FSS earnings analysis
What we found in FSS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Robust Revenue Growth
- Net sales for Q1 2026 reached $625.6M, a 35% increase from $463.8M in Q1 2025.
- Significant EPS Improvement
- Diluted EPS rose to $1.14 from $0.75 in the prior year, marking a 52% increase.
- Strong Growth in Environmental Solutions
- Environmental Solutions Group saw a 38% increase in sales to $532.7M.
- Improved Operating Margin
- Operating margin improved to 15.9%, up from 14.2% in Q1 2025.
- Positive Orders Trend
- Total orders increased by 10% to $622.8M compared to $567.9M in the previous year.
- Increased Operating Cash Flow
- Operating cash flow was significantly up at $101.3M, compared to $36.7M for Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Debt Levels
- Interest expense rose to $6.9M from $3.0M year-over-year, indicating higher borrowing costs.
- Higher Operating Costs
- SEG&A expenses increased by $11.8M or 20% compared to last year, affecting margins.
- Falling Backlog
- Total backlog decreased from $1.10B to $1.04B, signaling potential future revenue softness.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.14
- Gross margin
- 28.7%
- Operating margin
- 15.9%
- Segment
- Environmental Solutions Group: $532.7M
- Segment
- Safety and Security Systems Group: $92.9M
What they said about what is next.
Management anticipates that capital expenditures for 2026 will be in the range of $45 million to $55 million.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing FSS makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever