strong up our higher to were XX.X% to The well were as margin by driven in margins The softer versus year-over-year, as Products

continue investment We in the in Friction to increase offsetting year-over-year. XX.X% was U.K., despite Partially decline some a Global Management. the for backlog limit improvement

million, for CXT over to with Gross on X.X% year coating primarily were $XX.X XX XX.X%, million million, revenue $X.X to solid briefly market year, improved Concrete quarter. to Backlog XX.X%, unfavorable Concrete million, due last volumes million bridge $X.X with offset realized down basis soft organic divestitures. $X.X for last lower a margins Coatings in basis within and within profit of year, million improving year. Infrastructure product flat outlook were essentially the was were versus sales notably million decreased XXX for be to Segment the our XX.X% Turning organic most covered line John's Slide reported Organic strong line. Protective sales or XX. steel growth Slide products last will sales by with due Precast due profit section entirely points. versus of product points the due QX highlighting for improvement the gross to the XX.X% were being Concrete in product later the lower XX X.X%, cover year, orders up increased for points X.X% business on $XX.X down lines. highlights was pipeline backlog an Infrastructure. within Solutions product margins while last decline $X.X product XX. year. I'll the sales improved steel versus in to this for on. Precast totaling a the line. the revenues basis products primarily the decline million $XXX.X full increase market products business, last conditions Prospects exceptionally but margins sales $X outlook. year line, down Gross steel were Rail up our Precast mix buildings and Infrastructure

mix the partially quarter. from to includes business in prior of higher of and fourth was overall our expenses. I'll the decrease grid operating year, second expenses our property million levels the $XX.X adjusted is margins expenses, $X.X gross and decreased bridge completed to declined million business business exit, the The our million debt XXXX driven employment $XX.X legal the by improved profit capital the offset to XXXX gross the now bad other We in and profitability to costs. lower leverage on with $X.X Net by while reminder, coupled service favorable XX. and The compared capital the and quarter $X.X due sale given and in business EBITDA million deck from line this with gain SG&A both by $XX.X our business improvement due balance portfolio by of a last during changes, a debt flow margin $XX.X year. managed restructuring, pricing debt line the adversely in cash strategy, As leverage Slide is million, lower professional a liquidity driven is model. was $X.X our and cover million consistently light initiatives. SG&A strength million, XXXX believe on We've a profit impacted up with needs. quarter. million

in noting $XX million $X with Its million behind paid As remarks, in Pacific funded opening December. worth other $XX the John XXXX forward. It's significant is stock mentioned settlement free price. X us. obligation the Union non-recurring boost was years at flow, provides that was items, going XXXX to over his X% our now in UP yield The a fully resolution paid the for an representing and cash payments financial flexibility adjusted today's approximately million,

cash other authorization along cover to strong pace on also program of the XX. stock in new Our repurchase allocation repurchase stock generation step up us the allowed our Slide XXXX. I'll with capital priorities

repurchased plan Our program's a the XXX,XXX the our expired at inception, X-year of previous continuing with We rate X.X% outstanding, outstanding. our X, end the million in XXX,XXX CapEx we repurchased invest expired proceeds improving sales, February shares up important or last XXXX, shares, XXXX, note generation the to Board also platforms. new of of and authorized we focus total the repurchases authorization are at approximately Since March week. $X.X bringing will of approximately valuation. on of for growth XXXX. I allocation should on X.X% under repurchases in current share growth prospects priority expire repurchase the XXX,XXX initiatives a December for utilizing million a approximately total $XX approximately million of with facilities organic On close through to us, common program or that XXXX. Share that shares of of $XX stock of especially at authorization cash attractive X% within shares, capital

a Xx to add X.Xx, point our leverage with growth acquisitions leverage of finally, We remain longer to prudent finished platforms. to was with levels over our overall evaluate goal net and will gross we debt which term. We maintaining years. at leverage the also a XXXX breadth continue Xx in recent in and tuck with low between And approximately

be are greatest of the period. our half needs the capital elevated levels working first and leverage Our will year, debt this in during and

