FOSTER L B CO 10-Q

Item 1. Financial Statements L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 3,428 $ 2,454 Accounts receivable - net (Note 5) 64,429 64,978 Contract assets - net (Note 3) 7,943 16,720 Inventories - net (Note 6) 69,563 70,506 Other current assets 8,159 6,947 Total current assets 153,522 161,605 Property, plant, and equipment - net 76,940 75,374 Operating lease right-of-use assets - net 30,109 18,480 Other assets: Goodwill (Note 4) 32,992 31,907 Other intangibles - net (Note 4) 12,178 14,801 Deferred tax assets (Note 9) 23,982 28,900 Other assets 4,166 3,483 TOTAL ASSETS $ 333,889 $ 334,550 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 37,736 $ 50,083 Deferred revenue (Note 3) 9,059 10,205 Accrued payroll and employee benefits 9,158 15,393 Current maturities of long-term debt (Note 7) 167 167 Other accrued liabilities 13,414 12,448 Total current liabilities 69,534 88,296 Long-term debt (Note 7) 58,555 46,773 Deferred tax liabilities (Note 9) 1,060 1,150 Long-term operating lease liabilities 25,705 14,709 Other long-term liabilities 3,441 4,608 Stockholders’ equity: Common stock, par value $ 0.01 , authorized 20,000,000 shares; shares issued at September 30, 2025 and December 31, 2024, 11,115,779 ; shares outstanding at September 30, 2025 and December 31, 2024, 10,247,806 and 10,573,432 , respectively 111 111 Paid-in capital 43,500 43,550 Retained earnings 172,708 167,579 Treasury stock - at cost, 867,973 and 542,347 common stock shares at September 30, 2025 and December 31, 2024, respectively ( 20,803 ) ( 11,208 ) Accumulated other comprehensive loss ( 20,715 ) ( 21,716 ) Total L.B. Foster Company stockholders’ equity 174,801 178,316 Noncontrolling interest 793 698 Total stockholders’ equity 175,594 179,014 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 333,889 $ 334,550 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 3 Table of Contents L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Sales of goods $ 124,830 $ 119,322 $ 340,449 $ 346,202 Sales of services 13,456 18,144 39,187 56,380 Total net sales 138,286 137,466 379,636 402,582 Cost of goods sold 93,915 89,286 259,472 264,543 Cost of services sold 13,305 15,422 38,047 48,592 Total cost of sales 107,220 104,708 297,519 313,135 Gross profit 31,066 32,758 82,117 89,447 Selling and administrative expenses 22,077 24,289 65,411 71,977 (Gain) on sale of former joint venture facility — — — ( 3,477 ) Amortization expense 694 1,146 2,656 3,486 Operating income 8,295 7,323 14,050 17,461 Interest expense - net 1,254 1,358 3,887 3,976 Other income - net ( 96 ) ( 188 ) ( 509 ) ( 525 ) Income before income taxes 7,137 6,153 10,672 14,010 Income tax expense (benefit) 2,812 ( 29,745 ) 5,625 ( 29,110 ) Net income 4,325 35,898 5,047 43,120 Net loss attributable to noncontrolling interest ( 29 ) ( 7 ) ( 82 ) ( 68 ) Net income attributable to L.B. Foster Company $ 4,354 $ 35,905 $ 5,129 $ 43,188 Per share data attributable to L.B. Foster shareholders: Basic earnings per common share $ 0.42 $ 3.35 $ 0.49 $ 4.01 Diluted earnings per common share $ 0.40 $ 3.27 $ 0.47 $ 3.91 Basic weighted average shares outstanding 10,356 10,718 10,444 10,757 Diluted weighted average shares outstanding 10,880 10,992 10,923 11,059 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 Table of Contents L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 4,325 $ 35,898 $ 5,047 $ 43,120 Other comprehensive income, net of tax: Foreign currency translation adjustment ( 513 ) 1,376 1,529 ( 590 ) Unrealized loss on cash flow hedges, net of tax expense of $ 0 ( 44 ) ( 698 ) ( 351 ) ( 778 ) Reclassification of pension liability adjustments to earnings, net of tax expense of $ 0 , $ 5 , $ 0 , and $ 12 , respectively* — 24 — 75 Total comprehensive income 3,768 36,600 6,225 41,827 Less comprehensive loss attributable to noncontrolling interest: Net loss attributable to noncontrolling interest ( 29 ) ( 7 ) ( 82 ) ( 68 ) Foreign currency translation adjustment 23 18 177 ( 71 ) Amounts attributable to noncontrolling interest ( 6 ) 11 95 ( 139 ) Comprehensive income attributable to L.B. Foster Company $ 3,774 $ 36,589 $ 6,130 $ 41,966 * Reclassifications out of “Accumulated other comprehensive loss” for pension obligations are charged to “Selling and administrative expenses” within the Condensed Consolidated Statements of Operations. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 5 Table of Contents L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Nine Months Ended September 30, 2025 2024 (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 5,047 $ 43,120 Adjustments to reconcile net income to cash used in operating activities: Deferred income taxes 4,828 ( 30,122 ) Depreciation 6,846 7,076 Amortization 2,656 3,486 Inventory and fixed asset exit costs (Note 2) 655 — Equity in income of nonconsolidated investments ( 69 ) 6 Gain on sales and disposals of property, plant, and equipment — ( 4,437 ) Stock-based compensation 3,417 3,135 Change in operating assets and liabilities: Accounts receivable 1,333 ( 12,976 ) Contract assets 9,522 9,910 Inventories 815 ( 465 ) Other current assets ( 1,343 ) ( 2,020 ) Other noncurrent assets 3,640 2,517 Accounts payable ( 12,201 ) 603 Deferred revenue ( 1,327 ) ( 2,861 ) Accrued payroll and employee benefits ( 6,327 ) ( 5,747 ) Accrued settlement — ( 4,000 ) Other current liabilities 510 ( 5,848 ) Other long-term liabilities ( 4,555 ) ( 3,030 ) Net cash provided by (used in) operating activities 13,447 ( 1,653 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from the sale of property, plant, and equipment 53 3,881 Capital expenditures on property, plant, and equipment ( 8,057 ) ( 7,834 ) Net cash used in investing activities ( 8,004 ) ( 3,953 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of debt ( 202,405 ) ( 166,005 ) Proceeds from debt 212,368 178,167 Debt issuance costs ( 706 ) — Treasury stock acquisitions ( 13,103 ) ( 5,742 ) Deferred payment for Skratch acquisition ( 782 ) — Net cash (used in) provided by financing activities ( 4,628 ) 6,420 Effect of exchange rate changes on cash and cash equivalents 159 ( 239 ) Net increase in cash and cash equivalents 974 575 Cash and cash equivalents at beginning of period 2,454 2,560 Cash and cash equivalents at end of period $ 3,428 $ 3,135 Supplemental disclosure of cash flow information: Interest paid $ 3,722 $ 3,632 Income taxes paid $ 1,163 $ 1,596 Right-of-use assets obtained in exchange for lease liabilities $ 14,988 $ — The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 6 Table of Contents L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (Dollars in thousands) Three Months Ended September 30, 2025 Common Stock Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total Stockholders’ Equity Balance, June 30, 2025 $ 111 $ 42,325 $ 168,354 $ ( 16,213 ) $ ( 20,135 ) $ 799 $ 175,241 Net income (loss) — — 4,354 — — ( 29 ) 4,325 Other comprehensive loss, net of tax: Foreign currency translation adjustment — — — — ( 536 ) 23 ( 513 ) Unrealized derivative loss on cash flow hedges — — — — ( 44 ) — ( 44 ) Purchase of 184,143 common shares for treasury — — — ( 4,720 ) — — ( 4,720 ) Issuance of 1,315 common shares, net of shares withheld for taxes — ( 131 ) — 130 — — ( 1 ) Stock-based compensation — 1,306 — — — — 1,306 Balance, September 30, 2025 $ 111 $ 43,500 $ 172,708 $ ( 20,803 ) $ ( 20,715 ) $ 793 $ 175,594 Three Months Ended September 30, 2024 Common Stock Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total Stockholders’ Equity Balance, June 30, 2024 $ 111 $ 42,612 $ 131,916 $ ( 6,405 ) $ ( 21,156 ) $ 574 $ 147,652 Net income (loss) — — 35,905 — — ( 7 ) 35,898 Other comprehensive income, net of tax: Pension liability adjustment — — — — 24 — 24 Foreign currency translation adjustment — — — — 1,358 18 1,376 Unrealized derivative loss on cash flow hedges — — — — ( 698 ) — ( 698 ) Purchase of 126,688 common shares for treasury — — — ( 2,623 ) — — ( 2,623 ) Issuance of 1,206 common shares, net of shares withheld for taxes — ( 15 ) — 34 — — 19 Stock-based compensation — 788 — — — — 788 Balance, September 30, 2024 $ 111 $ 43,385 $ 167,821 $ ( 8,994 ) $ ( 20,472 ) $ 585 $ 182,436 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 7 Table of Contents L.B. FOSTER COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2025 Common Stock Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total Stockholders’ Equity Balance, December 31, 2024 $ 111 $ 43,550 $ 167,579 $ ( 11,208 ) $ ( 21,716 ) $ 698 $ 179,014 Net income (loss) — — 5,129 — — ( 82 ) 5,047 Other comprehensive income, net of tax: Foreign currency translation adjustment — — — — 1,352 177 1,529 Unrealized derivative loss on cash flow hedges — — — — ( 351 ) — ( 351 ) Purchase of 461,704 common shares for treasury — — — ( 11,159 ) — — ( 11,159 ) Issuance of 130,198 common shares, net of shares withheld for taxes — ( 3,467 ) — 1,564 — — ( 1,903 ) Stock-based compensation — 3,417 — — — — 3,417 Balance, September 30, 2025 $ 111 $ 43,500 $ 172,708 $ ( 20,803 ) $ ( 20,715 ) $ 793 $ 175,594 Nine Months Ended September 30, 2024 Common Stock Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interest Total Stockholders’ Equity Balance, December 31, 2023 $ 111 $ 43,111 $ 124,633 $ ( 6,494 ) $ ( 19,250 ) $ 724 $ 142,835 Net income (loss) — — 43,188 — — ( 68 ) 43,120 Other comprehensive income, net of tax: Pension liability adjustment — — — — 75 — 75 Foreign currency translation adjustment — — — — ( 519 ) ( 71 ) ( 590 ) Unrealized derivative loss on cash flow hedges — — — — ( 778 ) — ( 778 ) Purchase of 196,768 common shares for treasury — — — ( 4,330 ) — — ( 4,330 ) Issuance of 120,387 common shares, net of shares withheld for taxes — ( 3,235 ) — 1,830 — — ( 1,405 ) Stock-based compensation — 3,135 — — — — 3,135 Investment of noncontrolling interest — 374 — — — — 374 Balance, September 30, 2024 $ 111 $ 43,385 $ 167,821 $ ( 8,994 ) $ ( 20,472 ) $ 585 $ 182,436 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 8 Table of Contents L.B. FOSTER COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in thousands, except share data) Note 1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all estimates and adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. This Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes thereto included in L.B. Foster Company’s Annual Report on Form 10-K for the year ended December 31, 2024. In this Quarterly Report on Form 10-Q, references to “we,” “us,” “our,” and the “Company” refer collectively to L.B. Foster Company and its consolidated subsidiaries. Recently Issued Accounting Standards In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and disaggregation of income tax expense and income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company does not expect the adoption of ASU 2023-09 to have an impact to its consolidated financial condition, results of operations, and cash flows other than its disclosures. In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”), which requires entities to provide more detailed disaggregation of expenses in the income statement, focusing on the nature of the expenses rather than their function. The new disclosures will require public business entities to disclose in the notes to the financial statements, at each interim and annual reporting period, specific information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each expense caption presented on the face of the income statement, and the total amount of an entity's selling expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and may be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on the consolidated financial statements. In September 2025, the FASB issued Accounting Standards Update 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (“ASU 2025-06”), which provides targeted improvements related to the accounting for costs incurred in the development of internal-use software. The amendment replaces the previous stage-based model with clearer guidance on capitalization thresholds and implementation costs. The amendments are effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of adopting this guidance on the consolidated financial statements and related disclosures. Note 2. Business Segments The Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company determines its operating segments based on how the Company's Chief Operating Decision Maker (“CODM”), the Company's President and Chief Executive Officer, manages the businesses, including resource allocation and operating decisions. The Company is organized into two operating segments, which represent the individual businesses that are run separately within this operational structure. Operating segments are evaluated on their segment operating income contribution to the Company’s consolidated results. The Company considers the aggregation of operating segments into reporting segments based on the nature of offerings, nature of production services, the type or class of customer for products and services, methods used to distribute products and services, and economic and regulatory environment conditions. The Company has two reportable segments: Rail, Technologies, and Services (“Rail”), and Infrastructure Solutions (“Infrastructure”). The Company’s segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred, (b) whose operating results are regularly reviewed by the CODM, who uses such information to make decisions 9 Table of Contents about resources to be allocated to the segments, and (c) for which discrete financial information is available. The CODM uses segment operating income to determine resources to allocate to each segment (including personnel and financial resources) during the annual