Federal Signal Q4 Revenue Up 26.5%, Guides FY26 EPS $4.50–$4.80 and $2.55–$2.65B Sales
Federal Signal reported Q4 revenue of $597.1 million, up 26.5% year-on-year, beating consensus by 9.5%, with adjusted EPS of $1.16 (7.4% above estimates) and a 20% adjusted EBITDA margin. It initiated FY2026 guidance for $4.50–$4.80 adjusted EPS and $2.55–$2.65 billion in net sales, lifting shares about 5%.
1. Strong Q4 Beat
Federal Signal delivered Q4 CY2025 revenue of $597.1 million, up 26.5% year-on-year and 9.5% above consensus. Adjusted EPS reached $1.16, a 7.4% beat, while adjusted EBITDA was $119.4 million, yielding a 20% margin.
2. FY2026 Guidance
The company initiated full-year 2026 guidance with adjusted earnings of $4.50 to $4.80 per share and net sales projected between $2.55 billion and $2.65 billion. The outlook lifted trading sentiment, sending shares roughly 5% higher.
3. Operational Efficiency and Backlog
Operating margin held at 14%, in line with the prior year, and free cash flow margin was 15%, down from 17.4%. Backlog stood at $1.04 billion, up 4% year-on-year, indicating sustained order execution.