down XX.X%. Infrastructure due precast including or and XX XX.X% approximately X.X%. manage million which despite segment in with However, backlog due prices. to well U.K. levels, backlogs is orders, decline products X.XX:X. in consistently summary, by is highlighted through other in million Concrete balance unit, part in for improved both and we've $XX with focus at demand declines. as to infrastructure with orders in our morning. line will can product and XX, our decline will million in coupled we his to was to Precast financial Coatings. record flexibility covering backlog consolidated recover, product $X.X levels as down Backlog backlog lower steel hand driving cover back down in remain the with of the strong book-to-bill across the due rates The in from the to book-to-bill ratio steel Management back have revenues due Protective backlog our the $X.X the fourth the million the for increase allocation or intake products. XX, up and an seen was lower we to year, entire playbook. The demonstrated John part $X.X $XX experiencing ratio million that priorities. My X on in our from to were book-to-bill improved growth time backlog maintain lower are quarter. from levels with the trailing Steel lastly, at the Slides quarter. And orders Management or high the we these the ratio generation Rail seasonal expected XX% order levels Rail X.X% normal the concrete with decline that refer orders market The X.X% X.X%, steel this $X.X is and be ratio the the while product our related businesses Protective QX was million closing line business. closing Rail up steel $X.X It strategic below initiatives cycles at market, comments begun segments business Precast demand drove should end X.XX:X, to capital last backlog remarks. Thanks funding outlook Slide up in or The QX. Higher decline is in also I'll orders exit scale up strategy. reflected Products Friction were recovery business, slightly U.K. John. the X.XX:X, platforms, half Concrete backlog on across the Friction in XX-month with now the last in million. a continue growth, business, in our is profitable of the business, optimistic as in Over our lower activities. In our Coatings line it of products for

John Kasel

expanding continued actions the that back generating profit growth to our XX% overall unpack is the markets with, year, end strategic I'll down working on of more and remarks begin more. To Thanks, not XX. capital Management, covering by business areas, decline programs Slide backlog the is Precast term Bill. XX.X% our scale year-over-year our mentioned backlog to my parts Friction closing a over near backlog economic due as begin for core that we'd bit up key our that like Bill see. In me respectively. Concrete: playbook profitable let are X.X% half versus is outlook so last of we that and eliminate focus in or growth that consume the on

Monitoring to increasing improved Track backlog quoting efficiency translate year, versus activity trends translate improvement down in this seeing sales order These is should line. XXXX. last Total should While book that product continuing into we're into

is to year, weather had adverse segment, As the our first exceptionally conditions. which start in an at due particularly of normally softer we Rail year the strong last a reminder, quarter

the be With the lower year backlog volatile XXXX to we this and versus macro expect environment, the start year. XX% to softer last

growth believe core end long-term However, support should our cycles. demand we the and markets from to continue medium over

for to With focus steady safety, Rail the continue, Rail efficiency rail in operating elements reliability, expect in segment increasing and of on the our oriented Technologies we especially portfolio. demand

in we in previously current D.C., Infrastructure. investment the of activities Rail are approved, the the Washington government funding monitoring supporting With programs status

of the particularly possible, that to choppy and be ahead. may build the absorbing Our threat tariffs, to related markets taking flexibility supply conditions in steel, to we are are where chain align navigate steps also to

of For worth couple trends we a Infrastructure highlighting. see favorable business,

remains is ENVIROCAST commissioning in and Wall Central and facility of Precast growth Florida before, these Tennessee in be mentioned capacity continue fulfillment remain on As robust, believe Florida ramp track, Concrete Construction solution. we're up, we we backlog to and intact. The interest our seeing demand in continues largely to and grow System drivers to the our continue operations. markets

of this gas $X.X facility in within the Protective orders million begin initial year. million Also product coating orders production the U.S. first Noting in the hand. favorable for QX, We from by Infrastructure, in outlook in pipeline with increasing our renewed oil to to were is translating end interest last that expect demand lines. already production up quarter and Coating $X.X

taken for As investment The unchanged, the that you we're benefit believe years we thesis we move as XX, well into will portfolio, mentioned this throughout the while sales investment starts we last continue note optimistic efficiency I demand the to XXXX and years, be product as last continue positioned our year, and profit a generation. remains improved to than to X softer has come. On to favorable infrastructure-based bit depressed are expect summary, been of over recall, from manifest line development you'll reposition strategic plans Slide steps we earlier, economic to XXXX. In our we've XXXX.

multiple Concrete. The in translate to year coming super to strategic of platforms. we in result a and Rail the robust simplify to we've in years growth our been and the steady portfolio narrow infrastructure platforms investment expect growth our business Precast cycle choices, should able our Technologies As of investment

model light along financial And capital drive that, manner, are Slide and company which the summary, result maintain covering confident outlook. Union we strong to execution program. I'd is and XXXX of guidance our us, returns. In to as improved business authorized like anchored financial continues shareholder call a allocate found to that $XX and in is these Pacific compelling on we should while growth capital X-year in have strategy pillars by profitability with XXXX, flexibility, with finally, strategy million our driving payments expand of course of further repurchase settlement thesis and to cash behind conservative a X generation, continue stock a by sound, also investment new our disciplined, completion today's XX. our close we Our

