What Management Said

Read the full Q4 2025 transcript ↗

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. Ian will start today with more detail on our fourth quarter and full year financial results.

Jennifer will provide her perspective on our performance, current market conditions, our multi-year growth initiatives, and go over our outlook for 2026 before we open the line for any questions. Our financial results for the fourth quarter and full year of 2025 are provided in today's earnings report. Before I talk about the fourth quarter, let me highlight some of our full-year consolidated results for 2025. Net sales for the year were $2.18 billion, a record high for the company and an increase of $319 million, or 17% compared to last year.

Organic net sales growth for the year was $205 million, or 11%. Operating income for the year was $340.9 million, an increase of $59.5 million, or 21% from last year. Net income for the year was $246.6 million, an increase of $30.3 million, or 14% from last year. Adjusted EBITDA for the year was $438.9 million, up $88.3 million, or 25% compared to last year.

What went well
  • Set fourth-quarter records with net sales of $597 million (up 27%, 18% organic) and Adjusted EBITDA of $119.4 million (up 34%).
  • Adjusted EPS rose 33% to $1.16; full-year 2025 Adjusted EPS reached a record $4.23, up 27%.
  • Full-year 2025 net sales were a record $2.18 billion, up 17%, with Adjusted EBITDA margin up 130 basis points to 20.1% and cash conversion of 103%.
  • Q4 orders jumped 45% to $647 million (including $132 million of acquired backlog); ESG orders rose 55% and backlog grew 5% to $1.04 billion.
  • Completed the New Way acquisition for an initial ~$413 million and closed Mega Equipment (~$45 million) in early January; SSG Adjusted EBITDA margin expanded 360 basis points to 25.2%.
What went wrong
  • Corporate operating expenses climbed to $26.5 million from $10.5 million, driven by a $13 million increase in acquisition and integration expenses, including $6.8 million to increase the fair value of contingent consideration for Hog and Standard.
  • The company stopped taking orders for lower-margin third-party Labrie refuse trucks, with ~$80 million of remaining backlog to be delivered and wound down over the next four quarters.
  • New Way is expected to be approximately Adjusted EPS neutral in 2026, inclusive of intangible amortization.

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Q4 2025 call
Reported 2026-02-25 · figures from the Federal Signal Corp /De/ Q4 2025 earnings call.

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