10-K · February 25, 2026
Federal Signal reported a strong Q4 with revenue of $597.1M and diluted EPS of $1.16, backed by a larger backlog of $1.04B at year-end and several 2025 acquisitions folded into the Environmental Solutions segment. The…
Earnings analysis · 10-Q
FSS earnings analysis
Filed April 29, 2026 · Our reading of the company's report
The latest report
Federal Signal reported strong Q1 2026 financial results with revenue increasing by 35% year-over-year to $625.6 million and diluted EPS rising to $1.14, up from $0.75 in the previous year. The Environmental Solutions…
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Federal Signal reported strong Q1 2026 financial results with revenue increasing by 35% year-over-year to $625.6 million and diluted EPS rising to $1.14, up from $0.75 in the previous year. The Environmental Solutions Group led the growth with a 38% increase in sales, while the operative margin improved to 15.9%. However, the cash flow situation showed a decrease in free cash flow, highlighting some operational pressures fueled by higher costs and increased debt levels.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.14
What stood out
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Robust Revenue Growth
Net sales for Q1 2026 reached $625.6M, a 35% increase from $463.8M in Q1 2025.
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Significant EPS Improvement
Diluted EPS rose to $1.14 from $0.75 in the prior year, marking a 52% increase.
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Strong Growth in Environmental Solutions
Environmental Solutions Group saw a 38% increase in sales to $532.7M.
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Improved Operating Margin
Operating margin improved to 15.9%, up from 14.2% in Q1 2025.
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Positive Orders Trend
Total orders increased by 10% to $622.8M compared to $567.9M in the previous year.
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Increased Operating Cash Flow
Operating cash flow was significantly up at $101.3M, compared to $36.7M for Q1 2025.
What to watch
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Increased Debt Levels
Interest expense rose to $6.9M from $3.0M year-over-year, indicating higher borrowing costs.
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Higher Operating Costs
SEG&A expenses increased by $11.8M or 20% compared to last year, affecting margins.
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Falling Backlog
Total backlog decreased from $1.10B to $1.04B, signaling potential future revenue softness.
Management's outlook
Management anticipates that capital expenditures for 2026 will be in the range of $45 million to $55 million.
Earlier filings 4
10-K · February 26, 2025
Federal Signal's 2024 Form 10-K emphasizes a two‑segment strategy (Environmental Solutions and Safety & Security Systems) and completed the acquisition of substantially all assets and operations of Standard in 2024. The…
10-Q · April 30, 2024
Federal Signal reported Q1 net sales of $424.9 million, up $39.4 million (10.2%) versus Q1 2023, with gross profit rising to $116.0 million and operating income to $54.3 million. Diluted EPS improved to $0.84 from $0.45…
10-K · February 27, 2024
Federal Signal completed the acquisitions of Trackless and Blasters during 2023 and ended the year with a backlog of $1.03 billion (up from $879 million at 12/31/2022), supporting near-term revenue visibility. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.