Financial Data and Key Metrics Changes - For the full year 2024, net sales reached approximately $1.86 billion, an increase of $139 million or 8% compared to last year [8] - Operating income for the year was $281.4 million, up $56.9 million or 25% from last year [9] - Adjusted EBITDA for the year was $350.6 million, up $64.6 million or 23% compared to last year, translating to a margin of 18.8%, up 220 basis points from last year [9] - GAAP diluted EPS for the year was $3.50 per share, up $0.94 per share or 37% from last year [9] - Consolidated net sales for Q4 were $472 million, an increase of $24 million or 5% compared to last year [10] - Consolidated operating income for Q4 was $70.1 million, up $7 million or 11% compared to last year [10] - Consolidated adjusted EBITDA for Q4 was $89.3 million, up $11.8 million or 15% compared to last year [10] - GAAP diluted EPS for Q4 was $0.81 per share, up $0.06 per share or 8% from last year [11] Business Line Data and Key Metrics Changes - Environmental Solutions Group (ESG) sales were $396 million in Q4, an increase of $23 million or 6% compared to last year [11] - ESG's adjusted EBITDA for Q4 was $82.9 million, up $9.6 million or 13% compared to last year, with an adjusted EBITDA margin of 20.9% [12] - Safety and Security Systems Group (SSG) delivered $76 million in sales for Q4, up $1 million or 1% compared to last year [12] - SSG's adjusted EBITDA for Q4 was $16.4 million, up $400,000 or 2% from last year, with an adjusted EBITDA margin of 21.6% [12] Market Data and Key Metrics Changes - Orders in Q4 were $446 million compared to $465 million in Q4 last year, reflecting a decrease primarily due to lower orders from long lead time items [11][28] - Excluding street sweepers and sewer cleaners, total fourth-quarter orders increased by approximately 13% year-over-year [29] - Demand for aftermarket products and services remained strong, with revenues growing 2% year-over-year [24] Company Strategy and Development Direction - The company is focused on raising build rates for extended lead time products, particularly sewer cleaners and street sweepers [22] - The recent acquisition of HOG Technologies is expected to enhance the company's road marking and water blasting businesses, providing access to underpenetrated markets [30][31] - The company aims to capitalize on healthy end-market demand and is committed to operational excellence and customer service to unlock future growth opportunities [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver another record year in 2025, anticipating net sales between $2.02 billion and $2.1 billion [46] - The company expects adjusted EPS for 2025 to be between $3.60 and $3.90 per share, representing double-digit growth [46] - Management noted that while there may be minor disruptions due to the transition of dealer territories, long-term benefits are expected [112] Other Important Information - The company ended the year with $133 million of net debt and has significant flexibility to invest in growth initiatives and return cash to shareholders [19] - A dividend increase of 17% to $0.14 per share was announced for the first quarter of 2025 [20] Q&A Session Summary Question: Health of big cities and exposure to municipal spending - Management highlighted the essential nature of their equipment and the strength in police orders, indicating a diversified revenue stream that positions the company well for 2025 [54][57] Question: Pricing strategies and tariffs - Management confirmed that they have locked in raw material costs for most of the year and can pass on tariff-related costs to customers if necessary [58][60] Question: Rental fleet growth and HOG acquisition - Management indicated that rental fleet growth was not significant in Q4, and HOG does not have a rental business but has a strong aftermarket segment [66][70] Question: Lead times for popular products - Management reported improvements in lead times for sewer cleaners but acknowledged challenges with street sweepers, with lead times extending into 2026 [76][77] Question: Organic growth headwinds for 2025 - Management expects minor issues in Q1 due to territory transitions but is confident in long-term growth opportunities [112] Question: Margins for each segment in 2025 - Management indicated potential for margin improvement across both segments, expecting overall year-over-year improvement in EBITDA margin [118]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6003 FEDERAL SIGNAL CORPORATION (Exact name of registrant as specified in its cha ...

Core Viewpoint - Federal Signal (FSS) reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and showing an increase from $0.74 per share a year ago [1] Financial Performance - The company achieved an earnings surprise of 1.16% for the quarter, and previously, it had a surprise of 7.32% when it reported earnings of $0.88 per share against an expectation of $0.82 per share [2] - Federal Signal's revenues for the quarter were $472 million, which fell short of the Zacks Consensus Estimate by 1.13%, compared to $448.4 million in the same quarter last year [3] Stock Performance and Outlook - Federal Signal shares have declined approximately 1.8% since the beginning of the year, while the S&P 500 has gained 1.3% [4] - The company's earnings outlook is mixed, with current consensus EPS estimates of $0.77 for the upcoming quarter and $3.76 for the current fiscal year, with revenues expected to be $456.63 million and $2.01 billion respectively [8] Industry Context - The Diversified Operations industry, to which Federal Signal belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges ahead [9]

Federal Signal Q4 2024 Earnings Call February 26, 2025 Jennifer Sherman, President & Chief Executive Officer Ian Hudson, SVP, Chief Financial Officer Felix Boeschen, VP, Corporate Strategy & Investor Relations Safe Harbor This presentation 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 presentation that are not histo ...

Core Viewpoint - Federal Signal Corporation has declared a quarterly cash dividend of $0.14 per share, marking a 17% increase from the previous quarter's dividend [1]. Company Overview - Federal Signal Corporation, founded in 1901, is a leading global designer, manufacturer, and supplier of equipment that serves municipal, governmental, industrial, and commercial customers [2]. - The company operates two main groups: Environmental Solutions and Safety and Security Systems, and is headquartered in Downers Grove, Illinois, with manufacturing facilities worldwide [2].

Core Viewpoint - Federal Signal (FSS) is a strong candidate for investors looking for stocks that consistently beat earnings estimates and may continue this trend in the upcoming quarterly report [1] Company Performance - Federal Signal has a history of surpassing earnings estimates, averaging a 10.21% beat over the last two quarters [2] - In the most recent quarter, the company reported earnings of $0.88 per share against an expectation of $0.82, resulting in a surprise of 7.32% [3] - For the previous quarter, Federal Signal's earnings were $0.95 per share compared to an estimate of $0.84, leading to a surprise of 13.10% [3] Earnings Estimates - There has been a favorable change in earnings estimates for Federal Signal, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [4] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5] Earnings ESP Details - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6] - Federal Signal currently has an Earnings ESP of +0.69%, suggesting increased analyst optimism regarding its near-term earnings potential [7] Upcoming Earnings Report - The next earnings report for Federal Signal is expected to be released on February 26, 2025 [7]

Core Viewpoint - Federal Signal Corporation will announce its fourth quarter earnings on February 26, 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 February 26, 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 13751729, starting 10 minutes prior to the call [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, founded in 1901, is a leader in environmental and safety solutions [3]. - The company designs, manufactures, and supplies products for municipal, governmental, industrial, and commercial customers [3]. - It operates two main groups: Environmental Solutions and Safety and Security Systems [3].

Core Viewpoint - Federal Signal Corporation has completed the acquisition of Waterblasting, LLC, owner of Hog Technologies, for an initial purchase price of $78.1 million, with potential earn-out opportunities based on financial performance in 2025 [1][5] Group 1: Acquisition Details - The acquisition includes substantially all assets and operations of Hog Technologies, a leading manufacturer of truck-mounted road-marking, line-removal, and waterblasting equipment [1] - The initial purchase price is funded through existing cash and borrowings under the Company's revolving credit facility, subject to customary adjustments [1] - Federal Signal has also agreed to acquire Hog's primary manufacturing facility in Stuart, Florida for $14.5 million [1] Group 2: Company Background and Market Position - Hog Technologies, founded in 1988, is recognized for its innovative products serving infrastructure, municipal, and airport markets, including patented runway rubber-removal systems [2] - Hog generated annual revenues of approximately $65 million in 2024, with aftermarket parts and services accounting for about 35% of total revenues [4] Group 3: Strategic Alignment and Future Outlook - The acquisition aligns with Federal Signal's strategic priorities to grow its specialty vehicle platform and enhance its leadership in the infrastructure maintenance sector [4] - Management anticipates the acquisition will be accretive to earnings and cash flow in 2025, with further outlook details to be provided during the fourth quarter 2024 earnings call [5]

