Federal Signal Q4 sales beats on Environmental Solutions unit strength

Federal Signal

25/02/2026 13:08

Overview

Environmental solutions provider's Q4 net sales grew 27%, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations, rising 33% yr/yr

Company completed acquisition of Mega Equipment LLC, expanding specialty vehicle offerings

Outlook

Federal Signal expects 2026 net sales between $2.55 bln and $2.65 bln

Company anticipates 2026 adjusted EPS of $4.50 to $4.80

Federal Signal plans 2026 capital expenditures of $45 mln to $55 mln

Result Drivers

ENVIRONMENTAL SOLUTIONS GROWTH - Increased sales volumes, recent acquisitions, and strong price realization drove 27% net sales growth in Environmental Solutions Group

SAFETY AND SECURITY SYSTEMS GROWTH - Safety and Security Systems Group achieved 23% top-line growth with a 360 basis point improvement in adjusted EBITDA margin

RECORD ORDERS - Company reported record quarterly orders, reflecting strong demand for its products and services

Company press release: ID:nPn4NzTwda

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$597.10 mln
$545.53 mln (7 Analysts)
Q4 Adjusted EPS
Beat
$1.16
$1.07 (7 Analysts)
Q4 Net Income
$60.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

Wall Street's median 12-month price target for Federal Signal Corp is $136.00, about 16.2% above its February 24 closing price of $116.99

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)