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EarningsQ2 2026 Earnings Report
FSS Q2 2026 EPS Results
Actual EPS$1.42
Consensus EPS$1.29
Beat/MissBeat by +$0.13
One Year Ago EPS$1.17
FSS Q2 2026 Revenue Results
Actual Revenue$670.20M
Expected Revenue$667.04M
Beat/MissBeat by +$3.16M
YoY Revenue Growth+18.70%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
FSS Upcoming Earnings
Federal Signal's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
FSS Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong, broad-based operational and financial momentum: double-digit top-line growth, record adjusted EBITDA and EPS, substantial cash generation, successful early integration of acquisitions, and an upward revision to full-year guidance. Headwinds included a lower backlog year-over-year driven by a planned Labrie decline, mix-driven margin pressure in SSG, modest increases in corporate costs, and some timing/market uncertainty in refuse and select municipal product lines. Overall, the positive drivers (growth, margins, cash flow, and guidance lift) materially outweighed the noted challenges.Company Guidance
Record Quarter: Revenue and Profit Growth
Consolidated net sales of $670.0M, up $106M or 19% YoY; consolidated operating income $118.2M, up $20.5M or 21% YoY; consolidated adjusted EPS $1.42, up $0.25 or 21% YoY.
Strong Adjusted EBITDA and Margin Expansion
Consolidated Adjusted EBITDA of $144.4M, up $26.2M or 22% YoY, with Adjusted EBITDA margin of 21.5% (improvement of 60 basis points); ESG Adjusted EBITDA $138.3M, up 25% YoY and ESG margin expanded 80 basis points to 23.9%.
Robust Orders and Backlog Visibility
Customer orders of $637M, up $97M or 18% YoY, providing strong forward demand; backlog remained sizable at ~$1.0B, supporting visibility into backlog-driven product lines.
Outstanding Cash Generation and Balance Sheet Actions
Operating cash flow of $113M in the quarter (up $53M or 89% YoY) and H1 operating cash flow of $214M (up 122% YoY); cash conversion of 131% of net income in the quarter; ~$97M of debt repaid during the quarter, net debt $391M and $1.04B availability under credit facility.
Aftermarket Momentum
Aftermarket revenue increased 24% YoY, representing ~25% of ESG revenue in Q2; rental income grew 16% YoY and used equipment and parts sales also contributed; company pursuing Build More Parts and geographic aftermarket expansion.
Acquisition Contributions and Synergy Progress
Acquisitions (New Way and Mega) contributed approximately $75M in net sales during the quarter; New Way and Mega integrations exceeding internal margin and profit expectations with cost synergies tracking ahead of plan (New Way synergies originally $15M-$20M annual by end of 2028).
Raised Full-Year Guidance
Full-year adjusted EPS guidance raised to $5.12–$5.30 (from $4.80–$5.05); full-year net sales guidance raised to $2.58B–$2.67B (from $2.57B–$2.66B); CapEx reaffirmed at $45M–$55M.
Gross Margin and Expense Discipline
Consolidated gross margin improved to 30.4% (up 40 basis points YoY); selling, engineering, general and administrative expenses down 10 basis points as a percent of sales.
FSS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed