Federal Signal Corp

Latest Results (29.09.2025):

Federal Signal Corp reported a record second quarter for 2025, demonstrating strong financial performance with a 15% increase in net sales and a 20% improvement in operating income. The company has also raised its full-year outlook and EBITDA margin targets, reflecting robust growth and strategic progress in its Environmental Solutions and Safety and Security Systems groups.

Net Sales Growth

In the second quarter of 2025, Federal Signal Corp achieved net sales of $565 million, marking a 15% increase compared to the same quarter last year. This growth includes an organic increase of 9%, highlighting strong market demand and effective sales strategies.

Operating Income and EPS

Operating income for the quarter rose to $97.7 million, a 20% improvement year-over-year. Additionally, the company reported a GAAP diluted earnings per share (EPS) of $1.16, up 17%, and an adjusted EPS of $1.17, up 23%, underscoring enhanced profitability.

Order Intake and Backlog

Federal Signal Corp secured orders totaling $540 million in the second quarter, representing a 14% increase from the prior year. The consolidated backlog at June 30, 2025, stands at $1.08 billion, ensuring sustained revenue streams and growth opportunities.

Cash Flow and Financial Flexibility

Operating cash flow for the quarter increased significantly to $60 million, a 47% rise year-over-year. With total cash and cash equivalents at $65 million and $515 million of borrowing capacity available, the company maintains strong financial flexibility to support organic growth, strategic acquisitions, and shareholder returns.

Raised Full-Year Outlook

Based on the second quarter's exceptional performance, Federal Signal Corp has raised its 2025 net sales outlook to a range of $2.07 billion to $2.13 billion and its adjusted EPS outlook to $3.92 to $4.10. Additionally, the company has increased its consolidated EBITDA margin target to 16-22% and the Environmental Solutions Group's EBITDA margin target to 18-24%, reflecting confidence in continued operational excellence.

Segment Performance

The Environmental Solutions Group reported net sales of $481 million, up 18%, while the Safety and Security Systems Group achieved net sales of $84 million, a 3% increase. Both segments contributed to the overall strong financial results, with significant improvements in EBITDA margins.

Shareholder Returns

Federal Signal Corp returned $8.5 million to shareholders through dividends during the second quarter and repurchased $20 million of its stock. The company remains committed to rewarding its investors while pursuing growth initiatives.