Federal Signal Corporation · NYSE:FSS
Federal Signal — Q4 2024 Earnings Presentation
21 slides from Federal Signal's earnings presentation, Feb 27, 2024
Slide 1: Federal Signal Q4 2024 Earnings Call
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
Slide 2: Safe Harbor
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 his
Slide 3: Full-Year Financial Highlights
Full-Year Financial Highlights ** • Record net sales of $1.86 B, up $139 M, or 8% • Operating income of $281.4 M, up $56.9 M, or 25% • Adjusted EBITDA* of $350.6 M, up $64.6 M, or 23% • Adjusted EBITDA margin* of 18.8%, vs. 16.6% • GAAP Diluted EPS of $3.50, up $0.94, or 37% • Record adjusted EPS* o
Slide 4: Q4 Highlights
Q4 Highlights ** • Net sales of $472 M, up $24 M, or 5% • Operating income of $70.1 M, up $7.0 M, or 11% • Adjusted EBITDA* of $89.3 M, up $11.8 M, or 15% • Adjusted EBITDA margin* of 18.9%, vs. 17.3% • GAAP Diluted EPS of $0.81, up $0.06, or 8% • Adjusted EPS* of $0.87, up $0.13, or 18% • Orders of
Slide 5: Group and Corporate Results
Group and Corporate Results $ millions, except % Q4 2024 Q4 2023 % Change Environmental Orders $ 365.0 $ 398.8 -8% Solutions Group Net sales 396.1 373.1 6% Operating income 65.1 58.2 12% Operating margin 16.4% 15.6% Adjusted EBITDA* 82.9 73.3 13% Adjusted EBITDA margin* 20.9% 19.6% Safety and Securi
Slide 6: Statement of Operations
Statement of Operations $ millions, except % and per share Q4 2024 Q4 2023 $ Change % Change Net sales $ 472.0 $ 448.4 $ 23.6 5% Cost of sales 339.4 329.0 10.4 3% Gross profit 132.6 119.4 13.2 11% SEG&A expenses 58.4 54.1 4.3 8% Amortization expense 3.8 3.8 - 0% Acquisition and integration-related e
Slide 7: Adjusted Earnings per Share
Adjusted Earnings per Share * ($ in millions, except per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Net income $ 50.0 $ 46.4 $ 216.3 $ 157.4 Add: Income tax expense 12.9 12.1 47.6 45.6 Income before income taxes 62.9 58.5 263.9 203.0 Add (less):
Slide 8: Financial Strength and Flexibility
Financial Strength and Flexibility * • Cash and cash equivalents of $91.1 M • Net debt of ~$133 M ** • In October 2022, executed a five-year, $800 M revolving credit facility, with Strong capital opportunity to increase further by the greater of (i) $400 M or (ii) 100% of TTM structure consolidated
Slide 9: CEO Remarks – Q4 Performance
CEO Remarks – Q4 Performance • Outstanding execution by both groups contributed to a record- setting Q4 across consolidated net sales, adjusted EPS* and adjusted EBITDA margin* • Environmental Solutions Group highlights: YoY net sales growth of 6%; 13% increase in adjusted EBITDA* 130-basis poin
Slide 10: CEO Remarks – Market Conditions
CEO Remarks – Market Conditions • End-market demand for our products and aftermarket offerings remains healthy, as evidenced by orders of $446 M in Q4 (second highest Q4 orders in Company history, down 4% YoY) ~$8 M combined YoY headwind from lower chassis pass-through orders and effects of Standa
Slide 11: CEO Remarks – Acquisition of Hog Technologies
CEO Remarks – Acquisition of Hog Technologies Overview: • Closed acquisition of Hog Technologies on February 12, 2025 for initial purchase price of ~$78 M, plus additional $14.5 M for Hog’s primary manufacturing facility • Earn-out opportunity of up to $15 M based on achievement of 2025 financial ta
Slide 12: CEO Remarks – Internal Initiatives
CEO Remarks – Internal Initiatives Multi-Year Diversification Strategy • Multi-year diversification strategy has resulted in diverse customer base with various funding mechanisms across industrial and public end-markets Water taxes = single largest funding mechanism at <15% of sales • ~$10 M of di
Slide 13: 2025 Financial Outlook
2025 Financial Outlook Issuing 2025 Guidance • Full-Year Adjusted EPS1 Outlook of $3.60 to $3.90 • At the midpoint, would represent another year of double- digit growth, and the highest EPS level in our history • Full-year net sales of $2.02 B to $2.10 B • Would represent YoY growth of 9% - 13% • Do
Slide 14: Q&A
Federal Signal Q4 2024 Earnings Call Q&A February 26, 2025 Jennifer Sherman, President & Chief Executive Officer Ian Hudson, SVP, Chief Financial Officer Felix Boeschen, VP, Corporate Strategy & Investor Relations 14
Slide 15: Investor Information
Investor Information Stock Ticker - NYSE:FSS Company website: federalsignal.com/investors HEADQUARTERS 1333 Butterfield Road, Suite 500 Downers Grove, IL 60515 INVESTOR RELATIONS CONTACTS 630-954-2000 Felix Boeschen VP, Corporate Strategy and Investor Relations fboeschen@federalsignal.com 15
Slide 16: Appendix
Federal Signal Q4 2024 Earnings Call Appendix 16
Slide 17: Non-GAAP Measures
Non-GAAP Measures • Adjusted net income and earnings per share (“EPS”) - The Company believes that modifying its 2024 and 2023 net income and diluted EPS provides additional measures which are representative of the Company’s underlying performance and improves the comparability of results between re
Slide 18: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA Consolidated Three Months Ended December 31, Twelve Months Ended December 31, $ millions, except % 2024 2023 2024 2023 Net income $ 50.0 $ 46.4 $ 216.3 $ 157.4 Add (less): Interest expense, net 3.1 4.3 12.5 19.7 Pension settlement charges 3.8 - 3.8 - Acquisition and inte
Slide 19: Segment Adjusted EBITDA
Segment Adjusted EBITDA ESG $ millions, except % Q4 2024 Q4 2023 Operating Income $ 65.1 $ 58.2 Add: Acquisition and integration-related expenses 0.2 0.2 Purchase accounting effects* 1.1 0.7 Depreciation and amortization 16.5 14.2 Adjusted EBITDA $ 82.9 $ 73.3 Net Sales $ 396.1 $ 373.1 Adjusted EBIT
Slide 20: Cash Conversion
Cash Conversion $ in millions, except % Net Cash Provided by Operating Activities - Year Ended December 31, 2024 (A) $ 231.3 Net Income - Year Ended December 31, 2024 (B) $ 216.3 Cash Conversion (A/B) 107% 20
Slide 21: Federal Signal – Moves. Cleans. Protects.
fp FEDERAL SIGNAL *" . "= Moves. Cleans. Protects.