Federal Signal Financials
This page shows Federal Signal (FSS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Federal Signal's cash-generative core keeps widening margins, but FY2025 expansion leaned on acquisitions and a debt-funded balance-sheet step-up.
In FY2025, operating cash flow still matched earnings, at$254.7M versus$246.6M , which says reported profit was still turning into cash even as the company expanded. At the same time, goodwill and long-term debt both stepped up sharply, so the year's balance-sheet growth looks more acquisition-led than capex-led; that means the core engine remained healthy even while expansion demanded outside financing.
Margin expansion was not limited to one line item: gross margin moved from
Short-term liquidity remains comfortable, with a 3.0x current ratio, so near-term obligations do not appear to be the binding constraint. But FY2025 also became more working-capital hungry: inventory reached
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Federal Signal's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Federal Signal has an operating margin of 15.6%, meaning the company retains $16 of operating profit per $100 of revenue. This results in a moderate score of 55/100, indicating healthy but not exceptional operating efficiency. This is up from 15.1% the prior year.
Federal Signal's revenue surged 17.1% year-over-year to $2.2B, reflecting rapid business expansion. This strong growth earns a score of 54/100.
Federal Signal carries a low D/E ratio of 0.41, meaning only $0.41 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 94/100, indicating a strong balance sheet with room for future borrowing.
Federal Signal's current ratio of 3.02 indicates adequate short-term liquidity, earning a score of 58/100. The company can meet its near-term obligations, though with limited headroom.
Federal Signal has a free cash flow margin of 10.4%, earning a moderate score of 50/100. The company generates positive cash flow after capital investments, but with room for improvement.
Federal Signal's ROE of 17.8% shows moderate profitability relative to equity, earning a score of 50/100. This is down from 18.2% the prior year.
Federal Signal scores 6.43, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($6.7B) relative to total liabilities ($1.0B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Federal Signal passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Federal Signal generates $1.03 in operating cash flow ($254.7M OCF vs $246.6M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Federal Signal earns $24.2 in operating income for every $1 of interest expense ($340.9M vs $14.1M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Federal Signal generated $2.2B in revenue in fiscal year 2025. This represents an increase of 17.1% from the prior year.
Federal Signal's EBITDA was $421.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 21.5% from the prior year.
Federal Signal reported $246.6M in net income in fiscal year 2025. This represents an increase of 14.0% from the prior year.
Federal Signal earned $4.01 per diluted share (EPS) in fiscal year 2025. This represents an increase of 14.6% from the prior year.
Cash & Balance Sheet
Federal Signal generated $227.1M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 19.1% from the prior year.
Federal Signal held $63.7M in cash against $564.6M in long-term debt as of fiscal year 2025.
Federal Signal paid $0.56 per share in dividends in fiscal year 2025. This represents an increase of 16.7% from the prior year.
Federal Signal had 61M shares outstanding in fiscal year 2025. This represents a decrease of 0.3% from the prior year.
Margins & Returns
Federal Signal's gross margin was 28.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.3 percentage points from the prior year.
Federal Signal's operating margin was 15.6% in fiscal year 2025, reflecting core business profitability. This is up 0.5 percentage points from the prior year.
Federal Signal's net profit margin was 11.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.3 percentage points from the prior year.
Federal Signal's ROE was 17.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.4 percentage points from the prior year.
Capital Allocation
Federal Signal spent $39.7M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 492.5% from the prior year.
Federal Signal invested $27.6M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 32.0% from the prior year.
