Federal Signal (FSS) Investor presentation summary

Company overview and business segments

• Operates as a leading OEM in safety equipment and specialty vehicles, with two main segments: Environmental Solutions Group (ESG, 84% of FY25 net sales) and Safety and Security Systems Group (SSG, 16%).

• Maintains a diversified product portfolio and resilient end-market exposure, supported by a disciplined M&A strategy and a target of 100% annual cash conversion.

• Employs approximately 5,800 people globally, with 27 manufacturing locations and 16 acquisitions since 2016.

Financial performance and outlook

• Achieved a net sales CAGR of ~13% from 2016 to 2025, with organic growth at ~7%.

• Adjusted EBITDA margin reached 20.5% in 2025, with a consolidated target range of 16–22%.

• Raised 2026 adjusted EPS outlook to $4.80–$5.05 and net sales outlook to $2.57–$2.66 billion, representing 18–22% YoY growth.

• Maintained strong cash conversion (102% average from 2021–2025) and low net debt leverage (1.0x as of Q1 2026).

Product and market leadership

• Holds #1 or #2 market share in key ESG vehicle categories (vacuum trucks, street sweepers, dump truck bodies, etc.) and leads in SSG industrial signaling and warning systems.

• ESG segment benefits from resilient funding mechanisms such as water taxes, with steady growth even during downturns.

• SSG segment is positioned in markets with high regulatory barriers and growing demand for safety devices.