budgeting process. The CODM evaluates segment performance regularly by comparing the segment operating income to the budgeted measure. Segment operating income includes reportable segment gross profit and direct expenses such as salaries, benefits, restructuring, research and development, professional and purchased services expenditures, amortization expense, bad debt expense, and other segment expenses. Additionally, segment operating income includes allocated corporate operating expenses associated with central services such as quality, logistics, environmental health and safety, information technology, insurance, and human resources. Other corporate functional costs that are associated with the operating segments are also allocated to the segments such as finance, marketing, credit and collections, and treasury functions. Operating expenses related to corporate headquarter functions are allocated to each segment based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. Management believes the allocation of corporate operating expenses provides an accurate presentation of how the segments utilize corporate support activities. This provides the CODM meaningful segment profitability information to support operating decisions and the allocation of resources. Certain corporate costs are separately managed on a consolidated basis and are not allocated to the operating segments. These corporate costs include public company costs such as listing fees, audit fees, compliance costs, insurance costs, and Board of Directors fees. Additionally, certain corporate executive management costs, including costs of the corporate executive leadership team, and corporate management stock-based compensation expenses are not allocated to the operating segments. Finally, interest expense, income taxes, and certain other items included in “Other income - net”, which are managed on a consolidated basis, are not allocated to the operating segments. The operating results of the Company’s reportable segments were as follows for the periods presented: Three Months Ended September 30, 2025 2024 Rail, Technologies, and Services Infrastructure Solutions Total Rail, Technologies, and Services Infrastructure Solutions Total Net sales $ 77,788 $ 60,498 $ 138,286 $ 79,498 $ 57,968 $ 137,466 Less: Cost of sales ( 60,042 ) ( 47,178 ) ( 107,220 ) ( 61,027 ) ( 43,681 ) ( 104,708 ) Selling and administrative employment costs ( 7,900 ) ( 6,086 ) ( 13,986 ) ( 8,475 ) ( 6,030 ) ( 14,505 ) Purchased services (1) ( 1,787 ) ( 1,608 ) ( 3,395 ) ( 1,841 ) ( 1,584 ) ( 3,425 ) General administrative costs (2) ( 1,765 ) ( 1,184 ) ( 2,949 ) ( 2,378 ) ( 1,261 ) ( 3,639 ) Amortization expense ( 399 ) ( 295 ) ( 694 ) ( 844 ) ( 302 ) ( 1,146 ) Segment operating income $ 5,895 $ 4,147 $ 10,042 $ 4,933 $ 5,110 $ 10,043 Reconciliation of segment operating income Total segment operating income $ 10,042 $ 10,043 Interest expense - net ( 1,254 ) ( 1,358 ) Other income - net 96 188 Public company costs ( 1,162 ) ( 1,327 ) Corporate executive management costs ( 175 ) ( 839 ) Corporate management stock-based compensation ( 672 ) ( 339 ) Other corporate expenses - net 262 ( 215 ) Income before income taxes $ 7,137 $ 6,153 (1) Purchased services costs generally include contractor services, insurance expenditures, rental expense, and legal services. (2) General administrative costs generally include office supplies, utilities, advertising, bad debt expense, and restructuring expenditures. 10 Table of Contents Nine Months Ended September 30, 2025 2024 Rail, Technologies, and Services Infrastructure Solutions Total Rail, Technologies, and Services Infrastructure Solutions Total Net sales $ 207,776 $ 171,860 $ 379,636 $ 247,715 $ 154,867 $ 402,582 Less: Cost of sales ( 162,869 ) ( 134,650 ) ( 297,519 ) ( 192,798 ) ( 120,337 ) ( 313,135 ) Selling and administrative employment costs ( 22,536 ) ( 17,552 ) ( 40,088 ) ( 24,083 ) ( 17,874 ) ( 41,957 ) Purchased services (1) ( 5,120 ) ( 4,239 ) ( 9,359 ) ( 5,590 ) ( 4,684 ) ( 10,274 ) General administrative costs (2) ( 5,707 ) ( 4,052 ) ( 9,759 ) ( 5,524 ) ( 3,649 ) ( 9,173 ) Amortization expense ( 1,758 ) ( 898 ) ( 2,656 ) ( 2,508 ) ( 978 ) ( 3,486 ) Segment operating income $ 9,786 $ 10,469 $ 20,255 $ 17,212 $ 7,345 $ 24,557 Reconciliation of segment operating income Total segment operating income $ 20,255 $ 24,557 Gain on sale of former joint venture facility — 3,477 Interest expense - net ( 3,887 ) ( 3,976 ) Other income - net 509 525 Public company costs ( 3,633 ) ( 4,167 ) Corporate executive management costs ( 1,123 ) ( 4,131 ) Corporate management stock-based compensation ( 1,711 ) ( 1,818 ) Other corporate expenses - net 262 ( 457 ) Income before income taxes $ 10,672 $ 14,010 (1) Purchased services costs generally include contractor services, insurance expenditures, rental expense, and legal services. (2) General administrative costs generally include office supplies, utilities, advertising, bad debt expense, and restructuring expenditures. For the nine months ended September 30, 2024, the Company sold a former joint venture facility located in Magnolia, Texas, generating a $ 3,477 gain on sale recorded in “Gain on sale of former joint venture facility” which is included as a component of corporate operating income. Reconciliations of reportable depreciation and amortization and expenditures for long-lived assets to the Company’s consolidated totals are as follows for the periods presented: Three Months Ended September 30, 2025 2024 Depreciation/Amortization Expenditures for Long-Lived Assets Depreciation/Amortization Expenditures for Long-Lived Assets Rail, Technologies, and Services $ 793 $ 350 $ 1,202 $ 1,147 Infrastructure Solutions 1,654 2,050 1,817 1,669 Reportable segments total $ 2,447 $ 2,400 $ 3,019 $ 2,816 Corporate 521 409 467 251 Total $ 2,968 $ 2,809 $ 3,486 $ 3,067 11 Table of Contents Nine Months Ended September 30, 2025 2024 Depreciation/Amortization Expenditures for Long-Lived Assets Depreciation/Amortization Expenditures for Long-Lived Assets Rail, Technologies, and Services $ 2,874 $ 1,405 $ 3,578 $ 1,765 Infrastructure Solutions 5,098 5,545 5,594 5,100 Reportable segments total $ 7,972 $ 6,950 $ 9,172 $ 6,865 Corporate 1,530 1,107 1,390 969 Total $ 9,502 $ 8,057 $ 10,562 $ 7,834 The following table summarizes the Company's total assets by reportable segment for the following periods: September 30, 2025 December 31, 2024 Rail, Technologies, and Services $ 148,746 $ 158,859 Infrastructure Solutions 130,964 123,755 Reportable segments total 279,710 282,614 Corporate 54,179 51,936 Total $ 333,889 $ 334,550 On June 21, 2022, the Company acquired the stock of Skratch Enterprises Ltd. for $ 7,402 , which was inclusive of deferred payments withheld by the Company of $ 1,228 , to be paid over the next five years or utilized to satisfy post-closing working capital