Core Insights - Milestone Scientific Inc. has received approval for its CompuFlo® Epidural System on the Federal Supply Schedule (FSS), enhancing its position as a contractor for federal healthcare systems [1][2][7] - The FSS designation allows Milestone Scientific to offer pre-negotiated pricing for its products, streamlining procurement for government agencies [2] - The CompuFlo® Epidural System utilizes patented Dynamic Pressure Sensing Technology®, improving patient safety and comfort during epidural procedures [3] Federal Healthcare Opportunities - The FSS approval opens significant opportunities within federal healthcare systems, including the Department of Defense (DoD), the Department of Veterans Affairs (VA), and the Indian Health Service (IHS) [4][5][6] - The Veterans Health Administration (VHA) serves 9.1 million veterans, with one-third experiencing chronic pain, indicating a substantial market for effective pain management solutions [4] - The Military Health System (MHS) serves approximately 9.5 million beneficiaries, with a significant percentage of active-duty service members experiencing chronic pain, highlighting the need for innovative pain management [5] - The Indian Health Service (IHS) provides healthcare to 2.8 million individuals, with 19.3% experiencing chronic pain, particularly among women and older adults [6] Company Strategy and Leadership - The CEO of Milestone Scientific emphasized that securing the FSS approval is a pivotal achievement that validates the efficacy and safety of the CompuFlo® technology [7] - The company has been preparing for this approval by developing a robust pipeline of opportunities across the VA, DoD, and IHS, aiming to drive adoption of the CompuFlo® Epidural System [8]

Industry Overview - The Zacks Diversified Operations industry is benefiting from strong performance in aerospace, defense, and oil & gas sectors, driven by growth in commercial aviation and demand in medical and life sciences [1][4] - Companies in this industry operate across various markets including oil and gas, industrial, electronics, aviation, and healthcare, providing equipment and solutions [3] Major Trends - Strong demand from defense and governmental sectors, along with increased exploration activities in oil and gas, is positively impacting the industry [4] - Continuous investments in innovation and technological advancements are expected to drive growth, with a focus on digitizing business operations to enhance productivity and cost management [5] Challenges - The manufacturing sector is experiencing persistent weakness, with the Manufacturing Purchasing Manager's Index at 46.5% in October, indicating contraction [6] - Supply-chain disruptions, particularly regarding electrical and electronic components, are a concern for industry participants, as reflected in slower deliveries [7] Industry Performance - The Zacks Diversified Operations industry holds a Zacks Industry Rank of 61, placing it in the top 24% of over 250 Zacks industries, indicating strong prospects [8] - The industry's earnings estimates for the current year have increased by 14.4% over the past year, reflecting positive analyst sentiment [9] - Over the past year, the industry has underperformed the S&P 500, rising 13.7% compared to the S&P 500's 36.6% growth [11] Valuation - The industry is currently trading at a forward P/E of 15.42X, compared to the S&P 500's 22.43X, indicating potential undervaluation [12] Notable Companies - **PDD Holdings**: A multinational commerce group with a strong e-commerce business model, showing a 16.2% increase in shares over the past year and a 0.5% upward revision in 2024 earnings estimates [12][13] - **Federal Signal Corporation**: This company has seen a 38.9% increase in shares over the past year, benefiting from strong aftermarket demand and effective pricing actions [14][15]