Federal Signal Corporation published the transcript of its fourth quarter 2025 earnings call held on February 25, 2026. The call was led by President and Chief Executive Officer Jennifer Sherman, Senior Vice President and Chief Financial Officer Ian Hudson, and Vice President of Corporate Strategy and Investor Relations Felix Boeschen, with Q&A participation from analysts including Raymond James, KeyBanc Capital Markets, William Blair, Seaport, D.A. Davidson, CJS Securities, and Sidoti and Company. Management highlighted record 2025 results and a strong Q4, driven by growth in both operating groups. The company reported full-year 2025 net sales of $2.18 billion and Q4 net sales of $597 million, while Q4 adjusted EPS rose to $1.16. Orders were also strong, with Q4 orders of $647 million, including $132 million of acquired backlog, and year-end backlog of $1.04 billion. Sherman said the company delivered “record-setting fourth quarter performance,” citing “new quarterly records across net sales, adjusted EPS, and Adjusted EBITDA.” She pointed to Environmental Solutions Group strength from acquisitions, higher production, and price realization, and noted ongoing efforts to “build more trucks” and reduce lead times for sewer cleaners and four-wheel sweepers. Aftermarket demand remained strong, with Q4 aftermarket revenue up 20% year-over-year, supported by parts, service, and rentals. Federal Signal also discussed the integration of recent acquisitions, particularly New Way and Mega Equipment. Sherman reiterated synergy targets for New Way, stating the company is “committed to achieving our targeted $15 million to $20 million in annual synergies by the end of 2028,” split between cost and revenue synergies, and said New Way is expected to be “approximately adjusted EPS-neutral in 2026.” On Canada refuse strategy, the company has shifted its Joe Johnson Equipment channel from third-party Labrie trucks to selling New Way, and expects to deliver the remaining $80 million of third-party Labrie backlog over the next four quarters, with margin tailwinds expected in 2027 and 2028. Looking ahead, management issued 2026 guidance calling for net sales of $2.55 billion to $2.65 billion and adjusted EPS of $4.50 to $4.80. Hudson said the revenue outlook implies total growth of 17% to 22%, with “about 5% to 9% is organic and the rest would be contributions from New Way and Mega.” Sherman added that the company has “not baked any meaningful prebuy into our guidance” and noted publicly funded customers “don’t materially engage in prebuying.” The full transcript can be accessed through the link below.

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