Federal Signal Corporation · NYSE:FSS
Federal Signal — Merger or Acquisition (September 2025)
13 slides from Federal Signal's merger presentation, Sep 25, 2025
Slide 1: Federal Signal Announces Acquisition of New Way Trucks
Federal Signal Announces Acquisition of New Way Trucks September 25, 2025
Slide 2: Safe Harbor Statement
2 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,” and “objective” or s
Slide 3: New Way is a Leader in U.S. Refuse Collection Vehicles & Aftermarket Parts
Non-CDL Refuse Vehicles 3 New Way is a Leader in U.S. Refuse Collection Vehicles & Aftermarket Parts ➢ Scranton Manufacturing Company Inc. d/b/a New Way Trucks (“New Way”) is a U.S.-based leader in the design and manufacture of refuse collection vehicles serving the solid waste industry ➢ New Way ga
Slide 4: Transaction Overview
4 Transaction Overview Purchase Price Financial Impact & Synergies Financing Timing • Expect transaction to be neutral to 2026 EPS, reflecting planned business investments, integration and optimization initiatives, higher interest cost, and anticipated purchase accounting effects, including a prelim
Slide 5: New Way Acquisition Aligns with Federal Signal's M&A Target Criteria
0 50 100 150 200 250 300 350 400 450 500 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 5 New Way Acquisition Aligns with Federal Signal’s M&A Target Criteria M&A Target Criteria Return on capital greater than cost of capital, risk adjusted Niche marketplace leader S
Slide 6: New Way/FSS Combination is Well Positioned for Long-Term Outsized Growth
6 New Way/FSS Combination is Well Positioned for Long-Term Outsized Growth Side Loaders as a Percent of Total Industry Refuse Collection Vehicles Sold1 & New Way Share Growth ➢ New Way holds the #1 U.S. position in Automated Side Loaders, aligning with FSS’s track record of leadership across its bus
Slide 7: Driving Synergy Opportunities Through the Power of our Specialty Vehicle Platform
7 Driving Synergy Opportunities Through the Power of our Specialty Vehicle Platform Operational Excellence Best-In-Class Customer Service Total Annual Power of the Platform Synergies (expected by 2028) Annual EBITDA Synergy Expectations1: Unlocking Growth Opportunities Anticipated $15M-$20M 1) Sourc
Slide 8: Synergy Opportunity: Operational Excellence
8 Synergy Opportunity: Operational Excellence ➢ Drive procurement savings through combined spend and supplier consolidation ➢ Apply the Federal Signal Operating System to streamline product lines and enhance profitability ➢ Execute rigorous 80/20 improvement plan aimed at product simplification, enh
Slide 9: Synergy Opportunity: Best-In-Class Customer Service
9 Synergy Opportunity: Best-In-Class Customer Service ➢ Leverage Federal Signal’s existing aftermarket footprint of 35+ North American locations and capabilities to drive higher recurring parts and service revenue at New Way ➢ Increase internal parts production capabilities to realize increased part
Slide 10: Synergy Opportunity: New Way Aftermarket Parts Expansion
10 Synergy Opportunity: New Way Aftermarket Parts Expansion ➢ Targeting aftermarket parts mix as a percentage of sales to improve from ~11% (2024 actual) to mid-to-high teens % of New Way revenue by 2028 ➢ We believe an opportunity exists to capitalize on New Way’s growing installed base of refuse t
Slide 11: Synergy Opportunity: Unlocking Growth
11 Synergy Opportunity: Unlocking Growth ➢ Optimize sales channel and increase direct sales opportunities into private haulers that have historically been underserved by New Way ➢ Drive cross-selling opportunities across exclusive FSS and New Way sales channels ➢ Accelerate new product development e
Slide 12: The Refuse Industry Will Represent a New Specialty Vehicle Growth Vertical
12 ESG (84% of 2024 Net Sales) 1 SSG (16% of 2024 Net Sales) Vacuum Trucks Street Sweepers Industrial Cleaning Dump Truck Bodies & Trailers Refuse Collection Multi- Purpose Maint. Vehicles Road Marking Metal Extraction Support Aftermarket Public Safety Equipment Signaling Warning Systems Key End Mar
Slide 13: Appendix: Non-GAAP Financial Measures
13 Appendix: Non-GAAP Financial Measures As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America. This presentation includes certain non-GAAP measures, as defined under SEC rules, which are defined below. The non-GAAP financial information presented
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