Christian (on behalf of Steve Barger)'s questions to Federal Signal Corp (FSS) leadership • Q4 2024
Question
Christian, on behalf of Steve Barger, asked for details on rental fleet growth in Q4 and for 2025, the reasons for the sequential margin decline, and the current lead times for key products.
Answer
CFO Ian Hudson explained that significant rental fleet investment occurred earlier in the year and the 2025 plan is similar to 2024, with no rental business coming from the HOG acquisition. He attributed the Q4 margin step-down primarily to product mix and holiday-related absenteeism. President and CEO Jennifer Sherman added that lead times for sewer cleaners have improved, extending into the first half of 2026, while street sweepers, with lead times into the second half of 2026, still require more progress.