Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (May 2025)
30 slides from Federal Signal's investor presentation, May 2025
Slide 1: Investor Presentation: May 2025
Moves. Cleans. Protects. Investor Presentation: May 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains unaudited financial information and forward-looking statements. Statements that are not historical are forward-looking statements and may contain words such as “may,” “will,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “project,” “estimate,”
Slide 3: Federal Signal at a Glance: Leading Safety Equipment & Specialty Vehicle OEM
Federal Signal at a Glance: Leading Safety Equipment & Specialty Vehicle OEM Environmental Solutions Group (“ESG”) 1901 Founded Downers Grove, IL 84% of Headquarters FY24 Net Sales2 ~4,900 Global Employees5 24 Manufacturing Locations5 13 Acquisitions Since 20165 106% 5-Year Cash Conversion1 Avg. Saf
Slide 4: Net Sales by Distribution Channel & End Market Exposure
Net Sales by Distribution Channel & End Market Exposure Net Sales by Category (FY 2024)1 Net Sales by End Market (FY 2024)1 Industrial Warning Systems 2% Other Signaling Aftermarket Oil & Gas 4% 1% 22% 2% Utility Publicly Funded Public Safety 3% 10% 53% Other Specialty Equipment(2) 24% Vacuum Trucks
Slide 5: Federal Signal Product & Service Offerings
Federal Signal Product & Service Offerings ESG (84% of 2024 Net Sales)1 SSG (16% of 2024 Net Sales) Dump Multi- Truck Purpose Metal Public Vacuum Street Industrial Bodies & Maint. Road Extraction Safety Warning Trucks Sweepers Cleaning Trailers Vehicles Marking Support Aftermarket Equipment Signalin
Slide 6: Delivering on our Growth Strategy
Delivering on our Growth Strategy Key Financial Targets Low double-digit annual net sales growth Net Sales CAGR (’16A – ’24A) $1,900 Total: ~13% $1,861 (raised in Q2’24) Organic: ~7% $1,723 Adjusted EBITDA margins: 14-20%1 ROIC > Cost of Capital $1,435 $1,213 $1,221 $1,090 $1,131 (US$ in milli
Slide 7: ESG: Growing A Best-In-Class Specialty Vehicle Platform
ESG1: Growing A Best-In-Class Specialty Vehicle Platform Vehicle Product Market Share Rank2 Vacuum Trucks #1 Street Sweepers #1-2 Industrial Cleaning (Waterblasting Equipment) #2 Headquarters Manufacturing Facility (21)3 Dump Truck Bodies & Trailers #1 Aftermarket Site (36)3 Multi-Purpose Maintenanc
Slide 8: ESG: Resilient End-Market Characteristics
ESG: Resilient End-Market Characteristics Water Taxes1 Funding – United States CAGR (’10A – ’24A): ~4.4% Water taxes are a significant funding mechanism for sewer cleaners COVID: +3.7%YoY Industrial Recession: +1.7%YoY 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source
Slide 9: SSG: Industry Leader in Audible & Visual Safety Equipment
SSG1: Industry Leader in Audible & Visual Safety Equipment Market Share Product Rank2 Key Multi-Year Trends: Strategically positioned in end-markets with high barriers to entry given stringent regulatory requirements for safety Public Safety equipment Equipment #2 The increase in natural and man
Slide 10: Strategic Pillars: Aftermarket Ecosystem Optimization
Strategic Pillars: Aftermarket Ecosystem Optimization Aftermarket Snapshot Parts & Services Size: ~26% of ESG Net Sales (FY 2024) Sale of parts/services/refurbishment 2015-2024 Net Sales CAGR: ~14% New Vehicle / 35+ locations across US + Canada Equipment Sales Targeting all FSS customers r
Slide 11: Strategic Pillars: "Safe Digging" Market Acceleration
Strategic Pillars: “Safe Digging” Market Acceleration Sewer Cleaners Ordered with a Hydro-Excavation Package1 Safe Digging Use Cases CAGR (’11A – ’24A): ~7.3% Airports Environmental Construction Gas Industry Industrial Landscaping Military 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 12: Strategic Pillars: Innovation & Product Development
Strategic Pillars: Innovation & Product Development New Product Examples Select Product Development Highlights: Launched a sweeper without a CDL requirement to operate Scaling production adoption for RegenX (air sweeper) Launched a new Switch-N-Go interchangeable body system on Class 3 chassis
Slide 13: Strategic Pillars: Harnessing the Power of Our Specialty Vehicle Platform
Strategic Pillars: Harnessing the Power of Our Specialty Vehicle Platform New Product Procurement Development Data & Market FS Operational Intelligence Specialty System Vehicle Platform Sales Channel Supply Chain Alignment Optimization Dealer Aftermarket Development Support & Footprint 13
Slide 14: Strategic Pillars: Executing on our M&A Pipeline
Strategic Pillars: Executing on our M&A Pipeline Specialty Vehicle Market – North America Safety and Security Systems Market Includes All Systems Built on Class 3-8 Commercial Chassis (~410K Units) Includes North America and Europe Surgically evaluating opportunities that meet our criteria Other Spe
