Downers Grove, Illinois, July 30, 2026 —  Federal Signal Corporation (NYSE:FSS) (the “Company”), a leader in environmental and safety solutions, today reported financial results for the second quarter ended June 30, 2026.  

Second Quarter Highlights

• •    Net sales of $670 million, up $106 million, or 19%, from last year
  •    Operating income of $118.2 million, up $20.5 million, or 21%, from last year
  •    GAAP Diluted EPS of $1.40, up $0.24, or 21%, from last year
  •    Adjusted EPS of $1.42, up $0.25, or 21%, from last year
  •    Orders of $637 million, up $97 million, or 18%, from last year
  •    Operating cash flow of $113 million, up $53 million, or 89%, from last year
  •    Raises 2026 net sales outlook to a new range of $2.58 billion to $2.67 billion, from the prior range of $2.57 billion to $2.66 billion
  •    Raises 2026 adjusted EPS* outlook to a new range of $5.12 to $5.30, from the prior range of $4.80 to $5.05

Consolidated net sales for the second quarter were $670 million, an increase of $106 million, or 19%, compared to the prior-year quarter. Net income for the second quarter was $86.1 million, or $1.40 per diluted share, compared to $71.4 million, or $1.16 per diluted share, in the prior-year quarter.

The Company also reported adjusted net income for the second quarter of $87.5 million, or $1.42 per diluted share, compared to $71.9 million, or $1.17 per diluted share, in the prior-year quarter. The Company is reporting adjusted results to facilitate comparisons of underlying performance on a year-over-year basis. A reconciliation of these and other non-GAAP measures is provided at the conclusion of this news release.

Double-Digit Year-over-Year Net Sales and Operating Income Growth and 18% Increase in Orders in Record-Setting Second Quarter

“In what is typically a seasonally-strong period, our businesses were able to deliver 19% year-over-year net sales growth, 21% operating income improvement, an 18% increase in orders, gross margin expansion, and a 60-basis point increase in adjusted EBITDA margin during a record-setting second quarter,” commented Jennifer L. Sherman, President and Chief Executive Officer. “These results underscore the resilience and durability of our business model, the momentum behind our growth initiatives, and the unwavering commitment of our teams. Within our Environmental Solutions Group, orders were up 24% year-over-year, including high-single-digit organic growth, while net sales and adjusted EBITDA increased by 20% and 25%, respectively, with contributions from recent acquisitions, higher sales of our aftermarket offerings, and proactive management of price/cost dynamics representing meaningful year-over-year growth drivers. Our Safety and Security Systems Group also delivered impressive results, with 10% top-line growth and an adjusted EBITDA margin of approximately 25%.”

In the Environmental Solutions Group, net sales for the second quarter were $578 million, up $97 million, or 20%, compared to the prior-year quarter. In the Safety and Security Systems Group, net sales were $93 million, up $8 million, or 10%, compared to the prior-year quarter.

Consolidated operating income for the second quarter was $118.2 million, up $20.5 million, or 21%, compared to the prior-year quarter. Consolidated operating margin for the second quarter was 17.6%, up from 17.3% in the prior-year quarter.

Consolidated adjusted earnings before interest, tax, depreciation and amortization (“adjusted EBITDA”) for the second quarter was $144.4 million, up $26.2 million, or 22%, compared to the prior-year quarter, and consolidated adjusted EBITDA margin was 21.5%, up from 20.9% in the prior-year quarter.

In the Environmental Solutions Group, adjusted EBITDA for the second quarter was $138.3 million, up $27.5 million, or 25%, compared to the prior-year quarter, and its adjusted EBITDA margin was 23.9%, up from 23.1% last year. In the Safety and Security Systems Group, adjusted EBITDA for the second quarter was $23.2 million, up $0.6 million, or 3%, compared to the prior-year quarter, and its adjusted EBITDA margin was 25.1%, compared to 26.9% last year.

