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Investors interested in Automotive - Domestic stocks are likely familiar with Federal Signal (FSS) and Tesla (TSLA). But which of these two companies is the best option for those looking for undervalued stocks?

Deutsche Bank AG bought a new stake in shares of Federal Signal Corporation (NYSE:FSS – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 74,733 shares of the conglomerate’s stock, valued at approximately $9,602,000. Deutsche Bank AG owned approximately 0.12% of Federal Signal at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in the business. Wasatch Advisors LP purchased a new position in Federal Signal in the third quarter worth about $174,476,000. Norges Bank purchased a new stake in Federal Signal during the fourth quarter valued at approximately $98,257,000. Vaughan Nelson Investment Management L.P. purchased a new stake in Federal Signal during the first quarter valued at approximately $57,749,000. Bank of New York Mellon Corp bought a new stake in shares of Federal Signal in the 2nd quarter valued at approximately $53,055,000. Finally, Invesco Ltd. lifted its stake in shares of Federal Signal by 16.0% in the 3rd quarter. Invesco Ltd. now owns 1,967,348 shares of the conglomerate’s stock valued at $234,095,000 after purchasing an additional 271,878 shares during the last quarter. Institutional investors own 92.73% of the company’s stock.

Wall Street Analyst Weigh In Several equities analysts have recently weighed in on the company. KeyCorp reissued an “overweight” rating and set a $140.00 target price on shares of Federal Signal in a research report on Thursday, April 30th. Zacks Research downgraded Federal Signal from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 12th. Wall Street Zen lowered shares of Federal Signal from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Weiss Ratings upgraded shares of Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday, June 23rd. Finally, Citigroup began coverage on shares of Federal Signal in a research note on Monday, August 17th. They issued a “buy” rating and a $150.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $140.50.

Get Our Latest Stock Analysis on FSS Insider Buying and Selling at Federal Signal In other news, VP Diane Bonina sold 14,856 shares of Federal Signal stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $130.44, for a total transaction of $1,937,816.64. Following the completion of the sale, the vice president directly owned 15,689 shares in the company, valued at approximately $2,046,473.16. This trade represents a 48.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 3.30% of the company’s stock.

Federal Signal Trading Down 0.1% FSS opened at $122.35 on Monday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.21 and a current ratio of 2.74. The stock’s 50 day moving average price is $122.07 and its 200-day moving average price is $116.24. Federal Signal Corporation has a one year low of $101.18 and a one year high of $134.51. The stock has a market cap of $7.47 billion, a price-to-earnings ratio of 26.37, a P/E/G ratio of 1.67 and a beta of 1.24.

Federal Signal (NYSE:FSS – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The conglomerate reported $1.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.29 by $0.13. Federal Signal had a return on equity of 21.36% and a net margin of 11.66%.The firm had revenue of $670.20 million during the quarter, compared to analyst estimates of $667.04 million. During the same period last year, the company earned $1.17 EPS. Federal Signal’s quarterly revenue was up 18.7% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. On average, equities analysts forecast that Federal Signal Corporation will post 5.23 EPS for the current year.

Federal Signal Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Friday, August 14th will be paid a $0.15 dividend. The ex-dividend date is Friday, August 14th. This represents a $0.60 dividend on an annualized basis and a yield of 0.5%. Federal Signal’s dividend payout ratio (DPR) is presently 12.93%.

Federal Signal Company Profile (Free Report)

Federal Signal Corporation (NYSE: FSS), headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.

Read More Five stocks we like better than Federal Signal VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding FSS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Federal Signal Corporation (NYSE:FSS – Free Report).

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Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Federal Signal (FSS - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this company that makes products ranging from street sweepers to toll booth technology for government, industrial and commercial customers is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Federal Signal is 26.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 22.4% this year, crushing the industry average, which calls for EPS growth of 12.3%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Federal Signal is 26.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of -19.8%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 18.1% over the past 3-5 years versus the industry average of 11.3%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Federal Signal. The Zacks Consensus Estimate for the current year has surged 5.8% over the past month.

Bottom LineFederal Signal has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Federal Signal well for outperformance, so growth investors may want to bet on it.

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Federal Signal (FSS - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.

Federal Signal is a member of the Auto-Tires-Trucks sector. This group includes 104 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Federal Signal is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for FSS' full-year earnings has moved 5.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, FSS has moved about 17.7% on a year-to-date basis. In comparison, Auto-Tires-Trucks companies have returned an average of -18%. This means that Federal Signal is outperforming the sector as a whole this year.

Another stock in the Auto-Tires-Trucks sector, Gentex (GNTX - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 1.2%.

For Gentex, the consensus EPS estimate for the current year has increased 3.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Federal Signal belongs to the Automotive - Domestic industry, which includes 17 individual stocks and currently sits at #89 in the Zacks Industry Rank. Stocks in this group have lost about 22.1% so far this year, so FSS is performing better this group in terms of year-to-date returns.

On the other hand, Gentex belongs to the Automotive - Original Equipment industry. This 52-stock industry is currently ranked #170. The industry has moved +4.1% year to date.

Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Federal Signal and Gentex as they could maintain their solid performance.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Our proprietary system currently recommends Federal Signal (FSS - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this company that makes products ranging from street sweepers to toll booth technology for government, industrial and commercial customers is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Federal Signal is 26.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 20.8% this year, crushing the industry average, which calls for EPS growth of 12.1%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Federal Signal is 26.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of -19.8%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 18.1% over the past 3-5 years versus the industry average of 11.3%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Federal Signal. The Zacks Consensus Estimate for the current year has surged 5.8% over the past month.

Bottom LineFederal Signal has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Federal Signal well for outperformance, so growth investors may want to bet on it.

Federal Signal Corporation (FSS) Q2 2026 Earnings Call Transcript

, /PRNewswire/ -- 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.

* 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).

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(in millions, except per share data)

2026

2025

2026

2025

Net sales

$    670.2

$    564.6

$            1,295.8

$            1,028.4

Cost of sales

466.4

395.0

912.6

728.0

Gross profit

203.8

169.6

383.2

300.4

Selling, engineering, general and administrative expenses

78.3

66.9

150.3

127.1

Amortization expense

6.6

4.5

13.1

8.8

Acquisition and integration-related expenses, net

0.7

0.5

1.9

1.1

Operating income

118.2

97.7

217.9

163.4

Interest expense, net

6.0

3.5

12.9

6.5

Other expense, net

0.8

0.8

1.4

1.5

Income before income taxes

111.4

93.4

203.6

155.4

Income tax expense

25.3

22.0

47.1

37.7

Net income

$     86.1

$     71.4

$  156.5

$  117.7

Earnings per share:

Basic

$     1.41

$     1.18

$   2.57

$   1.93

Diluted

$     1.40

$     1.16

$   2.54

$   1.91

Weighted average common shares outstanding:

Basic

60.9

60.6

60.9

60.9

Diluted

61.5

61.3

61.5

61.6

Cash dividends declared per common share

$     0.15

$     0.14

$   0.30

$   0.28

Operating data:

Operating margin

17.6 %

17.3 %

16.8 %

15.9 %

Adjusted EBITDA

$    144.4

$    118.2

$  270.7

$  203.3

Adjusted EBITDA margin

21.5 %

20.9 %

20.9 %

19.8 %

Total orders

$    636.7

$    539.7

$            1,259.5

$            1,107.6

Backlog

1,002.1

1,083.5

1,002.1

1,083.5

Depreciation and amortization

24.6

19.9

48.4

38.6

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,
2026

December 31,
2025

(in millions, except per share data)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$       62.8

$       63.7

Accounts receivable, net of allowances for doubtful accounts of $2.8 and $2.8, respectively

288.8

292.2

Inventories

479.8

471.6

Prepaid expenses and other current assets

25.5

26.3

Total current assets

856.9

853.8

Properties and equipment, net of accumulated depreciation of $219.4 and $208.0, respectively

289.6

274.6

Rental equipment, net of accumulated depreciation of $73.5 and $69.2, respectively

210.0

202.7

Operating lease right-of-use assets

30.8

28.4

Goodwill

636.8

619.8

Intangible assets, net of accumulated amortization of $116.8 and $104.2, respectively

386.9

382.9

Deferred tax assets

9.8

10.1

Deferred charges and other long-term assets

19.2

20.3

Total assets

$   2,440.0

$   2,392.6

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term borrowings and finance lease obligations

$        5.4

$        0.5

Accounts payable

114.6

98.0

Customer deposits

57.7

47.7

Accrued liabilities:

Compensation and withholding taxes

47.0

52.3

Current operating lease liabilities

8.6

7.9

Contingent consideration

4.3

15.0

Other current liabilities

75.3

61.0

Total current liabilities

312.9

282.4

Long-term borrowings and finance lease obligations

448.2

564.6

Long-term operating lease liabilities

23.6

21.6

Long-term pension and other post-retirement benefit liabilities

44.4

43.1

Deferred tax liabilities

77.8

71.9

Other long-term liabilities

25.5

27.0

Total liabilities

932.4

1,010.6

Stockholders' equity:

Common stock, $1 par value per share, 90.0 shares authorized, 71.1 and 70.8 shares issued,
respectively

71.1

70.8

Capital in excess of par value

340.7

330.4

Retained earnings

1,453.5

1,315.3

Treasury stock, at cost, 10.0 and 9.9 shares, respectively

(279.1)

(263.5)

Accumulated other comprehensive loss

(78.6)

(71.0)

Total stockholders' equity

1,507.6

1,382.0

Total liabilities and stockholders' equity

$   2,440.0

$   2,392.6

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended

June 30,

(in millions)

2026

2025

Operating activities:

Net income

$    156.5

$    117.7

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

48.4

38.6

Stock-based compensation expense

8.1

8.1

Changes in fair value of contingent consideration

0.4

—

Payments for acquisition-related activity

(3.5)

(0.1)

Deferred income taxes

6.0

0.2

Changes in operating assets and liabilities

(1.7)

(68.1)

Net cash provided by operating activities

214.2

96.4

Investing activities:

Purchases of properties and equipment

(18.6)

(12.9)

Payments for acquisition-related activity, net of cash acquired

(44.9)

(82.1)

Other, net

1.4

0.7

Net cash used for investing activities

(62.1)

(94.3)

Financing activities:

(Decrease) increase in revolving lines of credit, net

(109.8)

55.0

Payments on long-term borrowings

—

(1.6)

Purchases of treasury stock

(0.1)

(39.7)

Redemptions of common stock to satisfy withholding taxes related to stock-based compensation

(13.5)

(11.4)

Payments for acquisition-related activity

(11.5)

(4.3)

Cash dividends paid to stockholders

(18.3)

(17.1)

Proceeds from stock-based compensation activity

0.5

1.1

Other, net

(0.2)

(11.8)

Net cash used for financing activities

(152.9)

(29.8)

Effects of foreign exchange rate changes on cash and cash equivalents

(0.1)

1.3

Decrease in cash and cash equivalents

(0.9)

(26.4)

Cash and cash equivalents at beginning of year

63.7

91.1

Cash and cash equivalents at end of period

$      62.8

$      64.7

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

GROUP RESULTS (Unaudited)

The following tables summarize group operating results as of and for the three and six months ended June 30, 2026 and 2025:

Environmental Solutions Group

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

Change

2026

2025

Change

Net sales

$   577.7

$   480.5

$     97.2

$            1,110.4

$  867.9

$  242.5

Operating income

113.9

91.9

22.0

203.0

151.6

51.4

Adjusted EBITDA

138.3

110.8

27.5

251.6

188.3

63.3

Operating data:

Operating margin

19.7 %

19.1 %

0.6 %

18.3 %

17.5 %

0.8 %

Adjusted EBITDA margin

23.9 %

23.1 %

0.8 %

22.7 %

21.7 %

1.0 %

Total orders

$   547.8

$   441.1

$   106.7

$            1,082.1

$  921.2

$  160.9

Backlog

934.8

1,000.3

(65.5)

934.8

1,000.3

(65.5)

Depreciation and amortization

23.3

18.7

4.6

45.9

36.3

9.6

Safety and Security Systems Group

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

Change

2026

2025

Change

Net sales

$     92.5

$     84.1

$      8.4

$  185.4

$  160.5

$   24.9

Operating income

22.1

21.5

0.6

45.7

37.3

8.4

Adjusted EBITDA

23.2

22.6

0.6

47.9

39.4

8.5

Operating data:

Operating margin

23.9 %

25.6 %

(1.7) %

24.6 %

23.2 %

1.4 %

Adjusted EBITDA margin

25.1 %

26.9 %

(1.8) %

25.8 %

24.5 %

1.3 %

Total orders

$     88.9

$     98.6

$     (9.7)

$  177.4

$  186.4

$   (9.0)

Backlog

67.3

83.2

(15.9)

67.3

83.2

(15.9)

Depreciation and amortization

1.1

1.1

—

2.2

2.1

0.1

Corporate Expenses

Corporate operating expenses were $17.8 million and $15.7 million for the three months ended June 30, 2026 and 2025, respectively. Corporate operating expenses were $30.8 million and $25.5 million for the six months ended June 30, 2026 and 2025, respectively.

SEC REGULATION G NON-GAAP RECONCILIATION

The financial measures presented below are unaudited and are not in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information presented herein should be considered supplemental to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company has provided this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the reconciliations below, and to provide an additional measure of performance which management considers in operating the business.

Adjusted Net Income and Earnings Per Share ("EPS"):

The Company believes that modifying its 2026 and 2025 net income and diluted EPS provides additional measures to assist it in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes are not representative of its underlying performance and to improve the comparability of results across reporting periods. Adjusted net income and Adjusted EPS are both non-GAAP measures. During the three and six months ended June 30, 2026 and 2025 adjustments were made to reported GAAP net income and diluted EPS to exclude the impact of acquisition and integration-related expenses, net, purchase accounting effects, and certain special income tax items, where applicable.

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2026

2025

2026

2025

Net income, as reported

$        86.1

$        71.4

$    156.5

$    117.7

Add:

Income tax expense

25.3

22.0

47.1

37.7

Income before income taxes

111.4

93.4

203.6

155.4

Add:

Acquisition and integration-related expenses, net

0.7

0.5

1.9

1.1

Purchase accounting effects (a)

1.1

0.4

2.9

0.7

Adjusted income before income taxes

113.2

94.3

208.4

157.2

Adjusted income tax expense (b) (c)

(25.7)

(22.4)

(48.2)

(38.3)

Adjusted net income

$        87.5

$        71.9

$    160.2

$    118.9

Three Months Ended June 30,

Six Months Ended June 30,

(dollars per diluted share)

2026

2025

2026

2025

EPS, as reported

$        1.40

$        1.16

$      2.54

$      1.91

Add:

Income tax expense

0.41

0.36

0.76

0.61

Income before income taxes

1.81

1.52

3.30

2.52

Add:

Acquisition and integration-related expenses, net

0.01

0.01

0.03

0.02

Purchase accounting effects (a)

0.02

0.01

0.05

0.01

Adjusted income before income taxes

1.84

1.54

3.38

2.55

Adjusted income tax expense (b) (c)

(0.42)

(0.37)

(0.78)

(0.62)

Adjusted EPS

$        1.42

$        1.17

$      2.60

$      1.93

(a)

Purchase accounting effects in the three and six months ended June 30, 2026 and 2025 relate to adjustments to exclude the step-up in the valuation of inventory acquired in connection with acquisitions that was sold subsequent to the acquisition date and the depreciation of the step-up in the valuation of acquired rental equipment, where applicable. Such costs are included as a component of Cost of sales on the Condensed Consolidated Statements of Operations.

(b)

Adjusted income tax expense for the three and six months ended June 30, 2026 was recomputed after excluding the tax impacts of acquisition and integration-related expenses, net, and purchase accounting effects.

(c)

Adjusted income tax expense for the three and six months ended June 30, 2025 was recomputed after excluding the tax impacts of acquisition and integration-related expenses, net, and purchase accounting effects. Adjusted income tax expense for the three and six months ended June 30, 2025 also excludes a $0.2 million discrete tax benefit recognized in connection with the amendment of certain state tax returns to claim a worthless stock deduction.

Adjusted EBITDA and Adjusted EBITDA Margin:

The Company uses adjusted EBITDA and the ratio of adjusted EBITDA to net sales ("adjusted EBITDA margin"), at both the consolidated and segment level, as additional measures to assist in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes are not representative of its underlying performance and to improve the comparability of results across reporting periods. We believe that investors use versions of these metrics in a similar manner. For these reasons, the Company believes that adjusted EBITDA and adjusted EBITDA margin, at both the consolidated and segment level, are meaningful metrics to investors in evaluating the Company's underlying financial performance.

Consolidated adjusted EBITDA is a non-GAAP measure that represents the total of net income, interest expense, net, acquisition and integration-related expenses, net, purchase accounting effects, other expense, net, income tax expense, and depreciation and amortization expense, as applicable. Consolidated adjusted EBITDA margin is a non-GAAP measure that represents the total of net income, interest expense, net, acquisition and integration-related expenses, net, purchase accounting effects, other expense, net, income tax expense, and depreciation and amortization expense, as applicable, divided by net sales for the applicable period(s).

Segment adjusted EBITDA is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, net, purchase accounting effects, and depreciation and amortization expense, as applicable. Segment adjusted EBITDA margin is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, net, purchase accounting effects, and depreciation and amortization expense, as applicable, divided by segment net sales for the applicable period(s). Segment operating income includes all revenues, costs, and expenses directly related to the segment involved. In determining segment operating income, neither corporate nor interest expenses are included. Segment depreciation and amortization expense relates to those assets, both tangible and intangible, that are utilized by the respective segment.

Other companies may use different methods to calculate adjusted EBITDA and adjusted EBITDA margin.

Consolidated

The following table summarizes the Company's consolidated adjusted EBITDA and adjusted EBITDA margin and reconciles net income to consolidated adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

2026

2025

Net income

$     86.1

$     71.4

$  156.5

$  117.7

Add:

Interest expense, net

6.0

3.5

12.9

6.5

Acquisition and integration-related expenses, net

0.7

0.5

1.9

1.1

Purchase accounting effects *

0.9

0.1

2.5

0.2

Other expense, net

0.8

0.8

1.4

1.5

Income tax expense

25.3

22.0

47.1

37.7

Depreciation and amortization

24.6

19.9

48.4

38.6

Consolidated adjusted EBITDA

$    144.4

$    118.2

$  270.7

$  203.3

Net sales

$    670.2

$    564.6

$            1,295.8

$            1,028.4

Consolidated adjusted EBITDA margin

21.5 %

20.9 %

20.9 %

19.8 %

* Excludes purchase accounting expense effects included within depreciation and amortization of $0.2 million and $0.3 million for the three months ended June 30, 2026 and 2025, and $0.4 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively.

Environmental Solutions Group

The following table summarizes the Environmental Solutions Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

2026

2025

Operating income

$    113.9

$     91.9

$  203.0

$  151.6

Add:

Acquisition and integration-related expenses, net

0.2

0.1

0.2

0.2

Purchase accounting effects *

0.9

0.1

2.5

0.2

Depreciation and amortization

23.3

18.7

45.9

36.3

Adjusted EBITDA

$    138.3

$    110.8

$  251.6

$  188.3

Net sales

$    577.7

$    480.5

$            1,110.4

$  867.9

Adjusted EBITDA margin

23.9 %

23.1 %

22.7 %

21.7 %

* Excludes purchase accounting expense effects included within depreciation and amortization of $0.2 million and $0.3 million for the three months ended June 30, 2026 and 2025, and $0.4 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively.

Safety and Security Systems Group

The following table summarizes the Safety and Security Systems Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

2026

2025

2026

2025

Operating income

$     22.1

$     21.5

$   45.7

$   37.3

Add:

Depreciation and amortization

1.1

1.1

2.2

2.1

Adjusted EBITDA

$     23.2

$     22.6

$   47.9

$   39.4

Net sales

$     92.5

$     84.1

$  185.4

$  160.5

Adjusted EBITDA margin

25.1 %

26.9 %

25.8 %

24.5 %

SOURCE Federal Signal Corporation

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Federal Signal Corporation (NYSE:FSS) today announced that its Board of Directors declared a quarterly cash dividend of fifteen cents ($0.15) per share on its common stock. The dividend is payable on August 27, 2026 to stockholders of record at the close of business on August 14, 2026.

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: https://www.federalsignal.com.

SOURCE Federal Signal Corporation

Wall Street expects a year-over-year increase in earnings on higher revenues when Federal Signal (FSS - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company that makes products ranging from street sweepers to toll booth technology for government, industrial and commercial customers is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of +9.4%.

Revenues are expected to be $669.62 million, up 18.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.13% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Federal Signal?For Federal Signal, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.55%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Federal Signal will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Federal Signal would post earnings of $0.89 per share when it actually produced earnings of $1.18, delivering a surprise of +32.58%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Federal Signal appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Automotive - Domestic industry, Paccar (PCAR - Free Report) , is soon expected to post earnings of $1.33 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -2.9%. Revenues for the quarter are expected to be $7.1 billion, up 2% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Paccar has been revised 2.6% up to the current level. Nevertheless, the company now has an Earnings ESP of -0.05%, reflecting a lower Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Paccar will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Federal Signal (FSS - Free Report) , which belongs to the Zacks Automotive - Domestic industry, could be a great candidate to consider.

This company that makes products ranging from street sweepers to toll booth technology for government, industrial and commercial customers has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 20.00%.

