Operating income scaled to $100.9 million in 2026Q1, reflecting effective management of overhead as revenue growth accelerated to 34.9% year-over-year.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.34B | 2.18B | 1.86B | 1.72B | 1.43B | 1.21B | 1.13B | 1.22B | 1.09B | 898.5M | 707.9M | 768M | 918.5M | 851.3M | 803.2M | 795.6M | 726.5M | 752.5M | 958.8M | 1.27B | 1.21B | 1.16B | 1.14B | 1.21B | 1.06B | 1.07B | 1.11B | 1.06B | 1B | 924.9M | 896.4M |
| Revenue Growth % | 23.25% | 17.14% | 8.06% | 20.07% | 18.27% | 7.29% | -7.41% | 12.1% | 21.26% | 26.92% | -7.83% | -16.39% | 7.89% | 5.99% | 0.96% | 9.51% | -3.46% | -21.52% | -24.39% | 4.66% | 4.73% | 1.57% | -5.62% | 14.15% | -1.4% | -3.07% | 4.16% | 5.89% | 8.42% | 3.18% | 9.84% |
| Cost of Goods Sold | 1.68B | 1.57B | 1.33B | 1.27B | 1.09B | 924.5M | 837.2M | 898.5M | 807.4M | 677.3M | 524.5M | 542.4M | 570.4M | 536.9M | 613.4M | 533.3M | 482.2M | 557.3M | 643.6M | 685.9M | 576.5M | 867.5M | 814.3M | 769.2M | 719.2M | 759.91M | 739.73M | 650.8M | 624.5M | 613.5M | 601.6M |
| COGS % of Revenue | - | 71.9% | 71.37% | 73.87% | 75.96% | 76.2% | 74.04% | 73.57% | 74.11% | 75.38% | 74.09% | 70.63% | 62.1% | 63.07% | 76.37% | 67.03% | 66.37% | 74.06% | 67.13% | 54.09% | 47.58% | 74.98% | 71.49% | 63.74% | 68.03% | 70.88% | 66.88% | 61.29% | 62.28% | 66.33% | 67.11% |
| Gross Profit | 665.7M | 612.8M | 533M | 450.2M | 344.9M | 288.7M | 293.6M | 322.8M | 282.1M | 221.2M | 183.4M | 225.6M | 208.7M | 176M | 189.8M | 155.4M | 150.9M | 193.1M | 235.4M | 248.4M | 216.2M | 251.5M | 210.2M | 289M | 282.4M | 312.26M | 366.4M | 326.4M | 312.3M | 311.4M | 294.8M |
| Gross Margin % | 28.42% | 28.1% | 28.63% | 26.13% | 24.04% | 23.8% | 25.96% | 26.43% | 25.89% | 24.62% | 25.91% | 29.38% | 22.72% | 20.67% | 23.63% | 19.53% | 20.77% | 25.66% | 24.55% | 19.59% | 17.84% | 21.74% | 18.45% | 23.95% | 26.71% | 29.12% | 33.12% | 30.74% | 31.14% | 33.67% | 32.89% |
| Gross Profit Growth % | - | 14.97% | 18.39% | 30.53% | 19.47% | -1.67% | -9.05% | 14.43% | 27.53% | 20.61% | -18.71% | 8.1% | 18.58% | -7.27% | 22.14% | 2.98% | -21.85% | -17.97% | -5.23% | 14.89% | -14.04% | 19.65% | -27.27% | 2.34% | -9.56% | -14.78% | 12.26% | 4.51% | 0.29% | 5.63% | 11.58% |
| Operating Expenses | 274.7M | 255.9M | 251.6M | 225.7M | 184.1M | 158M | 162.2M | 175.7M | 160.6M | 147.6M | 122.6M | 122.4M | 120M | 114.4M | 138.3M | 122.2M | 138.5M | 157.3M | 185.6M | 173.2M | 157.1M | 187.8M | 187.2M | 225.5M | 205.1M | 220.26M | 249.75M | 225.1M | 214.5M | 211.8M | 191.9M |
| OpEx % of Revenue | - | 11.74% | 13.52% | 13.1% | 12.83% | 13.02% | 14.34% | 14.39% | 14.74% | 16.43% | 17.32% | 15.94% | 13.06% | 13.44% | 17.22% | 15.36% | 19.06% | 20.9% | 19.36% | 13.66% | 12.97% | 16.23% | 16.44% | 18.69% | 19.4% | 20.54% | 22.58% | 21.2% | 21.39% | 22.9% | 21.41% |
| Selling, General & Admin | 267.7M | 255.9M | 237.8M | 210.1M | 171.7M | 159.5M | 149.2M | 173.2M | 159.1M | 150.4M | 119.5M | 122M | 120M | 113.7M | 136.9M | 122.2M | 130.2M | 155.8M | 182.9M | 173.2M | 157.1M | 193.8M | 180.2M | 220.7M | 205.1M | 220.26M | 220.69M | 199.3M | 192.5M | 191.2M | 173.5M |
