| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 44 | 24.5x | 17.8x | Around median | |
Growth | 87 | 24.0% | 7.1% | Top tier | |
Quality | 76 | 17.3% | 4.5% | Top tier | |
Safety | 85 | 0.9x | 2.6x | Top tier | |
Capital Return | 27 | 0.51% | 2.12% | Bottom tier | |
Momentum | 51 | 0.3% | 2.9% | Around median | |
Sentiment | 42 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Federal Signal Corporation operates through two operating groups: the Environmental Solutions Group ESG, which sells vacuum and hydro-excavation trucks, dump truck bodies, mining support equipment, sewer cleaning equipment, and safe digging equipment, and the Safety and Security Systems Group SSG, which provides signaling solutions for public safety and industrial applications. The company also derives relatively recurring revenue from its aftermarket ecosystem, which includes parts, service, rentals, rent-to-own, and used equipment; these activities represented approximately 25% of ESG revenue in fiscal Q2 2026.
In fiscal Q2 2026, revenue reached $670.2 million, up 19% year over year, including organic growth of 6%, while gross profit was $203.8 million at a gross margin of 30.4%, improving by 40 basis points. Net income was $86.1 million, and diluted earnings per share were $1.40, up 21%, while operating income increased 21% to $118.2 million, and adjusted earnings before interest, taxes, depreciation, and amortization reached $144.4 million at a margin of 21.5%, up 60 basis points.
ESG was the largest driver of the operating mix in fiscal Q2 2026, with revenue of $578 million, or approximately 86% of consolidated revenue, and adjusted earnings before interest, taxes, depreciation, and amortization of $138.3 million at a margin of 23.9%. SSG generated revenue of $93 million, or approximately 14% of consolidated revenue, and adjusted earnings before interest, taxes, depreciation, and amortization of $23.2 million, but its margin declined to 25.1% from 26.9% due to shipment mix. On a last-twelve-month basis within fiscal 2026 data, revenue was $2.4 billion, net income was $285.4 million, and earnings per share were $4.64.
The average analyst price target is $140, which is also both the highest and lowest target, with a consensus rating of “Buy”; this target is only approximately 4.1% above the 52-week range high of $134.51, compared with a low of $101.19. The complete alignment between the highest and lowest targets indicates no visible dispersion in the available sample, but it also reduces the diversity of viewpoints that can be relied upon, while the risks of backlog decline, weakness in the refuse truck market, and pressure from the SSG mix remain factors to weigh against raised guidance and earnings growth.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Fiscal Q2 2026 growth came from a broad mix that included organic growth of 6% and an acquisition contribution of approximately $75 million. Aftermarket revenue increased 24%, while New Way and Mega supported sales of refuse trucks and mining support equipment. The company also recorded strength in vacuum and hydro-excavation trucks, dump truck bodies, and safe digging equipment, helping it raise its fiscal 2026 revenue guidance to $2.58-$2.67 billion.
The aftermarket business represented approximately 25% of ESG revenue in fiscal Q2 2026, and its revenue increased 24% year over year. The ecosystem includes parts, service, rentals, rent-to-own, and used equipment, and rental income grew 16%, led by safe digging equipment and mounted sewer cleaners. The company is pursuing the Build More Parts initiative and expanding its service network, to which it has added approximately 20 locations since 2019, with capital investments that management described as relatively limited.
Backlog was $1 billion at the end of fiscal Q2 2026, compared with $1.08 billion a year earlier. $75 million of the approximately $80 million decline was related to the planned reduction in the external Labrie order backlog, and approximately $44 million of those orders remained at quarter-end. In contrast, quarterly orders reached $637 million, up 18%, giving backlog-dependent products good visibility into the second half of fiscal 2026 and the beginning of fiscal 2027, according to management.
Automated analysis for informational purposes only — not investment advice.
Acquisitions added approximately $75 million to fiscal Q2 2026 sales, with New Way and Mega as the leading contributors. The two acquisitions exceeded the company's internal expectations for margins and earnings contribution in the first half of fiscal 2026, while New Way cost savings progressed ahead of the targeted schedule under a plan to achieve $15-$20 million annually by the end of 2028. In July 2026, the company completed the acquisition of Western Technology, which specializes in portable explosion-protected lighting solutions, but described the transaction as small and not material to fiscal 2026 results.
SSG orders declined to $89 million in fiscal Q2 2026 from $99 million, and its adjusted margin fell to 25.1% from 26.9% due to shipment mix. The company also expects the refuse truck market to contract during fiscal 2026 because of excess inventory, although New Way orders were slightly better than its model. In addition, approximately 55% of revenue comes from public funding mechanisms, and unfinalized U.S. Environmental Protection Agency regulations remain a factor that could change the timing of orders.
The company raised its fiscal 2026 adjusted earnings-per-share range to $5.12-$5.30 from $4.80-$5.05 following the July 30, 2026 results. The increase was based on 24% aftermarket growth, progress integrating New Way and Mega, and broad operating improvements, rather than a single initiative. The company also generated $113 million in operating cash flow in fiscal Q2 2026, equal to 131% of net income, and raised its annual revenue range to $2.58-$2.67 billion.
