Federal Signal (NYSE:FSS) Releases FY 2026 Earnings Guidance

Federal Signal (NYSE:FSS) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 4.500-4.800 for the period, compared to the consensus estimate of 4.610. The company issued revenue guidance of $2.6 billion-$2.7 billion, compared to the consensus revenue estimate of $2.5 billion.

Analyst Ratings Changes

FSS has been the topic of a number of research analyst reports. CJS Securities raised Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 target price for the company in a research report on Thursday. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Federal Signal in a report on Monday, December 29th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $126.75.

Federal Signal Trading Down 1.2%

Federal Signal stock traded down $1.45 during mid-day trading on Friday, hitting $116.18. The company’s stock had a trading volume of 87,126 shares, compared to its average volume of 386,290. The business has a 50 day moving average price of $114.52 and a 200-day moving average price of $117.35. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.02 and a quick ratio of 1.25. Federal Signal has a 12 month low of $66.47 and a 12 month high of $132.89. The stock has a market cap of $7.07 billion, a price-to-earnings ratio of 29.00, a price-to-earnings-growth ratio of 1.86 and a beta of 1.35.

Federal Signal (NYSE:FSS) last issued its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.08 by $0.08. Federal Signal had a net margin of 11.31% and a return on equity of 20.14%. The business had revenue of $597.10 million for the quarter, compared to the consensus estimate of $551.36 million. During the same period in the previous year, the firm earned $0.87 EPS. The company’s quarterly revenue was up 26.5% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. As a group, analysts forecast that Federal Signal will post 3.34 EPS for the current year.

Federal Signal News Summary

Here are the key news stories impacting Federal Signal this week:

• Positive Sentiment: Q4 beat and upgraded outlook — Federal Signal reported stronger Q4 results (revenue and EPS above Street forecasts) and described a record year; those results and guidance revisions are the main drivers behind the recent rally. Federal Signal Completes Record Year
• Positive Sentiment: Analyst upgrades and higher targets — CJS Securities upgraded FSS to “market outperform” with a $140 PT, and other outlets noted improved relative strength ratings; those endorsements support further upside potential. CJS Securities upgrade
• Positive Sentiment: Sidoti raises FY2026/27 and quarterly EPS forecasts overall — Sidoti bumped FY2026 and FY2027 EPS, and lifted Q2/Q3/Q4 estimates while slightly trimming Q1; the net effect is a higher multi-year outlook that supports valuation. Sidoti estimate changes
• Positive Sentiment: Dividend increase announced — The board declared a 7% hike to the quarterly cash dividend ($0.15/share), a signal of cash generation and a plus for income-focused shareholders. Federal Signal Increases Quarterly Dividend by 7%
• Positive Sentiment: RS rating lift and positive media coverage — Stockscreen/RS improvements and bullish articles have added to investor interest and helped drive intraday volume during the rally. RS rating lift
• Neutral Sentiment: Board refresh — The company announced two new independent director appointments; governance changes are generally neutral but can support long-term oversight. Federal Signal Appoints Two New Directors
• Neutral Sentiment: Full earnings materials available — Transcripts and presentations (earnings call, slides) provide detail for investors to model margins, backlog and guidance assumptions. Q4 results presentation
• Negative Sentiment: Small near-term estimate cut for Q1 by Sidoti — Sidoti trimmed its Q1 EPS view modestly (from $0.97 to $0.93), a near-term cautionary note even as they raised later-quarter and full-year projections. Sidoti Q1 estimate cut
• Negative Sentiment: Profit-taking after the post-earnings run — The recent sharp run-up created conditions for a pullback as some investors booked gains; that is the main reason the share price has eased despite positive corporate and analyst developments.

Institutional Investors Weigh In On Federal Signal

Institutional investors have recently added to or reduced their stakes in the stock. Wasatch Advisors LP acquired a new position in Federal Signal during the 3rd quarter valued at approximately $174,476,000. Invesco Ltd. raised its position in shares of Federal Signal by 16.0% in the third quarter. Invesco Ltd. now owns 1,967,348 shares of the conglomerate’s stock worth $234,095,000 after acquiring an additional 271,878 shares during the period. UBS Group AG boosted its position in Federal Signal by 77.0% during the third quarter. UBS Group AG now owns 609,582 shares of the conglomerate’s stock worth $72,534,000 after purchasing an additional 265,145 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Federal Signal by 29.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 945,229 shares of the conglomerate’s stock worth $102,644,000 after acquiring an additional 214,319 shares in the last quarter. Finally, Sei Investments Co. increased its stake in shares of Federal Signal by 257.7% during the third quarter. Sei Investments Co. now owns 170,124 shares of the conglomerate’s stock worth $20,242,000 after purchasing an additional 122,558 shares in the last quarter. 92.73% of the stock is owned by hedge funds and other institutional investors.

About Federal Signal

Federal Signal Corporation (NYSE: FSS), headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.