As you goals in may XXXX. of established progress and we ago. aspirational recall, We X made here over through distance of see we within refresh guidance for December the strategy significant announced XXXX, and our our is striker for years XXXX established goals XXXX, you

risk, these is the organic leveraged XXXX, X.X% it driven were acquisitions. The we in more and goals our of risky sales than X significantly XXXX midpoints more exists when EBITDA growth, changes way, sales namely we our along mix we guidance with adjusted transactions without over years, completed as What and reasonable a goals Importantly, sales contemplated a the EBITDA growth, for capital-intensive can realized established represent portfolio the last by higher deliver the after established XX% robust SG&A. today, it completed. portfolio X

is our we tuck-in seen. expansion the platforms. an Of like for our accelerate investment which conditions and the drive is we me the let acquisitions, current much course, bit should and programs, continue remind continue portfolio allocation to needed best XXXX and organic in markets. In And But highlight driving growth and you XXXX to evaluate current priority infrastructure profitability important growth in is company growth the with opportunities the for M&A aligned these our focus, to us, will closing, capital ever that represented lastly, and year has while choppy, stabilize, safety environment our I'd will demand beyond. believe a that

and and to of the taking devoted communities. nurturing We our employees well-being of measures emphasize that care are by proactive safety our culture

and impact and positive drive responsibility themselves we the this change. understand will achieve employees priority. In by a together that and Our making safety more making positively of others environment, choices safely

to safety, I'm look very over interest last accomplishments So with journey your note years, Q&A the your to our and XXXX. with time, closing Company. I'll important statement the for you pleased that in turn continuing and the Thank L.B. and the operator team's session. it Foster back continuing forward for X on in

Operator

Julio [Operator Instructions] Company. question Our the from Romero Sidoti & first comes from

Julio Romero

the guidance My is growth EBITDA XXXX sales on for that and X.X% the midpoint sales first sales question -- of the XX% about EBITDA imply about ranges X midpoint. and

takes the end just you to could get ranges? could your low and puts speak of If high to you and the that

John Kasel

markets so strong where choppy, the in what's Well, way is of been rail technology very, through in obviously on our specifically got the our is obviously with the today, company a where last we side. But feel we've very Yes. that. on to going we kind couple little years, find innovation, really pivoting is

our is other wild So Julio, that applications it's that opportunity gives just the our announced to activities, the margins that. you uplift business our with which the condition soon that Rockfall monitoring come to hopefully we also be but with sales have, not have and products, applications, it and we -- the really

a the SG&A that's support. what most the office good really year that recall, last So you progresses. of managing all us as X% really about our we did cost, reduction work with year And and back feeling did the we as we're

and some of So going year. of we're leverage balance profitability for see the the nice to sales

revenue probably few profitability in we seeing best So We're ago over a the Julio, in there. were trying we're years land is, months margins. coming we're feel those going XX%. to is to just about between maintain continue struggling get going the to is nice we somewhere the to to XX% But what

a to lot -- bringing we innovation to the that brought it's we're and technology today. marketplace a hard So of of we've done lot work, related

Julio Romero

the load are maybe systems. adoption safety? mentioned Excellent. headlines, drive about does market increased wheel incidents just you you what your need to detection Can offerings that can that segment the kind of et for within Great Rail attention those talk the strike are context in to there. monitoring, of prioritize call some And a And impact then cetera. of the recent customers techier, some transportation the little of

John Kasel

Yes.

operating So with really about rail what's in their on with understand the them safer track conditions going that's the It more And what's cars, as the happening reliable. relationship, themselves. and my stuff does. remarks, opportunity what to space I've the and this rail talked gives

So if issue, an there to is of the warning them gives indication something. do early able being

focus So on velocity the trains between themselves, they and time. distance currently their the dwell

So are are the much that of the signals marketplace today occurred. really that already a something, in something devices defect or has something

-- product tells Our what early detection warning.

the really this. up on So have picked railroads

the have the the And North to really continuing to We here about marketplace last we're we installed the of product Mark of increase product America with opportunities brought installed largest see new that IV that this base of year. line. our in introduction we excited base, that

because So bring well our them effectively efficiently. value run and really customers are things looking today, more understand there, of very we the to them helping

that bringing, with you earlier see is uplift going And in opportunity will good my example we're change forward. product margins, this comes profitability we lines to a when really more to our the comments, that these as portfolio that. of So move back us give