| SG&A % of Revenue | - | 11.74% | 12.77% | 12.2% | 11.97% | 13.15% | 13.19% | 14.18% | 14.6% | 16.74% | 16.88% | 15.89% | 13.06% | 13.36% | 17.04% | 15.36% | 17.92% | 20.7% | 19.08% | 13.66% | 12.97% | 16.75% | 15.82% | 18.29% | 19.4% | 20.54% | 19.95% | 18.77% | 19.2% | 20.67% | 19.36% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 12.2M | 13.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | 1.08% | 1.11% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 13.8M | 15.6M | 12.4M | -1.5M | 800K | -11.1M | 1.5M | -2.8M | 3.1M | 400K | 0 | 700K | 1.4M | 0 | 8.3M | 1.5M | 2.7M | 0 | 0 | -6M | 7M | 4.8M | 0 | 0 | 29.06M | 25.8M | 22M | 20.6M | 18.4M |
| Operating Income | 391M | 356.9M | 281.4M | 224.5M | 160.8M | 130.7M | 131.4M | 147.1M | 121.5M | 73.6M | 60.8M | 103.2M | 88.7M | 61.6M | 51.5M | 33.2M | 12.4M | 35.8M | 49.8M | 75.2M | 59.1M | 63.7M | 23M | 63.5M | 77.3M | 92M | 116.65M | 101.3M | 97.8M | 99.6M | 102.9M |
| Operating Margin % | 16.69% | 16.37% | 15.12% | 13.03% | 11.21% | 10.77% | 11.62% | 12.04% | 11.15% | 8.19% | 8.59% | 13.44% | 9.66% | 7.24% | 6.41% | 4.17% | 1.71% | 4.76% | 5.19% | 5.93% | 4.88% | 5.51% | 2.02% | 5.26% | 7.31% | 8.58% | 10.55% | 9.54% | 9.75% | 10.77% | 11.48% |
| Operating Income Growth % | - | 26.83% | 25.35% | 39.61% | 23.03% | -0.53% | -10.67% | 21.07% | 65.08% | 21.05% | -41.09% | 16.35% | 43.99% | 19.61% | 55.12% | 167.74% | -65.36% | -28.11% | -33.78% | 27.24% | -7.22% | 176.96% | -63.78% | -17.85% | -15.98% | -21.13% | 15.16% | 3.58% | -1.81% | -3.21% | 7.41% |
| EBITDA | 476.6M | 437.4M | 346.7M | 284.9M | 215.5M | 181.1M | 176.2M | 188.6M | 157.9M | 103.6M | 79.9M | 115.5M | 100.2M | 72.6M | 64.7M | 46.2M | 23.8M | 50.5M | 64.7M | 89.3M | 77M | 81.9M | 39.2M | 81.9M | 99.5M | 122.26M | 145.71M | 127.1M | 119.8M | 120.2M | 121.3M |
| EBITDA Margin % | 20.35% | 20.06% | 18.62% | 16.54% | 15.02% | 14.93% | 15.58% | 15.44% | 14.49% | 11.53% | 11.29% | 15.04% | 10.91% | 8.53% | 8.06% | 5.81% | 3.28% | 6.71% | 6.75% | 7.04% | 6.36% | 7.08% | 3.44% | 6.79% | 9.41% | 11.4% | 13.17% | 11.97% | 11.95% | 13% | 13.53% |
| EBITDA Growth % | 31.88% | 26.16% | 21.69% | 32.2% | 19% | 2.78% | -6.57% | 19.44% | 52.41% | 29.66% | -30.82% | 15.27% | 38.02% | 12.21% | 40.04% | 94.12% | -52.87% | -21.95% | -27.55% | 15.97% | -5.98% | 108.93% | -52.14% | -17.69% | -18.62% | -16.09% | 14.64% | 6.09% | -0.33% | -0.91% | 8.59% |
| D&A (Non-Cash Add-back) | 85.6M | 80.5M | 65.3M | 60.4M | 54.7M | 50.4M | 44.8M | 41.5M | 36.4M | 30M | 19.1M | 12.3M | 11.5M | 11M | 13.2M | 13M | 11.4M | 14.7M | 14.9M | 14.1M | 17.9M | 18.2M | 16.2M | 18.4M | 22.2M | 30.26M | 29.06M | 25.8M | 22M | 20.6M | 18.4M |
| EBIT | 374.5M | 338.6M | 276.4M | 222.7M | 161.2M | 122.1M | 130.3M | 146.5M | 120.9M | 68.3M | 58.7M | 102.2M | 87M | 52.8M | 47.3M | 33M | 11.2M | 36.5M | 36M | 75.2M | 59.1M | 64.4M | 30M | 68.3M | 77.3M | 92M | 116.65M | 101.3M | 97.8M | 99.6M | 102.9M |
