Federal Signal Corporation filed its third-quarter 2026 earnings release on October 29, 2026, reporting net sales of $656 million and raising its full-year adjusted EPS outlook.

Key Highlights

  • Net sales of $656 million for the third quarter ended September 30, 2026, up $101 million, or 18%, from the prior-year quarter, according to the filing.
  • GAAP diluted EPS of $1.29, up $0.18, or 16%, from the prior-year quarter; adjusted EPS of $1.34, up $0.20, or 18%.
  • Orders of $620 million, an increase of $153 million, or 33%, compared to the prior-year quarter; consolidated backlog at September 30, 2026 was $967 million.
  • Operating cash flow of $91 million in the quarter, up $30 million, or 50%, from the prior-year quarter; year-to-date cash from operations totaled $306 million.
  • Full-year adjusted EPS outlook raised to a new range of $5.20 to $5.32, from the prior range of $5.12 to $5.30.
  • Full-year net sales outlook narrowed to between $2.61 billion and $2.64 billion, from the prior range of between $2.58 billion and $2.67 billion.
  • Three acquisitions completed during and immediately after the quarter: Western Technology for approximately $9 million, purchase price closing adjustments of approximately $13 million for New Way, and Global Vacuum Systems for an initial purchase price of approximately $29 million.

Federal Signal Reports Record Third Quarter With Broad Sales and Order Growth

Federal Signal Corporation (NYSE:FSS) reported consolidated net sales of $656 million for the three months ended September 30, 2026, an increase of $101 million, or 18%, compared to the prior-year quarter, according to the filing. Net income for the quarter was $79.6 million, or $1.29 per diluted share, compared to $68.1 million, or $1.11 per diluted share, in the prior-year quarter. Adjusted net income was $82.6 million, or $1.34 per diluted share, compared to $69.7 million, or $1.14 per diluted share, in the prior-year quarter.

The Environmental Solutions Group generated net sales of $564 million for the quarter, up $98 million, or 21%, from the prior-year quarter, while the Safety and Security Systems Group reported net sales of $92 million, up $2 million, or 2%. The filing noted that Environmental Solutions Group orders were up 43% year-over-year, "including organic growth in the high teens," as characterized by President and Chief Executive Officer Jennifer L. Sherman. Consolidated operating income was $111.4 million, up $17.4 million, or 19%, and consolidated operating margin was 17.0%, compared to 16.9% in the prior-year quarter. Consolidated adjusted EBITDA was $140.4 million, up $24.2 million, or 21%, with an adjusted EBITDA margin of 21.4%, up from 20.9% in the prior-year quarter.

At September 30, 2026, the company disclosed total outstanding debt of $420 million, total cash and cash equivalents of $74 million, and $1.04 billion of availability under its credit facility. The company funded dividends of $9.2 million during the third quarter, reflecting a dividend of $0.15 per share, and also repurchased approximately $5 million of its stock during the quarter. The filing stated that a similar $0.15 per share dividend was recently announced and will be payable in the fourth quarter of 2026. On the full-year net sales outlook, the company cited "anticipated delays in deliveries of third-party refuse trucks" as the primary reason for narrowing the range.

What Was Disclosed

Federal Signal's third-quarter 2026 earnings release disclosed net sales, operating income, GAAP and adjusted EPS, order volumes, backlog, operating cash flow, balance sheet figures, three acquisition transactions, a dividend payment, a stock repurchase, and updated full-year guidance for both adjusted EPS and net sales.