Consolidated orders for the second quarter were $637 million, an increase of $97 million, or 18%, compared to the prior-year quarter. Consolidated backlog at June 30, 2026 was $1.00 billion, compared to $1.08 billion in the prior-year quarter.

Increased Operating Cash Flow Provides Flexibility to Fund M&A, Organic Growth Opportunities, and Cash Returns to Stockholders

Net cash provided by operating activities during the second quarter was $113 million, an increase of $53 million, or 89%, from the prior-year quarter.

At June 30, 2026, total outstanding debt was $454 million, total cash and cash equivalents were $63 million, and the Company had $1.04 billion of availability for borrowings under its credit facility.

“Our operating cash flow generation during the quarter was outstanding, enabling us to pay down approximately $97 million of debt during the quarter,” said Sherman. “With the increased cash generation and available capacity under our credit facility, we have significant financial flexibility to invest in organic growth initiatives, pursue additional strategic acquisitions, pay down debt, and provide returns to stockholders through dividends and opportunistic stock repurchases.”

The Company funded dividends of $9.1 million during the second quarter, reflecting a dividend of $0.15 per share, and recently announced a similar $0.15 per share dividend that will be payable in the third quarter of 2026.

Outlook

“Demand for our products and our aftermarket offerings remains strong overall, with our second quarter orders up 18% year-over-year,” noted Sherman. “With our second quarter performance, our current backlog, and continued execution against our strategic initiatives, we are raising our full-year adjusted EPS* outlook to a new range of $5.12 to $5.30, from the prior range of $4.80 to $5.05. We are also increasing our full-year net sales outlook to a new range of between $2.58 billion and $2.67 billion, from the prior range of between $2.57 billion and $2.66 billion.”

CONFERENCE CALL

Federal Signal will host its second quarter conference call on Thursday, July 30, 2026 at 10:00 a.m. Eastern Time. The call will last approximately one hour. The call may be accessed over the internet through Federal Signal’s website at www.federalsignal.com or by dialing phone number 1-877-704-4453 and entering the pin number 13761759. A replay will be available on Federal Signal’s website shortly after the call.

About Federal Signal

Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities where we work and live. Founded in 1901, Federal Signal is a leading global designer, manufacturer and supplier of products and total solutions that serve municipal, governmental, industrial, and commercial customers. Headquartered in Downers Grove, Ill., with manufacturing facilities worldwide, the Company operates two groups: Environmental Solutions and Safety and Security Systems. For more information on Federal Signal, visit: www.federalsignal.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

This release contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this release that are not historical are forward-looking statements. Forward looking statements should not be relied upon as a predictor of actual results. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: economic and political uncertainty, risks and adverse economic effects associated with geopolitical conflicts including tariffs and other trade conflicts, legal and regulatory developments, foreign currency exchange rate changes, inflationary pressures, product and price competition, supply chain disruptions, availability and pricing of raw materials, interest rate changes, risks associated with acquisitions such as integration of operations and achieving anticipated revenue and cost benefits, work stoppages, increases in pension funding requirements, cybersecurity risks, increased legal expenses and litigation results, and other risks and uncertainties described in filings with the Securities and Exchange Commission.

Contact: Ian Hudson, Chief Financial Officer, +1-630-954-2000, ihudson@federalsignal.com

* Adjusted earnings per share (“EPS”) is a non-GAAP measure, which includes certain adjustments to reported GAAP net income and diluted EPS. In the three and six months ended June 30, 2026 and 2025, we made adjustments to exclude the impact of acquisition and integration-related expenses, net, purchase accounting effects, and certain special income tax items, where applicable. In prior years, we have also made adjustments to exclude the impact of pension-related charges, debt settlement charges, and certain other unusual or non-recurring items. Should any similar items occur in the remainder of 2026, we would expect to exclude them from the determination of adjusted EPS. However, because of the underlying uncertainty in quantifying amounts which may not yet be known, a reconciliation of our Adjusted EPS outlook to the most applicable GAAP measure is excluded based on the unreasonable efforts exception in Item 10(e)(1)(i)(B).

View and print the release here