Q2 2026 Federal Signal Corp Earnings Call Transcript

Jul 30, 2026 / 02:00 PM GMT

Release Date Price: €100 (+6.38%)

Transcript 10-Q

Key Points

Positve

Record second-quarter net sales of $670 million, up 19% year-over-year, driven by strong organic growth and acquisitions.
Adjusted EBITDA margin improved 60 basis points to 21.5%, with ESG segment margin up 80 basis points to 23.9%.
Orders increased 18% to $637 million, with high single-digit organic growth in ESG, led by vacuum trucks and aftermarket.
Aftermarket revenue grew 24% year-over-year, with strong rental income and parts demand, now 25% of ESG revenue.
Operating cash flow surged 89% to $113 million, with cash conversion of 131% of net income, supporting debt reduction and investments.

Negative

SSG segment adjusted EBITDA margin declined to 25.1% from 26.9% last year due to mix headwinds from certain shipments.
Backlog decreased 8% year-over-year to $1 billion, partly due to planned decline in third-party Labrie refuse truck backlog.
Corporate operating expenses rose to $17.8 million from $15.7 million, driven by higher post-retirement and medical costs.
Interest expense increased by $2.5 million year-over-year, impacting net income growth.
Street sweeper orders were down in Q2, reflecting some softness in pure-play municipal demand despite overall strength.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FSS.N - Federal Signal Corp
Q2 2026 Federal Signal Corp Earnings Call
Jul 30, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings.

Welcome to the Federal Signal Corporation's second quarter earnings call at this time, all participants are in a listen-only mode.

A question-and-answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad, please note this conference is being recorded.

I will now turn the conference over to Felix Bosan, Vice President, Corporate strategies and Investor Relations.

Thank you, Felix.

You may begin.

Good morning and welcome to Federal Signals second quarter 2026 conference call.

I'm Felix Posen, the company's Vice President of Corporate strategy and

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