Record Third Quarter Financial Performance
Federal Signal Corporation reported record third quarter results with a 17% year-over-year net sales growth, a 24% increase in operating income, and a 130 basis point increase in adjusted EBITDA margin. Adjusted EPS was up 30% from the previous year.
Strong Order Intake and Backlog
The company recorded a third quarter order intake of $467 million, the highest ever for a third quarter, representing a 10% year-over-year increase. Despite a 4% decline in backlog, the strong order intake provides excellent visibility into 2026.
Robust Performance in ESG and SSG Segments
Environmental Solutions Group (ESG) and Safety and Security Systems Group (SSG) both showed significant growth. ESG's net sales increased by 17% and SSG's by 18% year-over-year. SSG's adjusted EBITDA margin improved by 220 basis points.
Successful Integration of Acquisitions
Recent acquisitions like Hog Technologies and Standard contributed positively to the top line, with Hog exceeding initial financial estimates.
Expansion and Investment Initiatives
The company executed a new 5-year $1.5 billion credit facility to support growth initiatives and future acquisitions. Additionally, significant investments are being made in productivity-enhancing projects and strategic growth initiatives.