Slide 15: M&A Case Study: Trackless Vehicles
M&A Case Study: Trackless Vehicles M&A Target Criteria Trackless Growth by Geography In Year 1 of Ownership Return on capital greater than cost of capital, risk adjusted Niche market leader (product, geography, end market) Sustainable competitive advantage Deep domain expertise (technology, applicat
Slide 16: Update on Current Environment
Update on Current Environment Underlying Demand Remains Strong Tight Commercial Driver’s License Labor Pool The qualified CDL driver market for many specialty vehicle applications remains tight, exacerbated by the legalization of marijuana across North America. This is leading to rising customer n
Slide 17: Targeting Best in Class Growth & Continued Margin Expansion
Targeting Best in Class Growth & Continued Margin Expansion Source: Company Filings Specialty Vehicle & Industrial Consolidator Peers Included (Listed in alphabetical order): ALG, AME, DOV, GGG, IEX, IR, ITW, OSK, PLOW, SPXC, TEX, TTC and WAB, with information presented herein calculated using publi
Slide 18: Industry-Leading Margin Performance Through the Business Cycle
Industry-Leading Margin Performance Through the Business Cycle Adjusted EBITDA1 Adjusted EBITDA Margin1 Margin Targets: $365 $351 Consolidated EBITDA Margin Target: 14 – 20% ESG EBITDA Margin Target: 17 – 22% SSG EBITDA Margin Target: 18 – 24% (raised in Q4:24) $286 19.2% 18.8% (US$ in million
Slide 19: Financial Performance
Financial Performance Net Sales & Orders Free Cash Flow Generation1 Net Sales Orders $1,913 $199 $1,870 $1,848 $191 $1,900 $1,692 $1,723 $1,861 $164 $1,539 Facility investments & $1,435 supply chain related working $1,269 capital $1,173 $1,213 headwinds (US$ in millions) (US$ in millions) $1,131 $1,
Slide 20: 2025 Financial Outlook
2025 Financial Outlook1 • Raised Full-Year Adjusted EPS2 Outlook to a new range of $3.63 to $3.90 on Q1:25 earnings call • 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 • Ful
Slide 21: Appendix
Appendix I. Our Portfolio of Brands & Products II. Extensive Geographic Footprint Across North America III. Federal Signal Operating System IV. Sustainability Initiatives V. Non-GAAP Measures VI. Executive Compensation VII. Investor Information 21
Slide 22: Appendix I: Our Portfolio of Brands & Products
Appendix I: Our Portfolio of Brands & Products ESG SSG Source: Management 22
Slide 23: Appendix II: Extensive Geographic Footprint Across North America
Appendix II: Extensive Geographic Footprint Across North America Manufacturing Facility Aftermarket Site Dealers1 1) Defined as dealer-managed locations from dealers that sell Elgin, Truvac, and Vactor products 23
Slide 24: Appendix III: Federal Signal Operating System
Appendix III: Federal Signal Operating System Material Cost Reduction Manufacturing Efficiency Waste reduction Lean manufacturing focus SKU rationalization Throughput flexibility Savings through volume aggregation Labor pool management Sourcing optimization Flexible manufacturing mod
Slide 25: Appendix IV: Sustainability Initiatives
Appendix IV: Sustainability Initiatives Community Engagement Resource Consumption Sustainability Report o Active participation with local o Ongoing energy consumption o Published 2024 Sustainability Report assessments and adopting energy in Q2 2024 charities, promoting and efficient measures t
Slide 26: Appendix V: Non-GAAP Measures (Adjusted EBITDA)
Appendix V: Non-GAAP Measures (Adjusted EBITDA) Adjusted EBITDA and Adjusted EBITDA Margin The Company uses adjusted EBITDA and the ratio of adjusted EBITDA to net sales (“adjusted EBITDA margin”), as additional measures which are representative of its underlying performance and to improve the compa
Slide 27: Appendix V: Non-GAAP Measures (Cash Conversion, Net Debt Leverage and Free Cash Flow)
Appendix V: Non-GAAP Measures (Cash Conversion, Net Debt Leverage and Free Cash Flow) Cash Conversion Cash conversion is a non-GAAP measure that is computed by dividing net cash provided by operating activities by net income (represented as a percentage). The Company believes that cash conversion pr
Slide 28: Appendix VI: Executive Compensation Aligned with Long-term Objectives
Appendix VI: Executive Compensation Aligned with Long-term Objectives The Company continues to focus on executing against a number of key long-term objectives, which include (i) creating disciplined growth; (ii) improving manufacturing efficiencies and costs; (iii) leveraging invested capital; and
Slide 29: Appendix VII: Investor Information
Appendix VII: Investor Information Stock Ticker: NYSE:FSS Company website: federalsignal.com/investors HEADQUARTERS 1333 Butterfield Road, Suite 500 Downers Grove, IL 60515 Felix Boeschen VP Corporate Strategy & Investor Relations fboeschen@federalsignal.com 29
Slide 30: Federal Signal
fe FEDERAL SIGNAL Moves. Cleans. Protects.