Federal Signal Completes Acquisition of New Way Trucks; Raises Full-Year 2025 Outlook

Rhea-AI Summary

Federal Signal (NYSE:FSS) completed its acquisition of New Way Trucks on Nov 26, 2025, adding more than 750 employees and a backlog in excess of $100 million.

The company raised its full-year 2025 net sales outlook to $2.12B–$2.16B (from $2.10B–$2.14B) and raised full-year 2025 adjusted EPS guidance to $4.12–$4.20 (from $4.09–$4.17).

Federal Signal expects the transaction to be neutral to EPS in 2026, accretive thereafter with $15M–$20M annual run-rate synergies and anticipated 2028 EPS accretion of $0.40–$0.45.

Positive

• Backlog in excess of $100 million
• Raised full-year 2025 net sales to $2.12B–$2.16B
• Raised full-year 2025 adjusted EPS to $4.12–$4.20
• Anticipated annual run-rate synergies of $15M–$20M
• Estimated $0.40–$0.45 EPS accretion in 2028

Negative

• Transaction expected neutral to EPS in 2026
• Planned business investments and integration costs in 2026
• Higher interest cost following the acquisition
• Preliminary intangible asset amortization expense anticipated

News Market Reaction

+1.02%

1 alert

+1.02% News Effect

On the day this news was published, FSS gained 1.02%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Employees acquired: more than 750 New Way backlog: in excess of $100 million Net sales outlook (new): $2.12B–$2.16B +5 more

8 metrics

Employees acquired more than 750 New Way headcount added with acquisition

New Way backlog in excess of $100 million Backlog providing visibility into first half of next year

Net sales outlook (new) $2.12B–$2.16B Full-year 2025 net sales guidance raised from $2.10B–$2.14B

Net sales outlook (prior) $2.10B–$2.14B Previous full-year 2025 net sales guidance range

Adj. EPS outlook (new) $4.12–$4.20 Full-year 2025 adjusted EPS guidance raised from $4.09–$4.17

Adj. EPS outlook (prior) $4.09–$4.17 Previous full-year 2025 adjusted EPS guidance range

2028 EPS accretion $0.40–$0.45 Expected EPS accretion from New Way acquisition in 2028

Run-rate synergies $15M–$20M Anticipated annual run-rate synergies by end of 2028

Market Reality Check

Price: $118.25 Vol: Volume 365,950 is below t...

low vol

$118.25 Last Close

Volume Volume 365,950 is below the 20-day average of 541,781, suggesting a modest immediate response. low

Technical Shares trade above the 200-day MA of 104.27 at a price of 112.24, indicating a pre-existing uptrend.

Peers on Argus

Peers in related pollution and water solutions names mostly showed modest gains,...

Peers in related pollution and water solutions names mostly showed modest gains, with moves like +5.15% for CECO and low-single-digit increases for ZWS, VLTO, and ERII, suggesting the FSS reaction was more company-specific than broad sector-driven.

Historical Context

5 past events · Latest: Nov 26 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 26	Acquisition close	Positive	+1.0%	Closed New Way deal and raised 2025 net sales and EPS outlook.
Oct 30	Earnings update	Positive	-10.8%	Strong Q3 growth and higher guidance met with a double-digit drop.
Oct 28	Dividend declaration	Positive	+0.5%	Declared <b>$0.14</b> quarterly dividend with set record and pay dates.
Oct 16	Earnings call notice	Neutral	+0.5%	Announced timing and access details for Q3 2025 earnings call.
Sep 24	Acquisition announcement	Positive	+1.2%	Agreed to acquire New Way Trucks with expected EPS accretion by 2028.

Pattern Detected

Recent news shows mostly positive or neutral items with four aligned price reactions and one notable divergence on strong Q3 earnings and guidance.

Recent Company History

This announcement completes Federal Signal’s acquisition of New Way Trucks and includes a raise to full-year 2025 net sales and adjusted EPS guidance. Over the past few months, the company has highlighted growth, with Q3 2025 net sales of $555 million and improved operating income, executed a major credit agreement to support acquisitions, and declared a $0.14 dividend. Prior acquisition news on New Way and Hog Technologies, along with earnings-related updates, frame this deal as part of an ongoing specialty vehicle expansion strategy.

Market Pulse Summary

This announcement confirms completion of the New Way Trucks acquisition and a concurrent increase in...

Analysis

This announcement confirms completion of the New Way Trucks acquisition and a concurrent increase in 2025 net sales and adjusted EPS guidance. The deal adds a backlog above $100M and more than 750 employees, with management targeting $15M–$20M in annual run-rate synergies and $0.40–$0.45 EPS accretion by 2028. Historically, Federal Signal’s acquisition updates produced modest single-day stock moves. Investors may track integration progress, margin performance, and whether outlook revisions remain on track in subsequent filings and earnings reports.

Key Terms

adjusted EPS, run-rate synergies, intangible asset amortization expense

3 terms

adjusted EPS financial

"Although we expect the New Way acquisition to be neutral to adjusted EPS* this year..."

Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.

run-rate synergies financial

"including anticipated annual run-rate synergies of between $15 million and $20 million..."

Run-rate synergies are the estimated steady annual savings or additional revenue a company expects once cost cuts and revenue enhancements from a merger or restructuring are fully in place; think of it as the new normal speed after a car finishes accelerating. Investors care because these numbers quantify the deal’s payoff, influence future profit forecasts and valuation, and reveal how quickly and realistically the company can turn the combination into lasting financial benefit.

intangible asset amortization expense financial

"including a preliminary estimate of intangible asset amortization expense."