FSS Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $625.6M+4.8% | $597.1M+7.6% | $555.0M-1.7% | $564.6M+21.7% | $463.8M-1.7% | $472.0M-0.5% | $474.2M-3.3% | $490.4M |
| Cost of Revenue | $446.2M+4.3% | $427.8M+8.7% | $393.5M-0.4% | $395.0M+18.6% | $333.0M-1.9% | $339.4M+1.7% | $333.8M-3.6% | $346.4M |
| Gross Profit | $179.4M+6.0% | $169.3M+4.8% | $161.5M-4.8% | $169.6M+29.7% | $130.8M-1.4% | $132.6M-5.6% | $140.4M-2.5% | $144.0M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $72.0M+6.8% | $67.4M+9.8% | $61.4M-8.2% | $66.9M+11.1% | $60.2M+3.1% | $58.4M-2.8% | $60.1M+3.1% | $58.3M |
| Operating Income | $99.7M+19.4% | $83.5M-11.2% | $94.0M-3.8% | $97.7M+48.7% | $65.7M-6.3% | $70.1M-7.6% | $75.9M-6.4% | $81.1M |
| Interest Expense | $6.9M+43.8% | $4.8M+71.4% | $2.8M-20.0% | $3.5M+16.7% | $3.0M-3.2% | $3.1M+3.3% | $3.0M-6.3% | $3.2M |
| Income Tax | $21.8M+22.5% | $17.8M-20.5% | $22.4M+1.8% | $22.0M+40.1% | $15.7M+21.7% | $12.9M-31.0% | $18.7M+12.0% | $16.7M |
| Net Income | $70.4M+15.8% | $60.8M-10.7% | $68.1M-4.6% | $71.4M+54.2% | $46.3M-7.4% | $50.0M-7.2% | $53.9M-11.3% | $60.8M |
| EPS (Diluted) | $1.14 | N/A | $1.11-4.3% | $1.16+54.7% | $0.75 | N/A | $0.87-12.1% | $0.99 |
FSS Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.5B+2.6% | $2.4B+23.4% | $1.9B+1.2% | $1.9B+1.9% | $1.9B+6.5% | $1.8B+1.8% | $1.7B+2.5% | $1.7B |
| Current Assets | $876.8M+2.7% | $853.8M+20.8% | $706.5M+3.3% | $684.1M+2.9% | $664.8M+3.5% | $642.5M-1.0% | $649.2M+6.1% | $611.8M |
| Cash & Equivalents | $71.4M+12.1% | $63.7M+17.1% | $54.4M-15.9% | $64.7M+12.5% | $57.5M-36.9% | $91.1M+23.6% | $73.7M+51.6% | $48.6M |
| Inventory | $477.8M+1.3% | $471.6M+28.4% | $367.3M+3.0% | $356.5M-1.5% | $362.0M+9.4% | $331.0M-1.8% | $337.0M+3.1% | $326.9M |
| Accounts Receivable | $310.1M+6.1% | $292.2M+10.8% | $263.6M+10.6% | $238.3M+6.8% | $223.2M+13.6% | $196.4M-10.8% | $220.3M+3.1% | $213.6M |
| Goodwill | $626.8M+1.1% | $619.8M+18.8% | $521.7M+0.8% | $517.6M+0.7% | $514.0M+7.6% | $477.7M+1.3% | $471.6M+0.4% | $469.9M |
| Total Liabilities | $1.0B+0.9% | $1.0B+63.9% | $616.7M-5.7% | $653.8M-3.4% | $677.0M+16.9% | $579.1M-0.9% | $584.2M-1.3% | $591.9M |
| Current Liabilities | $308.2M+9.1% | $282.4M+4.1% | $271.2M+3.1% | $263.0M-5.5% | $278.4M+15.1% | $241.8M+5.4% | $229.4M+8.4% | $211.7M |
| Long-Term Debt | $548.6M-2.8% | $564.6M+166.8% | $211.6M-21.0% | $268.0M-2.8% | $275.8M+30.8% | $210.9M-8.2% | $229.7M-9.5% | $253.7M |
| Total Equity | $1.4B+3.8% | $1.4B+4.6% | $1.3B+4.7% | $1.3B+5.0% | $1.2B+1.4% | $1.2B+3.2% | $1.1B+4.5% | $1.1B |
| Retained Earnings | $1.4B+4.7% | $1.3B+4.1% | $1.3B+5.0% | $1.2B+5.5% | $1.1B+3.4% | $1.1B+4.0% | $1.1B+4.6% | $1.0B |
FSS Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $101.3M+4.2% | $97.2M+59.1% | $61.1M+2.3% | $59.7M+62.7% | $36.7M-59.5% | $90.6M+31.7% | $68.8M+69.5% | $40.6M |
| Capital Expenditures | $6.7M-13.0% | $7.7M+10.0% | $7.0M-4.1% | $7.3M+30.4% | $5.6M-34.1% | $8.5M+7.6% | $7.9M-50.0% | $15.8M |
| Free Cash Flow | $94.6M+5.7% | $89.5M+65.4% | $54.1M+3.2% | $52.4M+68.5% | $31.1M-62.1% | $82.1M+34.8% | $60.9M+145.6% | $24.8M |
| Investing Cash Flow | -$51.6M+87.9% | -$426.6M-5994.3% | -$7.0M-6.1% | -$6.6M+92.5% | -$87.7M-82.3% | -$48.1M-516.7% | -$7.8M+49.4% | -$15.4M |
| Financing Cash Flow | -$41.7M-112.3% | $338.9M+624.6% | -$64.6M-38.3% | -$46.7M-376.3% | $16.9M+171.0% | -$23.8M+35.1% | -$36.7M-45.6% | -$25.2M |
| Dividends Paid | $9.2M+8.2% | $8.5M-7.6% | $9.2M+8.2% | $8.5M-1.2% | $8.6M+17.8% | $7.3M0.0% | $7.3M-1.4% | $7.4M |
| Share Buybacks | $0 | $0 | $0-100.0% | $21.2M+14.6% | $18.5M+740.9% | $2.2M-50.0% | $4.4M | $0 |
FSS Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.7%+0.3pp | 28.3%-0.8pp | 29.1%-0.9pp | 30.0%+1.8pp | 28.2%+0.1pp | 28.1%-1.5pp | 29.6%+0.2pp | 29.4% |
| Operating Margin | 15.9%+2.0pp | 14.0%-3.0pp | 16.9%-0.4pp | 17.3%+3.1pp | 14.2%-0.7pp | 14.8%-1.2pp | 16.0%-0.5pp | 16.5% |
