FEDERAL SIGNAL CORP /DE/ (FSS) Company Report

Federal Signal Corporation completed the acquisition of New Way Trucks on November 25, 2025, for an initial purchase price of $396 million, plus an additional $30 million for associated real estate.
Following the acquisition, the company raised its full-year 2025 net sales outlook to between $2.12 billion and $2.16 billion and its adjusted EPS outlook to between $4.12 and $4.20.
The acquisition is projected to be neutral to adjusted EPS in 2026 and accretive in subsequent years, with an anticipated EPS accretion of $0.40 to $0.45 in 2028.

Dec 1, 2025, 8:41 PM

8-K

Federal Signal Completes New Way Trucks Acquisition, Raises 2025 Outlook

FSS

M&A

Guidance Update

New Projects/Investments

Federal Signal Corporation completed the acquisition of New Way Trucks on November 26, 2025, integrating the refuse collection vehicle manufacturer into its Environmental Solutions Group.
Following the acquisition, the company raised its full-year 2025 net sales outlook to a new range of $2.12 billion to $2.16 billion and its adjusted EPS outlook to $4.12 to $4.20.
The acquisition is projected to be neutral to adjusted EPS in 2025 and 2026, becoming accretive in subsequent years with an anticipated $0.40 to $0.45 EPS accretion in 2028.
New Way Trucks has a current backlog exceeding $100 million, providing visibility into the first half of 2026.

Nov 26, 2025, 1:00 PM

Press Release

Federal Signal Corporation Reports Strong Q3 2025 Results and Raises Full-Year Outlook

FSS

Earnings

Guidance Update

M&A

Federal Signal Corporation reported strong Q3 2025 financial results, including consolidated net sales of $555 million, a 17% year-over-year increase, and Adjusted EPS of $1.14 per share, up 30%.
The company raised its full-year 2025 outlook, with Adjusted EPS now expected between $4.09 and $4.17 and net sales between $2.1 billion and $2.14 billion.
A new $1.5 billion credit facility was executed to enhance financial flexibility, and the acquisition of New Way is anticipated to close in Q4 2025.
HOG Technologies contributed approximately $20 million in net sales for the quarter, with its expected 2025 net sales contribution raised to $60 million-$65 million.
Order intake increased by 10% year-over-year to $467 million, though backlog decreased 4% primarily due to the planned transition from third-party refuse trucks.

Oct 30, 2025, 2:00 PM

Transcript

Federal Signal Reports Strong Q3 2025 Results and Strategic Updates

FSS

Earnings

M&A

Guidance Update

Federal Signal (FSS) reported strong Q3 2025 financial performance, with net sales increasing 17% to $555.0 million and adjusted diluted EPS rising 30% to $1.14 compared to Q3 2024.
The company achieved record Q3 orders of $467 million, up 10% year-over-year, resulting in a backlog of $992 million that provides visibility into 2026.
FSS demonstrated financial strength by generating ~$61 million in cash from operations in Q3 2025 and securing a new five-year, $1.5 billion credit agreement in October 2025.
The acquisition of New Way for an initial consideration of $396 million was agreed upon in September 2025 and is expected to close in Q4 2025.
The company also updated its FY25 net sales contribution expectation for Hog Technologies to $60-$65 million, an increase from the previous $50-$55 million.

Oct 30, 2025, 2:00 PM

Presentation

Federal Signal Corporation Reports Strong Q3 2025 Results and Raises Full-Year Guidance

FSS

Earnings

Guidance Update

M&A

Federal Signal Corporation (FSS) reported strong Q3 2025 financial results, with net sales growing 17% year-over-year to $555 million and adjusted EPS increasing 30% to $1.14 per share. Consolidated adjusted EBITDA rose 25% to $116.2 million, achieving a 20.9% margin.
Order intake reached a record $467 million for a third quarter, up 10% year-over-year, while the backlog was $992 million, down 4% from Q3 last year, largely due to the planned transition away from third-party refuse trucks.
The company raised its full-year 2025 adjusted EPS outlook to $4.09 to $4.17 and its net sales outlook to $2.1 billion to $2.14 billion. This guidance excludes any contribution from the pending New Way acquisition.
Federal Signal executed a new five-year $1.5 billion credit facility to support growth and the New Way acquisition, which is expected to close in Q4 2025. The recent HOG Technologies acquisition is now projected to contribute $60 million to $65 million in net sales for 2025.

