Federal Signal Soars 18% on Record Earnings Ranks 380th in Daily Trading Volume as Guidance Expands

Federal Signal Corporation (FSS) surged 18.21% on July 30, 2025, with a trading volume of $0.32 billion, ranking 380th in daily market activity. The company reported record Q2 results, including a 15% year-over-year rise in net sales to $565 million and a 20% increase in operating income to $97.7 million. Adjusted EBITDA reached $118.2 million, up 21%, while GAAP diluted EPS rose 17% to $1.16. The Environmental Solutions Group (ESG) drove much of the growth, contributing 18% higher sales and a 26% EBITDA increase, with margins expanding to 23.1% from 21.6% in 2024.

Management raised full-year guidance, projecting net sales of $2.07–$2.13 billion and adjusted EPS of $3.92–$4.10, up from prior ranges of $2.02–$2.10 billion and $3.63–$3.90, respectively. EBITDA margin targets were also elevated: consolidated EBITDA margins now range from 16% to 22% (previously 14%–20%), while ESG’s target widened to 18%–24% (from 17%–22%). The company attributed the performance to strong demand, production increases, and strategic acquisitions, including Hog Technologies and Standard Equipment, which added $33 million in incremental sales.

Operating cash flow surged 47% to $60 million in Q2, enabling $20 million in share repurchases and $8.5 million in dividends. A $1.08 billion backlog and 14% year-over-year order growth of $540 million further support the elevated outlook. CEO Jennifer Sherman highlighted disciplined cost management and expanded pricing power as key drivers, with ESG’s 9% organic growth underscoring the company’s operational resilience.

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