adjustments or indemnity claims under the purchase agreement. During the nine months ended September 30, 2025, the Company made a deferred acquisition payment of $ 782 . During the nine months ended September 30, 2025, the Company announced the discontinuation of its Automation and Materials Handling product line (“AMH Exit”) which was reported in the Technology Services and Solutions business unit within the Rail segment. The decision to exit was due to the Company's initiatives to scale back businesses in the United Kingdom. The Company expects to complete any remaining customer obligations by the end of 2025. This product line had net sales of $ 530 and $ 907 for the three months ended September 30, 2025 and 2024, respectively, and $ 1,750 and $ 4,230 for the nine months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025, the Company incurred a total of $ 1,351 in exit costs associated with the AMH Exit, which included $ 655 in inventory and fixed asset write-downs, $ 507 in personnel expenses, and $ 189 in other exit costs. Exit costs of $ 1,085 were recorded in “Cost of goods sold” and $ 266 were recorded in “Selling and administrative expenses” within our Rail segment. The Company does not expect to incur additional material AMH Exit costs in the remainder of 2025. In August 2024, the Company announced an enterprise restructuring program aligned with its strategy to reduce costs and enable investment in its growth platforms. The restructuring action was completed as of December 31, 2024 and no additional costs are expected to be incurred under this program. As of December 31, 2024, the Company's restructuring liability for this program was $ 687 , all of which has been paid out as of September 30, 2025. The following table summarizes the restructuring liability balance and utilization for restructuring actions, which are primarily related to severance costs through September 30, 2025: Restructuring Liability Balance as of December 31, 2024 $ 687 Personnel and other exit costs associated with AMH Exit 696 Payments ( 1,150 ) Balance as of September 30, 2025 $ 233 12 Table of Contents On August 30, 2023, the Company announced the discontinuation of its Bridge Products grid deck product line (“Bridge Exit”) which was reported in the Steel Products business unit within Infrastructure. The Bedford, PA based operations supporting the product line expect to complete any remaining customer obligations in 2025. For the three months ended September 30, 2025 and 2024, net sales associated with the product line were $ 94 and $ 921 , respectively, and for the nine months ended September 30, 2025 and 2024 were $ 1,093 and $ 2,888 , respectively. The Company does not expect to incur additional material exit costs in 2025. Note 3. Revenue The following table summarizes the Company’s sales by major product and service line for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Rail Products $ 44,628 $ 47,442 $ 121,517 $ 156,803 Global Friction Management 21,313 19,548 57,307 51,008 Technology Services and Solutions 11,847 12,508 28,952 39,904 Rail, Technologies, and Services 77,788 79,498 207,776 247,715 Precast Concrete Products 43,272 42,688 117,650 97,730 Steel Products 17,226 15,280 54,210 57,137 Infrastructure Solutions 60,498 57,968 171,860 154,867 Total net sales $ 138,286 $ 137,466 $ 379,636 $ 402,582 The majority of the Company’s revenue is from products transferred and services rendered to customers at a point in time. The Company recognizes revenue at the point in time at which the customer obtains control of the product or service, which is generally when the product title passes to the customer upon shipment or the service has been rendered to the customer. In limited cases, title does not transfer and revenue is not recognized until the customer has received the products at a designated physical location. Net sales by the timing of the transfer of goods and services was as follows for the periods presented: Three Months Ended September 30, 2025 Rail, Technologies, and Services Infrastructure Solutions Total Point in time $ 65,152 $ 39,621 $ 104,773 Over time 12,636 20,877 33,513 Total net sales $ 77,788 $ 60,498 $ 138,286 Three Months Ended September 30, 2024 Rail, Technologies, and Services Infrastructure Solutions Total Point in time $ 62,717 $ 33,462 $ 96,179 Over time 16,781 24,506 41,287 Total net sales $ 79,498 $ 57,968 $ 137,466 Nine Months Ended September 30, 2025 Rail, Technologies, and Services Infrastructure Solutions Total Point in time $ 176,250 $ 109,433 $ 285,683 Over time 31,526 62,427 93,953 Total net sales $ 207,776 $ 171,860 $ 379,636 13 Table of Contents Nine Months Ended September 30, 2024 Rail, Technologies, and Services Infrastructure Solutions Total Point in time $ 198,179 $ 98,246 $ 296,425 Over time 49,536 56,621 106,157 Total net sales $ 247,715 $ 154,867 $ 402,582 The Company’s performance obligations under long-term agreements with its customers are generally satisfied over time. Over time revenue is primarily comprised of transit infrastructure and technology services and solutions projects within the Rail segment, precast concrete buildings within the Precast Concrete Products division in the Infrastructure segment, and long-term bridge projects within the Steel Products division in the Infrastructure segment. Revenue under these long-term agreements is generally recognized over time, either using an input measure based upon the proportion of actual costs incurred to estimated total project costs or an input measure based upon actual labor costs as a percentage of estimated total labor costs, depending upon which measure the Company believes best depicts the Company’s performance to date under the terms of the contract. Revenue under these long-term agreements may also be recognized using an output method, specifically units delivered, based upon certain customer acceptance and delivery requirements. The use of an input or an output measure to recognize revenue is determined based on what is most appropriate given the nature of the work performed and terms of the associated agreement. Accounting for these long-term agreements involves the use of various techniques to estimate total revenues and costs. The Company estimates profit on these long-term agreements as the difference between total estimated revenues and expected costs to complete a contract and recognizes that profit over the life of the contract. As a result of management's reviews of contract-related estimates the Company makes adjustments to contract estimates that impact our revenue and profit totals. Changes in estimates are primarily attributed to updated considerations, including economic conditions and historic contract patterns, resulting in changes to anticipated revenue from existing contracts. During the three months ended September 30, 