Federal Signal Q4 Sales Jump 27% to $597M, EPS Tops $4.23
Federal Signal’s Q4 sales rose 27% to $597M on 18% organic growth, with ESG revenue climbing 27% to $504M and consolidated adjusted EBITDA up 25% to $438.9M at a 20.1% margin. Adjusted EPS jumped 27% to $4.23, and 2026 guidance targets $2.55–$2.65B sales and $4.50–$4.80 EPS.
1. Q4 Performance Highlights
Federal Signal’s Environmental Solutions Group posted 27% sales growth to $504 million and a 31% increase in adjusted EBITDA to $109 million, expanding margins 70 basis points to 21.6%. Consolidated net sales rose 27% to $597 million, with adjusted EBITDA up 25% at $438.9 million and adjusted EPS at $4.23.
2. Acquisition and Aftermarket Updates
The company completed the $413 million New Way acquisition and $45 million Mega Equipment deal, contributing to a 55% surge in ESG orders to $566 million and driving a 20% year-over-year rise in aftermarket revenue. Acquisition-related costs totaled $13.3 million, and synergy targets range from $15 million to $20 million by 2028.
3. 2026 Outlook and Guidance
Federal Signal forecasts 2026 net sales of $2.55–$2.65 billion, implying 17%–22% growth including 5%–9% organic, and adjusted EPS of $4.50–$4.80, despite a $0.16 per share headwind from higher acquisition-related amortization and normalized tax rates of around 25%.