Federal Signal (NYSE:FSS) Posts Quarterly Earnings Results

Federal Signal (NYSE:FSS) issued its quarterly earnings data on Thursday. The conglomerate reported $1.34 EPS for the quarter, topping analysts’ consensus estimates of $1.32 by $0.02, Briefing.com reports. Federal Signal had a net margin of 11.66% and a return on equity of 21.36%. The company had revenue of $655.50 million during the quarter, compared to the consensus estimate of $661.61 million. During the same quarter in the previous year, the firm posted $1.14 earnings per share. Federal Signal’s revenue for the quarter was up 18.1% compared to the same quarter last year.

Here are the key takeaways from Federal Signal’s conference call:

• Record third-quarter results: Revenue rose 18% year over year to $656 million, adjusted EPS increased 18% to $1.34, and adjusted EBITDA margin expanded 50 basis points to 21.4%. Orders climbed 33% to $620 million, supported by broad strength across Environmental Solutions Group product lines.
• Management raised full-year adjusted EPS guidance to $5.20–$5.32 from $5.12–$5.30, citing strong orders, backlog, and execution on growth initiatives. Full-year revenue guidance was narrowed to $2.61–$2.64 billion, primarily because third-party refuse-truck deliveries are expected to be delayed.
• Aftermarket revenue grew 21%, with rental income up 24%, and represented approximately 26% of ESG revenue. The company continues expanding service centers, parts production, rental, used-equipment, and service offerings to increase recurring revenue and reduce earnings cyclicality.
• Federal Signal completed the acquisition of Global Vacuum Systems for an initial payment of about $29 million, adding code liquid-vacuum-tank trucks and an 87,000-square-foot Texas facility. Management expects cross-selling, aftermarket, operational, and product-development synergies, while maintaining capacity to support future growth.
• Operating cash flow reached $306 million in the first nine months, up 94%, though management noted that working-capital improvements at New Way provided an unusual benefit that may not repeat in 2027. Third-quarter backlog was $967 million, with some Labrie refuse-truck deliveries shifting into 2027; the company expects the refuse market to normalize next year.

Federal Signal Price Performance

FSS traded down $2.31 on Friday, reaching $112.90. The company had a trading volume of 77,812 shares, compared to its average volume of 472,415. The company has a fifty day moving average of $115.51 and a 200-day moving average of $115.73. The company has a market capitalization of $6.89 billion, a P/E ratio of 24.28, a PEG ratio of 1.35 and a beta of 1.23. Federal Signal has a one year low of $101.18 and a one year high of $134.51. The company has a current ratio of 2.74, a quick ratio of 1.21 and a debt-to-equity ratio of 0.30.

Federal Signal Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Friday, November 13th will be given a $0.15 dividend. The ex-dividend date is Friday, November 13th. This represents a $0.60 annualized dividend and a yield of 0.5%. Federal Signal’s dividend payout ratio (DPR) is currently 12.93%.

Insider Buying and Selling

In other news, VP Diane Bonina sold 14,856 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $130.44, for a total value of $1,937,816.64. Following the completion of the sale, the vice president owned 15,689 shares in the company, valued at $2,046,473.16. This represents a 48.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 3.30% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on FSS shares. Citigroup started coverage on Federal Signal in a report on Monday, August 17th. They issued a “buy” rating and a $150.00 price objective on the stock. Zacks Research lowered Federal Signal from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 12th. Wall Street Zen cut shares of Federal Signal from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Finally, Weiss Ratings raised Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $140.50.

More Federal Signal News

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

• Positive Sentiment: Federal Signal reported record third-quarter results: earnings per share rose to $1.34 from $1.14 a year earlier and exceeded the $1.32 consensus estimate. Revenue increased 18.1% year over year to $655.5 million, while operating income improved 19%. Federal Signal Reports Record Third Quarter Results
• Positive Sentiment: Orders increased 33% during the quarter, supporting expectations for continued demand and future revenue growth. The company also cited strong cash generation, an important positive for funding investments, acquisitions and shareholder returns. Federal Signal Reports Record Third Quarter Results
• Positive Sentiment: Management raised its fiscal 2026 adjusted EPS outlook, signaling confidence that operational momentum and profitability can continue. Federal Signal Boosts FY26 Adjusted EPS Outlook
• Positive Sentiment: The company completed the approximately $29 million acquisition of Global Vacuum Systems, expanding its vacuum-truck portfolio with custom liquid vacuum tank products. The deal could broaden Federal Signal’s product offering and growth opportunities. Federal Signal Expands Vacuum Truck Portfolio
• Neutral Sentiment: Management narrowed its full-year 2026 sales guidance, suggesting a more precise outlook but potentially less room for upside from revenue expectations. Federal Signal Narrows Full-Year Sales Guidance
• Negative Sentiment: Quarterly revenue of $655.5 million fell short of analysts’ $661.61 million estimate, creating a modest headwind despite the EPS beat and strong year-over-year growth. Federal Signal Surpasses Q3 Earnings Estimates

Federal Signal Company Profile

Federal Signal Corporation (NYSE:FSS) designs and manufactures equipment and systems used by municipalities, government agencies, industrial organizations and commercial customers. Its products support public safety, infrastructure maintenance, environmental protection and emergency response activities.

The company operates through two principal business areas: Environmental Solutions and Safety and Security Systems. Environmental Solutions products include street sweepers, sewer cleaners, vacuum trucks, hydro-excavation equipment, dump bodies and snow and ice control equipment.