We will refer to some presentation slides today as well as to the earnings release which we issued this morning. We have also posted the slide presentation and the earnings release under the Investor tab on our website. In our earnings release and filings, we reconcile these non-GAAP measures to GAAP measures. Jennifer will then provide her perspective on our performance, provide an update on our multi-year growth initiatives, and update our guidance for 2025.

Our consolidated third quarter financial results are provided in today's earnings release. Consolidated net sales for the quarter were $555 million, an increase of $81 million or 17% compared to last year. Organic net sales growth for the quarter was $51 million or 11%. Consolidated Adjusted EBITDA for the quarter was $116.2 million, up $23.2 million or 25% compared to last year.

That translates to a margin of 20.9% in Q3 this year, up 130 basis points compared to last year. GAAP diluted EPS for the quarter was $1.11 per share, up $0.24 per share or 28% from last year. On an adjusted basis, EPS for the quarter was $1.14 per share, up $0.26 per share or 30% from last year. Order intake was again strong in the quarter at $467 million, an increase of $41 million or 10% compared to last year.

What went well
  • Delivered record third-quarter results with consolidated net sales of $555 million, up 17% year-over-year (11% organic).
  • Adjusted EBITDA rose 25% to $116.2 million and Adjusted EBITDA margin expanded 130 basis points to 20.9%, a Q3 record.
  • Adjusted EPS increased 30% to $1.14 and GAAP diluted EPS rose 28% to $1.11.
  • Record third-quarter order intake of $467 million, up 10%, led by a 31% jump in SSG orders that included a major police contract win in Spain.
  • Executed a new five-year $1.5 billion credit facility (up from $800 million), and raised the HOG Technologies 2025 net sales contribution estimate to $60-$65 million from $50-$55 million.
  • SSG Adjusted EBITDA margin expanded 220 basis points to 25.6% and ESG margin reached a Q3-record 22.5%.
What went wrong
  • Backlog declined 4% year-over-year to $992 million, with roughly 85% of the decline driven by lower orders for third-party refuse trucks, mostly in Canada.
  • Consolidated gross margin slipped to 29.1% from 29.6% a year earlier.
  • Corporate operating expenses rose to $13.2 million from $12.4 million, primarily on higher acquisition and integration-related expenses.

More on Federal Signal Corp /De/

Reported 2025-10-30 · figures from the Federal Signal Corp /De/ Q3 2025 earnings call.

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