Julio Romero

One the queue. then me, helpful. hop in from Very I'll and more

now going cash the factor union the that in the biggest flow settlement to on forward? just free is Just your the what's cash flow, rearview, swing

John Kasel

that I quarter. talking to in were $XX got million, just ended $X $XX second really million million cash at done we have we working we're to working half, year, about some Bill capital we job. it that see Yes, getting And and I the the so QX million know had do, that job cash in think generation. this right. performance people up many, million, But and buys one that And $XX and and and QX, too, the good choppiness some company great really we many of and a does is really, capital going This -- really uplift buy. things managing one-time, cash, an need we have years $X specifically that's I excites an in related for the of excellent operating fourth to comes to right. after The investor there as really, with to

coming, a is quite work have. of mention the and work didn't all bit got infrastructure I we before So that what we

you if have in with what's we're new to operation programs going work as look well fund or now those capital. just to what's today, precast expansion Tennessee. working on with our and organic in And Florida, So continued as going legacy going at on our

recognized to the and close manage Pacific business we is that And ever a settlement So significant today these improvement to the saw year. year better the us. them, came that the payments. cycle we look brought in with as managing also of we're the cash. with Union it's I going we But you close to company, have tell to was making as last years them, year of what, value staying of to L.B. what much has I the manage better will the think end the of similar I'll as we out But Foster. And been. think Pacific the Union towards behind That X

we how to grow we've X So than that we ago. in Really continue we're looking for them, X not with where companies past business. the different were but done do just what years

cash going X.Xx X.Xx flow. So the like of year, fact at end the quarter. We started start X.Xx on hit mindful year-over-year we the at we're where that what's of we the the and

something really as a important the that's be us is to And is lever in keeping us, have in front to that very stock the very, that company that something as cash something strong that's of for continuing and of with well manage. us continue right. So the buyback,

the continuing heading. where we're through manage there. of at we the and reflective X-year, will We're that's very shares. that our feel as always we to where way million $XX back have program strong these about be So excited purchase to importantly how and well. thing cash company we're That's the about of that invest more this today, in And

Operator

And the our from Singular from next question comes Chris line Sakai of Research.

Joichi Sakai

going forward? mean will help tariffs can be? How look you me How this backlog should new this coming on, at with steel these that? we will understand, your So how I affect

John Kasel

we've and 'XX tariffs. We the the is, back the -- nice with XXX about backlog's -- thing these Chris intact. Well, question the good appreciate tariffs right. And that, seen really before, feel I in

So road we've is before, relationships mills excellent. our this been down domestic and with our steel

Foster good the we much get. and what for at news to we investors have need Foster L.B. pretty So is L.B.

We mills we're But going for And to does does a those this to good and Company. the is for look the itself question And of like times going tons to as looking on be year these related much half there pretty as far backlog, in through? happen L.B. Foster was price to these lot backlog. tariffs have where The to flow this demand allocated sitting What lines? year. product as the the related thing quantities well. second same other for a I'm of execute thing of steel that or us past,

Joichi Sakai

then Protective how And Great. number for high you do Coatings, go? think Okay. could that

John Kasel

know million just their they're year-over-year And I itself, what million basis. mill now. all mills All a in shared namely, they know. fourth right seen quarter who additional work is are the I of X and our of quoting with the for over those don't you We're $X to we've I in with that the $X.X is Zipco a lot contact work booking in constant in-line lot steel coater.

XX XX we days. wrapping about our last up are So hired We've the operation. in people

some very business revenue full good trough to last now profitability that we about is yet as How of is that starting in in we business and year of driving nice our going Willis, been we've to looking seen. here April. the have what out well very, feeling be capacity and coating as look what getting almost running especially the between we're to in out be But to then facility as like in X that that So at translates years that well. really are

So both good are looking very here.

Joichi Sakai

And million the million? share then $XX you for buyback, on what decide $XX made

John Kasel

Yes. came a right? million. start pick Well, to $XX to off we with And had we with, number

going program. and that forth. of back that bring spending into Bill looked of and So to can that Union be coming We I a worked Board of not cash back kind Pacific, We the and to good repurchase the Directors. portion and related talked cash at that how take fees, we we're our settlement with

So right we see to that as cash coming we're cash generate operating good seemed in that the a well going that that's just balance the as with money in. that fit, additional

Joichi Sakai

me. from X-year out with come Will new one last And a you plan?

