Revenue growth accelerated to 18.7% YoY in 2026Q2, with gross margin expanding to 30.4% and operating margin reaching 17.6%, reflecting strong operating leverage.
Federal Signal Corporation (FSS) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 2.45B | 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 % | 23.97% | 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 | 1.75B | 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 | 699.9M | 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 % | 28.59% | 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 | 281.1M | 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 | 279.1M | 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 | 1000K | 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 | 411.5M | 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 % | 16.81% | 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 | 477.2M | 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 % | 19.49% | 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 % | 24.89% | 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) | 65.7M | 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 | 275.8M | 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 | -14.5M | -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 | 20.5M | 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 | -38.8M | -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 | 372.7M | 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 % | 15.23% | 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 | 87.3M | 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 % | 23.42% | 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 | 285.4M | 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 % | 11.66% | 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 % | 28.79% | 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) | 285.4M | 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) | 4.64 | 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 % | 29.25% | 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% |
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.
Key Metrics
Top Statement Risk
Revenue concentration and cyclicality
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates Sharply
Federal Signal's revenue growth accelerated to 18.7% year-over-year in 2026Q2, up from 15.1% in the prior quarter, according to the latest income statement data.
The sequential acceleration from 15.1% to 18.7% suggests strengthening demand across the company's environmental and safety product lines. With revenue reaching $670.2M in 2026Q2, the company is clearly benefiting from robust end-market conditions, possibly driven by infrastructure spending and municipal demand. The durability of this growth will depend on order backlog conversion and the sustainability of public sector budgets.
Gross Margin Expansion Drives Profitability
Gross margin improved to 30.4% in 2026Q2 from 28.0% in the prior year, as reported in the financial statements, indicating enhanced pricing power and cost management.
The 240 basis point year-over-year expansion in gross margin suggests that Federal Signal is successfully passing through price increases or benefiting from favorable product mix. This margin expansion is particularly notable given the inflationary cost environment, implying strong operational execution. However, investors should monitor whether this trend is sustainable as input costs may fluctuate.
Operating Leverage Amplifies Earnings Growth
Operating income grew 21% year-over-year in 2026Q2, outpacing revenue growth of 18.7%, as per the income statement, demonstrating positive operating leverage.
The fact that operating income growth exceeds revenue growth indicates that SG&A expenses are not scaling proportionally with sales. SG&A as a percentage of revenue declined to 11.7% in 2026Q2 from 12.5% in the prior year, reflecting disciplined cost control. This operating leverage is a key driver of the company's expanding operating margin, which reached 17.6% in the quarter.
Earnings Quality Supported by Low SBC
Stock-based compensation was only $5.4M in 2026Q2, representing less than 5% of operating income, based on the reported figures, indicating high earnings quality.
The modest level of stock-based compensation relative to operating income suggests that reported earnings are not significantly inflated by non-cash charges. Additionally, the effective tax rate appears stable, with net income growing in line with pre-tax income. This supports the reliability of EPS growth, which accelerated to 20.7% year-over-year in 2026Q2.
COGS Efficiency Drives Margin Gains
Cost of goods sold rose only 18% year-over-year in 2026Q2, slightly below revenue growth of 18.7%, as per the income statement, contributing to margin expansion.
The fact that COGS growth is in line with revenue growth indicates that the company is not experiencing significant cost inflation, or it is effectively managing its supply chain. This is a positive sign for gross margin sustainability. However, SG&A growth of 17% was also below revenue growth, suggesting overall cost discipline across the organization.
2025Q1 Marks a Turning Point
Revenue growth jumped from 9.2% in 2025Q1 to 15.1% in 2025Q2, as reported in the financial statements, signaling a clear inflection in demand.
The acceleration in revenue growth from 2025Q1 to 2025Q2, coupled with a significant improvement in operating margin from 14.2% to 17.3%, indicates that the company entered a higher growth phase. This inflection appears to be driven by both volume and pricing, as gross margin also expanded. The sustained momentum through 2026Q2 suggests that this is not a one-quarter phenomenon, but rather a structural improvement in the company's market position.
What Could Invalidate the Base Case
Despite strong growth, Federal Signal's revenue concentration in cyclical municipal and infrastructure markets could expose it to demand volatility, as seen in the 2025Q1 slowdown.
The company's growth is heavily dependent on public sector spending, which can be subject to budget cycles and political shifts. The 2025Q1 revenue growth of only 9.2% and EPS decline of 10.7% highlight the potential for sudden deceleration. Additionally, gross margin expansion may face pressure if input costs rise or pricing power wanes, as evidenced by the 27.5% gross margin in 2025Q4 versus 30.4% in 2026Q2. Investors should monitor order trends and backlog for signs of softening demand.