Federal Signal (FSS) Investor presentation summary

Business profile and portfolio

• ESG represented 84% of FY25 net sales and SSG 16%; operations included ~5,800 global employees and 29 manufacturing locations as of October 2026.

• Portfolio spans vacuum trucks, street sweepers, dump bodies and trailers, refuse vehicles, public safety equipment, signaling and warning systems.

• FY25 end-market exposure was 57% publicly funded and 37% industrial; sales channels were ~40% direct, ~30% exclusive dealers and ~30% third-party distribution.

• Backlog-intensive products generated ~45% of 2025 net sales versus ~50% in 2015; target lead times are ~4-8 months for backlog-intensive products.

Growth platform and market position

• North American market-share ranks include #1 in vacuum trucks, dump truck bodies and trailers, multi-purpose maintenance vehicles, and road-marking; #1-2 in street sweepers.

• The specialty-vehicle portfolio addresses ~15-20% of the overall market, representing a $5.5B-$6.5B annual TAM; the broader safety and security market has a ~$2.5B annual TAM.

• FY16-FY25 net sales CAGR was ~13% total and ~7% organic; stated targets include low-double-digit annual net sales growth and ROIC above cost of capital.

• M&A criteria emphasize niche leadership, sustainable advantage, returns above cost of capital, growth potential, and through-cycle margins at or above target levels.

• M&A represented 71% of cash deployment during 2023-2025.

Strategic growth drivers

• Aftermarket was ~25% of FY25 ESG net sales and grew at ~14% CAGR from 2015-2025, supported by parts, services, refurbishment, used equipment and rental offerings.

• Sewer cleaners ordered with hydro-excavation packages grew at ~6% CAGR from 2011-2025; safe digging is positioned as a safer, more productive alternative to conventional excavation.

• Product initiatives include scaling RegenX air sweepers, launching a Guzzler microtrenching vacuum truck, expanding road-marking offerings and developing SSG safety products.

• Public safety equipment new-product vitality averaged ~24% in the U.S. and Europe during 2019-2025; CommanderOne expansion adds recurring-revenue opportunities.

• Water taxes, used as a proxy for sewer-cleaning funding, grew at ~4.6% CAGR in the U.S. from 2010-2025.