| Net Interest Income | -18M | -14.1M | -12.5M | -19.7M | -10.3M | -4.5M | -5.7M | -7.9M | -9.3M | -7.3M | -1.9M | -2.3M | -3.6M | -8.9M | -21.4M | -16.4M | -10.2M | -11.4M | -15.3M | -25.9M | -25M | -23.1M | -20.8M | -19.75M | -20.07M | -26.37M | -31.4M | 0 | -19.3M | 0 | -15.4M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 18M | 14.1M | 12.5M | 19.7M | 10.3M | 4.5M | 5.7M | 7.9M | 9.3M | 7.3M | 1.9M | 2.3M | 3.8M | 8.9M | 21.4M | 16.4M | 10.3M | 11.4M | 15.3M | 25.9M | 25M | 23.1M | 20.8M | 19.75M | 20.07M | 26.37M | 31.4M | 0 | 19.3M | 0 | 15.4M |
| Other Income/Expense | -36.3M | -32.4M | -17.5M | -21.5M | -9.9M | -13.1M | -6.8M | -8.5M | -9.9M | -6.1M | -4M | -3.3M | -5.3M | -8.6M | -25.6M | -16.6M | -100.8M | -10.7M | -29.2M | -30.1M | -27.2M | -28.4M | -18.1M | -21.78M | -20.4M | -27.55M | -32.24M | -22M | -11.6M | -14.7M | -9.5M |
| Pretax Income | 354.7M | 324.5M | 263.9M | 203M | 150.9M | 117.6M | 124.6M | 138.6M | 111.6M | 61M | 56.8M | 99.9M | 87.3M | 53M | 25.9M | -13.3M | -88.4M | 22.3M | 26.3M | 34M | 42.7M | 46.3M | -25.3M | 46.02M | 61.1M | 64.45M | 84.41M | 84.4M | 86.2M | 84.9M | 93.4M |
| Pretax Margin % | 15.14% | 14.88% | 14.18% | 11.78% | 10.52% | 9.69% | 11.02% | 11.35% | 10.24% | 6.79% | 8.02% | 13.01% | 9.5% | 6.23% | 3.22% | -1.67% | -12.17% | 2.96% | 2.74% | 2.68% | 3.52% | 4% | -2.22% | 3.81% | 5.78% | 6.01% | 7.63% | 7.95% | 8.6% | 9.18% | 10.42% |
| Income Tax | 84M | 77.9M | 47.6M | 45.6M | 30.5M | 17M | 28.5M | 30.2M | 17.9M | 500K | 17.4M | 34.1M | 24.3M | -107.2M | 3.9M | 1.1M | 72.3M | 4.6M | -5M | 4.2M | 8.3M | -1M | -12.6M | 8.35M | 14.92M | 17.86M | 26.76M | 26.9M | 26.8M | 25.9M | 31.4M |
| Effective Tax Rate % | 23.68% | 24.01% | 18.04% | 22.46% | 20.21% | 14.46% | 22.87% | 21.79% | 16.04% | 0.82% | 30.63% | 34.13% | 27.84% | -202.26% | 15.06% | -8.27% | -81.79% | 20.63% | -19.01% | 12.35% | 19.44% | -2.16% | 49.8% | 18.13% | 24.42% | 27.72% | 31.7% | 31.87% | 31.09% | 30.51% | 33.62% |
| Net Income | 270.7M | 246.6M | 216.3M | 157.4M | 120.4M | 100.6M | 96.2M | 108.5M | 94M | 61.6M | 43.8M | 63.5M | 63.7M | 160M | -27.5M | -14.2M | -175.7M | 23.1M | -95.6M | 54.9M | 22.7M | -4.6M | -2.3M | 37.3M | 38.2M | 47.57M | 57.54M | 57.5M | 59.4M | 59M | 62M |
| Net Margin % | 11.56% | 11.31% | 11.62% | 9.14% | 8.39% | 8.29% | 8.51% | 8.88% | 8.63% | 6.86% | 6.19% | 8.27% | 6.94% | 18.79% | -3.42% | -1.78% | -24.18% | 3.07% | -9.97% | 4.33% | 1.87% | -0.4% | -0.2% | 3.09% | 3.61% | 4.44% | 5.2% | 5.41% | 5.92% | 6.38% | 6.92% |
| Net Income Growth % | 28.29% | 14.01% | 37.42% | 30.73% | 19.68% | 4.57% | -11.34% | 15.43% | 52.6% | 40.64% | -31.02% | -0.31% | -60.19% | 681.82% | -93.66% | 91.92% | -860.61% | 124.16% | -274.13% | 141.85% | 593.48% | -100% | -106.17% | -2.34% | -19.71% | -17.32% | 0.06% | -3.2% | 0.68% | -4.84% | 20.16% |
