Federal Signal Corporation reported strong financial performance for the fiscal year ending December 31, 2024, achieving record net sales of $1.86 billion, an increase of 8% from $1.72 billion in 2023. The company’s operating income rose to $281.4 million, reflecting a 25% increase from the previous year, while net income surged by 37% to $216.3 million. The operating margin improved to 15.1%, up from 13.0% in 2023, and adjusted EBITDA reached $350.6 million, a 23% increase year-over-year. The company attributed this growth to robust demand across its product lines, effective pricing strategies, and contributions from recent acquisitions.
In 2024, Federal Signal completed the acquisition of Standard Equipment Company, enhancing its Environmental Solutions Group. This acquisition is expected to bolster the company’s aftermarket growth strategy by expanding its capabilities in parts, services, and rental operations. The company has now completed 12 acquisitions since 2016, demonstrating its commitment to strategic growth through consolidation in the industry. Additionally, the company reported a backlog of $997.1 million at year-end, down from $1.03 billion in 2023, indicating a strong order flow despite a slight decrease in total orders.
Operationally, Federal Signal employed approximately 4,700 people as of December 31, 2024, with 55% of its workforce based in the U.S. The company’s Environmental Solutions Group saw significant sales increases in various product categories, including dump truck bodies and sewer cleaners, while the Safety and Security Systems Group also reported growth in public safety equipment sales. The company’s geographic reach remains extensive, with 79% of net sales generated in the U.S. and 21% from international markets.
The filing also highlighted challenges related to supply chain disruptions, which have improved compared to previous years but still affect certain components and raw materials. The company has implemented strategies to mitigate these risks, including diversifying its supplier base and increasing inventory levels. Looking ahead, Federal Signal anticipates continued investment in product development and operational efficiencies, with capital expenditures projected between $40 million and $50 million for 2025.
Overall, Federal Signal Corporation's financial results for 2024 reflect a successful year marked by strategic acquisitions, strong demand for its products, and improved operational efficiencies, positioning the company well for future growth despite ongoing market challenges.
About FEDERAL SIGNAL CORP /DE/
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