Federal Signal Corporation · NYSE:FSS
Federal Signal — Q1 2026 Earnings Presentation
19 slides from Federal Signal's earnings presentation, Apr 29, 2026
Slide 1: Federal Signal Q1 2026 Earnings Call
Federal Signal Q1 2026 Earnings Call April 29, 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: Q1 Highlights
Q1 Highlights ** • Net sales of $626 M, up $162 M, or 35% • Organic growth of $70 M, or 15% • Operating income of $99.7 M, up $34.0 M, or 52% • Net income of $70.4 M, up $24.1 M, or 52% • Adjusted EBITDA* of $126.3 M, up $41.2 M, or 48% • Adjusted EBITDA margin* of 20.2%, vs. 18.3% • GAAP diluted EP
Slide 4: Group and Corporate Results
Group and Corporate Results $ millions, except % Q1 2026 Q1 2025 % Change Environmental Orders 534.3 480.1 11% Solutions Group Net sales 532.7 387.4 38% Operating income 89.1 59.7 49% Operating margin 16.7% 15.4% Adjusted EBITDA* 113.3 77.5 46% Adjusted EBITDA margin* 21.3% 20.0% Safety and Security
Slide 5: Consolidated Statement of Operations
Consolidated Statement of Operations $ millions, except % and per share Q1 2026 Q1 2025 $ Change % Change Net sales $ 625.6 $ 463.8 $ 161.8 35% Cost of sales 446.2 333.0 113.2 34% Gross profit 179.4 130.8 48.6 37% SEG&A expenses 72.0 60.2 11.8 20% Amortization expense 6.5 4.3 2.2 51% Acquisition and
Slide 6: Adjusted Earnings per Share
Adjusted Earnings per Share * ($ in millions) Three Months Ended March 31, 2026 2025 Net income, as reported $ 70.4 $ 46.3 Add: Income tax expense 21.8 15.7 Income before income taxes 92.2 62.0 Add: Acquisition and integration-related expenses, net 1.2 0.6 Purchase accounting effects (1) 1.8 0.3 Adj
Slide 7: Financial Strength and Flexibility
Financial Strength and Flexibility * • Cash and cash equivalents of ~$71 M • Net debt of ~$480 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 $400 M delayed Strong capital draw term loan, with opportunity to increase
Slide 8: CEO Remarks – Q1 Performance
CEO Remarks – Q1 Performance** • Strong execution by both groups contributed to a record-setting Q1 across net sales, adjusted EPS*, and adjusted EBITDA* • Environmental Solutions Group highlights: YoY net sales growth of 38%; 46% increase in adjusted EBITDA* 130-basis point YoY increase in adju
Slide 9: CEO Remarks – Market Conditions
CEO Remarks – Market Conditions * ($ in millions) Consolidated Q1:25 Q2:25 Q3:25 Q4:25 Q1:26 Reported Net Sales $ 463.8 $ 564.6 $ 555.0 $ 597.1 $ 625.6 Less: Third-Party (Labrie) Refuse Truck Net Sales $ 12.3 $ 18.0 $ 18.6 $ 24.4 $ 26.2 Pro-Forma Net Sales $ 451.5 $ 546.6 $ 536.4 $ 572.7 $ 599.4 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 e
Slide 11: Raising 2026 Financial Outlook
Raising 2026 Financial Outlook • Raising Full-Year Adjusted EPS1 Outlook to a new range of $4.80 to $5.05 • Increased from the prior range of $4.50 to $4.80 • 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 Q1 2026 Earnings Call Q&A
Federal Signal Q1 2026 Earnings Call Q&A April 29, 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 Q1 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 % Q1 2026 Q1 2025 Net income $ 70.4 $ 46.3 Add: Interest expense, net 6.9 3.0 Acquisition and integration-related expenses, net 1.2 0.6 Purchase accounting effects * 1.6 0.1 Other expense, net 0.6 0.7 Income tax expense 21.8 15.7 Depreciation and amort
Slide 17: Segment Adjusted EBITDA
Segment Adjusted EBITDA ESG $ millions, except % Q1 2026 Q1 2025 Operating income $ 89.1 $ 59.7 Add: Acquisition and integration-related expenses - 0.1 Purchase accounting effects * 1.6 0.1 Depreciation and amortization 22.6 17.6 Adjusted EBITDA $ 113.3 $ 77.5 Net sales $ 532.7 $ 387.4 Adjusted EBIT
Slide 18: Cash Conversion
Cash Conversion $ in millions, except % Net Cash Provided by Operating Activities - Three Months Ended March 31, 2026 (A) $ 101.3 Net Income - Three Months Ended March 31, 2026 (B) $ 70.4 Cash Conversion (A/B) 144% 18
Slide 19: Federal Signal – Moves. Cleans. Protects.
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