Federal Signal Corporation · NYSE:FSS
Federal Signal — Q2 2026 Earnings Presentation
18 slides from Federal Signal's earnings presentation, Jul 30, 2026
Slide 1: Federal Signal Q2 2026 Earnings Call
Federal Signal Q2 2026 Earnings Call July 30, 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: Q2 Highlights
Q2 Highlights ** • Net sales of $670 M, up $106 M, or 19% • Organic growth of $31 M, or 6% • Operating income of $118.2 M, up $20.5 M, or 21% • Net income of $86.1 M, up $14.7 M, or 21% • Adjusted EBITDA* of $144.4 M, up $26.2 M, or 22% • Adjusted EBITDA margin* of 21.5%, vs. 20.9% • GAAP diluted EP
Slide 4: Group and Corporate Results
Group and Corporate Results $ millions, except % Q2 2026 Q2 2025 % Change Environmental Solutions Orders 547.8 441.1 24% Group Net sales 577.7 480.5 20% Operating income 113.9 91.9 24% Operating margin 19.7% 19.1% Adjusted EBITDA* 138.3 110.8 25% Adjusted EBITDA margin* 23.9% 23.1% Safety and Securi
Slide 5: Consolidated Statement of Operations
Consolidated Statement of Operations $ millions, except % and per share Q2 2026 Q2 2025 $ Change % Change Net sales $ 670.2 $ 564.6 $ 105.6 19% Cost of sales 466.4 395.0 71.4 18% Gross profit 203.8 169.6 34.2 20% SEG&A expenses 78.3 66.9 11.4 17% Amortization expense 6.6 4.5 2.1 47% Acquisition and
Slide 6: Adjusted Earnings per Share
Adjusted Earnings per Share * ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income, as reported $ 86.1 $ 71.4 $ 156.5 $ 117.7 Add: Income tax expense 25.3 22.0 47.1 37.7 Income before income taxes 111.4 93.4 203.6 155.4 Add: Acquisition and integration
Slide 7: Financial Strength and Flexibility
Financial Strength and Flexibility * • Cash and cash equivalents of ~$63 M • Net debt of ~$391 M ** • In October 2025, executed a new five-year, $1.5 B credit agreement, represented by a $1.1 B revolving credit facility and a $400 M delayed Strong capital draw term loan, with opportunity to increase
Slide 8: CEO Remarks – Q2 Performance
CEO Remarks – Q2 Performance** • Strong execution by both groups contributed to a record-setting Q2 across net sales, adjusted EPS*, adjusted EBITDA*, and orders • Environmental Solutions Group highlights: YoY net sales growth of 20%; 25% increase in adjusted EBITDA* 80-basis point YoY increase
Slide 9: CEO Remarks – Market Conditions
CEO Remarks – Market Conditions * ($ in millions) Consolidated Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 Reported Net Sales $ 564.6 $ 555.0 $ 597.1 $ 625.6 $ 670.2 Less: Third-Party (Labrie) Refuse Truck Net Sales $ 18.0 $ 18.6 $ 24.4 $ 26.2 $ 13.0 Pro-Forma Net Sales $ 546.6 $ 536.4 $ 572.7 $ 599.4 $ 657.2 Con
Slide 10: CEO Remarks – Update on Multi-Year Growth Strategy
CEO Remarks – Update on Multi‐Year Growth Strategy Execution on Multi-Year Growth Strategy • Through economic cycles, we target low double-digit annual top-line growth, split roughly equally between inorganic and organic growth • We have implemented annual through-cycle EBITDA margin targets for eac
Slide 11: Raising 2026 Financial Outlook
Raising 2026 Financial Outlook • Raising Full-Year Adjusted EPS1 Outlook to a new range of $5.12 to $5.30 • Increased from the prior range of $4.80 to $5.05 • At the midpoint, new range would represent another year of double-digit growth, and the highest EPS level in our history • Raising Full-year
Slide 12: Federal Signal Q2 2026 Earnings Call Q&A
Federal Signal Q2 2026 Earnings Call Q&A July 30, 2026 Jennifer Sherman, President & Chief Executive Officer Ian Hudson, SVP, Chief Financial Officer Felix Boeschen, VP, Corporate Strategy & Investor Relations 12
Slide 13: 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 13
Slide 14: Appendix
Federal Signal Q2 2026 Earnings Call Appendix 14
Slide 15: Non-GAAP Measures
Non‐GAAP Measures • Adjusted net income and earnings per share (“EPS”) - The Company believes that modifying its 2026 and 2025 net income and diluted EPS provides additional measures to assist it in comparing its performance on a consistent basis for purposes of business decision making by removing
Slide 16: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA $ millions, except % Q2 2026 Q2 2025 Net income $ 86.1 $ 71.4 Add: Interest expense, net 6.0 3.5 Acquisition and integration-related expenses, net 0.7 0.5 Purchase accounting effects * 0.9 0.1 Other expense, net 0.8 0.8 Income tax expense 25.3 22.0 Depreciation and amort
Slide 17: Segment Adjusted EBITDA
Segment Adjusted EBITDA ESG $ millions, except % Q2 2026 Q2 2025 Operating income $ 113.9 $ 91.9 Add: Acquisition and integration-related expenses 0.2 0.1 Purchase accounting effects * 0.9 0.1 Depreciation and amortization 23.3 18.7 Adjusted EBITDA $ 138.3 $ 110.8 Net sales $ 577.7 $ 480.5 Adjusted
Slide 18: Federal Signal – Moves. Cleans. Protects.
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