v3.25.4
Retirement Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Retirement Plans 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 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 year ended December 31, 2024, the Company completed the termination of the US DB Plan and recorded $1,722 of pension settlement costs. 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 UK DB 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
The Company’s UK DB Plan covers certain current employees, former employees, and retirees. The plan has been frozen to new entrants since April 1, 1997 and also covers the former employees of a merged plan after January 2002. Benefits under the plan were based on years of service and eligible compensation during defined periods of service. The Company’s funding policy for the plan is to make minimum annual contributions required by applicable regulations. The UK DB Plan is fully funded as of December 31, 2025.

The funded status of the UK DB Plan as of December 31, 2025 and 2024 was as follows:

December 31,
2025
2024
Changes in benefit obligation:
Benefit obligation at beginning of year
$
4,704 
$
5,011 
Interest cost
253 
215 
Actuarial gain
(229)
(134)
Benefits paid
(493)
(322)
Foreign currency exchange rate changes
336 
(66)
Benefit obligation at end of year
$
4,571 
$
4,704 
Change to plan assets:
Fair value of assets at beginning of year
$
6,345 
$
6,399 
Actual (loss) gain on plan assets
(1,181)
137 
Employer contribution
— 
214 
Benefits paid
(493)
(322)
Foreign currency exchange rate changes
429 
(83)
Fair value of assets at end of year
5,100 
6,345 
Funded status at end of year
$
529 
$
1,641 
Amounts recognized in the consolidated balance sheets consist of:
Other assets
$
529 
$
1,641 
Amounts recognized in accumulated other comprehensive loss consist of:
Net loss (gain)
$
1,479 
$
(703)
Prior service cost
45 
46 
Total
$
1,524 
$
(657)

Net periodic pension costs for the years ended December 31, 2025 and 2024 were as follows:

Year Ended December 31,
2025
2024
Components of net periodic benefit cost:
Interest cost
$
253 
$
215 
Expected return on plan assets
(344)
(380)
Amortization of prior service cost
25 
24 
Recognized net actuarial loss
43 
33 
Net periodic pension cost
$
(23)
$
(108)

The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also the net periodic benefit cost for the following year.
Year Ended December 31,
2025
2024
Discount rate
5.4 
%
5.4 
%
Expected rate of return on plan assets
5.3 
%
5.3 
%

The plan assets by category for the years ended December 31, 2025 and 2024 were as follows:

December 31,
2025
2024
Asset Category
Cash and cash equivalents
$
529 
$
139 
Buy-in contract
4,571 
— 
Bonds
— 
6,206 
Total
$
5,100 
$
6,345 

The Company determines the fair value of plan assets based on the price that would be received for an asset in the principal or most advantageous market in an orderly transaction between market participants. Fair value measurements reflect assumptions that market participants would use in pricing the assets, including assumptions about risk and the risks inherent in the valuation techniques and the inputs used. 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 plan assets within the hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Cash equivalents: The Company uses quoted market prices to determine the fair value of these investments in interest-bearing cash accounts and they are classified as Level 1 of the fair value hierarchy. The carrying amounts approximate fair value because of the short maturity of the instruments.

Bonds: The Company uses valuation techniques that incorporate observable inputs including yield curves, reported trades, and broker-quoted prices and are classified as Level 2 of the fair value hierarchy.

Buy-in contract: The Company values the buy-in contract on an insurer pricing basis, which reflects the purchase price adjusted for changes in discount rates and other actuarial assumptions, which approximates fair value and as a result is classified as Level 3 in the fair value hierarchy.

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.

Year Ended December 31,
2025
2024
United States
$
2,947 
$
2,757 
Canada
173 
124 
United Kingdom
1,286 
1,165 
$
4,406 
$
4,046