Federal Signal Corporation reported a significant increase in financial performance for the second quarter of 2025, with net sales reaching $564.6 million, a 15% increase from $490.4 million in the same period last year. For the first half of 2025, net sales totaled $1.028 billion, up 12% from $915.3 million in the prior year. The company's gross profit also improved, rising to $169.6 million for the quarter, compared to $144.0 million a year earlier, while operating income increased by 20% to $97.7 million. The net income for the quarter was $71.4 million, reflecting a 17.4% increase from $60.8 million in the previous year.

The growth in revenue was primarily driven by higher sales volumes and pricing actions, particularly within the Environmental Solutions Group, which saw a net sales increase of 18% due to strong demand for road-marking and line-removal equipment, street sweepers, and safe-digging trucks. The Safety and Security Systems Group also contributed to the growth, with a 3% increase in net sales, largely attributed to improved sales of warning systems. The company’s operating margin improved to 17.3% for the quarter, up from 16.5% in the prior year.

Strategically, Federal Signal completed the acquisition of Waterblasting LLC in February 2025, which is expected to enhance its product offerings and market presence in the environmental solutions sector. The acquisition was valued at approximately $82.1 million, with additional contingent payments based on performance metrics. This acquisition, along with the previously completed acquisition of Trackless Vehicles Limited, is anticipated to strengthen the company's position in the specialty vehicle market.

Operationally, the company reported total orders of $540 million for the second quarter, a 14% increase compared to the previous year, with a backlog of $1.08 billion as of June 30, 2025. The Environmental Solutions Group accounted for $441 million of total orders, while the Safety and Security Systems Group reported $99 million. The company’s employee headcount remained stable, supporting its operational capabilities amid the growth in demand.

Looking ahead, Federal Signal anticipates continued growth driven by strong market demand and strategic acquisitions. The company expects capital expenditures for 2025 to be in the range of $40 million to $50 million, which will support its operational needs and growth initiatives. The company remains committed to monitoring market conditions and adjusting its strategies accordingly to maintain its competitive edge in the industry.

About FEDERAL SIGNAL CORP /DE/

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