Federal Signal Corporation · NYSE:FSS
Federal Signal — Q3 2025 Earnings Presentation
18 slides from Federal Signal's earnings presentation, Oct 30, 2025
Slide 1: Federal Signal Q3 2025 Earnings Call
Federal Signal Q3 2025 Earnings Call October 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: Q3 Highlights
Q3 Highlights ** • Net sales of $555 M, up $81 M, or 17% • Organic growth of $51 M, or 11% • Operating income of $94.0 M, up $18.1 M, or 24% • Adjusted EBITDA* of $116.2 M, up $23.2 M, or 25% • Adjusted EBITDA margin* of 20.9%, vs. 19.6% • GAAP diluted EPS of $1.11, up $0.24, or 28% • Adjusted EPS*
Slide 4: Group and Corporate Results
Group and Corporate Results $ millions, except % Q3 2025 Q3 2024 % Change ESG Orders $ 371.1 $ 352.7 5% Net sales 465.5 398.2 17% Operating income 85.3 71.5 19% Operating margin 18.3% 18.0% Adjusted EBITDA* 104.9 87.2 20% Adjusted EBITDA margin* 22.5% 21.9% SSG Orders 95.8 73.2 31% Net sales 89.5 76
Slide 5: Consolidated Statement of Operations
Consolidated Statement of Operations $ millions, except % and per share Q3 2025 Q3 2024 $ Change % Change Net sales $ 555.0 $ 474.2 $ 80.8 17% Cost of sales 393.5 333.8 59.7 18% Gross profit 161.5 140.4 21.1 15% SEG&A expenses 61.4 60.1 1.3 2% Amortization expense 4.5 3.8 0.7 18% Acquisition and int
Slide 6: Adjusted Earnings per Share
Adjusted Earnings per Share * ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income, as reported $ 68.1 $ 53.9 $ 185.8 $ 166.3 Add: Income tax expense 22.4 18.7 60.1 34.7 Income before income taxes 90.5 72.6 245.9 201.0 Add: Acquisition and i
Slide 7: Financial Strength and Flexibility
Financial Strength and Flexibility * • Cash and cash equivalents of $54 M • Net debt of ~$159 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 to
Slide 8: CEO Remarks – Q3 Performance
CEO Remarks – Q3 Performance ** • Outstanding execution by both groups contributed to a record-setting Q3 across net sales, adjusted EPS* and adjusted EBITDA margin* • Environmental Solutions Group highlights: YoY net sales growth of 17%; 20% increase in adjusted EBITDA* 60-basis point YoY incre
Slide 9: CEO Remarks – Market Conditions
CEO Remarks – Market Conditions * • Demand for our products remains strong, as evidenced by record Q3 orders of $467 M, up 10% YoY • Q3 backlog at ~$992 M, provides excellent visibility to rest of 2025 and well into 2026 for certain key product lines • SSG order intake of $96 M in Q3 (+31% YoY) SS
Slide 10: CEO Remarks – Update on Strategic Growth Initiatives
CEO Remarks – Update on Strategic Growth Initiatives Hog Technologies – Initial Performance & Outlook • Expect FY25 net sales contribution of $60-$65 M (up from $50-$55M) • Identified incremental synergy opportunities for 2026 including operational efficiencies, procurement, aftermarket parts/servic
Slide 11: Raising 2025 Financial Outlook
Raising 2025 Financial Outlook • Raising Full-Year Adjusted EPS1 Outlook to a new range of $4.09 to $4.17 • Increased from the prior range of $3.92 to $4.10 • At the midpoint, new range would represent ~24% YoY growth, and the highest EPS level in our history • Raising Full-year Net Sales Outlook to
Slide 12: Federal Signal Q3 2025 Earnings Call Q&A
Federal Signal Q3 2025 Earnings Call Q&A October 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 630-954-2000 Felix Boeschen VP, Corporate Strategy and Investor Relations fboeschen@federalsignal.com 13
Slide 14: Appendix
Federal Signal Q3 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 % Q3 2025 Q3 2024 Net income $ 68.1 $ 53.9 Add: Interest expense, net 2.8 3.0 Acquisition and integration-related expenses, net 1.6 0.6 Purchase accounting effects * 0.3 - Other expense, net 0.7 0.3 Income tax expense 22.4 18.7 Depreciation and amortiz
Slide 17: Segment Adjusted EBITDA
Segment Adjusted EBITDA ESG $ millions, except % Q3 2025 Q3 2024 Operating Income $ 85.3 $ 71.5 Add: Acquisition and integration-related expenses, net 0.2 0.3 Purchase accounting effects * 0.3 - Depreciation and amortization 19.1 15.4 Adjusted EBITDA $ 104.9 $ 87.2 Net Sales $ 465.5 $ 398.2 Adjusted
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