L. B. Foster Reports Mixed Q2 Results, Margin Contraction - L.B. Foster (NASDAQ:FSTR)

L. B. Foster Co FSTR reported second-quarter sales growth of 9.2% year-over-year to $154.5 million, beating the consensus estimate of $141.23 million.
Adjusted EPS decreased to $0.27 from $0.66 in 2Q20, misses consensus estimates of $0.31.
The gross margin contracted by 295 bps to 16.9%. Adjusted EBITDA of $8.34 million fell from $12.91 million in 2Q20, and margin contracted by 370 bps to 5.4%.
L. B. Foster generated cash from operating activities year-to-date of $6.84 million, compared to $8.12 million a year ago. Free cash flow of $4.59 million.
As of June 30, 2021, net debt was $33.1 million, a $4.4 million decrease from December 31, 2020.
The company believes year-over-year operating margins continue to be adversely affected by weakness in the midstream energy markets resulting in lower sales volumes in the Coatings and Measurement business unit.
Backlog increased by 12.4% Y/Y to $253.2 million, reflecting a significant increase in the Infrastructure Solutions segment of $31.6 million. New orders were $138.6 million (+3.5% Y/Y).
Price action: FSTR shares traded lower by 0.17% at $18.13 on the last check Tuesday.