Federal Signal Reports Strong Q2 Growth and Raises Outlook

Federal Signal ( (FSS) ) has released its Q2 earnings. Here is a breakdown of the information Federal Signal presented to its investors.

Federal Signal Corporation, a prominent player in the environmental and safety solutions sector, has reported a robust financial performance for the second quarter of 2025, showcasing significant growth in net sales and operating income. The company, known for its high-quality equipment that serves municipal, governmental, industrial, and commercial customers, continues to expand its market presence with strategic initiatives.

In its latest earnings report, Federal Signal announced a 15% increase in net sales, reaching $565 million, and a 20% rise in operating income compared to the previous year. The company also reported a 17% increase in GAAP diluted earnings per share (EPS) and a 23% increase in adjusted EPS. Orders for the quarter rose by 14%, reflecting strong customer demand.

The Environmental Solutions Group led the growth with an 18% increase in net sales and a 26% rise in adjusted EBITDA. The Safety and Security Systems Group also performed well, with a 3% increase in net sales and a 17% rise in adjusted EBITDA. Federal Signal’s operating cash flow increased by 47%, providing the company with the flexibility to fund organic growth and pursue strategic acquisitions.

Looking ahead, Federal Signal has raised its full-year outlook for net sales and adjusted EPS, reflecting confidence in its strategic and operational initiatives. The company has also increased its EBITDA margin targets, signaling continued growth and profitability in the coming quarters.