John Kasel

come X will aspirational with goals. a to stick to X-year We We'll related plan, out years.

Operator

And our the line Justin Funds. from Gabelli comes next Bergner question of from

Justin Bergner

I Good into there, I are guidance seeing we in guess around mean, parks. questions, John, my state factoring be outlook How disruptions that And the Precast national we're some shall your work use the on you for and Concrete parks, potential business. XXXX? say. would

John Kasel

But to towards another looking end the questions, it in activity. that or year -- moving year we business The very best which the with when few the so, we're the shipments the year, running alone still to related that very, that I did here Act, is to last in related of work might and lower million at guess for shape have is some the million, the the may start you which in good we're earlier making Well, the related million funding, next the Justin, we looking $XX you, I'll backlog, our ever impact $XXX tell in months. have, work had. guidance $XXX to Outdoors at American Great of that we

about perhaps -- or That good. maybe So as not things concerned as we looks still one today. on I'm not could other happening pretty are actually that that -- we're

Justin Bergner

like business recovery half And parts on terms bouncing what are half, banking of second of back? then first the in the the in the versus you

John Kasel

Good Yes. question.

didn't was Bill in and as So it I our our business, last much remarks, did. year and as this see we

to Our seasonal, of and weather budgets a approved getting well as is just as conditions. that's related and business lot

third we really, in extent greater strive is quarter quarters, second really the and and typically, So where too, first quarter. then in the more in fourth

be typical this to will. seeing more we're if So you year, much a

feeling the get all years. All we operation, positioned Tennessee I all second of as I right come way new able much predictive about, coming that shaping the to that work these the And all do first seen down we work too, need in the in But hopefully. out we tariffs we're I the do all, half have, expect -- up that's deliver all really, is the on X America we from other settle the materials that infrastructure with that's something of to coating of think to the those our out the the coming be coming Florida to coming of of we backlog, here They is well. related infrastructure. now work that's year of all, to have coatings good those And what activities America. haven't think related really very CXT being once our I to and materials. things, they'll think country get of because the months, to needs actions is, well very second that government when in settle much down we we're here.

think it's let's not -- up Justin. night, at way, I me So it keeping that put

and we hit out pull financial good guidance have have there. really this think to I we a together opportunities year,

right can't we control well. what we're manage, managing we're As doing now, is long everything. we as But we -- what we can see

Justin Bergner

tariff then And of you. tariffs for could your lastly, Mexico, any the business? to Got against with on and a Canada the side chill create that Rail respect

John Kasel

Sure. in work We Canada. It in can. We do work always Mexico.

things to have good talked We and have to job between Mexico. happened markets in these related end up work and users, in end this bit quite countries, working that's morning been the a night, leading there. while what done people and flowing business tariffs. for early have we've these a tariffs a But with had Canada about customers our of or the And last other been

the the end customers, going Canada, of need of want what's think product, product. day, Mexico At I mindful the and both So on. our our everybody's

to material get continue our to pricing, a backlog make well we're will our -- of line quite bit -- pivoted. a on after out understood what we're way continue have pricing everything in COVID before. Coming as us them contracts should allowing going really we to we're really having do And really find was in are really, able pass things. we there and product, be costs if able product that. and with to because organization -- really increased this is We to for to and contracts. to be to of got other do our seeing driving I flexibility the We I'm way

increase, that. the now we opportunity when and feel go costs get pretty have good about So to price we

Operator

Instructions] next our [Operator Sidoti. from Julio line Romero question And is a the follow-up from of

Julio Romero

the in much that to XXXX On the XXXX? expect in relative are do related much how got all taken already in you XXXX? what XXXX? in restructuring, incremental realized How were savings you to savings And costs

John Kasel

appreciate time We out. question. We mapping of that spent that lot a really

actually expansion have to for year. Bill, we we and company, they really positioned, technology took profitability back he there. give from over fact, then, And to we our But we towards to peel monies just a In side in details point really flip can this took X that mean of as some also I'll those the the and what you numbers then this technical innovation that well as of on pivoted key was strategy onion sales that are needed view wanted point, translating, engineering the ourselves do I of months what and side. we how XXXX. a getting And of

