Federal Signal reports Q2 adjusted EPS $1.17, consensus $1.06

Reports Q2 revenue $565M, consensus $537.24M. “In what is typically a seasonally-strong period, our businesses were able to deliver 15% year-over-year net sales growth, 20% operating income improvement, gross margin expansion, and a 100-basis point increase in adjusted EBITDA margin during a record-setting Q2,” commented Jennifer Sherman, President and CEO. “Our Environmental Solutions Group delivered 18% year-over-year net sales growth and a 26% increase in adjusted EBITDA. Production increases at several of our businesses, higher sales of our aftermarket offerings, proactive management of price/cost dynamics, and contributions from recent acquisitions were meaningful year-over-year growth drivers. Our Safety and Security Systems Group also delivered impressive results, with 3% top-line growth and an adjusted EBITDA margin of 27%. With its consistently strong performance over the last several quarters and ongoing traction on strategic initiatives, we are increasing the EBITDA margin target for our Environmental Solutions Group to a new range of 18%-24%, from the prior range of 17%-22%. At the same time, we are increasing our consolidated EBITDA margin target to a new range of 16%-22%, from the prior range of 14%-20%.”