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Federal Signal Reports Third Quarter Results Including 17% Net Sales Growth and 24% Operating Income Improvement; Raises Full-Year Outlook
Prnewswireยท 2025-10-30 12:00
Core Insights - Federal Signal Corporation reported a consolidated net sales of $555 million for Q3 2025, marking a 17% increase year-over-year, with net income rising to $68.1 million or $1.11 per diluted share, compared to $53.9 million or $0.87 per diluted share in the same quarter last year [3][4][9]. Financial Performance - The company achieved a consolidated operating income of $94.0 million, up 24% from the prior year, with an operating margin of 16.9%, an increase from 16.0% [6][9]. - Adjusted EBITDA for Q3 was $116.2 million, reflecting a 25% increase year-over-year, with an adjusted EBITDA margin of 20.9%, up from 19.6% [7][9]. - The Environmental Solutions Group reported net sales of $466 million, a 17% increase, while the Safety and Security Systems Group saw net sales of $90 million, an 18% increase [5][9]. Orders and Backlog - Consolidated orders for the third quarter were $467 million, a 10% increase compared to the prior year, with a backlog of $992 million as of September 30, 2025 [9][10]. Outlook and Guidance - The company raised its 2025 adjusted EPS outlook to a range of $4.09 to $4.17, up from the previous range of $3.92 to $4.10, and increased its net sales outlook to between $2.10 billion and $2.14 billion [9][15]. Acquisition and Financial Flexibility - Federal Signal announced the acquisition of Scranton Manufacturing Company for an initial consideration of $396 million, with additional payments for manufacturing facilities [12]. - The company secured a new five-year credit facility of $1.5 billion, enhancing its financial flexibility to fund growth opportunities [10][13][14].