Federal Signal Q4 2025 Earnings Call February 25, 2026 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 Insights - Aebi Schmidt Group reported strong preliminary financial results for Q4 and full year 2025, highlighting exceptional order momentum and a record order backlog, positioning the company for growth in 2026 [1][4][5] Financial Performance - The Group's order intake in Q4 2025 increased by 46% compared to Q4 2024, with a record order backlog exceeding $1.2 billion, indicating a solid foundation for growth in 2026 [4][5] - Net sales for Q4 2025 reached $528 million, a 6% increase from $500 million in Q4 2024, while full year net sales totaled $1.907 billion, reflecting a 2% increase from 2024 [4][5] - Adjusted EBITDA for 2025 is expected to be slightly above the midpoint of the guidance range of $145 million to $165 million [4][5] 2026 Financial Outlook - For 2026, the company anticipates net sales between $1.95 billion and $2.15 billion, with adjusted EBITDA projected at $175 million to $195 million, driven by a recovery in walk-in-van orders and merger synergies [4][6] - The company expects significant organic growth and improved profitability, particularly in the second half of 2026, supported by a ramp-up in production [4][6] Board of Directors Update - The Board announced the nomination of Barend Fruithof, the Group CEO, for election as Chairman of the Board at the 2026 Annual General Meeting, with current Chairman Jim Sharman and Board member Peter Spuhler not standing for re-election [8][9][10] - The Board will reduce in size to eight members following the 2026 AGM, with Terri Pizzuto expected to become Vice Chairman and Andreas Rickenbacher as Lead Independent Director [10]

Core Insights - Oshkosh reported strong financial results for 2025, with total revenue of $10.4 billion and adjusted EPS of $10.79, while fourth-quarter revenue reached nearly $2.7 billion, reflecting a 3.5% increase year-over-year [3][5][8] - The company is facing challenges from tariffs, which are expected to impact results significantly in 2026, with an estimated cost of about $200 million, primarily affecting the Access segment [2][7][17] - Oshkosh's management remains optimistic about long-term growth, with a 2026 sales outlook of approximately $11 billion and adjusted EPS projected at around $11.50, despite anticipated softer market conditions in certain segments [5][15] Financial Performance - In 2025, Oshkosh's adjusted operating income was just over $1 billion, with a fourth-quarter adjusted operating margin of 8.4% and adjusted EPS of $2.26 [3][6] - The company generated free cash flow of $618 million for the year, exceeding guidance due to improved customer advances and lower capital expenditures [6][8] - Share repurchases totaled $278 million for 2025, with approximately $119 million executed in the fourth quarter [1][6] Segment Performance - The Access segment reported fourth-quarter revenue of $1.2 billion, up 1% year-over-year, but faced margin pressure due to unfavorable price-cost dynamics and tariffs [9][10] - Vocational segment sales reached $922 million in the fourth quarter, with a strong adjusted operating margin of 16.2%, driven by growth in the fire apparatus business [10][11] - Transport segment sales increased to $567 million, with delivery vehicle revenue growing 13% sequentially, although defense vehicle revenue declined due to the wind-down of the JLTV program [13][14] Strategic Initiatives - Oshkosh is investing approximately $150 million to improve fire truck production throughput and reduce lead times, with about $70 million already spent [11] - The company is pursuing tariff mitigation strategies through engineering, sourcing changes, and localization efforts, while also implementing price increases where necessary [18] - Management is confident in achieving its 2028 goals, including an adjusted EPS range of $18 to $22 per share, supported by the 2026 guidance [21]

Core Viewpoint - Aebi Schmidt Group has declared a quarterly cash dividend of $0.025 per share, payable on March 26, 2026, to shareholders of record by February 19, 2026 [1] Group 1: Dividend Announcement - The Board of Directors has confirmed a continued quarterly cash dividend of $0.025 per share of common stock [1] - The dividend payment is scheduled for March 26, 2026, for shareholders recorded by February 19, 2026 [1] Group 2: Payment Source and Tax Implications - The dividend is a return of capital, fully paid out of reserves from capital contributions, making it tax-free for Swiss shareholders [2] - For non-Swiss shareholders, the dividend is classified as a return of capital or non-U.S. source income [2] Group 3: Company Overview - Aebi Schmidt Group is a leader in specialty vehicles, headquartered in Switzerland, and listed on Nasdaq [3] - The company generated pro-forma sales of $1.9 billion in 2024 and employs over 6,000 people following its merger with The Shyft Group on July 1, 2025 [3] - The production facilities and service centers are located in Europe and North America, utilizing advanced technology and improved processes [3]

Core Insights - The article discusses the importance of efficiency ratios in evaluating a company's potential for profitability and stock selection [2] Efficiency Ratios - Receivables Turnover measures a company's ability to collect debts and indicates quality customers; a high ratio is desirable [3] - Asset Utilization indicates how well a company converts assets into sales; a higher ratio suggests greater efficiency [4] - Inventory Turnover assesses a company's ability to manage inventory relative to sales; a high ratio indicates effective inventory management [5] - Operating Margin reflects a company's control over operating expenses; a higher margin suggests better efficiency compared to peers [6] Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) to enhance profitability [7] - The criteria narrowed down over 7,906 stocks to 13 based on efficiency ratios exceeding industry averages [8] Selected Companies - AtriCure (ATRC) focuses on innovative surgical devices and has an average four-quarter earnings surprise of 67.1% [11] - REV Group (REVG) designs specialty vehicles and has an average four-quarter earnings surprise of 22.1% [12] - Oceaneering International (OII) provides offshore equipment and technology solutions, with an average four-quarter earnings surprise of 12.3% [13] - Analog Devices (ADI) manufactures semiconductor devices and has an average four-quarter earnings surprise of 5.8% [14]

Core Insights - The U.S. stock indices showed positive performance on December 11, 2025, with the S&P 500 and Dow Jones Industrial Average reaching new closing records following a quarter-point interest rate cut by the U.S. central bank on December 10, leading investors to favor equities sensitive to rate cuts over tech stocks [1][2]. Investment Recommendations - Investors are advised to consider low-leverage stocks as safe-haven securities amid concerns over overvalued AI-centric tech stocks. Recommended companies include Casey's General Stores (CASY), Hamilton Insurance Group (HG), Northrip Bancorp (NRIM), REV Group (REVG), and Engie (ENGIY), which exhibit low leverage and stability during market volatility [2][10]. Understanding Leverage - Leverage involves borrowing capital for operational and business expansion, typically through debt financing. While debt can facilitate growth, excessive reliance on it poses risks, especially if returns do not exceed interest costs. Therefore, selecting companies with low debt is crucial for minimizing investment risks [4][5][6]. Debt-to-Equity Ratio Analysis - The debt-to-equity ratio is a key metric for assessing a company's financial risk, with lower ratios indicating better solvency. As the third-quarter 2025 earnings season concludes, investors should focus on stocks with solid earnings growth and low debt-to-equity ratios to ensure steady returns [7][9]. Stock Selection Criteria - A comprehensive screening process for selecting low-leverage stocks includes criteria such as: - Debt/Equity ratio lower than the industry median - Current price of at least $10 - Average 20-day trading volume of 50,000 or more - Positive earnings growth compared to the industry median - VGM Score of A or B, combined with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [11][12][13]. Company Performance Highlights - **Casey's General Stores (CASY)**: Reported a 3.3% increase in same-store sales and a 14% rise in earnings for Q2 fiscal 2026. The Zacks Consensus Estimate predicts a 9.6% revenue increase and an 11.8% earnings improvement for fiscal 2026, with a Zacks Rank of 2 [14][15]. - **Hamilton Insurance Group (HG)**: Achieved a 16.5% increase in net premiums and improved operating earnings to $1.20 per share from $0.16 in Q3 2024. The Zacks Consensus Estimate forecasts a 20.9% revenue increase and an 8.5% earnings rise for 2025, holding a Zacks Rank of 1 [16][17]. - **Northrip Bancorp (NRIM)**: Completed a $60 million private placement to support growth initiatives. The Zacks Consensus Estimate anticipates a 29.6% revenue increase and a 51.5% earnings rise for 2025, with a Zacks Rank of 1 [18][19]. - **REV Group (REVG)**: Reported a 13% increase in net sales and a 62.7% rise in adjusted EPS for Q4 fiscal 2025. The Zacks Consensus Estimate suggests a 7.3% revenue increase and a 30.4% earnings rise for fiscal 2026, with a Zacks Rank of 2 [20][21]. - **Engie (ENGIY)**: Announced the financial closure of its first offshore wind farm in Poland, with a total planned capacity of up to 390 MW. The Zacks Consensus Estimate indicates a 31.8% earnings improvement for 2025, holding a Zacks Rank of 2 [22][23].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Fiscal Year 2025 Highlights - REV Group returned $120.5 million cash to shareholders in Fiscal Year 2025[7, 30] - The company achieved record consolidated free cash flow[7, 30] - Fire & ambulance throughput & efficiency gains were realized[7, 25] - REV Group continues to invest in its facilities[7, 30] - Consolidated adjusted EBITDA margin expansion was achieved[7] - A strategic merger with Terex Corporation was announced[7] Fiscal Year 2025 Consolidated Results - Net sales were $2,464 million, compared to $2,380 million in FY'24[9], excluding Bus Manufacturing Businesses, net sales were $2,217 million[9] - Adjusted EBITDA was $229.5 million, compared to $162.8 million in FY'24[10], excluding Bus Manufacturing Businesses, adjusted EBITDA was $145.2 million with a margin of 6.5%[10] Fourth Quarter Fiscal 2025 Consolidated Results - Net sales were $664.4 million, compared to $597.9 million in Q4'24[16], excluding Bus Manufacturing Businesses, net sales were $588.1 million[16] - Adjusted EBITDA was $69.7 million, compared to $49.6 million in Q4'24[17], excluding Bus Manufacturing Businesses, adjusted EBITDA was $49.9 million with a margin of 8.5%[17] Fourth Quarter Fiscal 2025 Specialty Vehicles Results - Net sales were $507.4 million, compared to $439.9 million in Q4'24[23], excluding Bus Manufacturing Businesses, net sales were $430.1 million[23] - Adjusted EBITDA was $70.5 million, compared to $50.2 million in Q4'24[23], excluding Bus Manufacturing Businesses, adjusted EBITDA was $50.5 million with a margin of 11.7%[23] - The backlog is $4.4 billion, reflecting solid order revenue for fire apparatus and ambulances[24] Fourth Quarter Fiscal 2025 Recreational Vehicles Results - Net sales were $157.2 million, compared to $158.1 million in Q4'24[27] - Adjusted EBITDA was $9.0 million, compared to $8.1 million in Q4'24[27]

