Federal Signal reports Q3 adjusted EPS 71c, consensus 66c

Reports Q3 revenue $446M, consensus $437.48M. “In another quarter of outstanding performance by our businesses, we reported new company records for quarterly net sales and adjusted EPS, a 220-basis point year-over-year increase in adjusted EBITDA margin, an 18% increase in orders, and significant improvement in cash generation,” commented CEO Jennifer Sherman. “Within our Environmental Solutions Group, an improving supply chain supported higher production levels, and with increased sales volumes, contributions from recent acquisitions, robust aftermarket demand, and strong price realization, we were able to deliver a 31% year-over-year net sales increase and a 300-basis point improvement in adjusted EBITDA margin. Our Safety and Security Systems Group also delivered another impressive quarter, with double-digit top line growth and an adjusted EBITDA margin of approximately 20%. With its consistently strong performance over the last several quarters, we are increasing the EBITDA margin target for our Environmental Solutions Group to a new range of 17% to 22%, from the previous range of 15% to 18%. At the same time, we are increasing our consolidated EBITDA margin target to a new range of 14% to 20%, from the previous range of 12% to 16%.”