Federal Signal Corporation · NYSE:FSS
Federal Signal — Q4 2025 Earnings Presentation
20 slides from Federal Signal's earnings presentation, Feb 25, 2026
Slide 1: Federal Signal Q4 2025 Earnings Call
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
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 $2.18 B, up $319 M, or 17% • Organic growth of $205 M, or 11% • Operating income of $340.9 M, up $59.5 M, or 21% • Net income of $246.6 M, up $30.3 M, or 14% • Adjusted EBITDA* of $438.9 M, up $88.3 M, or 25% • Adjusted EBITDA margin* of 20.1%,
Slide 4: Q4 Highlights
Q4 Highlights ** • Net sales of $597 M, up $125 M, or 27% • Organic growth of $85 M, or 18% • Operating income of $83.5 M, up $13.4 M, or 19% • Net income of $60.8 M, up $10.8 M, or 22% • Adjusted EBITDA* of $119.4 M, up $30.1 M, or 34% • Adjusted EBITDA margin* of 20.0%, vs. 18.9% • GAAP diluted EP
Slide 5: Group and Corporate Results
Group and Corporate Results $ millions, except % Q4 2025 Q4 2024 % Change Environmental Orders $ 565.5 $ 365.0 55% Solutions Group Net sales 504.1 396.1 27% Operating income 87.7 65.1 35% Operating margin 17.4% 16.4% Adjusted EBITDA* 109.0 82.9 31% Adjusted EBITDA margin* 21.6% 20.9% Safety and Secu
Slide 6: Consolidated Statement of Operations
Consolidated Statement of Operations $ millions, except % and per share Q4 2025 Q4 2024 $ Change % Change Net sales $ 597.1 $ 472.0 $ 125.1 27% Cost of sales 427.8 339.4 88.4 26% Gross profit 169.3 132.6 36.7 28% SEG&A expenses 67.4 58.4 9.0 15% Amortization expense 5.1 3.8 1.3 34% Acquisition and i
Slide 7: Adjusted Earnings per Share
Adjusted Earnings per Share * ($ in millions) Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 Net income, as reported $ 60.8 $ 50.0 $ 246.6 $ 216.3 Add: Income tax expense 17.8 12.9 77.9 47.6 Income before income taxes 78.6 62.9 324.5 263.9 Add: Acquisition and i
Slide 8: Financial Strength and Flexibility
Financial Strength and Flexibility * • Cash and cash equivalents of ~$64 M • Net debt of ~$501 M ** • In October 2025, executed a new five-year, $1.5 B credit agreement, Strong capital represented by a $1.1 B revolving credit facility and a $400 M delayed draw structure term loan, with opportunity t
Slide 9: CEO Remarks – Q4 Performance
CEO Remarks – Q4 Performance ** • Outstanding execution by both groups contributed to a record-setting Q4 across net sales, adjusted EPS* and adjusted EBITDA margin* • Environmental Solutions Group highlights: YoY net sales growth of 27%; 31% increase in adjusted EBITDA* 70 basis point YoY incre
Slide 10: CEO Remarks – Market Conditions
CEO Remarks – Market Conditions * ($ in millions) Consolidated Q4:24 Q1:25 Q2:25 Q3:25 Q4:25 FY25 Reported Net Sales $ 472.0 $ 463.8 $ 564.6 $ 555.0 $ 597.1 $ 2,180.5 Less: Third-Party (Labrie) Refuse Truck Net Sales $ 13.6 $ 12.3 $ 18.0 $ 18.6 $ 24.4 $ 73.3 Pro-Forma Net Sales $ 458.4 $ 451.5 $ 546
Slide 11: CEO Remarks – Update on Multi-Year Growth Strategy
CEO Remarks – Update on Multi-Year Growth Strategy New Way Trucks Integration • Encouraged by early results and integration progress • Continue to expect $15-$20 M of annual synergies substantially realized by the end of 2028 • Consistent with the outlook provided in September 2025, expecting the Ne
Slide 12: 2026 Financial Outlook
2026 Financial Outlook Issuing 2026 Guidance • Full-Year Adjusted EPS1 Outlook of $4.50 to $4.80 • At midpoint, would represent another year of double- digit growth, and the highest EPS level in our history • Full-year net sales of $2.55 B to $2.65 B • Would represent YoY growth of 17% - 22% • Capit
Slide 13: Federal Signal Q4 2025 Earnings Call Q&A
Federal Signal Q4 2025 Earnings Call Q&A February 25, 2026 Jennifer Sherman, President & Chief Executive Officer Ian Hudson, SVP, Chief Financial Officer Felix Boeschen, VP, Corporate Strategy & Investor Relations 13
Slide 14: 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 630-954-2000 Felix Boeschen VP, Corporate Strategy and Investor Relations fboeschen@federalsignal.com 14
Slide 15: Appendix
Federal Signal Q4 2025 Earnings Call Appendix 15
Slide 16: Non-GAAP Measures
Non-GAAP Measures • Adjusted net income and earnings per share (“EPS”) - The Company believes that modifying its 2025 and 2024 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 17: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, $ millions, except % 2025 2024 2025 2024 Net income $ 60.8 $ 50.0 $ 246.6 $ 216.3 Add: Interest expense, net 4.8 3.1 14.1 12.5 Pension settlement charges - 3.8 - 3.8 Acquisition and integration-related expe
Slide 18: Segment Adjusted EBITDA
Segment Adjusted EBITDA $ millions, except % ESG Q4 2025 Q4 2024 Operating Income $ 87.7 $ 65.1 Add: Acquisition and integration-related expenses, net - 0.2 Purchase accounting effects * 1.0 1.1 Depreciation and amortization 20.3 16.5 Adjusted EBITDA $ 109.0 $ 82.9 Net Sales $ 504.1 $ 396.1 Adjusted
Slide 19: Cash Conversion
Cash Conversion $ in millions, except % Net Cash Provided by Operating Activities - Year Ended December 31, 2025 (A) $ 254.7 Net Income - Year Ended December 31, 2025 (B) $ 246.6 Cash Conversion (A/B) 103% 19
Slide 20: Federal Signal
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