Federal Signal Corporation has recently released its 10-Q report, which provides a detailed look at the company's financial performance and operations. The company designs, manufactures, and supplies a wide range of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through two segments, the Environmental Solutions Group and the Safety and Security Systems Group, offering products such as street sweepers, sewer cleaners, industrial vacuum loaders, and public safety equipment.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations section, Federal Signal Corporation reported a 9% increase in net sales for the three months ended March 31, 2025, compared to the prior-year quarter. The Environmental Solutions Group reported a net sales increase of 9%, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. The Safety and Security Systems Group also saw an 8% increase in net sales, primarily due to improved sales of public safety equipment.
Operating income for the three months ended March 31, 2025, increased by 21% compared to the prior-year quarter, driven by a $14.8 million improvement in gross profit and a reduction in acquisition and integration-related expenses. The consolidated operating margin for the same period was 14.2%, compared to 12.8% in the prior-year quarter.
Total orders for the three months ended March 31, 2025, were $568 million, representing an increase of 13% compared to the prior-year quarter. The Environmental Solutions Group reported total orders of $480 million, an increase of 12%, while the Safety and Security Systems Group reported orders of $88 million, an increase of 17%.
The company's consolidated backlog at March 31, 2025, was $1.10 billion, an increase of $3 million compared to the prior-year quarter.
In terms of specific financial figures, net sales for the three months ended March 31, 2025, increased by $38.9 million, or 9%, compared to the prior-year quarter, while operating income for the same period increased by $11.4 million, or 21%. The company's gross profit margin also improved to 28.2% for the three months ended March 31, 2025, compared to 27.3% in the prior-year quarter.
Today the company's shares have moved 7.2% to a price of $81.14. For more information, read the company's full 10-Q submission here.
