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]

Financial Data and Key Metrics Changes - Consolidated net sales for Q1 were $464 million, up $39 million or 9% year over year [6] - Organic sales growth for the quarter was $28 million or 7% [7] - Consolidated operating income for the quarter was $65.7 million, an increase of $11.4 million or 21% compared to last year [7] - Consolidated adjusted EBITDA for the quarter was $85.1 million, up $14.5 million or 21% year over year, translating to a margin of 18.3% [8] - GAAP diluted EPS for the quarter was $0.75, compared to $0.84 in Q1 last year, while adjusted EPS was $0.76, an increase of $0.12 or 19% from last year [8][9] - Cash generated from operations was $37 million, up 17% from Q1 last year [14] Business Line Data and Key Metrics Changes - Environmental Solutions Group (ESG) net sales were $387 million, up $33 million or 9% year over year [9][10] - ESG's operating income was $59.7 million, an increase of $8 million or 15% [10] - ESG's adjusted EBITDA was $77.5 million, up $11 million or 17%, with an adjusted EBITDA margin of 20% [10] - Safety and Security Systems Group (SSG) net sales were $76 million, up $6 million or 8% [11] - SSG's operating income was $15.8 million, an increase of $2 million or 14% [11] Market Data and Key Metrics Changes - Order intake for Q1 was $568 million, an increase of $65 million or 13% year over year, setting a new company record [9][22] - Backlog at the end of the quarter was $1.1 billion, another all-time high for the company [9] - Publicly funded orders increased high single digits year over year, while industrial orders rose double digits [23] Company Strategy and Development Direction - The company aims for annual double-digit top-line growth, split evenly between inorganic and organic growth [20] - Investments in production capacity and supply chain optimization are ongoing to meet increased demand [18][30] - The company is focused on expanding market share through strategic initiatives and new product development [20][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects despite macroeconomic uncertainties, supported by a strong backlog [34] - The company raised its full-year adjusted EPS outlook to a range of $3.63 to $3.90, indicating continued growth [34] - Management noted that demand for products and aftermarket offerings remains strong, with no material changes in customer behavior due to tariffs [29][34] Other Important Information - The company has a low net debt leverage ratio and significant flexibility to invest in growth initiatives and return cash to shareholders [14] - The company has initiated a stock repurchase program with an additional authorization of $150 million [15] Q&A Session Summary Question: How have lead times changed compared to previous periods? - Management indicated that capacity utilization is between 70-72%, with lead times for certain products improving to about six months [40] Question: How have April ESG orders trended? - Management confirmed that the strength in ESG orders was not a pull forward due to tariffs, with strong order growth across various sectors [54] Question: What is the outlook for the rental business? - The rental business grew, with rental income and used equipment sales both up double digits year over year [83] Question: How does the company plan to manage pricing in light of tariffs? - Management stated that they can surcharge backlogs if necessary and emphasized their strong position due to localized supply chains [75][87] Question: What is the current status of the integration of Hog into the business? - Integration efforts are ongoing, with positive customer reception noted during a recent trade show [90]

Financial Performance - Net sales increased by $39 million, or 9%, to $464 million[6] - Organic growth contributed $28 million, or 7%, to net sales[6] - Operating income rose by $11.4 million, or 21%, to $65.7 million[6] - Adjusted EBITDA increased by $14.5 million, or 21%, to $85.1 million[6] - Adjusted EPS increased by $0.12, or 19%, to $0.76[6] Orders and Backlog - Record orders reached $568 million, up by $65 million, or 13%[6] - Record backlog stood at $1.1 billion, up by $3 million[6] Segment Performance - Environmental Solutions Group (ESG) orders increased by 12% to $480.1 million[8] - ESG net sales increased by 9% to $387.4 million[8] - Safety and Security Systems Group (SSG) orders increased by 17% to $87.8 million[8] - SSG net sales increased by 8% to $76.4 million[8] Financial Outlook - The company raised its full-year Adjusted EPS outlook to a new range of $3.63 to $3.90[27]

DOWNERS GROVE, Ill., April 30, 2025 /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, 2025.First Quarter Highlights Net sales of $464 million, up $39 million, or 9%, from last year; organic growth of $28 million, or 7% Operating income of $65.7 million, up $11.4 million, or 21%, from last year GAAP Diluted EPS of $0.75, compared to $0.84 last year Adjusted EPS of $0.76 ...