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.)