Federal Signal Corporation · NYSE:FSS
Federal Signal — Q1 2025 Earnings Presentation
18 slides from Federal Signal's earnings presentation, Apr 30, 2025
Slide 1: Federal Signal Q1 2025 Earnings Call
Federal Signal Q1 2025 Earnings Call April 30, 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: Q1 Highlights
Q1 Highlights ** • Net sales of $464 M, up $39 M, or 9% • Organic growth of $28 M, or 7% • Operating income of $65.7 M, up $11.4 M, or 21% • Adjusted EBITDA* of $85.1 M, up $14.5 M, or 21% • Adjusted EBITDA margin* of 18.3%, vs. 16.6% • GAAP Diluted EPS of $0.75, down $0.09, or 11% • $13 M discrete
Slide 4: Group and Corporate Results
Group and Corporate Results $ millions, except % Q1 2025 Q1 2024 % Change Environmental Orders 480.1 427.7 12% Solutions Group Net sales 387.4 354.0 9% Operating income 59.7 51.7 15% Operating margin 15.4% 14.6% Adjusted EBITDA* 77.5 66.5 17% Adjusted EBITDA margin* 20.0% 18.8% Safety and Security O
Slide 5: Consolidated Statement of Operations
Consolidated Statement of Operations $ millions, except % and per share Q1 2025 Q1 2024 $ Change % Change Net sales $ 463.8 $ 424.9 $ 38.9 9% Cost of sales 333.0 308.9 24.1 8% Gross profit 130.8 116.0 14.8 13% SEG&A expenses 60.2 57.2 3.0 5% Amortization expense 4.3 3.6 0.7 19% Acquisition and integ
Slide 6: Adjusted Earnings per Share
Adjusted Earnings per Share * ($ in millions) Three Months Ended March 31, 2025 2024 Net income, as reported $ 46.3 $ 51.6 Add (less): Income tax expense (benefit) 15.7 (0.7) Income before income taxes 62.0 50.9 Add: Acquisition and integration-related expenses, net 0.6 0.9 Purchase accounting effec
Slide 7: Financial Strength and Flexibility
Financial Strength and Flexibility * • Cash and cash equivalents of $57.5 M • Net debt of ~$220 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 8: CEO Remarks – Q1 Performance
CEO Remarks – Q1 Performance • Outstanding execution by both groups contributed to a record- setting Q1 across net sales, adjusted EPS, orders, and backlog • Environmental Solutions Group highlights: YoY net sales growth of 9%; 17% increase in adjusted EBITDA Aftermarket revenues up 11% YoY, equ
Slide 9: CEO Remarks – Market Conditions
CEO Remarks – Market Conditions • Demand for our products remains strong, as evidenced by record Q1 orders of $568 M, up 13% YoY Q1 orders include acquisition of Hog’s backlog (~$21 M) Q1 orders, excluding Hog’s acquired backlog, up 9% YoY • Q1 backlog at ~$1.10 B, up <1% YoY, and up ~11% vs. Q4
Slide 10: CEO Remarks – Internal Initiatives
CEO Remarks – Internal Initiatives Tariff Impacts and Mitigation Actions • Supply chains are localized to the regions and countries that we serve Largely manufacture in country for country • 95%+ of our direct supplies are sourced from North America, primarily U.S. • Components directly sourced fr
Slide 11: Raising 2025 Financial Outlook
Raising 2025 Financial Outlook • Raising Full-Year Adjusted EPS1 Outlook to a new range of $3.63 to $3.90 • Increased from the prior range of $3.60 to $3.90 • At the midpoint, new range would represent another year of double-digit growth, and the highest EPS level in our history • Full-year net sale
Slide 12: Federal Signal Q1 2025 Earnings Call Q&A
Federal Signal Q1 2025 Earnings Call Q&A April 30, 2025 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 Q1 2025 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 2025 and 2024 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 % Q1 2025 Q1 2024 Net income $ 46.3 $ 51.6 Add: Interest expense, net 3.0 3.2 Acquisition and integration-related expenses, net 0.6 0.9 Purchase accounting effects * 0.1 - Other expense, net 0.7 0.2 Income tax expense (benefit) 15.7 (0.7) Depreciation
Slide 17: Segment Adjusted EBITDA
Segment Adjusted EBITDA ESG $ millions, except % Q1 2025 Q1 2024 Operating Income $ 59.7 $ 51.7 Add: Acquisition and integration-related expenses 0.1 0.5 Purchase accounting effects * 0.1 - Depreciation and amortization 17.6 14.3 Adjusted EBITDA $ 77.5 $ 66.5 Net Sales $ 387.4 $ 354.0 Adjusted EBITD
Slide 18: Federal Signal – Moves. Cleans. Protects.
fp FEDERAL SIGNAL *" . "= Moves. Cleans. Protects.