Downers Grove, Illinois, October 29, 2026 —  Federal Signal Corporation (NYSE:FSS) (the “Company”), a leader in environmental and safety solutions, today reported financial results for the third quarter ended September 30, 2026.   

Third Quarter Highlights

• •    Net sales of $656 million, up $101 million, or 18%, from last year
  •    Operating income of $111.4 million, up $17.4 million, or 19%, from last year
  •    GAAP Diluted EPS of $1.29, up $0.18, or 16%, from last year
  •    Adjusted EPS of $1.34, up $0.20, or 18%, from last year
  •    Orders of $620 million, up $153 million, or 33%, from last year
  •    Operating cash flow of $91 million, up $30 million, or 50%, from last year
  •    Raises 2026 adjusted EPS* outlook to a new range of $5.20 to $5.32, from the prior range of $5.12 to $5.30

Consolidated net sales for the third quarter were $656 million, an increase of $101 million, or 18%, compared to the prior-year quarter. Net income for the third quarter was $79.6 million, or $1.29 per diluted share, compared to $68.1 million, or $1.11 per diluted share, in the prior-year quarter.

The Company also reported adjusted net income for the third quarter of $82.6 million, or $1.34 per diluted share, compared to $69.7 million, or $1.14 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 33% Increase in Orders in Record-Setting Third Quarter

“Our businesses were able to deliver 18% year-over-year net sales growth, 19% operating income improvement, a 33% increase in orders, and a 50-basis point increase in adjusted EBITDA margin during a record-setting third quarter,” commented Jennifer L. Sherman, President and Chief Executive Officer. “Within our Environmental Solutions Group, orders were up 43% year-over-year, including organic growth in the high teens, while net sales and adjusted EBITDA each increased by more than 20%, 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 strong results, with 2% top-line growth and an adjusted EBITDA margin of approximately 26%.”

In the Environmental Solutions Group, net sales for the third quarter were $564 million, up $98 million, or 21%, compared to the prior-year quarter. In the Safety and Security Systems Group, net sales were $92 million, up $2 million, or 2%, compared to the prior-year quarter.

Consolidated operating income for the third quarter was $111.4 million, up $17.4 million, or 19%, compared to the prior-year quarter. Consolidated operating margin for the third quarter was 17.0%, up from 16.9% in the prior-year quarter.

Consolidated adjusted earnings before interest, tax, depreciation and amortization (“adjusted EBITDA”) for the third quarter was $140.4 million, up $24.2 million, or 21%, compared to the prior-year quarter, and consolidated adjusted EBITDA margin was 21.4%, up from 20.9% in the prior-year quarter.

In the Environmental Solutions Group, adjusted EBITDA for the third quarter was $126.4 million, up $21.5 million, or 20%, compared to the prior-year quarter, and adjusted EBITDA margin was 22.4%, compared to 22.5% last year. In the Safety and Security Systems Group, adjusted EBITDA for the third quarter was $23.9 million, up $1.0 million, or 4%, compared to the prior-year quarter, and adjusted EBITDA margin was 26.1%, up from 25.6% last year.

Consolidated orders for the third quarter were $620 million, an increase of $153 million, or 33%, compared to the prior-year quarter. Consolidated backlog at September 30, 2026 was $967 million, compared to $992 million 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 third quarter was $91 million, an increase of $30 million, or 50%, from the prior-year quarter.

At September 30, 2026, total outstanding debt was $420 million, total cash and cash equivalents were $74 million, and the Company had $1.04 billion of availability for borrowings under its credit facility.

During the quarter, the Company completed the acquisition of Western Technology for approximately $9 million, and also paid approximately $13 million to finalize the purchase price closing adjustments related to the New Way acquisition. In addition, as announced yesterday, the Company completed the acquisition of Global Vacuum Systems for an initial purchase price of approximately $29 million.

“Our cash generation this quarter was again outstanding, bringing the total year-to-date cash generated from operations to $306 million, an increase of $148 million, or 94%, compared to the prior-year period,” 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, and provide returns to stockholders through dividends and opportunistic stock repurchases.”

The Company funded dividends of $9.2 million during the third 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 fourth quarter of 2026.

The Company also repurchased approximately $5 million of its stock during the third quarter.

Outlook

“Demand for our products and our aftermarket offerings remains strong overall, with our third quarter orders up 33% year-over-year,” noted Sherman. “With our third 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 $5.20 to $5.32, from the prior range of $5.12 to $5.30. Primarily due to anticipated delays in deliveries of third-party refuse trucks, we are also narrowing our full-year net sales outlook to a new range of between $2.61 billion and $2.64 billion, from the prior range of between $2.58 billion and $2.67 billion.”

CONFERENCE CALL

Federal Signal will host its third quarter conference call on Thursday, October 29, 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 13763327. 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 nine months ended September 30, 2026 and 2025, the Company made adjustments to exclude the impact of acquisition and integration-related expenses, net, charges associated with previously discontinued operations, purchase accounting effects, and certain special income tax items, where applicable. In prior years, the Company has 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, the Company 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).

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