2025, reductions to net sales stemming from changes in actual and expected values of certain commercial contracts and settlements of such contracts were $ 1,476 ; there were no changes in actual or expected values during the three months ended September 30, 2024. During the nine months ended September 30, 2025 and 2024, such adjustments to net sales were $ 3,123 and $ 1,477 , respectively. The Company’s estimates related to these long-term agreements are further described in “Note 3. Revenue” of the Notes to the Company’s Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year ended December 31, 2024. Revenue recognized over time was as follows for the periods presented: Three Months Ended September 30, Percentage of Total Net Sales Three Months Ended September 30, 2025 2024 2025 2024 Over time input method $ 6,168 $ 15,020 4.5 % 10.9 % Over time output method 27,345 26,267 19.8 19.1 Total over time sales $ 33,513 $ 41,287 24.3 % 30.0 % Nine Months Ended September 30, Percentage of Total Net Sales Nine Months Ended September 30, 2025 2024 2025 2024 Over time input method $ 20,795 $ 42,259 5.5 % 10.5 % Over time output method 73,158 63,898 19.3 15.9 Total over time sales $ 93,953 $ 106,157 24.8 % 26.4 % The timing of revenue recognition, billings, and cash collections results in billed receivables, costs in excess of billings (included in “Contract assets - net”), and billings in excess of costs (contract liabilities), included in “Deferred revenue” within the Condensed Consolidated Balance Sheets. The following table sets forth the Company’s contract assets: 14 Table of Contents Contract Assets Balance as of December 31, 2024 $ 16,720 Revenue recognized but not yet billed 2,831 Adjustments to contract assets ( 3,123 ) Transfers from contract asset balance to accounts receivable ( 8,485 ) Balance as of September 30, 2025 $ 7,943 The following table sets forth the Company’s contract liabilities: Contract Liabilities Balance as of December 31, 2024 $ 1,991 Revenue recognized from contract liabilities ( 1,419 ) Increase in billings in excess of cost, excluding revenue recognized 937 Balance as of September 30, 2025 $ 1,509 The Company has established policies regarding allowance for credit losses associated with contract assets, which includes standalone reserve assessments for its long term, complex contracts as needed as well as detailed regular review and updates to contract margins, progress, and value. A standard reserve threshold is applied to contract assets related to short term, less complex contracts. Management also regularly reviews collection patterns and future expected collections and makes necessary revisions to allowance for credit losses related to contract assets. As of September 30, 2025, the Company had approximately $ 247,416 of remaining performance obligations, which is also referred to as backlog. Approximately 8.0 % of the September 30, 2025 backlog was related to projects that are anticipated to extend beyond September 30, 2026. Note 4. Goodwill and Other Intangible Assets The following table presents the changes in goodwill balance by reportable segment for the period presented: Rail, Technologies, and Services Infrastructure Solutions Total Balance as of December 31, 2024 $ 20,231 $ 11,676 $ 31,907 Foreign currency translation impact 1,085 — 1,085 Balance as of September 30, 2025 $ 21,316 $ 11,676 $ 32,992 The Company performs goodwill impairment tests annually during the fourth quarter, and also performs interim goodwill impairment tests if it is determined that it is more likely than not that the fair value of a reporting unit is less than the carrying amount. Qualitative factors are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount, which includes the impacts of current economic conditions, including but not limited to concerns related to inflation, tariffs, labor markets, supply chains, and changes in trade policy. However, these factors can be unpredictable and are subject to change. No interim goodwill impairment test was required as a result of the evaluation of qualitative factors as of September 30, 2025. However, future impairment charges could result if future projections diverge unfavorably from current expectations. The following table sets forth the components of the Company’s intangible assets for the periods presented: September 30, 2025 Weighted Average Amortization Period In Years Gross Carrying Value Accumulated Amortization Net Carrying Amount Patents 10 $ 319 $ ( 207 ) $ 112 Customer relationships 12 28,721 ( 21,951 ) 6,770 Trademarks and trade names 13 8,051 ( 5,682 ) 2,369 Technology 8 32,806 ( 30,033 ) 2,773 Favorable lease 6 327 ( 173 ) 154 $ 70,224 $ ( 58,046 ) $ 12,178 15 Table of Contents December 31, 2024 Weighted Average Amortization Period In Years Gross Carrying Value Accumulated Amortization Net Carrying Amount Patents 10 $ 308 $ ( 198 ) $ 110 Customer relationships 13 28,006 ( 19,958 ) 8,048 Trademarks and trade names 13 7,974 ( 5,219 ) 2,755 Technology 9 32,616 ( 28,923 ) 3,693 Favorable lease 6 327 ( 132 ) 195 $ 69,231 $ ( 54,430 ) $ 14,801 Note 5. Accounts Receivable Changes in reserves for uncollectible accounts are recorded as part of “Selling and administrative expenses” in the Condensed Consolidated Statements of Operations and are recorded net of recoveries of previous write-offs. During the three months ended September 30, 2025 and 2024, the Company recorded a net benefit of $ 74 and $ 0 , respectively, and during the nine months ended September 30, 2025 and 2024 recorded a net expense of $ 444 and $ 529 , respectively. The Company established the allowance for credit losses by calculating the amount to reserve based on the age of a given trade receivable and considering historical collection patterns, bad debt expense experience, expected future trends of collections, current and expected market conditions, and any other relevant subjective adjustments as needed. Management maintains high-quality credit review practices and positive customer relationships that mitigate credit risks. The Company’s reserves are regularly reviewed and revised as necessary. The following table sets forth the Company’s allowance for credit losses: Allowance for Credit Losses Balance as of December 31, 2024 $ 1,127 Current period provision 909 Write-off against allowance ( 129 ) Recoveries of previous write-offs ( 465 ) Balance as of September 30, 2025 $ 1,442 Note 6. Inventory Inventory is valued at average cost or net realizable value, whichever is lower. The Company’s components of inventory are summarized in the following table for the periods presented: September 30, 2025 December 31, 2024 Finished goods $ 35,655 $ 37,238 Work-in-process 7,547 6,717 Raw materials 26,361 26,551 Inventories - net $ 69,563 $ 70,506 Note 7. Long-Term Debt and Related Matters Long-term debt consisted of the following: September 