- Federal Signal has raised its full-year adjusted EPS forecast to a range of $3.92 to $4.10, previously projected as $3.63 to $3.90. The market estimate was $3.83.
- In the second quarter, adjusted EPS was reported at $1.17, beating both last year’s 95 cents and the estimate of $1.06.
- Net sales for the second quarter increased by 15% year-over-year to $564.6 million, surpassing the estimated $537.3 million.
- Environmental solutions net sales saw an 18% year-over-year increase, reaching $480.5 million, higher than the estimated $451.6 million.
- Safety and security systems net sales grew by 3.1% year-over-year to $84.1 million, slightly below the expectation of $84.9 million.
- Cost of sales increased by 14% year-over-year to $395.0 million, exceeding the estimate of $377.3 million.
- The adjusted EBITDA was $118.2 million for the quarter, a 21% increase year-over-year and above the estimate of $110.3 million.
- Gross profit increased by 18% year-over-year to $169.6 million, higher than the estimated $160.7 million.
- The backlog slightly rose by 0.3% year-over-year to $1.08 billion.
- Orders grew by 14% year-over-year, totaling $539.7 million.
- Cash and cash equivalents increased by 33% year-over-year to $64.7 million, but fell short of the projected $106.2 million.
- Long-term borrowings and finance lease obligations rose by 3.8% year-over-year to $258.3 million, exceeding the estimate of $243 million.
- The company increased its 2025 net sales outlook to a range of $2.07 billion to $2.13 billion, up from the previous range of $2.02 billion to $2.10 billion.
- Analysts’ ratings include 4 buy recommendations, 2 holds, and 0 sells.
Federal Signal on Smartkarma
Independent analysts on Smartkarma, such as Baptista Research, have recently published bullish coverage on Federal Signal Company. In one report titled “Federal Signal Company: Attempting To Power Ahead with Market Share Grabs & Disruption-Proof Operations!”, the analysts highlighted the company’s strong first-quarter performance in 2025. Federal Signal saw a 9% year-over-year growth in net sales, reaching $464 million, with operating income and adjusted EBITDA both increasing by 21%. These positive financial indicators, including a 90 basis points expansion in gross margin to 28.2%, signify healthy financial progress for the company.
In another insightful report titled “Federal Signal‘s Genius Operational Overhaul Is Quietly Boosting Margins & Market Share!”, Baptista Research praised Federal Signal Corporation’s financial results for the fourth quarter and full year of 2024. The company achieved record-high net sales of approximately $1.86 billion for the year, marking an 8% increase over the previous year. Notably, operating income grew by 25% to $281.4 million, and adjusted EBITDA rose by 23% to $350.6 million, resulting in a margin of 18.8%. This demonstrated operational excellence is seen as quietly boosting margins and market share for Federal Signal, according to the analysts.
A look at Federal Signal Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Federal Signal shows a promising long-term outlook. With a high momentum score of 5, indicating strong market performance, the company seems to be attracting significant investor interest. Additionally, a growth score of 4 suggests that Federal Signal is positioned for expansion and development in the future. This is complemented by a resilience score of 3, showcasing the company’s ability to withstand economic uncertainties. While the value and dividend scores are more moderate at 2, overall, Federal Signal appears to have a solid foundation for growth and potential.
Federal Signal Corporation, a manufacturer of safety, signaling, and communication equipment, has a diverse product portfolio that includes fire rescue products, street sweeping vehicles, signage, cutting tools, and mold components. The Smartkarma Smart Scores highlight the company’s positive momentum and growth potential, indicating opportunities for further market success. With a focus on innovation and resilience, Federal Signal seems poised to capitalize on its strengths and navigate challenges effectively in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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