Federal Signal (FSS) Q2 2025 Earnings Transcript

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Wednesday, July 30, 2025 astatine 10 a.m. ET

• Chief Executive Officer — Jennifer L. Sherman

• Chief Financial Officer — Ian A. Hudson

• Unspecified Moderator — Felix [surname not provided]

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Ian volition commencement contiguous with much item connected our 2nd 4th fiscal results. Jennifer volition past supply her position connected our performance, our revised borderline targets and spell implicit our accrued guidance for 2025 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 consolidated 2nd 4th fiscal results are provided successful today's net release. In summary, successful what is typically a seasonally beardown period, our businesses were capable to present 15% year-over-year nett income growth, 20% operating income improvement, gross borderline expansion, a 100 ground constituent betterment successful adjusted EBITDA borderline and continued momentum successful orders during a record-setting 2nd quarter. Consolidated nett income for the 4th were $565 million, an summation of $74 cardinal oregon 15% compared to past year. Organic income maturation for the 4th was $42 cardinal oregon 9%. Consolidated operating income for the 4th was $97.7 million, up $16.6 cardinal oregon 20% compared to past year.

Consolidated adjusted EBITDA for the 4th was $118.2 million, up $20.5 cardinal oregon 21% compared to past year. That translates to a borderline of 20.9% successful Q2 this year, up 100 ground points compared to past year. GAAP diluted EPS for the 4th was $1.16 per share, up $0.17 per stock oregon 17% compared to past year. On an adjusted basis, EPS for the 4th was $1.17 per share, an summation of $0.22 per stock oregon 23% from past year. Customer request remained beardown during the 4th with orders of $540 million, representing an summation of $67 cardinal oregon 14% compared to past year.

Backlog astatine the extremity of the 4th was $1.08 billion, an summation of $4 cardinal compared to Q2 past year. In presumption of our radical results, ESG's nett income for the 4th were $481 million, up $72 cardinal oregon 18% compared to past year. ESG's operating income for the 4th was $91.9 million, up $19 cardinal oregon 26% compared to past year. ESG's adjusted EBITDA for the 4th was $110.8 million, up $22.6 cardinal oregon 26% compared to past year. That translates to an adjusted EBITDA borderline for the 4th of 23.1%, an betterment of 150 ground points compared to past year.

ESG reported full orders of $441 cardinal successful Q2 this year, an summation of $45 cardinal oregon 11% compared to past year. SSG's nett income for the 4th were $84 cardinal this year, up $3 cardinal oregon 3% compared to past year. SSG's operating income for the 4th was $21.5 million, up $3.2 cardinal oregon 17% compared to past year. SSG's adjusted EBITDA for the 4th was $22.6 million, up $3.3 cardinal oregon 17%. That translates to a borderline for the 4th of 26.9%, up 320 ground points compared to past year. SSG's orders for the 4th were $99 million, up $22 cardinal oregon 28% from past year.