30, 2025 December 31, 2024 Revolving credit facility $ 58,122 $ 46,467 Finance leases and financing agreements 600 473 Total 58,722 46,940 Less current maturities ( 167 ) ( 167 ) Long-term portion $ 58,555 $ 46,773 16 Table of Contents On June 27, 2025, the Company, its domestic subsidiaries, and certain of its Canadian and United Kingdom subsidiaries (collectively, the “Borrowers”), entered into the Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) with PNC Bank, N.A., Bank of America, N.A., Citizens Bank, N.A., and Wells Fargo Bank N.A. as Co-Syndication Agents, and Dollar Bank, Federal Savings Bank as a participant. The Credit Agreement, as amended, modifies the prior amended revolving credit facility, which had a maximum credit line of $ 130,000 and extends the maturity date from August 13, 2026 to June 27, 2030. The Credit Agreement provides for a five-year , revolving credit facility that permits aggregate borrowings of the Borrowers up to $ 150,000 with sublimits for (a) the issuance of Letters of Credit in Dollars and in Alternative Currencies in an amount not to exceed the Dollar Equivalent of $ 30,000 , and (b) borrowings of Swing Loans in Dollars in an amount not to exceed $ 20,000 ; and with an incremental loan feature not to exceed $ 60,000 . The Company’s obligations under the Credit Agreement are secured by the grant of a security interest by the Borrowers in substantially all of the assets owned by such entities. Additionally, the equity interests in each of the loan parties, other than the Company, and the equity interests held by each loan party in their subsidiaries, have been pledged to the lenders as collateral for the lending obligations. Borrowings under the Credit Agreement will bear interest at rates based upon either the base rate or Term SOFR rate plus applicable margins. Applicable margins are dictated by the ratio of the Company’s total net indebtedness to the Company’s consolidated EBITDA for four trailing quarters, as defined in the Credit Agreement. The base rate is the highest of (a) the Overnight Bank Funding Rate plus 0.50 %, (b) the Prime Rate, or (c) the Daily Simple SOFR rate plus 1.00 % so long as the Daily Simple SOFR rate is offered, ascertainable and not unlawful (each as defined in the Credit Agreement). The base rate and Term SOFR rate spreads range from 0.25 % to 1.50 % and 1.25 % to 2.50 %, respectively. The Credit Agreement includes two financial covenants: (a) Maximum Gross Leverage Ratio, defined as the Company’s Consolidated Indebtedness divided by the Company’s Consolidated EBITDA, which must not exceed (i) 3.50 to 1.00 for all testing periods other than during an Acquisition Period, and (ii) 4.00 to 1.00 for all testing periods occurring during an Acquisition Period, and (b) Minimum Consolidated Fixed Charge Coverage Ratio, defined as the Company’s Consolidated EBITDA divided by the Company’s Fixed Charges, which must be more than 1.10 to 1.00. As of September 30, 2025, the Company was in compliance with the covenants in the Credit Agreement, as amended, and had outstanding letters of credit of approximately $ 770 . Note 8. Earnings Per Common Share (Share amounts in thousands) The following table sets forth the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Numerator for basic and diluted earnings per common share: Net income attributable to L.B. Foster Company $ 4,354 $ 35,905 $ 5,129 $ 43,188 Denominator: Weighted average shares outstanding 10,356 10,718 10,444 10,757 Denominator for basic earnings per common share 10,356 10,718 10,444 10,757 Effect of dilutive securities: Stock compensation plans 524 274 479 302 Dilutive potential common shares 524 274 479 302 Denominator for diluted earnings per common share - adjusted weighted average shares outstanding 10,880 10,992 10,923 11,059 Basic earnings per common share $ 0.42 $ 3.35 $ 0.49 $ 4.01 Diluted earnings per common share $ 0.40 $ 3.27 $ 0.47 $ 3.91 17 Table of Contents Note 9. Income Taxes For the three months ended September 30, 2025 and 2024, the Company recorded an income tax expense of $ 2,812 and an income tax benefit of $ 29,745 , respectively, on pre-tax income of $ 7,137 and $ 6,153 , respectively, for an effective income tax rate of 39.4 % and ( 483.4 %), respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded an income tax expense of $ 5,625 and an income tax benefit of $ 29,110 , respectively, on pre-tax income of $ 10,672 and $ 14,010 , respectively, for an effective income tax rate of 52.7 % and ( 207.8 )%, respectively. The Company's effective income tax rate for the three and nine months ended September 30, 2025 differed from the federal statutory rate of 21% primarily due to the impact of pre-tax losses in the United Kingdom, for which no income tax benefit was recognized due to a valuation allowance. The Company's effective income tax rate for the three and nine months ended September 30, 2024 differed from the federal statutory rate of 21% primarily due to a $ 30,045 income tax benefit resulting from the change in valuation allowance previously recorded against certain U.S. federal and state deferred taxes. Changes in pre-tax income projections, combined with the seasonal nature of our businesses, also impact the effective income tax rate each quarter. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes various tax provisions such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The impacts of the tax provisions included in the OBBBA are reflected in our results for the quarter ended September 30, 2025, and did not have a material impact on the Company's Condensed Consolidated Financial Statements. The Company will continue to monitor any developments and guidance related to the OBBBA. Note 10. Stock-Based Compensation The Company recorded stock-based compensation expense of $ 1,306 and $ 788 for the three months ended September 30, 2025 and 2024, respectively, and $ 3,417 and $ 3,135 for the nine months ended September 30, 2025 and 2024, respectively, related to restricted stock awards and performance unit awards. As of September 30, 2025, unrecognized compensation expense for awards that the Company expects to vest approximated $ 6,186 . The Company will recognize this unrecognized compensation expense over a weighted average 1.7 years through February 20, 2028. On May 22, 2025, the shareholders approved the new 2025 Equity and Incentive Compensation Plan (the “Equity and Incentive Compensation Plan”). As of September 30, 2025, the Company had stock awards issued pursuant to the Equity and Incentive Compensation Plan and its predecessor, the 2006 Omnibus Incentive Compensation Plan (the “Omnibus Plan”). No stock options are outstanding under the Omnibus Plan or the Equity and Incentive Compensation Plan and, as such, there was no stock-based compensation expense related to stock options recorded for the