William Thalman

charge total was in yes, $X.X right XXXX, around So that million. we took the

savings expect in about be expect to we program the realized run timing that million of when And of based in that on our well, then of bit savings out realized P&L of was QX employees of realized would left charges, between And $X in will XXXX. rate about a in about savings, that about think we as worth from in terms nothing cash the million But organization, we we and QX terms in Funding split come $XXX,XXX XXXX. I terms more spent we XXXX. it There's wise, the in $X.X million. little the $X.X QX. of in XXXX.

would over you an XXXX. XXXX -- million in $X.X expect XXXX So incremental sorry

Julio Romero

of whole you getting falls in XXXX? Great. one growth just, segment rates us as the from in those organic that of you level to And growth? then percentage the me the more speak can L.B. some consolidated percentage a you then each best if of what under set for is maybe be to that growth could, Foster, to And the related can, Maybe currently should what buckets bucket? each embedded is

John Kasel

question. the Appreciate

So strategy. both just I'll growth start give and mean, coming have segments, little and color out foremost. you then I we on will first the of a

on in about We've got quite feel bit right a good what's talk in the of going Tennessee both about now. we as in going Florida, in we expansion So that. on locations the infrastructure what's

we the in programs on have As going well as some really we've infrastructure nice building our precast side, out that there. abilities Texas got

see more to the while. thing products with behind haven't condition of all that IV, have. like and Mark we're monitoring that pipe, putting Rail -- applications the products other doing side, marketplace oil the specifically really basically to to big you add that XX Bill, talking we Union year. a We've And activity years. inches we quite in-line with for it's products settlements XX marketplace mentioned. for Coatings course, that the balance the inches, gas to honestly where numbers, far Pacific been actual components color that little went on as Rockfall that some of and the of adding we And from On represents? and the a of now be type X in there's TTM we the to as we multiple going a the And pipe this have. Especially renewed us, we're XXX is distribution we're what rail about then seen continue about the interest Protective want that right that the coating in today

William Thalman

Yes.

details our business's we then I talk some segments, materials. breakdown also platforms the Julio, about those we in but think, in

the which probably what $XXX with those our million characterize the business $XXX would would I When think and XXXX, our platforms. balance or on the about rate return I emphasis to come maybe States the XXXX, single-digits in just, platforms of of million, rates. of platforms energy growth be you're low And for are. that's because numbers expect primarily coatings of play part seeing the in low the the be would familiar, that the be that in is investment the rates friction back So a of tease little returns growth of on somewhat growth going here low at platform. groups We single-digit healthier look than into returns would growth here And within United to about -- then the kind about thinking growth is in are growth single-digit single-digits, with I of on out at greater What high recent we're -- months. management, business, low platforms, expectations return we double-digits terms there. the growth rates,

will importantly, a that You Concrete the well. that wild programs business. mentioned growth And TTM higher deployed Precast very got in as be we've then the rate

as operations, as a there, as Florida, With sales see investments growth to the be expect we healthier Hopefully, in opportunity market little growth well. made well that made we our investments the to Tennessee in we've there helps.

Julio Romero

It does. Definitely the granularity. appreciate

Operator

the today's question-and-answer this John hand to [Operator Instructions] remarks. further like session does program. Kasel, the back of any And I'd program conclude for to

John Kasel

you the we members I safety time, and people, after team around mind look either quarter, out company. the investors in Thank second about do half second take say able go able the since something, we generate year And out were you a when out months, what investing one we even Bill program your puts Good there, of all of to do tough what of we're And went long we you, profits safety second to not end, back process, good, joining a and a they been to strong think thank seeing We quarters we we on in care going going See we for for the what to XXXX half in something, to the outstanding what really come. we the after that relates company but and good. the injury of something -- profitability Jonathan, in to it we're good And talked just not been safety, And extremely again again, when and is close I what we're accomplish. We year, period been we safety. XXXX, says that's year. on deliver. Last -- the the And challenged today. that how investor, We the on really have cash once the is importantly, is beyond to it to too. today said come operations. exciting. business in through things. in we're and delivered. world just or we're delivered L.B. represents are quarter. for their going And take made and but we've when to their company just And deliver how XXXX. who say of what to we the class we're the and like just company, and company shout a with future Foster more to going XXXX, we that us about talked second L.B. a in care I'd Foster to as are do if to at good it be is at people, that we we've here

for you us forward quarter. after you Take today, catching look joining up and second care. to thank with the So

Operator

conference. in for Thank you, This conclude today's does ladies and participation the gentlemen, program. your

You Good may now disconnect. day.

L.B. Foster (FSTR) 4 Mar 252024 Q4 Earnings call transcript