For the most recent quarter, Federal Signal was expected to post earnings of $0.89 per share, but it reported $1.18 per share instead, representing a surprise of 32.58%. For the previous quarter, the consensus estimate was $1.08 per share, while it actually produced $1.16 per share, a surprise of 7.41%.

Thanks in part to this history, there has been a favorable change in earnings estimates for Federal Signal lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Federal Signal has an Earnings ESP of +0.55% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 30, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Have you been paying attention to shares of Federal Signal (FSS - Free Report) ? Shares have been on the move with the stock up 25.2% over the past month. The stock hit a new 52-week high of $134.51 in the previous session. Federal Signal has gained 23.3% since the start of the year compared to the -5.2% move for the Zacks Auto-Tires-Trucks sector and the -4.4% return for the Zacks Automotive - Domestic industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 29, 2026, Federal Signal reported EPS of $1.18 versus consensus estimate of $0.89.

For the current fiscal year, Federal Signal is expected to post earnings of $4.94 per share on $2.63 in revenues. This represents a 16.78% change in EPS on a 20.65% change in revenues. For the next fiscal year, the company is expected to earn $5.52 per share on $2.8 in revenues. This represents a year-over-year change of 11.71% and 6.55%, respectively.

Valuation MetricsFederal Signal may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Federal Signal has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 27.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.9X. On a trailing cash flow basis, the stock currently trades at 23.9X versus its peer group's average of 8.3X. Additionally, the stock has a PEG ratio of 1.93. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Federal Signal currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Federal Signal passes the test. Thus, it seems as though Federal Signal shares could still be poised for more gains ahead.

Federal Signal (FSS) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.

Industrial stocks have been leaders so far in 2026. That's great, but has made valuation a new risk for the sector's investors.

Posted by Defense World Staff on Mar 29th, 2026

Representative Josh Gottheimer (Democratic-New Jersey) recently bought shares of Monster Beverage Corporation (NASDAQ:MNST). In a filing disclosed on March 16th, the Representative disclosed that they had bought between $1,001 and $15,000 in Monster Beverage stock on February 2nd. The trade occurred in the Representative’s “MORGAN STANLEY – SELECT UMA ACCOUNT # 1” account.

Representative Josh Gottheimer also recently made the following trade(s):

Purchased $1,001 – $15,000 in shares of Infineon Technologies (OTCMKTS:IFNNY) on 2/27/2026. Sold $1,001 – $15,000 in shares of Palo Alto Networks (NASDAQ:PANW) on 2/27/2026. Purchased $1,001 – $15,000 in shares of Federal Signal (NYSE:FSS) on 2/26/2026. Sold $1,001 – $15,000 in shares of Intuit (NASDAQ:INTU) on 2/20/2026. Sold $1,001 – $15,000 in shares of Carvana (NYSE:CVNA) on 2/18/2026. Sold $1,001 – $15,000 in shares of Visa (NYSE:V) on 2/18/2026. Purchased $1,001 – $15,000 in shares of UnitedHealth Group (NYSE:UNH) on 2/5/2026. Purchased $1,001 – $15,000 in shares of Cummins (NYSE:CMI) on 2/5/2026. Purchased $1,001 – $15,000 in shares of GE Vernova (NYSE:GEV) on 2/5/2026. Sold $1,001 – $15,000 in shares of Cloudflare (NYSE:NET) on 2/4/2026. Monster Beverage Stock Performance Shares of MNST stock opened at $71.83 on Friday. Monster Beverage Corporation has a fifty-two week low of $54.73 and a fifty-two week high of $87.38. The company has a 50 day moving average price of $79.56 and a 200 day moving average price of $74.22. The stock has a market capitalization of $70.18 billion, a P/E ratio of 37.03, a price-to-earnings-growth ratio of 2.32 and a beta of 0.44.

Monster Beverage (NASDAQ:MNST – Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.49 by $0.02. The company had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.04 billion. Monster Beverage had a net margin of 22.97% and a return on equity of 27.38%. The firm’s quarterly revenue was up 17.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.39 EPS. On average, research analysts forecast that Monster Beverage Corporation will post 1.62 EPS for the current fiscal year.

Analysts Set New Price Targets Several analysts have recently issued reports on MNST shares. Argus increased their price objective on Monster Beverage from $95.00 to $100.00 and gave the company a “buy” rating in a research note on Tuesday, March 3rd. Bank of America upped their price target on Monster Beverage from $77.00 to $85.00 and gave the stock a “buy” rating in a report on Friday, December 19th. Morgan Stanley reaffirmed an “overweight” rating and issued a $96.00 price target (up from $87.00) on shares of Monster Beverage in a research report on Monday, January 26th. BNP Paribas Exane upgraded Monster Beverage from an “underperform” rating to a “neutral” rating and set a $77.00 price objective for the company in a research note on Friday, January 16th. Finally, BMO Capital Markets reissued a “market perform” rating and set a $73.00 price objective (up from $53.00) on shares of Monster Beverage in a research report on Wednesday, December 3rd. Fourteen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Monster Beverage currently has an average rating of “Moderate Buy” and an average price target of $83.95.

Check Out Our Latest Stock Analysis on Monster Beverage

Institutional Trading of Monster Beverage A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MNST. Physician Wealth Advisors Inc. increased its position in shares of Monster Beverage by 508.1% during the third quarter. Physician Wealth Advisors Inc. now owns 377 shares of the company’s stock worth $25,000 after purchasing an additional 315 shares in the last quarter. Steigerwald Gordon & Koch Inc. acquired a new stake in shares of Monster Beverage in the 3rd quarter valued at about $27,000. Harbor Investment Advisory LLC boosted its position in shares of Monster Beverage by 136.7% in the 4th quarter. Harbor Investment Advisory LLC now owns 355 shares of the company’s stock valued at $27,000 after purchasing an additional 205 shares during the period. Newbridge Financial Services Group Inc. grew its stake in Monster Beverage by 1,338.7% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 446 shares of the company’s stock worth $28,000 after buying an additional 415 shares during the last quarter. Finally, First Horizon Corp acquired a new position in Monster Beverage during the third quarter worth approximately $29,000. Institutional investors and hedge funds own 72.36% of the company’s stock.

About Representative Gottheimer Josh Gottheimer (Democratic Party) is a member of the U.S. House, representing New Jersey’s 5th Congressional District. He assumed office on January 3, 2017. His current term ends on January 3, 2027.

Gottheimer (Democratic Party) is running for re-election to the U.S. House to represent New Jersey’s 5th Congressional District. He declared candidacy for the 2026 election.

Gottheimer is also running for election for Governor of New Jersey. He declared candidacy for the Democratic primary scheduled on June 10, 2025.

Gottheimer attended the University of Pennsylvania for his undergraduate degree. He became a Thouron Fellow at Oxford and attended Harvard Law School. Gottheimer worked as a speech writer under former President Bill Clinton (D), assisting with two State of the Union addresses, among other projects. Before running for Congress, he worked for Microsoft as a general manager for corporate strategy.

About Monster Beverage (Get Free Report)

Monster Beverage Corporation (NASDAQ: MNST) is an American beverage company best known for its Monster Energy brand of energy drinks. The company’s product portfolio centers on carbonated energy beverages and a range of complementary ready-to-drink offerings, including energy coffees, hydration beverages and other flavored functional drinks. Monster markets multiple sub-brands and flavor variants to address different consumer segments and consumption occasions.

