Core Insights - Federal Signal Corporation reported a consolidated net sales of $565 million for Q2 2025, representing a 15% increase year-over-year [3][11] - The company achieved a net income of $71.4 million, or $1.16 per diluted share, compared to $60.8 million, or $0.99 per diluted share in the prior-year quarter [3][11] - Adjusted net income for the second quarter was $71.9 million, or $1.17 per diluted share, up from $58.8 million, or $0.95 per diluted share in the prior-year quarter [4][11] Financial Performance - Consolidated operating income for Q2 was $97.7 million, a 20% increase from the prior-year quarter [6][11] - The consolidated adjusted EBITDA for the second quarter was $118.2 million, up 21% year-over-year, with an adjusted EBITDA margin of 20.9% [7][11] - The Environmental Solutions Group reported net sales of $481 million, an 18% increase year-over-year, while the Safety and Security Systems Group had net sales of $84 million, a 3% increase [5][11] Orders and Backlog - Consolidated orders for Q2 were $540 million, a 14% increase compared to the prior-year quarter [9][11] - The consolidated backlog as of June 30, 2025, was $1.08 billion, up $4 million from the prior-year quarter [9][11] Cash Flow and Debt - Net cash provided by operating activities during Q2 was $60 million, a 47% increase from the prior-year quarter [10][11] - As of June 30, 2025, consolidated debt was $269 million, with total cash and cash equivalents at $65 million [10][11] Outlook - The company raised its 2025 net sales outlook to a new range of $2.07 billion to $2.13 billion, up from the prior range of $2.02 billion to $2.10 billion [11][14] - The adjusted EPS outlook for 2025 was also increased to a new range of $3.92 to $4.10, from the prior range of $3.63 to $3.90 [11][14]

Core Viewpoint - Federal Signal (FSS) has outperformed its peers in the Conglomerates sector this year, with a year-to-date return of 17.3% compared to the sector average of 6.3% [4]. Company Performance - Federal Signal is currently ranked 4 in the Zacks Sector Rank among 16 companies in the Conglomerates group [2]. - The Zacks Rank for Federal Signal is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3]. - The consensus estimate for Federal Signal's full-year earnings has increased by 1.7% over the past quarter, reflecting improved analyst sentiment [3]. Industry Context - Federal Signal belongs to the Diversified Operations industry, which includes 16 companies and is currently ranked 85 in the Zacks Industry Rank [5]. - Stocks in the Diversified Operations industry have gained approximately 6.3% year-to-date, indicating that Federal Signal is performing better than its industry peers [5]. - ITT, another stock in the Conglomerates sector, has also shown strong performance with a year-to-date return of 12% [4].

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 Soluti ...

Core Viewpoint - Federal Signal Corporation will announce its second quarter earnings on July 30, 2025, and will host an investor conference call and webcast on the same day [1]. Group 1: Earnings Announcement - The earnings announcement is scheduled before the market opens on July 30, 2025 [1]. - The investor conference call will take place at 10 a.m. Eastern Time on the same day [1]. Group 2: Access Information - Investors and analysts can access the webcast through the company's website [2]. - The teleconference can be accessed by calling 1-877-704-4453 with a conference ID of 13754916 [2]. - An archived replay of the investor conference call will be available shortly after the call concludes [2]. Group 3: Company Overview - Federal Signal Corporation is a leader in environmental and safety solutions, founded in 1901 [3]. - The company designs, manufactures, and supplies products for municipal, governmental, industrial, and commercial customers [3]. - Federal Signal operates two groups: Environmental Solutions and Safety and Security Systems [3].

Company Performance - Federal Signal (FSS) has gained approximately 18.4% year-to-date, significantly outperforming the average return of 6.2% for the Conglomerates sector [4] - The Zacks Consensus Estimate for FSS's full-year earnings has increased by 1.7% over the past 90 days, indicating improved analyst sentiment and earnings outlook [3] - Mitsubishi Corp. (MSBHF) has also outperformed the sector with a return of 23.4% since the beginning of the year [4][5] Industry Ranking - Federal Signal is part of the Diversified Operations industry, which includes 16 companies and currently ranks 83 in the Zacks Industry Rank [6] - The average return for the Diversified Operations industry is 6.2% year-to-date, showing that FSS is performing better than its peers in this industry [6] Sector Overview - The Conglomerates group consists of 16 companies and is currently ranked 5 in the Zacks Sector Rank, which measures the average Zacks Rank of individual stocks within the sector [2] - Federal Signal holds a Zacks Rank of 2 (Buy), indicating a favorable position among its peers [3]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Federal Signal (FSS) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Federal Signal has a historical EPS growth rate of 17.8%, with projected EPS growth of 14.7% for the current year, significantly outperforming the industry average of 5.4% [5][4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 24.6%, which is substantially higher than the industry average of -9.5% [6]. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 12.2%, compared to the industry average of 4.6% [7]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Federal Signal, with the Zacks Consensus Estimate for the current year increasing by 0.1% over the past month [8]. This trend is correlated with potential near-term stock price movements [8]. Group 4: Overall Assessment - Federal Signal has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a solid choice for growth investors and a potential outperformer in the market [10].

