- Federal Signal (FSS, Financial) reports a 9% increase in Q1 2025 net sales, reaching $464 million.
- Record orders of $568 million and a backlog of $1.10 billion were reported.
- The company raises its 2025 adjusted EPS outlook to $3.63-$3.90.
Federal Signal Corporation (FSS) has announced impressive financial results for the first quarter of 2025, highlighting a 9% year-over-year increase in net sales, which have reached $464 million. The company reported significant milestones with record orders totaling $568 million, up 13% from the previous year, and a record backlog of $1.10 billion. This strong performance has led Federal Signal to increase its adjusted earnings per share (EPS) guidance for 2025 to a range of $3.63 to $3.90, from the previous range of $3.60 to $3.90.
Operating income saw a substantial increase of 21%, reaching $65.7 million, while adjusted EPS rose by 19% to $0.76. Despite a decrease in GAAP EPS from $0.84 to $0.75, these figures underscore the company's robust operational performance. The Environmental Solutions Group achieved a 9% growth in sales, and the Safety and Security Systems Group reported an 8% increase.
Federal Signal's financial position remains strong, with improved operating cash flow up by 17% to $37 million. The company has further expanded its market presence by completing the acquisition of Hog Technologies, enhancing its capabilities in road-marking and waterblasting equipment. The company has also announced a $150 million stock repurchase program, following $19.7 million in share repurchases during the first quarter.
Looking ahead, Federal Signal maintains its full-year net sales outlook between $2.02 billion and $2.10 billion, supported by strong demand and record levels of customer orders. CEO Jennifer L. Sherman expressed confidence in the company's strategic initiatives and its ability to navigate macroeconomic challenges.
