Federal Signal Stock Earnings Reports

Federal Signal delivered a strong Q3 2025: consolidated net sales of $555M (up 17% YoY), adjusted EBITDA of $116.2M (up 25% YoY) and adjusted EPS of $1.14 (up 30% YoY). Order intake hit a record third-quarter level of $467M, while backlog was $992M (down 4% YoY, largely due to winding down third-party refuse truck orders ahead of the New Way transition). ESG and SSG both grew: ESG sales +17% and adjusted EBITDA margin 22.5%; SSG sales +18% and margin 25.6%. Cash flow remains healthy (Q3 operating cash flow $61M; year-to-date $158M), enabling ~$55M of debt paydown and dividends of $0.14/share. Management executed a new 5-year $1.5B credit facility (larger revolver and $400M term loan to fund the New Way acquisition), increasing financial flexibility for organic investments and M&A. Acquisitions (Hog ~ $20M and Standard ~ $10M sales in Q3) contributed to revenue and are expected to provide further synergies; Hog's 2025 contribution was revised up to $60–$65M. Management raised full-year guidance: adjusted EPS to $4.09–$4.17 and net sales to $2.10–$2.14B (does not include New Way). New Way acquisition expected to close in Q4 pending approval, pro forma leverage <1.5x at close; management expects New Way to be margin-dilutive in 2026 but accretive by 2028 with synergies. Operationally, company is focused on throughput improvements, parts verticalization (‘‘build more parts’’), aftermarkets growth, and capacity/capex investments (automation and warehouse expansion).