Fund Performance - The FPA Queens Road Small Cap Value Fund returned 7.46% in Q3 2025, underperforming the Russell 2000 Value Index which returned 12.60% [1] - For the first three quarters of 2025, the Fund achieved a return of 13.77%, compared to 9.04% for the index [1] - The Fund's strategy focuses on a diligent, disciplined, and patient process, expecting to outperform in down markets and underperform in speculative markets [1] Company Highlight: REV Group, Inc. - REV Group, Inc. (NYSE:REVG) is a manufacturer of specialty vehicles, primarily focusing on municipal vehicles such as fire trucks and ambulances [3] - The company reported a one-month return of -18.15% but has seen a 57.50% increase in share value over the last 52 weeks, with a closing stock price of $50.32 and a market capitalization of $2.456 billion as of November 21, 2025 [2] - REV Group generated net sales of $644.9 million in Q3 2025, an increase from $579.4 million in Q3 2024 [4] Operational Developments - CEO Mark Skonieczny has implemented significant operational restructuring, divesting from the less profitable bus business and using the proceeds for stock buybacks [3] - The company has reported a significant backlog and pricing growth, particularly in its municipal business, indicating strong demand [3]

Core Insights - Aebi Schmidt Group reports a significant increase in profitability following the acquisition of the Shyft Group, with a focus on integration and realizing expected synergies [1][3][6] Financial Performance - The company achieved net sales of $471 million in Q3 2025, a 3% increase year-over-year, with a strong order backlog exceeding $1.1 billion [3][4] - Adjusted EBITDA reached $42.2 million, reflecting a 25% year-over-year increase and a margin improvement of 160 basis points to 9.0% [3][4] - The order intake surged by 33% year-over-year, with a notable 79.3% increase in legacy Shyft orders due to recovering demand [4][3] Regional Performance - Sales in Europe and the Rest of the World increased by 14.6% to $135.4 million, while North American sales remained flat at $336 million, impacted by a decline in legacy Shyft sales [4][3] Strategic Outlook - The company aims for revenues of $3 billion and a mid-teens Adjusted EBITDA margin, with expectations of continued growth and market share expansion [6][5] - Aebi Schmidt anticipates strong positive cash flow in Q4 2025, with leverage expected to drop below 3.0x by year-end 2025 and below 2.0x by year-end 2026 [5][6] Operational Efficiency - The company is focused on improving working capital efficiency, particularly in collections and inventory management, to support significant sales growth [5][6] - Net working capital improved by 7.3% year-over-year, while net debt increased by 5.0% due to non-recurring transaction expenses and high working capital needs [4][5]