Q2 2026 Federal Signal Corp Earnings Call Transcript

Jul 30, 2026 / 02:00 PM GMT

Release Date Price: €106 (+9.84%)

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

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
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

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.