Originally organized around the Hansen’s Natural line of juices and sodas, the company pivoted toward the energy drink category and formally adopted the Monster Beverage name in the early 2010s to reflect its strategic focus.

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Investors looking for stocks in the Automotive - Domestic sector might want to consider either General Motors (GM - Free Report) or Federal Signal (FSS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, General Motors is sporting a Zacks Rank of #2 (Buy), while Federal Signal has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GM is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

GM currently has a forward P/E ratio of 5.93, while FSS has a forward P/E of 22.22. We also note that GM has a PEG ratio of 0.40. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FSS currently has a PEG ratio of 1.59.

Another notable valuation metric for GM is its P/B ratio of 1.04. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FSS has a P/B of 4.61.

These are just a few of the metrics contributing to GM's Value grade of A and FSS's Value grade of C.

GM sticks out from FSS in both our Zacks Rank and Style Scores models, so value investors will likely feel that GM is the better option right now.

Posted by Defense World Staff on Apr 6th, 2026

Allspring Global Investments Holdings LLC raised its holdings in Federal Signal Corporation (NYSE:FSS – Free Report) by 47.2% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 88,210 shares of the conglomerate’s stock after purchasing an additional 28,299 shares during the period. Allspring Global Investments Holdings LLC owned 0.15% of Federal Signal worth $9,579,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of FSS. Tudor Investment Corp ET AL boosted its stake in shares of Federal Signal by 200.0% during the third quarter. Tudor Investment Corp ET AL now owns 265,308 shares of the conglomerate’s stock valued at $31,569,000 after acquiring an additional 176,870 shares during the last quarter. Nordea Investment Management AB acquired a new position in Federal Signal in the 4th quarter valued at about $8,590,000. Fort Washington Investment Advisors Inc. OH raised its stake in Federal Signal by 76.7% in the 4th quarter. Fort Washington Investment Advisors Inc. OH now owns 247,531 shares of the conglomerate’s stock valued at $26,879,000 after purchasing an additional 107,474 shares during the last quarter. Congress Asset Management Co. lifted its holdings in Federal Signal by 7.5% in the 4th quarter. Congress Asset Management Co. now owns 551,556 shares of the conglomerate’s stock valued at $59,893,000 after purchasing an additional 38,660 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new position in Federal Signal in the 3rd quarter valued at about $3,745,000. 92.73% of the stock is currently owned by institutional investors and hedge funds.

Federal Signal Stock Performance Federal Signal stock opened at $109.18 on Monday. The company has a market cap of $6.65 billion, a price-to-earnings ratio of 27.23, a price-to-earnings-growth ratio of 1.66 and a beta of 1.33. Federal Signal Corporation has a 12 month low of $66.47 and a 12 month high of $132.89. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.02 and a quick ratio of 1.35. The stock’s 50-day moving average is $112.43 and its 200-day moving average is $114.27.

Federal Signal (NYSE:FSS – Get Free Report) last issued its earnings results on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.08 by $0.08. Federal Signal had a return on equity of 20.14% and a net margin of 11.31%.The business had revenue of $597.10 million during the quarter, compared to analysts’ expectations of $551.36 million. During the same quarter in the previous year, the business earned $0.87 EPS. The company’s revenue for the quarter was up 26.5% on a year-over-year basis. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. Equities analysts anticipate that Federal Signal Corporation will post 3.34 earnings per share for the current year.

Federal Signal Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Friday, March 13th were given a dividend of $0.15 per share. This is a positive change from Federal Signal’s previous quarterly dividend of $0.14. The ex-dividend date of this dividend was Friday, March 13th. This represents a $0.60 dividend on an annualized basis and a yield of 0.5%. Federal Signal’s dividend payout ratio is currently 14.96%.

Analysts Set New Price Targets Several brokerages recently issued reports on FSS. CJS Securities raised shares of Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 price objective on the stock in a research note on Thursday, February 26th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Federal Signal in a research note on Monday, December 29th. Wall Street Zen downgraded Federal Signal from a “buy” rating to a “hold” rating in a report on Saturday, February 28th. Finally, KeyCorp raised Federal Signal from a “sector weight” rating to an “overweight” rating and set a $130.00 price target on the stock in a research note on Tuesday, March 10th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $131.75.

Check Out Our Latest Analysis on FSS

Federal Signal Profile (Free Report)

Federal Signal Corporation (NYSE: FSS), headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.

Further Reading Five stocks we like better than Federal Signal

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Posted by Defense World Staff on Apr 19th, 2026

Federal Signal Corporation (NYSE:FSS – Get Free Report) has been given an average rating of “Moderate Buy” by the six research firms that are covering the company, MarketBeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $131.75.

A number of equities research analysts recently commented on the company. KeyCorp upgraded Federal Signal from a “sector weight” rating to an “overweight” rating and set a $130.00 target price on the stock in a research report on Tuesday, March 10th. CJS Securities upgraded Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 target price on the stock in a research report on Thursday, February 26th. Wall Street Zen downgraded Federal Signal from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Federal Signal in a research report on Monday, December 29th.

View Our Latest Stock Analysis on FSS

Institutional Investors Weigh In On Federal Signal A number of hedge funds have recently made changes to their positions in the company. Royal Bank of Canada raised its position in Federal Signal by 3.5% during the first quarter. Royal Bank of Canada now owns 93,618 shares of the conglomerate’s stock valued at $6,886,000 after purchasing an additional 3,153 shares during the period. AQR Capital Management LLC raised its position in Federal Signal by 10.9% during the first quarter. AQR Capital Management LLC now owns 35,702 shares of the conglomerate’s stock valued at $2,626,000 after purchasing an additional 3,520 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Federal Signal by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,822 shares of the conglomerate’s stock valued at $2,635,000 after purchasing an additional 1,594 shares during the period. NewEdge Advisors LLC raised its position in Federal Signal by 15.9% during the first quarter. NewEdge Advisors LLC now owns 1,838 shares of the conglomerate’s stock valued at $135,000 after purchasing an additional 252 shares during the period. Finally, Empowered Funds LLC purchased a new stake in Federal Signal during the first quarter valued at approximately $1,119,000. 92.73% of the stock is currently owned by hedge funds and other institutional investors.

Federal Signal Price Performance Shares of Federal Signal stock opened at $114.31 on Friday. The stock’s 50-day simple moving average is $112.80 and its 200-day simple moving average is $113.65. Federal Signal has a 52 week low of $71.92 and a 52 week high of $132.89. The company has a market capitalization of $6.96 billion, a price-to-earnings ratio of 28.51, a PEG ratio of 1.67 and a beta of 1.33. The company has a quick ratio of 1.35, a current ratio of 3.02 and a debt-to-equity ratio of 0.41.

Federal Signal (NYSE:FSS – Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $1.16 EPS for the quarter, beating the consensus estimate of $1.08 by $0.08. The business had revenue of $597.10 million for the quarter, compared to the consensus estimate of $551.36 million. Federal Signal had a return on equity of 20.14% and a net margin of 11.31%.The business’s revenue was up 26.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.87 earnings per share. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. As a group, analysts expect that Federal Signal will post 3.34 earnings per share for the current fiscal year.

