Federal Signal (FSS) Q4 2025 Earnings Transcript

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Wed, February 25, 2026 astatine 10:42 AM CST 34 min read

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Feb. 25, 2026
10 a.m. ET

• President & Chief Executive Officer — Jennifer L. Sherman

• Vice President & Chief Financial Officer — Ian A. Hudson

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Ian volition commencement contiguous with much item connected our 4th fourth and afloat twelvemonth fiscal results. Jennifer volition past supply her position connected our performance, existent marketplace conditions, our multiyear maturation initiatives, and spell implicit our outlook for 2026 earlier we unfastened the enactment for immoderate questions. With that, I would present similar to crook the telephone implicit to Ian.

Ian A. Hudson: Thank you, Felix. Our fiscal results for the 4th fourth and afloat twelvemonth of 2025 are provided successful today's net report. Before I speech astir the 4th quarter, fto maine item immoderate of our afloat twelvemonth consolidated results for 2025. Net income for the twelvemonth were $2,180,000,000, a grounds precocious for the institution and an summation of $319,000,000, oregon 17%, compared to past year. Organic nett income maturation for the twelvemonth was $205,000,000, oregon 11%. Operating income for the twelvemonth was $340,900,000, an summation of $59,500,000, oregon 21%, from past year. Net income for the twelvemonth was $246,600,000, an summation of $30,300,000, oregon 14%, from past year.

Adjusted EBITDA for the twelvemonth was $438,900,000, up $88,300,000, oregon 25%, compared to past year. That translates to a borderline of 20.1% this year, up 130 ground points from past year. GAAP diluted EPS for the twelvemonth equated to $4.10 per share, up $0.51 per share, oregon 15%, from past year. On an adjusted basis, we reported grounds afloat twelvemonth net of $4.23 per share, up $0.89 per share, oregon 27% from past year. Orders for the twelvemonth were $2,220,000,000, an summation of $374,000,000, oregon 20%, from past year. Backlog astatine the extremity of the twelvemonth was $1,040,000,000, an summation of $45,000,000, oregon 5%, from past year.

For the remainder of my comments, I volition absorption mostly connected comparisons of 2025 to 2024. Consolidated nett income for the 4th were $597,000,000, an summation of 27% compared to past year. Organic nett income maturation for the 4th was $85,000,000, oregon 18%. Consolidated operating income successful Q4 this twelvemonth was $83,500,000, up $13,400,000, oregon 19%, compared to past year. Net income for the 4th was $60,800,000, an summation of $10,800,000, oregon 22%, from past year. Consolidated adjusted EBITDA for the 4th was $119,400,000, up $30,100,000, oregon 34%, compared to past year. That translates to a borderline of 20%, an summation of 110 ground points from past year.

GAAP diluted EPS for the 4th was $0.99 per share, up $0.18 per share, oregon 22%, from past year. On an adjusted basis, EPS for Q4 this twelvemonth was $1.10 per share, an summation of $0.29 per share, oregon 36%, compared to past year. Orders for the 4th were $647,000,000, up $201,000,000, oregon 45%, from past year. Orders successful Q4 this twelvemonth included $132,000,000 of acquired backlog. In presumption of our 4th fourth radical results, ESG's nett income were $504,000,000, an summation of $108,000,000, oregon 27%, compared to past year. ESG's adjusted EBITDA for the 4th was $109,000,000, up $26,100,000, oregon 31%, compared to past year.