| Net Margin | 11.3%+1.1pp | 10.2%-2.1pp | 12.3%-0.4pp | 12.7%+2.7pp | 10.0%-0.6pp | 10.6%-0.8pp | 11.4%-1.0pp | 12.4% |
| Return on Equity | 4.9%+0.5pp | 4.4%-0.8pp | 5.1%-0.5pp | 5.7%+1.8pp | 3.9%-0.4pp | 4.2%-0.5pp | 4.7%-0.8pp | 5.5% |
| Return on Assets | 2.9%+0.3pp | 2.5%-1.0pp | 3.5%-0.2pp | 3.7%+1.3pp | 2.5%-0.4pp | 2.8%-0.3pp | 3.1%-0.5pp | 3.6% |
| Current Ratio | 2.84-0.2 | 3.02+0.4 | 2.610.0 | 2.60+0.2 | 2.39-0.3 | 2.66-0.2 | 2.83-0.1 | 2.89 |
| Debt-to-Equity | 0.38-0.0 | 0.41+0.2 | 0.16-0.1 | 0.21-0.0 | 0.23+0.1 | 0.18-0.0 | 0.20-0.0 | 0.23 |
| FCF Margin | 15.1%+0.1pp | 15.0%+5.2pp | 9.8%+0.5pp | 9.3%+2.6pp | 6.7%-10.7pp | 17.4%+4.6pp | 12.8%+7.8pp | 5.1% |
Similar Companies
Frequently Asked Questions
What is Federal Signal's annual revenue?
Federal Signal (FSS) reported $2.2B in total revenue for fiscal year 2025. This represents a 17.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Federal Signal's revenue growing?
Federal Signal (FSS) revenue grew by 17.1% year-over-year, from $1.9B to $2.2B in fiscal year 2025.
Is Federal Signal profitable?
Yes, Federal Signal (FSS) reported a net income of $246.6M in fiscal year 2025, with a net profit margin of 11.3%.
What is Federal Signal's EBITDA?
Federal Signal (FSS) had EBITDA of $421.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Federal Signal have?
As of fiscal year 2025, Federal Signal (FSS) had $63.7M in cash and equivalents against $564.6M in long-term debt.
What is Federal Signal's gross margin?
Federal Signal (FSS) had a gross margin of 28.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Federal Signal's operating margin?
Federal Signal (FSS) had an operating margin of 15.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Federal Signal's net profit margin?
Federal Signal (FSS) had a net profit margin of 11.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Federal Signal pay dividends?
Yes, Federal Signal (FSS) paid $0.56 per share in dividends during fiscal year 2025.
What is Federal Signal's return on equity (ROE)?
Federal Signal (FSS) has a return on equity of 17.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Federal Signal's free cash flow?
Federal Signal (FSS) generated $227.1M in free cash flow during fiscal year 2025. This represents a 19.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Federal Signal's operating cash flow?
Federal Signal (FSS) generated $254.7M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Federal Signal's total assets?
Federal Signal (FSS) had $2.4B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Federal Signal's capital expenditures?
Federal Signal (FSS) invested $27.6M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Federal Signal's current ratio?
Federal Signal (FSS) had a current ratio of 3.02 as of fiscal year 2025, which is generally considered healthy.
What is Federal Signal's debt-to-equity ratio?
Federal Signal (FSS) had a debt-to-equity ratio of 0.41 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Federal Signal's return on assets (ROA)?
Federal Signal (FSS) had a return on assets of 10.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Federal Signal's Altman Z-Score?
Federal Signal (FSS) has an Altman Z-Score of 6.43, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Federal Signal's Piotroski F-Score?
Federal Signal (FSS) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Federal Signal's earnings high quality?
Federal Signal (FSS) has an earnings quality ratio of 1.03x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Federal Signal cover its interest payments?
Federal Signal (FSS) has an interest coverage ratio of 24.2x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Federal Signal?
Federal Signal (FSS) scores 60 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.