three and nine months ended September 30, 2025 and 2024. Non-Employee Director Restricted Stock Awards and Fully-Vested Stock Since May 2018, non-employee directors have been awarded shares of the Company’s common stock on each date the non-employee directors were elected at the annual shareholders’ meeting to serve as directors, subject to a one-year vesting requirement. The Deferred Compensation Plan for Non-Employee Directors under the Omnibus Plan and, by amendment, under the Equity and Incentive Compensation Plan, which permits non-employee directors of the Company to defer receipt of earned cash and/or stock compensation for service on the Board into deferred stock units. Under the terms of the 2025 Equity and Incentive Compensation Plan, a non-employee Board member may elect to receive fully vested stock in lieu of quarterly cash compensation. Restricted Stock and Performance-Based Stock and Share Units Under the Equity and Incentive Compensation Plan and Omnibus Plan, the Company grants certain employees restricted stock and performance-based stock and share units. The forfeitable restricted stock awards granted generally time-vest ratably over a three-year period, unless indicated otherwise by the underlying restricted stock award agreement. Performance unit awards are offered annually under separate three-year long-term incentive programs, unless indicated otherwise by the underlying performance unit award agreement. Performance units are subject to forfeiture and will be converted into common stock based upon the Company’s performance relative to performance measures and conversion multiples as defined in the underlying program. The following table summarizes the restricted stock, deferred stock units, and performance-based stock and share unit activity for the periods presented: 18 Table of Contents Restricted Stock Performance-Based Stock and Share Units Weighted Average Grant Date Fair Value Outstanding as of December 31, 2024 203,552 534,521 $ 16.31 Granted 118,473 127,033 18.65 Vested ( 111,840 ) ( 88,641 ) 17.26 Cancelled and forfeited ( 2,669 ) ( 45,524 ) 13.21 Outstanding as of September 30, 2025 207,516 527,389 $ 16.65 Note 11. Fair Value Measurements The Company determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below. Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. SOFR-based interest rate swaps - To reduce the impact of interest rate changes on outstanding variable-rate debt, the Company amended and entered into forward-starting SOFR-based interest rate swaps with notional values totaling $ 20,000 and $ 20,000 effective August 12, 2022 and August 31, 2022, respectively. The August 12, 2022 interest rate swap expired on March 1, 2025. The August 31, 2022 interest rate swap expires on August 13, 2026. The fair value of the interest rate swaps are based on market-observable forward interest rates and represents the estimated amount that the Company would pay to terminate the agreements. As such, the swap agreements are classified as Level 2 within the fair value hierarchy. As of September 30, 2025 and December 31, 2024, the interest rate swaps were recorded in “Other current assets” when the interest rate swaps’ fair market value are in an asset position, and “Other accrued liabilities” when in a liability position within our Condensed Consolidated Balance Sheets. Fair Value Measurements at Reporting Date Fair Value Measurements at Reporting Date September 30, 2025 Level 1 Level 2 Level 3 December 31, 2024 Level 1 Level 2 Level 3 Interest rate swaps $ 79 $ — $ 79 $ — $ 430 $ — $ 430 $ — Total assets $ 79 $ — $ 79 $ — $ 430 $ — $ 430 $ — The $ 20,000 interest rate swap agreements that became effective August 2022 are accounted for as cash flow hedges and the objective of the hedges is to offset the expected interest variability on payments associated with the interest rate on our debt. The gains and losses related to the interest rate swaps are reclassified from “Accumulated other comprehensive loss” in our Condensed Consolidated Balance Sheets and included in “Interest expense - net” in our Condensed Consolidated Statements of Operations as the interest expense from our debt is recognized. For the three months ended September 30, 2025 and 2024, the Company recognized interest income of $ 56 and $ 340 , respectively, from interest rate swaps. For the nine months ended September 30, 2025 and 2024, the Company recognized interest income of $ 331 and $ 1,017 respectively, from interest rate swaps. 19 Table of Contents Note 12. Retirement Plans The Company has two defined contribution retirement plans that cover its hourly and salaried employees in the United States. Employees are eligible to participate in the appropriate plan based on employment classification. The Company’s contributions to the defined contribution plans are governed by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the Company’s policy and investment guidelines applicable to each respective plan. The Company’s policy is to contribute at least the minimum in accordance with the funding standards of ERISA. The Company maintains one defined contribution plan for its employees in Canada. In the United Kingdom, the Company maintains two defined contribution plans and a defined benefit plan, which is frozen. These plans are discussed in further detail below. On May 23, 2024, the Company's Board of Directors approved the termination of the frozen L.B. Foster Company Merged Retirement Plan (the “US DB Plan”) and the Portec Rail Products (UK) Limited Pension Scheme (the “UK DB Plan”). At such time, the Company notified all plan participants of the Company's intentions to terminate and fully settle the obligations. During the fourth quarter of 2024, the Company completed the termination of the US DB Plan. In January 2025, the Company entered into an insurance buy-in contract with a third party insurer which resulted in an exchange of plan assets of the UK DB Plan for an annuity that covers our future projected benefit obligations. The Company expects the buy out of the plan and transfer of future benefit obligations of plan participants to be completed in early 2026. The Company does not expect to make any further contributions to the UK DB Plan. United Kingdom Defined Benefit Plan Net periodic pension costs were as follows for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Interest cost $ 65 $ 57 $ 192 $ 171 Expected return on plan assets ( 87 ) ( 95 ) ( 257 ) ( 285 ) Amortization of prior service costs and transition amount 7 6 19 18 Recognized net actuarial loss 12 8 33 24 Net periodic pension income $ ( 3 ) $ ( 24 ) $ ( 13 ) $ ( 72 ) Defined Contribution Plans The Company sponsors five defined contribution plans for hourly and salaried employees across its domestic and international facilities. The following table summarizes the expense associated with