Federal Signal Corp

Latest Results (14.05.2026):

Federal Signal Corporation — First Quarter 2026: The company reported a strong start to 2026 with consolidated net sales of $625.6M (up 35% year-over-year), operating income of $99.7M (up 52%), GAAP diluted EPS of $1.14 (up 52%) and adjusted EPS of $1.18 (up 55%). Operating cash flow was $101.3M (up 176%). Federal Signal raised its full-year 2026 guidance for net sales to $2.57–$2.66B and adjusted EPS to $4.80–$5.05, and increased the Safety & Security Systems Group EBITDA margin target to 22%–28%.

Revenue & Orders

Net sales: $625.6M vs $463.8M a year ago (+35%). Orders were $622.8M (+10% y/y). Backlog at March 31, 2026 was $1.04B (down from $1.10B a year ago).

Profitability

Operating income: $99.7M (+52%). Consolidated operating margin improved to 15.9% (from 14.2%). Net income was $70.4M, GAAP diluted EPS $1.14 (vs $0.75 prior year).

Adjusted Results & Margins

Adjusted EBITDA: $126.3M (+48%); adjusted EBITDA margin 20.2% (vs 18.3%). Adjusted EPS: $1.18 (excludes acquisition/integration and purchase-accounting items).

Segment Performance

Environmental Solutions: Net sales $532.7M (+38%), adjusted EBITDA $113.3M, adjusted EBITDA margin 21.3%. Safety & Security Systems: Net sales $92.9M (+22%), adjusted EBITDA $24.7M, adjusted EBITDA margin 26.6%; company raised full-year margin target for this group to 22%–28%.

Cash Flow & Balance Sheet

Operating cash flow: $101.3M (vs $36.7M prior year). Cash & equivalents $71.4M; total debt $551.6M; $939M available on credit facility—providing flexibility for M&A, growth, debt paydown and stockholder returns.

Guidance & Capital Allocation

2026 outlook raised: net sales $2.57–$2.66B (from $2.55–$2.65B) and adjusted EPS $4.80–$5.05 (from $4.50–$4.80). Paid dividends of $0.15/share in Q1 ($9.2M); management cites capacity for acquisitions, organic investment, debt reduction and opportunistic buybacks.