Federal Signal ( (FSS) ) has released its Q4 earnings. Here is a breakdown of the information Federal Signal presented to its investors.
Federal Signal Corporation, a prominent player in the environmental and safety solutions sector, has reported robust financial results for the fourth quarter and full year of 2024, marking a record-setting performance. The company, headquartered in Downers Grove, Illinois, specializes in designing and manufacturing equipment that moves material, cleans infrastructure, and protects communities globally.
In its latest earnings report, Federal Signal announced a 5% increase in net sales for the fourth quarter, reaching $472 million, alongside an 11% rise in operating income. The company also achieved a strong operating cash flow of $91 million. For the full year, net sales grew by 8% to $1.86 billion, with operating income surging by 25% to $281.4 million, and a notable 37% increase in GAAP diluted EPS.
Key financial highlights include a significant improvement in adjusted EPS, which rose by 18% for the fourth quarter and 29% for the full year. The Environmental Solutions Group contributed to these results with a 6% increase in net sales and a 130 basis point improvement in adjusted EBITDA margin. Meanwhile, the Safety and Security Systems Group also showed growth, with a 40 basis point increase in adjusted EBITDA margin.
Looking ahead, Federal Signal is optimistic about 2025, projecting net sales between $2.02 billion and $2.10 billion and adjusted EPS ranging from $3.60 to $3.90. The company plans to continue investing in organic growth and strategic acquisitions, supported by strong cash flow and a solid financial position.
With a focus on maintaining momentum in its core markets and leveraging its strategic initiatives, Federal Signal is well-positioned for sustainable growth in the coming years, driven by demand for its diverse product offerings and continued operational excellence.