the contributions made to these plans for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 United States $ 743 $ 698 $ 2,201 $ 1,968 Canada 37 39 140 149 United Kingdom 341 304 945 877 $ 1,121 $ 1,041 $ 3,286 $ 2,994 Note 13. Commitments and Contingent Liabilities Product Liability Claims The Company is subject to product warranty claims that arise in the ordinary course of its business. For certain manufactured products, the Company maintains a product warranty accrual as a percentage of cost of sales. In addition, the product warranty accrual is adjusted periodically based on the identification or resolution of known individual product warranty claims. Union Pacific Railroad (“UPRR”) Concrete Tie Matter On March 13, 2019, the Company and its subsidiary, CXT Incorporated (“CXT”), entered into a Settlement Agreement (the “Settlement Agreement”) with UPRR to resolve the then-pending litigation in the matter of Union Pacific Railroad Company v. L.B. Foster Company and CXT Incorporated , Case No. CI 15-564, in the District Court for Douglas County, Nebraska. Under the Settlement Agreement, the Company and CXT agreed to pay UPRR the aggregate amount of $ 50,000 without pre-judgment interest, which began with a $ 2,000 immediate payment, and with the remaining $ 48,000 paid in installments over a six-year period commencing on the effective date of the Settlement Agreement through December 2024 pursuant to a Promissory Note. As of December 31, 2024 the UPRR Settlement Agreement has been fully paid and UPRR's purchase obligations under this Agreement have been satisfied. 20 Table of Contents Environmental and Legal Proceedings The Company is subject to national, state, foreign, provincial, and/or local laws and regulations relating to the protection of the environment. The Company’s efforts to comply with environmental regulations may have an adverse effect on its future earnings. On June 5, 2017, a General Notice Letter was received from the United States Environmental Protection Agency (“EPA”) indicating that the Company may be a potentially responsible party (“PRP”) regarding the Portland Harbor Superfund Site cleanup along with numerous other companies. More than 140 other companies received such a notice. The Company and a predecessor owned and operated a facility near the harbor site for a period prior to 1982. The net present value and undiscounted costs of the selected remedy throughout the harbor site are estimated by the EPA to be approximately $ 1.1 billion and $ 1.7 billion respectively, and the remedial work is expected to take as long as 13 years to complete. Other estimates indicate that these costs may increase given that the remedy will not be initiated or completed for several years. The Company is reviewing the basis for its identification by the EPA and the nature of the historic operations of a Company predecessor near the site. Additionally, the Company executed a PRP agreement which provides for a private allocation process among almost 100 PRPs in a working group whose work is ongoing and involves a process that will ultimately conclude a proposed allocation of liability for cleanup of the site and various sub-areas. The Company does not have any individual risk sharing agreements in place with respect to the site, and was only associated with the site from 1976 to when it purchased the stock of a company whose assets it sold in 1982 and which was dissolved in 1994. On March 26, 2020, the EPA issued a Unilateral Administrative Order to two parties requiring them to perform remedial design work for that portion of the Harbor Superfund Site that includes the area closest to the facility; the Company was not a recipient of this Unilateral Administrative Order. On December 2, 2024, the Company and many other PRPs received a Special Notice Letter ("SNL") from the EPA regarding a formal initiation of negotiations for the investigation and cleanup of the Portland Harbor Superfund Site and requesting a "good faith offer" from certain PRPs as to remediation and reimbursement of costs within 120 days, which, if accepted, would lead to a formal Consent Decree which may not be entered under the EPA's proposed schedule until fall of 2026 or by March 2027. The deadline for a response was extended to May 30, 2025, and the Company responded, along with other similarly-situated parties, in a timely manner. The Company cannot predict the ultimate impact of these proceedings and the SNLs because of the large number of PRPs involved throughout the harbor site, the size and extent of the site, the degree of contamination of various wastes, varying environmental impacts throughout the harbor site, the scarcity of data related to the facility once operated by the Company and a predecessor, potential comparative liability between the allocation parties and regarding non-participants, and the speculative nature of the remediation costs. Based upon information currently available, management does not believe that the Company’s alleged PRP status regarding the Portland Harbor Superfund Site or other compliance with the present environmental protection laws will have a material adverse effect on the financial condition, results of operations, cash flows, competitive position, or capital expenditures of the Company. As more information develops and the allocation process is completed, and given the resolution of factors like those described above, an unfavorable resolution could have a material adverse effect. As of September 30, 2025 and December 31, 2024, the Company maintained reserves of $ 1,590 and $ 1,796 , respectively, for all of its environmental liabilities. Other Legal Matters The Company is also subject to other legal proceedings and claims that arise in the ordinary course of its business. Legal actions are subject to inherent uncertainties, and future events could change management’s assessment of the probability or estimated amount of potential losses from pending or threatened legal actions. Based on available information, it is the opinion of management that the ultimate resolution of pending or threatened legal actions, both individually and in the aggregate, will not result in losses having a material adverse effect on the Company’s financial position or liquidity as of September 30, 2025. If management believes that, based on available information, it is at least reasonably possible that a material loss (or additional material loss in excess of any accrual) will be incurred in connection with any legal actions, the Company discloses an estimate of the possible loss or range of loss, either individually or in the aggregate, as appropriate, if such an estimate can be made, or discloses that an estimate cannot be made. Based on the Company’s assessment as of September 30, 2025, no such disclosures were considered necessary. 21 Table of Contents