Federal Signal (NYSE:FSS) Issues Earnings Results

Federal Signal (NYSE:FSS) announced its quarterly earnings data on Thursday. The conglomerate reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.29 by $0.13, Briefing.com reports. The firm had revenue of $670.20 million during the quarter, compared to analysts’ expectations of $667.04 million. Federal Signal had a return on equity of 21.18% and a net margin of 11.56%.The company’s quarterly revenue was up 18.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.17 EPS. Federal Signal updated its FY 2026 guidance to 5.120-5.300 EPS.

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

• Record second-quarter results: Net sales rose 19% year over year to $670 million, while adjusted EBITDA increased 22% to $144.4 million and adjusted EPS grew 21% to $1.42. Orders increased 18% to $637 million, supported by broad-based demand.
• Federal Signal raised its 2026 adjusted EPS outlook to $5.12–$5.30 from $4.80–$5.05 and increased its revenue outlook to $2.58–$2.67 billion. Management cited strong second-quarter execution, backlog, aftermarket momentum, and acquisition performance.
• Environmental Solutions Group sales grew 20% and adjusted EBITDA rose 25%, with aftermarket revenue up 24% to roughly 25% of ESG revenue. Management expects continued aftermarket expansion through parts manufacturing, additional service locations, rentals, used equipment, and acquisition-related opportunities.
• New Way and Mega are performing ahead of internal profit and margin expectations, with New Way tracking ahead of its cost-synergy targets. The company also completed the small Western Technology acquisition and described an active M&A pipeline across both operating groups.
• Backlog was approximately $1 billion, down 8% year over year largely because third-party Labrie refuse orders are being phased out, but management said backlog-driven products still provide strong forward visibility. Safety and Security Systems’ adjusted EBITDA margin declined to 25.1% from 26.9% because of product and shipment mix, though it remained within the company’s 22%–28% target range.

Federal Signal Price Performance

Federal Signal stock traded up $12.57 during midday trading on Thursday, reaching $124.43. The company’s stock had a trading volume of 901,435 shares, compared to its average volume of 498,060. The company has a current ratio of 2.84, a quick ratio of 1.29 and a debt-to-equity ratio of 0.38. The stock has a market cap of $7.59 billion, a PE ratio of 28.28, a price-to-earnings-growth ratio of 1.62 and a beta of 1.23. Federal Signal has a 52 week low of $101.18 and a 52 week high of $134.51. The business has a 50-day moving average price of $116.93 and a 200-day moving average price of $114.82.

Federal Signal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Friday, August 14th will be paid a $0.15 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.60 annualized dividend and a yield of 0.5%. Federal Signal’s dividend payout ratio (DPR) is 13.64%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on FSS shares. Weiss Ratings upgraded Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday, June 23rd. Wall Street Zen upgraded shares of Federal Signal from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. DA Davidson raised their target price on shares of Federal Signal from $125.00 to $132.00 and gave the company a “neutral” rating in a report on Friday, May 1st. KeyCorp restated an “overweight” rating and issued a $140.00 target price on shares of Federal Signal in a research report on Thursday, April 30th. Finally, Zacks Research raised shares of Federal Signal from a “hold” rating to a “strong-buy” rating in a report on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus target price of $139.25.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC grew its holdings in shares of Federal Signal by 140.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate’s stock valued at $26,000 after purchasing an additional 142 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its position in Federal Signal by 3,100.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate’s stock valued at $30,000 after buying an additional 248 shares in the last quarter. UMB Bank n.a. boosted its position in Federal Signal by 50.5% in the fourth quarter. UMB Bank n.a. now owns 331 shares of the conglomerate’s stock valued at $36,000 after buying an additional 111 shares in the last quarter. Meeder Asset Management Inc. bought a new stake in shares of Federal Signal during the fourth quarter worth $38,000. Finally, Danske Bank A S bought a new stake in shares of Federal Signal during the third quarter worth $48,000. Institutional investors own 92.73% of the company’s stock.

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.