| Net Income (Continuing) | 270.7M | 246.6M | 216.3M | 157.4M | 120.4M | 100.6M | 96.1M | 108.4M | 93.7M | 60.5M | 39.4M | 65.8M | 59.7M | 160.2M | 22M | -14.4M | -160.7M | 17.7M | 31.3M | 29.8M | 34.4M | 43.9M | 6.1M | 36.5M | 43.5M | 46.59M | 57.66M | 54.4M | 55.1M | 59M | 62M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 100K | 300K | 1.1M | 4.4M | 0 | 4M | 7.5M | 0 | 0 | 0 | 5.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 541K | 744K | 873K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.40 | 4.01 | 3.50 | 2.56 | 1.97 | 1.63 | 1.56 | 1.76 | 1.54 | 1.02 | 0.71 | 1.00 | 1.00 | 2.53 | -0.44 | -0.23 | -3.05 | 0.47 | -2.00 | 1.15 | 0.47 | -0.10 | -0.05 | 0.78 | 0.80 | 0.97 | 1.20 | 1.10 | 1.11 | 1.29 | 1.35 |
| EPS Growth % | 28.66% | 14.57% | 36.72% | 29.95% | 20.86% | 4.49% | -11.36% | 14.29% | 50.98% | 43.66% | -29% | 0% | -60.47% | 675% | -91.3% | 92.46% | -748.94% | 123.5% | -273.91% | 144.68% | 570% | -109.2% | -106.13% | -2.5% | -17.53% | -19.17% | 9.09% | -0.9% | -13.95% | -4.44% | 19.47% |
| EPS (Basic) | - | 4.06 | 3.55 | 2.59 | 1.99 | 1.65 | 1.59 | 1.80 | 1.57 | 1.03 | 0.72 | 1.02 | 1.01 | 2.56 | -0.44 | -0.23 | -3.05 | 0.47 | -2.00 | 1.15 | 0.47 | -0.10 | -0.05 | 0.78 | 0.80 | 0.97 | 1.20 | 1.10 | 1.11 | 1.30 | 1.35 |
| Diluted Shares Outstanding | 61.5M | 61.5M | 61.7M | 61.5M | 61.2M | 61.9M | 61.7M | 61.6M | 61.2M | 60.4M | 61.2M | 63.4M | 63.6M | 63.2M | 62.7M | 62.2M | 57.6M | 48.6M | 47.7M | 47.74M | 48.3M | 46M | 48.1M | 48M | 45.22M | 49.04M | 47.95M | 52.36M | 53.51M | 45.74M | 45.95M |
| Basic Shares Outstanding | 60.9M | 60.8M | 60.9M | 60.7M | 60.5M | 60.8M | 60.3M | 60.2M | 59.9M | 59.7M | 60.4M | 62.2M | 62.7M | 62.6M | 62.3M | 62.2M | 57.6M | 48.6M | 47.7M | 47.74M | 48.3M | 46M | 48.1M | 48M | 45.22M | 49.04M | 47.95M | 52.36M | 53.51M | 45.38M | 45.95M |
| Dividend Payout Ratio | - | 13.83% | 13.55% | 15.12% | 18.11% | 21.87% | 20.17% | 17.79% | 19.89% | 27.27% | 38.58% | 24.57% | 8.79% | - | - | - | - | 50.65% | - | 20.95% | 50.66% | - | - | 102.67% | 94.25% | 73.89% | 60.02% | 58.43% | 54.04% | 49.66% | 41.13% |
Third-party chassis supply dependency
According to quarterly financial data, Federal Signal achieved a notable 34.9% year-over-year revenue increase in 2026Q1, signaling a significant acceleration from the mid-single-digit growth observed in early 2024, likely driven by robust municipal demand and successful integration of recent vocational equipment acquisitions into their core portfolio.
The sharp uptick in top-line performance suggests that the company is successfully capturing increased infrastructure spending, particularly within the Environmental Solutions Group. Investors should monitor whether this growth trajectory remains sustainable or if it reflects a temporary surge in municipal fleet replacement cycles that may eventually normalize.
As reported in recent income statements, Federal Signal has maintained gross margins consistently near the 28% level, demonstrating an ability to preserve pricing power despite the inherent volatility of raw material costs and the pass-through nature of third-party chassis components integrated into their specialized vocational vehicles.