Federal Signal Increases Dividend The company also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Friday, March 13th were given a $0.15 dividend. This is an increase from Federal Signal’s previous quarterly dividend of $0.14. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Friday, March 13th. Federal Signal’s dividend payout ratio (DPR) is presently 14.96%.

About Federal Signal (Get Free Report)

Federal Signal Corporation (NYSE: FSS), headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.

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Federal Signal Corporation (FSS) delivered robust revenue and profit growth, driven by acquisitions and strong demand across its segments. FSS's Environmental Solutions Group led expansion, with significant contributions from the New Way acquisition and aftermarket offerings. Despite operational strength and record backlog, FSS trades at fair to premium valuations versus peers, limiting upside.

, /PRNewswire/ -- Federal Signal Corporation (NYSE:FSS) (the "Company"), a leader in environmental and safety solutions, today reported financial results for the first quarter ended March 31, 2026.

First Quarter Highlights

Net sales of $626 million, up $162 million, or 35%, from last year; organic growth of $70 million, or 15% Operating income of $99.7 million, up $34.0 million, or 52%, from last year GAAP Diluted EPS of $1.14, up $0.39, or 52%, from last year Adjusted EPS of $1.18, up $0.42, or 55%, from last year Orders of $623 million, up $55 million, or 10%, from last year Operating cash flow of $101 million, up $65 million, or 176%, from last year Raises 2026 net sales outlook to a new range of $2.57 billion to $2.66 billion, from the prior range of $2.55 billion to $2.65 billion Raises 2026 adjusted EPS* outlook to a new range of $4.80 to $5.05, from the prior range of $4.50 to $4.80 Raises EBITDA margin targets for the Safety and Security Systems Group to a new range of 22% to 28%, from the prior range of 18% to 24% Consolidated net sales for the first quarter were $626 million, an increase of $162 million, or 35%, compared to the prior-year quarter. Net income for the first quarter was $70.4 million, or $1.14 per diluted share, compared to $46.3 million, or $0.75 per diluted share, in the prior-year quarter.

The Company also reported adjusted net income for the first quarter of $72.7 million, or $1.18 per diluted share, compared to $47.0 million, or $0.76 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.

First Quarter Outperformance Represents Strong Start to the Year; Raising EBITDA Margin Targets for the Safety and Security Systems Group

"Our first quarter results exceeded our expectations, with our businesses delivering 35% year-over-year net sales growth, 52% operating income improvement, and a 190-basis point increase in adjusted EBITDA margin," commented Jennifer L. Sherman, President and Chief Executive Officer. "Within our Environmental Solutions Group, we delivered 38% year-over-year net sales growth and a 46% 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 22% top-line growth and an adjusted EBITDA margin of approximately 27%. With its consistently strong performance over the last several quarters, we are raising the EBITDA margin targets for our Safety and Security Systems Group to a new range of 22% to 28%, from the prior range of 18% to 24%."

In the Environmental Solutions Group, net sales for the first quarter were $533 million, up $145 million, or 38%, compared to the prior-year quarter. In the Safety and Security Systems Group, net sales were $93 million, up $17 million, or 22%, compared to the prior-year quarter.

Consolidated operating income for the first quarter was $99.7 million, up $34.0 million, or 52%, compared to the prior-year quarter. Consolidated operating margin for the first quarter was 15.9%, up from 14.2% in the prior-year quarter.

Consolidated adjusted earnings before interest, tax, depreciation and amortization ("adjusted EBITDA") for the first quarter was $126.3 million, up $41.2 million, or 48%, compared to the prior-year quarter, and consolidated adjusted EBITDA margin was 20.2%, up from 18.3% in the prior-year quarter.

In the Environmental Solutions Group, adjusted EBITDA for the first quarter was $113.3 million, up $35.8 million, or 46%, compared to the prior-year quarter, and its adjusted EBITDA margin was 21.3%, up from 20.0% last year. In the Safety and Security Systems Group, adjusted EBITDA for the first quarter was $24.7 million, up $7.9 million, or 47%, compared to the prior-year quarter, and its adjusted EBITDA margin was 26.6%, up from 22.0% last year.

Consolidated orders for the first quarter were $623 million, an increase of $55 million, or 10%, compared to the prior-year quarter. Consolidated backlog at March 31, 2026 was $1.04 billion, compared to $1.10 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 first quarter was $101 million, an increase of $65 million, or 176%, from the prior-year quarter.

At March 31, 2026, total outstanding debt was $552 million, total cash and cash equivalents were $71 million, and the Company had $939 million of availability for borrowings under its credit facility.

"Our operating cash flow generation during the quarter was up 176% compared to last year," 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 $9.2 million during the first quarter, reflecting an increased dividend of $0.15 per share, and recently announced a similar $0.15 per share dividend that will be payable in the second quarter of 2026.

Outlook

"Demand for our products and our aftermarket offerings remains strong," noted Sherman. "With our better-than-expected first 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 $4.80 to $5.05, from the prior range of $4.50 to $4.80. We are also increasing our full-year net sales outlook to a new range of between $2.57 billion and $2.66 billion, from the prior range of between $2.55 billion and $2.65 billion."

CONFERENCE CALL

Federal Signal will host its first quarter conference call on Wednesday, April 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 13760128. 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.

* 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 months ended March 31, 2026 and 2025, we made adjustments to exclude the impact of acquisition and integration-related expenses, net, and purchase accounting effects, where applicable. In prior years, we have also made adjustments to exclude the impact of pension-related charges, debt settlement charges, special tax items, 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).

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended March 31,

(in millions, except per share data)

2026

2025

Net sales

$    625.6

$    463.8

Cost of sales

446.2

333.0

Gross profit

179.4

130.8

Selling, engineering, general and administrative expenses

72.0

60.2

Amortization expense

6.5

4.3

Acquisition and integration-related expenses, net

1.2

0.6

Operating income

99.7

65.7

Interest expense, net

6.9

3.0

Other expense, net

0.6

0.7

Income before income taxes

92.2

62.0

Income tax expense

21.8

15.7

Net income

$      70.4

$      46.3

Earnings per share:

Basic

$      1.16

$      0.76

Diluted

$      1.14

$      0.75

Weighted average common shares outstanding:

Basic

60.9

61.1

Diluted

61.5

61.8

Cash dividends declared per common share

$      0.15

$      0.14

Operating data:

Operating margin

15.9 %

14.2 %

Adjusted EBITDA

$    126.3

$      85.1

Adjusted EBITDA margin

20.2 %

18.3 %

Total orders

$    622.8

$    567.9

Backlog

1,037.5

1,102.0

Depreciation and amortization

23.8

18.7

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31,
2026

December 31,
2025

(in millions, except per share data)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$       71.4

$       63.7

Accounts receivable, net of allowances for doubtful accounts of $2.9 and $2.8, respectively

310.1

292.2

Inventories

477.8

471.6

Prepaid expenses and other current assets

17.5

26.3

Total current assets

876.8

853.8

Properties and equipment, net of accumulated depreciation of $215.1 and $208.0, respectively

287.2

274.6

Rental equipment, net of accumulated depreciation of $71.4 and $69.2, respectively