Intangible asset amortization expense is the yearly portion of a company’s cost for non-physical assets—like patents, trademarks or customer lists—spread out over their useful life, similar to breaking a large bill into equal monthly payments. It matters to investors because it reduces reported profit even though it isn’t a current cash outlay, affecting earnings-per-share, valuation multiples and comparisons between companies with different levels of intangible assets.

AI-generated analysis. Not financial advice.

DOWNERS GROVE, Ill., Nov. 26, 2025 /PRNewswire/ -- Federal Signal Corporation (NYSE: FSS) (the "Company"), a leader in environmental and safety solutions, today announced that it has completed the acquisition of Scranton Manufacturing Company LLC d/b/a New Way Trucks ("New Way"), a leading U.S.-based designer and manufacturer of refuse collection vehicles. The signing of the purchase agreement was previously announced on September 24, 2025.

"We are thrilled to complete the acquisition of New Way and officially welcome its more than 750 employees to the Federal Signal family," said Jennifer L. Sherman, President and Chief Executive Officer. "New Way's leading market position in automated side loaders and its strong reputation for quality and customer focus make it a natural fit within our Environmental Solutions Group. With a current backlog in excess of $100 million, New Way has visibility into the first half of next year. Longer term, we expect to leverage the power of our specialty vehicle platform – from 80/20 product optimization to aftermarket expansion – to accelerate growth, enhance margins, and deliver long-term value for our customers and stockholders. Following the completion of the acquisition, we are raising our full-year 2025 net sales outlook to a new range of $2.12 billion to $2.16 billion, from the prior range of $2.10 billion to $2.14 billion. Although we expect the New Way acquisition to be neutral to adjusted EPS* this year, we are also increasing our full-year 2025 adjusted EPS* outlook to a new range of $4.12 to $4.20, from the prior range of $4.09 to $4.17."

The Company continues to expect the transaction to be neutral to EPS in 2026, reflecting planned business investments, integration and optimization initiatives, higher interest cost, and anticipated purchase accounting effects, including a preliminary estimate of intangible asset amortization expense. The Company expects the transaction to be accretive to EPS in subsequent years, with anticipated EPS accretion of between $0.40 and $0.45 in 2028, including anticipated annual run-rate synergies of between $15 million and $20 million, currently expected to be substantially realized by the end of 2028.

About Federal Signal
Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities where we work and live. Founded in 1901, Federal Signal is a leading global designer, manufacturer, and supplier of products and total solutions that serve municipal, governmental, industrial, and commercial customers. Headquartered in Downers Grove, Ill., with manufacturing facilities worldwide, the Company operates two groups: Environmental Solutions and Safety and Security Systems. For more information on Federal Signal, visit: www.federalsignal.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This release contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this release that are not historical are forward-looking statements. Forward-looking statements should not be relied upon as a predictor of actual results. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: the Company's ability to achieve anticipated revenue and cost benefits associated with the New Way acquisition, economic and political uncertainty, risks and adverse economic effects associated with geopolitical conflicts including tariffs and other trade conflicts, legal and regulatory developments, foreign currency exchange rate changes, inflationary pressures, product and price competition, supply chain disruptions, availability and pricing of raw materials, interest rate changes, risks associated with acquisitions such as integration of operations and achieving anticipated revenue and cost benefits, work stoppages, increases in pension funding requirements, cybersecurity risks, increased legal expenses and litigation results and other risks and uncertainties described in filings with the Securities and Exchange Commission.

* Adjusted earnings per share ("EPS") is a non-GAAP measure, which includes certain adjustments to reported GAAP net income and diluted EPS. In the nine months ended September 30, 2025, we have made adjustments to exclude the impact of acquisition and integration-related expenses, net, purchase accounting effects, and certain special income tax items, where applicable. In prior years, we have also made adjustments to exclude the impact of environmental remediation costs of a discontinued operation, pension-related charges, debt settlement charges, and certain other unusual or non-recurring items. Should any similar items occur in the remainder of 2025, we would expect to exclude them from the determination of adjusted EPS. However, because of the underlying uncertainty in quantifying amounts which may not yet be known, a reconciliation of our Adjusted EPS outlook to the most applicable GAAP measure is excluded based on the unreasonable efforts exception in Item 10(e)(1)(i)(B).

View original content:https://www.prnewswire.com/news-releases/federal-signal-completes-acquisition-of-new-way-trucks-raises-full-year-2025-outlook-302626715.html

SOURCE Federal Signal Corporation

FAQ

What did Federal Signal announce about the New Way Trucks acquisition on Nov 26, 2025 (FSS)?

Federal Signal completed the acquisition of New Way Trucks, adding >750 employees and a backlog >$100M.

How did the New Way acquisition change Federal Signal's full-year 2025 net sales guidance (FSS)?

Full-year 2025 net sales guidance was raised to $2.12B–$2.16B from $2.10B–$2.14B.

What is Federal Signal's updated 2025 adjusted EPS guidance after the acquisition (FSS)?

The company increased 2025 adjusted EPS guidance to $4.12–$4.20 from $4.09–$4.17.

When does Federal Signal expect the New Way acquisition to be accretive to EPS (FSS)?

The company expects the transaction to be neutral in 2026 and accretive thereafter, with $0.40–$0.45 accretion estimated for 2028.

What synergies and timeline did Federal Signal disclose for New Way (FSS)?

Anticipated annual run-rate synergies of $15M–$20M, substantially realized by the end of 2028.

Why does Federal Signal expect no EPS benefit in 2026 despite the acquisition (FSS)?

The company cites planned investments, integration initiatives, higher interest cost, and preliminary intangible amortization as reasons.