The stability of these margins suggests that management is effectively utilizing price escalators to offset inflationary pressures. However, the reliance on third-party chassis means that any disruption in OEM supply chains could compress these margins if the company is unable to pass through sudden cost increases to its municipal customers.
Based on the provided financial figures, operating income has scaled effectively alongside revenue growth, reaching $100.9 million in 2026Q1, which indicates that the company is successfully managing its SG&A overhead while expanding its footprint in the specialized equipment market without incurring disproportionate administrative costs.
The improvement in operating margins suggests that the company is benefiting from economies of scale as it integrates its diverse brand portfolio. This operating leverage appears to be a key driver of the recent earnings growth, warranting further investigation into whether this efficiency can be sustained as the company continues its acquisition-led expansion.
As evidenced by the quarterly data, Federal Signal's net income growth has largely tracked with operating performance, with stock-based compensation remaining a relatively modest component of the expense structure, suggesting that reported EPS figures are not significantly distorted by non-cash accounting adjustments or aggressive compensation practices.
The consistent conversion of operating income into net income implies a high quality of earnings, free from significant non-operating anomalies. Investors should continue to monitor the tax rate and any potential non-recurring items that could influence future bottom-line results, though current trends appear fundamentally sound.
While the company shows strong growth, the reliance on third-party chassis OEMs remains a critical vulnerability, as any production bottlenecks at major truck manufacturers could create a hard ceiling on revenue recognition regardless of the strength of the underlying municipal order book or demand for specialized equipment.
The market may be underestimating the operational risk posed by this dependency, which effectively ties Federal Signal's throughput to the capacity of external partners. If chassis availability tightens, the company may face significant revenue recognition delays that could lead to volatility in quarterly results and potential margin compression.
Quick answers to the most common questions about buying FSS stock.
For fiscal year 2025, Federal Signal Corporation (FSS) reported total revenue of $2.18B. This represents a 143.3% increase compared to $896.4M in 1996.
Federal Signal Corporation (FSS) is profitable, generating $246.6M in net income for the fiscal year ending 2025 with a net profit margin of 11.3%.
Federal Signal Corporation (FSS) reported an operating income of $356.9M, resulting in an operating profit margin of 16.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Federal Signal Corporation (FSS) generated $612.8M in gross profit for the year, representing a gross profit margin of 28.1%. This demonstrates the company's core pricing power and production efficiency.