Oct 30, 2025, 2:00 PM

Transcript

Federal Signal Reports Q3 2025 Results, Raises Full-Year Outlook, and Announces Acquisition

FSS

Earnings

Guidance Update

M&A

Federal Signal Corporation reported net sales of $555 million, an increase of 17%, and GAAP diluted EPS of $1.11, up 28%, for the third quarter ended September 30, 2025.
The company raised its full-year 2025 adjusted EPS outlook to a new range of $4.09 to $4.17 and its net sales outlook to between $2.10 billion and $2.14 billion.
Federal Signal entered into a new $1.5 billion credit facility and a definitive agreement to acquire Scranton Manufacturing Company Inc. ("New Way") for an initial consideration of $396 million, with the acquisition expected to close in Q4 2025.

Oct 30, 2025, 12:00 PM

Press Release

Federal Signal Corporation Announces Acquisition of New Way Trucks

FSS

M&A

New Projects/Investments

Federal Signal Corporation (FSS) has signed a definitive agreement to acquire New Way Trucks, a U.S.-based leader in the design and manufacture of refuse collection vehicles, for an initial purchase price of $396 million on a cash-free, debt-free basis.
The acquisition also includes an additional $30 million for New Way Trucks' manufacturing facilities and associated real estate, along with a contingent earnout opportunity of up to $54 million based on financial targets over a two-year period.
The transaction is projected to be neutral to earnings per share (EPS) in 2026 and become accretive to EPS in subsequent years, with an anticipated accretion of between $0.40 and $0.45 per share in 2028.
Federal Signal is targeting annual run-rate synergies of between $15 million and $20 million, which, combined with core organic growth, are expected to contribute to a $55 million EBITDA target for New Way Trucks by 2028.
New Way Trucks reported approximately $250 million in revenue for the full annual period of 2024.

Sep 25, 2025, 12:30 PM

Transcript

Federal Signal Acquires New Way Trucks

FSS

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Federal Signal announced the acquisition of New Way Trucks, a U.S.-based leader in the design and manufacture of refuse collection vehicles, on September 25, 2025. New Way holds the #1 position in automated side loaders and municipal sales in the United States.
The initial consideration for the acquisition is $396 million for New Way, plus an additional $30 million for its manufacturing facilities and associated real estate rights. New Way reported ~$249 Million in revenue and ~$36 Million in Adjusted EBITDA for 2024.
The transaction is expected to be neutral to 2026 EPS and become EPS accretive in subsequent years, with anticipated EPS accretion of between $0.40 and $0.45 in 2028.
Federal Signal anticipates achieving annual run-rate synergies of between $15 million and $20 million, which are expected to be substantially realized by the end of 2028.

Sep 25, 2025, 12:30 PM

Presentation

Federal Signal to Acquire New Way Trucks

FSS

M&A

New Projects/Investments

Guidance Update

Federal Signal Corporation (FSS) has signed a definitive agreement to acquire New Way Trucks, a leading U.S.-based designer and manufacturer of refuse collection vehicles.
The initial purchase price is $396 million, with an additional $30 million for manufacturing facilities and real estate rights, and a contingent earn-out opportunity of up to $54 million.
The transaction is expected to be neutral to earnings per share (EPS) in 2026 and accretive in subsequent years, with anticipated EPS accretion of between $0.40 and $0.45 in 2028, including annual run-rate synergies of between $15 million and $20 million.
The acquisition is anticipated to close in the fourth quarter of 2025.

Sep 25, 2025, 11:06 AM

8-K

Federal Signal to Acquire New Way Trucks

FSS

M&A

New Projects/Investments

Guidance Update

Federal Signal Corporation (FSS) announced it will acquire New Way Trucks, a leading U.S. refuse collection vehicle manufacturer, for an initial purchase price of $396 million, plus an additional $30 million for manufacturing facilities and a contingent earn-out opportunity of up to $54 million.
The acquisition is expected to be neutral to earnings per share (EPS) in 2026 and accretive in subsequent years, with anticipated EPS accretion of between $0.40 and $0.45 in 2028, including annual run-rate synergies of between $15 million and $20 million.
When adjusted for anticipated tax benefits, the combined initial purchase price represents a multiple of approximately 11x New Way's projected 2026 EBITDA and approximately 7x New Way's projected 2028 EBITDA, inclusive of expected synergies.
Federal Signal anticipates completing the transaction during the fourth quarter of 2025 and expects its pro-forma net debt leverage ratio to be less than 1.5x upon completion.