210.0

202.7

Operating lease right-of-use assets

29.9

28.4

Goodwill

626.8

619.8

Intangible assets, net of accumulated amortization of $110.3 and $104.2, respectively

393.9

382.9

Deferred tax assets

9.9

10.1

Deferred charges and other long-term assets

19.9

20.3

Total assets

$    2,454.4

$    2,392.6

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term borrowings and finance lease obligations

$         3.0

$         0.5

Accounts payable

115.8

98.0

Customer deposits

66.3

47.7

Accrued liabilities:

Compensation and withholding taxes

38.4

52.3

Current operating lease liabilities

8.1

7.9

Contingent consideration

4.1

15.0

Other current liabilities

72.5

61.0

Total current liabilities

308.2

282.4

Long-term borrowings and finance lease obligations

548.6

564.6

Long-term operating lease liabilities

23.1

21.6

Long-term pension and other post-retirement benefit liabilities

41.9

43.1

Deferred tax liabilities

74.2

71.9

Other long-term liabilities

23.9

27.0

Total liabilities

1,019.9

1,010.6

Stockholders' equity:

Common stock, $1 par value per share, 90.0 shares authorized, 71.0 and 70.8 shares issued, respectively

71.0

70.8

Capital in excess of par value

333.9

330.4

Retained earnings

1,376.5

1,315.3

Treasury stock, at cost, 10.0 and 9.9 shares, respectively

(272.5)

(263.5)

Accumulated other comprehensive loss

(74.4)

(71.0)

Total stockholders' equity

1,434.5

1,382.0

Total liabilities and stockholders' equity

$    2,454.4

$    2,392.6

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended

March 31,

(in millions)

2026

2025

Operating activities:

Net income

$      70.4

$      46.3

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

23.8

18.7

Stock-based compensation expense

2.7

2.4

Changes in fair value of contingent consideration

0.2

—

Payments for acquisition-related activity

(3.5)

—

Deferred income taxes

2.3

0.7

Changes in operating assets and liabilities

5.4

(31.4)

Net cash provided by operating activities

101.3

36.7

Investing activities:

Purchases of properties and equipment

(6.7)

(5.6)

Payments for acquisition-related activity, net of cash acquired

(44.9)

(82.1)

Net cash used for investing activities

(51.6)

(87.7)

Financing activities:

(Decrease) increase in revolving lines of credit, net

(12.8)

64.2

Purchases of treasury stock

—

(18.5)

Redemptions of common stock to satisfy withholding taxes related to stock-based compensation

(8.2)

(8.6)

Payments for acquisition-related activity

(11.5)

—

Cash dividends paid to stockholders

(9.2)

(8.6)

Proceeds from stock-based compensation activity

0.1

—

Other, net

(0.1)

(11.6)

Net cash (used for) provided by financing activities

(41.7)

16.9

Effects of foreign exchange rate changes on cash and cash equivalents

(0.3)

0.5

Increase (decrease) in cash and cash equivalents

7.7

(33.6)

Cash and cash equivalents at beginning of year

63.7

91.1

Cash and cash equivalents at end of period

$      71.4

$      57.5

FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES

GROUP RESULTS (Unaudited)

The following tables summarize group operating results as of and for the three months ended March 31, 2026 and 2025:

Environmental Solutions Group

Three Months Ended March 31,

($ in millions)

2026

2025

Change

Net sales

$    532.7

$    387.4

$    145.3

Operating income

89.1

59.7

29.4

Adjusted EBITDA

113.3

77.5

35.8

Operating data:

Operating margin

16.7 %

15.4 %

1.3 %

Adjusted EBITDA margin

21.3 %

20.0 %

1.3 %

Total orders

$    534.3

$    480.1

$     54.2

Backlog

965.9

1,033.1

(67.2)

Depreciation and amortization

22.6

17.6

5.0

Safety and Security Systems Group

Three Months Ended March 31,

($ in millions)

2026

2025

Change

Net sales

$     92.9

$     76.4

$     16.5

Operating income

23.6

15.8

7.8

Adjusted EBITDA

24.7

16.8

7.9

Operating data:

Operating margin

25.4 %

20.7 %

4.7 %

Adjusted EBITDA margin

26.6 %

22.0 %

4.6 %

Total orders

$     88.5

$     87.8

$      0.7

Backlog

71.6

68.9

2.7

Depreciation and amortization

1.1

1.0

0.1

Corporate Expenses

Corporate operating expenses were $13.0 million and $9.8 million for the three months ended March 31, 2026 and 2025, respectively.

SEC REGULATION G NON-GAAP RECONCILIATION

The financial measures presented below are unaudited and are not in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information presented herein should be considered supplemental to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company has provided this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the reconciliations below, and to provide an additional measure of performance which management considers in operating the business.

Adjusted Net Income and Earnings Per Share ("EPS"):

The Company believes that modifying its 2026 and 2025 net income and diluted EPS provides additional measures to assist it in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes are not representative of its underlying performance and to improve the comparability of results across reporting periods. Adjusted net income and Adjusted EPS are both non-GAAP measures. During the three months ended March 31, 2026 and 2025 adjustments were made to reported GAAP net income and diluted EPS to exclude the impact of acquisition and integration-related expenses, net, and purchase accounting effects, where applicable.

Three Months Ended March 31,

(in millions)

2026

2025

Net income, as reported

$        70.4

$        46.3

Add:

Income tax expense

21.8

15.7

Income before income taxes

92.2

62.0

Add:

Acquisition and integration-related expenses, net

1.2

0.6

Purchase accounting effects (a)

1.8

0.3

Adjusted income before income taxes

95.2

62.9

Adjusted income tax expense (b)

(22.5)

(15.9)

Adjusted net income

$        72.7

$        47.0

Three Months Ended March 31,

(dollars per diluted share)

2026

2025

EPS, as reported

$        1.14

$        0.75

Add:

Income tax expense

0.36

0.25

Income before income taxes

1.50

1.00

Add:

Acquisition and integration-related expenses, net

0.02

0.01

Purchase accounting effects (a)

0.03

0.01

Adjusted income before income taxes

1.55

1.02

Adjusted income tax expense (b)

(0.37)

(0.26)

Adjusted EPS

$        1.18

$        0.76

(a)   

Purchase accounting effects in the three months ended March 31, 2026 and 2025 relate to adjustments to exclude the step-up in the valuation of inventory acquired in connection with acquisitions that was sold subsequent to the acquisition date and the depreciation of the step-up in the valuation of acquired rental equipment, where applicable. Such costs are included as a component of Cost of sales on the Condensed Consolidated Statements of Operations.

(b)   

Adjusted income tax expense for the three months ended March 31, 2026 and 2025 was recomputed after excluding the tax impacts of acquisition and integration-related expenses, net, and purchase accounting effects.

Adjusted EBITDA and Adjusted EBITDA Margin:

The Company uses adjusted EBITDA and the ratio of adjusted EBITDA to net sales ("adjusted EBITDA margin"), at both the consolidated and segment level, as additional measures to assist in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes are not representative of its underlying performance and to improve the comparability of results across reporting periods. We believe that investors use versions of these metrics in a similar manner. For these reasons, the Company believes that adjusted EBITDA and adjusted EBITDA margin, at both the consolidated and segment level, are meaningful metrics to investors in evaluating the Company's underlying financial performance.