Company Performance - Federal Signal (FSS) has gained approximately 1.6% year-to-date, outperforming the Conglomerates sector, which has returned an average of 1.1% [4] - The Zacks Consensus Estimate for FSS's full-year earnings has increased by 1% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [4] - Federal Signal holds a Zacks Rank of 2 (Buy), suggesting a favorable position for potential outperformance in the market [3] Industry Context - Federal Signal is part of the Diversified Operations industry, which consists of 21 companies and currently ranks 134 in the Zacks Industry Rank [6] - The average performance of the Diversified Operations industry has also been 1.1% year-to-date, indicating that FSS is performing better than its industry peers [6] - Hitachi Ltd. is another stock in the Conglomerates sector that has shown strong performance, returning 12.6% since the beginning of the year [5]

Group 1 - Federal Signal (FSS) has shown a year-to-date return of approximately 1.3%, outperforming the average gain of 0.5% in the Conglomerates sector [4] - The Zacks Rank for Federal Signal is currently 2 (Buy), indicating a positive earnings outlook with a 1.8% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Federal Signal is part of the Diversified Operations industry, which also includes 21 stocks and has an average return of 0.5% this year, further highlighting FSS's strong performance [6] Group 2 - Hitachi Ltd. (HTHIY) is another stock in the Conglomerates sector that has outperformed, with a year-to-date return of 8.6% and a Zacks Rank of 1 (Strong Buy) [4][5] - The consensus EPS estimate for Hitachi Ltd. has increased by 8.2% over the past three months, reflecting strong analyst sentiment [5] - Both Federal Signal and Hitachi Ltd. are expected to maintain solid performance, making them attractive options for investors interested in Conglomerates stocks [7]

Financial Performance - Net sales for Q1 2025 increased by $38.9 million, or 9%, to $463.8 million compared to Q1 2024, driven by higher sales volumes and pricing actions [120]. - Operating income for Q1 2025 rose by $11.4 million, or 21%, to $65.7 million, with an operating margin of 14.2%, up from 12.8% in the prior-year quarter [121]. - Net income for Q1 2025 decreased by $5.3 million to $46.3 million, primarily due to a $16.4 million increase in income tax expense [123]. - Gross profit for Q1 2025 increased by $14.8 million, or 13%, with a gross profit margin of 28.2%, up from 27.3% in the prior-year quarter [129]. - Cost of sales for Q1 2025 increased by $24.1 million, or 8%, largely due to higher sales volumes and costs from recent acquisitions [128]. - SEG&A expenses for Q1 2025 increased by $3.0 million, or 5%, but as a percentage of net sales, they decreased to 13.0% from 13.5% in the prior-year quarter [130]. - Income before income taxes for Q1 2025 increased by $11.1 million, or 22%, to $62.0 million compared to the prior-year quarter [122]. Sales and Orders - Total orders for Q1 2025 were $568 million, an increase of $65 million, or 13%, compared to the prior-year quarter [124]. - The Environmental Solutions Group reported a net sales increase of $33.4 million, or 9%, with significant contributions from sewer cleaners ($15.1 million) and dump truck bodies ($10.4 million) [120]. - Environmental Solutions Group net sales for Q1 2025 increased by $33.4 million, or 9%, to $387.4 million compared to Q1 2024 [138]. - Total orders for Environmental Solutions Group increased by $52.4 million, or 12%, to $480.1 million in Q1 2025 compared to the prior-year quarter [137]. - Safety and Security Systems Group net sales for Q1 2025 increased by $5.5 million, or 8%, to $76.4 million compared to Q1 2024 [143]. - Safety and Security Systems Group total orders increased by $12.8 million, or 17%, to $87.8 million in Q1 2025 compared to the prior-year quarter [142]. Backlog and Cash Flow - The consolidated backlog at March 31, 2025, was $1.10 billion, an increase of $3 million compared to the prior-year quarter [125]. - Backlog for Environmental Solutions Group was $1.03 billion as of March 31, 2025, down from $1.04 billion in the prior-year quarter [141]. - Net cash provided by operating activities was $36.7 million in Q1 2025, up from $31.3 million in the prior-year period [152]. Capital Expenditures - The company anticipates capital expenditures for 2025 to be in the range of $40 million to $50 million [155].

Core Viewpoint - Federal Signal (FSS) reported quarterly earnings of $0.76 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and showing an increase from $0.64 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 4.11%, with the company previously expected to earn $0.86 per share but actually earning $0.87, resulting in a surprise of 1.16% [2] - Federal Signal's revenues for the quarter ended March 2025 were $463.8 million, which missed the Zacks Consensus Estimate by 0.57%, compared to $424.9 million in the same quarter last year [3] - Over the last four quarters, the company has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [3] Stock Performance - Federal Signal shares have declined approximately 18.1% since the beginning of the year, while the S&P 500 has decreased by 5.5% [4] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $1.06 for the coming quarter and $3.77 for the current fiscal year, with revenues expected to be $533.73 million and $2.05 billion respectively [5][8] Industry Context - The Diversified Operations industry, to which Federal Signal belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [6][7]