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Federal Signal Corporation
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NYSE: FSS Industrials Infra 🔎 Screen
🏹 Trader: 🎯 Near 52W High View all →
$7.0B
Market Cap
24.2
P/E
2.00
PEG
18.6%
ROCE
20.6%
ROE
0.32
D/E
16.7%
OPM
-15.7%
% from 52W High
35
α RS
🔍 FSS is showing a multi-screen setup because it matches 16 of 39 tracked screener presets, Sector RRG has Industrials in the Improving quadrant with the trail still strengthening, an ECS of 69 last quarter, and it has maintained a 6-day Near 52-Week High momentum persistence. The main caution: the Magic Formula preset's Backtest win rate is only 47.9%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG ECS Momentum Streaks Backtest
Sources
Conviction 16/39 · Industrials in Improving quadrant · ECS 69 · Near 52-Week High streak: 6d · Backtest win rate 47.9%
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🌏 Global Investor Returns
Currency-adjusted total returns for FSS including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
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About

Federal Signal Corporation designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through two segments, Environmental Solutions Group, and Safety and Security Systems Group. The company offers street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, dump truck bodies, and trailers, as well as waterblasting, road-marking, line-removal, metal extraction support equipment, and multi-purpose maintenance vehicles under the ELGIN, VACTOR, GUZZLER, TRUVAC, WESTECH, JETSTREAM, BLASTERS, MARK RITE LINES, HOG, NEW WAY, TRACKLESS, OX BODIES, CRYSTEEL, J-CRAFT, DURACLASS, RUGBY, TRAVIS, OSW, NTE, WTB, GROUND FORCE, TOWHAUL, BUCKS, AND SWITCH-N-GO brands; and provides refuse and recycling collection vehicles through a dealer network or direct sales to service customers. It is also involved in sale of parts, service and repair, equipment rentals, and training. The company also provides systems for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications; public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems under the Federal Signal, Federal Signal VAMA, and Victor brand names through wholesalers, distributors, independent manufacturer representatives, original equipment manufacturers, and direct sales force, as well as independent foreign distributors. Federal Signal Corporation was founded in 1901 and is based in Downers Grove, Illinois.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding FSS
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 74.8K $8.1M 0.01% Mar 2026
Steve Cohen Point72 Asset Management 38.9K $4.2M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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📊 MIXED Federal Signal Q1 records: net sales $626M, adj. EPS $1.18, raises full-year guidance.
Revenue & Profitability
Consolidated net sales were $626 million, up 35% year-over-year (organic growth 15%). Operating income was $99.7 million, up 52%. Adjusted EBITDA was $126.3 million, up 48%, with margin expanding 190 bps to 20.2%. GAAP diluted EPS was $1.14, adjusted EPS $1.18 (up 55%). Operating cash flow was $101 million (144% cash conversion). The company raised its full-year adjusted EPS guidance to $4.80-$5.05 from $4.50-$4.80 and net sales guidance to $2.57-$2.66 billion from $2.55-$2.65 billion.
Outlook
Management sees healthy underlying demand across both segments, with strength in refuse trucks, mineral extraction support equipment, aftermarket parts, and warning systems. The company's backlog-intensive products (45% of net sales) provide good forward visibility. Headwinds include a $20 million year-over-year reduction in international export orders due to geopolitical conflicts and tariff uncertainties. Steel inflation is expected in the second half of 2026 but is considered in the revised guidance.
Growth Drivers
Key growth levers include: (1) ESG's 'Build More Trucks' initiative to increase throughput of vacuum trucks and street sweepers; (2) 'Build More Parts' vertical integration to grow recurring parts revenue; (3) expansion in refuse trucks via New Way and dealer development in Canada; (4) cross-selling via merged Mega and Ground Force sales channels for mineral extraction equipment; (5) SSG market share gains in underserved law enforcement and environmental warning segments; (6) new product development and geographic expansion in SSG.
Balance Sheet & CapEx
Full-year CapEx guidance is maintained at $45-$55 million, roughly evenly split between growth initiatives and maintenance. Specific investments include scaling enterprise-wide centers of excellence in new product development, dealer development, data analytics, and operations. Two pilot capacity optimization projects (less than $5 million) will construct additional warehousing to convert storage space into manufacturing capacity. A fourth printed circuit board line was added in Q4 2025 at the SSG University Park facility.
Margins
Consolidated adjusted EBITDA margin expanded 190 bps year-over-year to 20.2% in Q1. ESG adjusted EBITDA margin improved 130 bps to 21.3%, aided by higher volumes, internal margin initiatives, and proactive price-cost management. SSG adjusted EBITDA margin surged 460 bps to 26.6%, driven by volume growth, price-cost management, and cost savings from PCB insourcing. SSG's new through-cycle margin target is 22%-28%. The company expects cost inflation from steel in H2 but has locked in pricing for most product lines.
Key Risks
Management flagged: (1) a $20 million year-over-year decline in international export orders due to geopolitical conflicts and tariff uncertainty; (2) potential steel inflation in the second half of 2026, partially mitigated by locked pricing; (3) exposure to chassis price pass-through from Section 232 tariffs (deemed not material); (4) execution risk in achieving New Way synergies and integration of recent acquisitions; (5) further deterioration in international demand.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Record Q2 results featured 19% sales growth, 21% EPS increase, and strong cash flow, driven by robust aftermarket and acquisition performance. Raised full-year guidance reflects confidence in backlog, margin expansion, and diversified funding sources.
Q1 2026 Q1 2026 2026-04-29
Record Q1 results with 35% sales growth, 52% higher operating income, and strong cash flow. Raised full-year EPS and sales guidance, driven by robust demand, successful acquisitions, and margin expansion across both business segments.
Q4 2025 Q4 2025 2026-02-25
Record 2025 results with 17% sales growth and 27% higher Adjusted EPS, driven by strong ESG and SSG performance, robust orders, and successful acquisitions. 2026 guidance calls for double-digit growth, with continued focus on integration, new products, and margin expansion.
Q3 2025 Q3 2025 2025-10-30
Record Q3 results with 17% sales growth, 30% higher Adjusted EPS, and strong order intake. Raised full-year guidance, continued robust demand, and strategic acquisitions contributed to growth. New Way acquisition expected to close in Q4, supporting future expansion.
Q2 2025 Q2 2025 2025-07-30
Record quarterly results with 15% sales growth, 21% adjusted EBITDA growth, and strong order intake. Raised full-year guidance for both sales and EPS, increased margin targets, and highlighted robust demand and a strong M&A pipeline.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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