Consolidated adjusted EBITDA is a non-GAAP measure that represents the total of net income, interest expense, net, acquisition and integration-related expenses, net, purchase accounting effects, other expense, net, income tax expense, and depreciation and amortization expense, as applicable. Consolidated adjusted EBITDA margin is a non-GAAP measure that represents the total of net income, interest expense, net, acquisition and integration-related expenses, net, purchase accounting effects, other expense, net, income tax expense, and depreciation and amortization expense, as applicable, divided by net sales for the applicable period(s).

Segment adjusted EBITDA is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, net, purchase accounting effects, and depreciation and amortization expense, as applicable. Segment adjusted EBITDA margin is a non-GAAP measure that represents the total of segment operating income, acquisition and integration-related expenses, net, purchase accounting effects, and depreciation and amortization expense, as applicable, divided by segment net sales for the applicable period(s). Segment operating income includes all revenues, costs, and expenses directly related to the segment involved. In determining segment operating income, neither corporate nor interest expenses are included. Segment depreciation and amortization expense relates to those assets, both tangible and intangible, that are utilized by the respective segment.

Other companies may use different methods to calculate adjusted EBITDA and adjusted EBITDA margin.

Consolidated

The following table summarizes the Company's consolidated adjusted EBITDA and adjusted EBITDA margin and reconciles net income to consolidated adjusted EBITDA for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions)

2026

2025

Net income

$      70.4

$      46.3

Add:

Interest expense, net

6.9

3.0

Acquisition and integration-related expenses, net

1.2

0.6

Purchase accounting effects *

1.6

0.1

Other expense, net

0.6

0.7

Income tax expense

21.8

15.7

Depreciation and amortization

23.8

18.7

Consolidated adjusted EBITDA

$    126.3

$      85.1

Net sales

$    625.6

$    463.8

Consolidated adjusted EBITDA margin

20.2 %

18.3 %

* Excludes purchase accounting expense effects included within depreciation and amortization of $0.2 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.

Environmental Solutions Group

The following table summarizes the Environmental Solutions Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions)

2026

2025

Operating income

$      89.1

$      59.7

Add:

Acquisition and integration-related expenses, net

—

0.1

Purchase accounting effects *

1.6

0.1

Depreciation and amortization

22.6

17.6

Adjusted EBITDA

$    113.3

$      77.5

Net sales

$    532.7

$    387.4

Adjusted EBITDA margin

21.3 %

20.0 %

* Excludes purchase accounting expense effects included within depreciation and amortization of $0.2 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.

Safety and Security Systems Group

The following table summarizes the Safety and Security Systems Group's adjusted EBITDA and adjusted EBITDA margin and reconciles operating income to adjusted EBITDA for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

($ in millions)

2026

2025

Operating income

$      23.6

$      15.8

Add:

Depreciation and amortization

1.1

1.0

Adjusted EBITDA

$      24.7

$      16.8

Net sales

$      92.9

$      76.4

Adjusted EBITDA margin

26.6 %

22.0 %

SOURCE Federal Signal Corporation

Posted by Defense World Staff on Apr 29th, 2026

Comerica Bank decreased its position in shares of Federal Signal Corporation (NYSE:FSS – Free Report) by 5.8% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 105,577 shares of the conglomerate’s stock after selling 6,546 shares during the period. Comerica Bank owned 0.17% of Federal Signal worth $11,465,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in FSS. Royal Bank of Canada raised its stake in Federal Signal by 3.5% during the 1st quarter. Royal Bank of Canada now owns 93,618 shares of the conglomerate’s stock worth $6,886,000 after acquiring an additional 3,153 shares during the period. AQR Capital Management LLC grew its holdings in Federal Signal by 10.9% during the 1st quarter. AQR Capital Management LLC now owns 35,702 shares of the conglomerate’s stock valued at $2,626,000 after buying an additional 3,520 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Federal Signal by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,822 shares of the conglomerate’s stock valued at $2,635,000 after buying an additional 1,594 shares in the last quarter. NewEdge Advisors LLC grew its holdings in Federal Signal by 15.9% during the 1st quarter. NewEdge Advisors LLC now owns 1,838 shares of the conglomerate’s stock valued at $135,000 after buying an additional 252 shares in the last quarter. Finally, Empowered Funds LLC purchased a new stake in Federal Signal during the 1st quarter valued at approximately $1,119,000. Institutional investors own 92.73% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities research analysts have issued reports on the stock. Wall Street Zen lowered shares of Federal Signal from a “buy” rating to a “hold” rating in a report on Saturday, February 28th. KeyCorp raised shares of Federal Signal from a “sector weight” rating to an “overweight” rating and set a $130.00 price objective for the company in a report on Tuesday, March 10th. Finally, CJS Securities raised shares of Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 price objective for the company in a report on Thursday, February 26th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $131.75.

Read Our Latest Stock Report on Federal Signal

Federal Signal Stock Down 3.2% Shares of FSS opened at $111.96 on Wednesday. The company has a market cap of $6.82 billion, a PE ratio of 27.92, a P/E/G ratio of 1.75 and a beta of 1.33. The business has a fifty day moving average of $112.22 and a 200 day moving average of $113.45. Federal Signal Corporation has a 52-week low of $74.35 and a 52-week high of $132.89. The company has a quick ratio of 1.35, a current ratio of 3.02 and a debt-to-equity ratio of 0.41.

Federal Signal (NYSE:FSS – Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.08 by $0.08. The company had revenue of $597.10 million during the quarter, compared to the consensus estimate of $551.36 million. Federal Signal had a return on equity of 20.14% and a net margin of 11.31%.Federal Signal’s revenue was up 26.5% on a year-over-year basis. During the same period last year, the company earned $0.87 earnings per share. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. On average, sell-side analysts expect that Federal Signal Corporation will post 4.71 EPS for the current year.

Federal Signal Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be given a $0.15 dividend. The ex-dividend date is Friday, May 15th. This represents a $0.60 dividend on an annualized basis and a yield of 0.5%. Federal Signal’s dividend payout ratio (DPR) is currently 14.96%.

About Federal Signal (Free Report)

Federal Signal Corporation (NYSE: FSS), headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.

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Does Federal Signal (FSS) have what it takes to be a top stock pick for momentum investors? Let's find out.

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Federal Signal (FSS - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.

Federal Signal is one of 101 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Federal Signal is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FSS' full-year earnings has moved 7.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, FSS has returned 5.2% so far this year. At the same time, Auto-Tires-Trucks stocks have lost an average of 1.4%. This shows that Federal Signal is outperforming its peers so far this year.

Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is NIO Inc. (NIO - Free Report) . The stock has returned 28.2% year-to-date.

Over the past three months, NIO Inc.'s consensus EPS estimate for the current year has increased 52.3%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Federal Signal belongs to the Automotive - Domestic industry, which includes 16 individual stocks and currently sits at #161 in the Zacks Industry Rank. On average, stocks in this group have gained 0.1% this year, meaning that FSS is performing better in terms of year-to-date returns.

On the other hand, NIO Inc. belongs to the Automotive - Foreign industry. This 23-stock industry is currently ranked #173. The industry has moved -12.6% year to date.

Investors with an interest in Auto-Tires-Trucks stocks should continue to track Federal Signal and NIO Inc.. These stocks will be looking to continue their solid performance.