Federal Signal Corp. (FSS)
NYSE:FSS
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Earnings Data
Report Date
Jul 23, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.29Last Year’s EPS
1.17Same Quarter Last Year
Strong Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call conveyed a strongly positive operational and financial performance with substantial revenue, profit, margin, and cash flow improvements driven by both organic execution and recent acquisitions. Management raised full-year guidance and increased SSG margin targets, reflecting confidence in sustained margin expansion and M&A-driven growth. Notable headwinds include a ~$20M decline in international export orders, a year-over-year backlog decline (~6%) driven in part by discontinued third‑party backlog, higher corporate and financing-related costs, and possible future input-cost pressure (steel, freight). Overall, the positive metrics, upgraded guidance, robust cash generation, and strategic margin initiatives materially outweigh the identified challenges.Company Guidance
Record Quarterly Net Sales
Consolidated net sales of $626 million in Q1, up $162 million or 35% year-over-year; organic sales growth of $70 million or 15%.
Strong Profitability Gains
Consolidated operating income of $99.7 million, up $34 million or 52% year-over-year; GAAP diluted EPS $1.14 (+52%) and adjusted EPS $1.18 (+55%).
Adjusted EBITDA Expansion
Consolidated adjusted EBITDA of $126.3 million, up $41.2 million or 48% year-over-year; adjusted EBITDA margin improved to 20.2%, up 190 basis points.
Environmental Solutions Group (ESG) Outperformance
ESG net sales $533 million (+38%); operating income $89.1 million (+49%); adjusted EBITDA $113.3 million (+46%); adjusted EBITDA margin 21.3%, +130 basis points; orders $534 million (+11%).
Safety & Security Systems Group (SSG) Margin Leap
SSG net sales $93 million (+22%); operating income $23.6 million (+49%); adjusted EBITDA $24.7 million (+47%); adjusted EBITDA margin 26.6%, up 460 basis points. Company raised SSG through-cycle EBITDA margin target to 22%-28% (from 18%-24%).
Robust Cash Generation and Working Capital Management
Generated $101 million of cash from operations in Q1, an increase of $65 million or 176% year-over-year; cash conversion of 144% of net income in the quarter; net debt $480 million with $939 million availability on credit facility.
Orders and Backlog
Orders of $623 million in Q1, up $55 million or 10% year-over-year; backlog of $1.04 billion at quarter end, providing continued forward visibility in backlog-driven product lines.
Accretive M&A and Acquisition Contribution
Acquisitions (New Way, HOG, MEGA) added approximately $92 million of net sales in the quarter and aided margin and aftermarket growth; company remains active on M&A and reaffirmed $15M-$20M of annual synergies from New Way by 2028.
Aftermarket and Parts Growth
Aftermarket revenue increased 18% year-over-year driven by higher parts demand, increased service activity, and rental income growth; Build More Parts (BMP) initiative underway to vertically integrate parts production.
Operational Throughput and Lead Time Improvement
Approximately 15% year-over-year throughput improvement cited in certain truck lines; sewer cleaner lead times ~11 months and four-wheel sweepers ~12 months with target lead times of 4-6 months to improve nimbleness and responsiveness.
Raised Full-Year Guidance
Full-year adjusted EPS range raised to $4.80-$5.50 (from $4.50-$4.80); full-year net sales outlook increased to $2.57B-$2.66B (from $2.55B-$2.65B); CapEx maintained at $45M-$55M.
Capital Allocation and Shareholder Returns
Paid $9.2 million in dividends in Q1 with dividend increased to $0.15 per share and similar dividend declared for Q2; company highlighted flexibility to pursue acquisitions, pay down debt, and opportunistic buybacks.
FSS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FSS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $111.74 | $121.48 | +8.72% |
Feb 25, 2026 | $116.83 | $119.25 | +2.08% |
Oct 30, 2025 | $129.41 | $115.46 | -10.78% |
Jul 30, 2025 | $104.47 | $123.48 | +18.21% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Federal Signal Corp. (FSS) report earnings?
Federal Signal Corp. (FSS) is schdueled to report earning on Jul 23, 2026, Before Open (Confirmed).
What is Federal Signal Corp. (FSS) earnings time?
Federal Signal Corp. (FSS) earnings time is at Jul 23, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FSS EPS forecast?
FSS EPS forecast for the fiscal quarter 2026 (Q2) is 1.29.