Federal Signal (FRA:FSG) Operating Income: €355 Mil (TTM As of Jun. 2026)

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FRA:FSG Federal Signal Corp FRA:FSG
99 GF Score
Price €100.00
GF Value €98.00
Valuation Fairly Valued
! 1 Warning Sign
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What is Federal Signal Operating Income?

Federal Signal FRA:FSG 99 Operating Income is €355 Mil as of Jun. 2026. GuruFocus rates FRA:FSG with a GF Score™ of 99/100 and a GF Value™ of €98.00 (Fairly Valued). The stock has 1 warning sign investors should review.

Federal Signal's Operating Income for the three months ended in Jun. 2026 was €103 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was €355 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Federal Signal's Operating Income for the three months ended in Jun. 2026 was €103 Mil. Federal Signal's Revenue for the three months ended in Jun. 2026 was €582 Mil. Therefore, Federal Signal's Operating Margin % for the quarter that ended in Jun. 2026 was 17.74%.

Good Sign:

Federal Signal Corp operating margin is expanding. Margin expansion is usually a good sign.

Federal Signal's 5-Year average Growth Rate for Operating Margin % was 9.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Federal Signal's annualized ROC % for the quarter that ended in Jun. 2026 was 16.57%. Federal Signal's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 45.65%.


Federal Signal  (FRA:FSG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Federal Signal's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=412.82 * ( 1 - 22.71% )/( (1927.912 + 1923.141)/ 2 )
=319.068578/1925.5265
=16.57 %

where

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2123.056 - 133.383 - ( 61.761 - max(0, 266.593 - 758.432+61.761))
=1927.912

Invested Capital(Q: Jun. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2117.92 - 140.269 - ( 54.51 - max(0, 271.597 - 743.789+54.51))
=1923.141

Note: The Operating Income data used here is four times the quarterly (Jun. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Federal Signal's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=407.612/( ( (455.941 + max(439.679, 0)) + (460.387 + max(429.834, 0)) )/ 2 )
=407.612/( ( 895.62 + 890.221 )/ 2 )
=407.612/892.9205
=45.65 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(268.236 + 413.297 + 15.138) - (133.383 + 57.349 + 66.26)
=439.679

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(250.678 + 416.466 + 22.135) - (140.269 + 50.084 + 69.092)
=429.834

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Federal Signal's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 )/Revenue (Q: Jun. 2026 )
=103.205/581.734
=17.74 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Federal Signal Operating Income Related Terms


Federal Signal Operating Income Historical Data

* Premium members only.

The historical data trend for Federal Signal's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Federal Signal Operating Income Chart

Federal Signal Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 104.70 151.32 206.23 267.59 304.79

Federal Signal Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 85.14 81.45 82.67 87.28 103.21
FRA:FSG
99GF Score
Federal Signal Corp FRA:FSG
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Federal Signal Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €355 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €355 Mil mean?
Federal Signal (FRA:FSG) has a Operating Income of €355 Mil as of Jun. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Federal Signal and its competitors.
Is Federal Signal's Operating Income too high?
Federal Signal's current Operating Income is €355 Mil. Overall, Federal Signal has a GF Score™ of 99/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Federal Signal's Operating Income compare to TEX and AGCO?
Federal Signal's Operating Income of €355 Mil can be compared against companies in the Farm & Heavy Construction Machinery industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Farm & Heavy Construction Machinery company?
A good Operating Income depends on the Farm & Heavy Construction Machinery industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Federal Signal and its competitors. Federal Signal's current Operating Income is €355 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federal Signal stock overvalued right now?
Based on GuruFocus' analysis, Federal Signal (FRA:FSG) is currently considered Fairly Valued. The stock's GF Value™ is €98.00, compared to a current price of €100.00 — trading 2% above its estimated fair value. The current Operating Income is €355 Mil. Federal Signal's overall GF Score™ is 99/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Federal Signal (FRA:FSG), the current Operating Income is €355 Mil as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Federal Signal (FRA:FSG) Overvalued in 2026?

Based on GuruFocus' analysis, Federal Signal stock appears to be overvalued. The current stock price of €100.00 is trading 2% above its estimated GF Value™ of €98.00. GuruFocus considers Federal Signal to be Fairly Valued.

Key valuation signals for FRA:FSG:

  • Operating Income: €355 Mil
  • GF Value™: €98.00 vs. price of €100.00 (2% above fair value)
  • GF Score™: 99/100 with 1 warning sign

No single metric tells the full story. See the FRA:FSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Federal Signal Business Description

Other Exchanges FSS:USA
Address 1333 Butterfield Road, Downers Grove, IL, USA, 60515
Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates through two segments. The Environmental Solutions Group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance water blasting equipment, dump truck bodies, and trailers. The Safety and Security Systems Group manufactures and supplies comprehensive systems and products used by law enforcement, fire rescue, and industrial sites to protect people and property. Its offerings include systems for community alerting and industrial communications. The company generates the majority of its revenue from the Environmental Solutions Group segment.
99GF Score

Get the complete analysis for FRA:FSG

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€100.00
Price
€98.00
GF Value