Federal Signal CorporationFSS
NYSE•Industrials•Farm & Heavy Construction Machinery
Federal Signal Corporation designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through two segments, Environmental Solutions Group, and Safety and Security Systems Group. The company offers street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, dump truck bodies, and trailers, as well as waterblasting, road-marking, line-removal, metal extraction support equipment, and multi-purpose maintenance vehicles under the ELGIN, VACTOR, GUZZLER, TRUVAC, WESTECH, JETSTREAM, BLASTERS, MARK RITE LINES, HOG, NEW WAY, TRACKLESS, OX BODIES, CRYSTEEL, J-CRAFT, DURACLASS, RUGBY, TRAVIS, OSW, NTE, WTB, GROUND FORCE, TOWHAUL, BUCKS, AND SWITCH-N-GO brands; and provides refuse and recycling collection vehicles through a dealer network or direct sales to service customers. It is also involved in sale of parts, service and repair, equipment rentals, and training. The company also provides systems for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications; public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems under the Federal Signal, Federal Signal VAMA, and Victor brand names through wholesalers, distributors, independent manufacturer representatives, original equipment manufacturers, and direct sales force, as well as independent foreign distributors. Federal Signal Corporation was founded in 1901 and is based in Downers Grove, Illinois.
Federal Signal Corporation (FSS) reported trailing twelve months revenue of $2.34B as of March 2026, a 23.3% increase year-over-year. Quarterly revenue reached $625.60M, reflecting continued top-line momentum.
Federal Signal Corporation generated $270.70M in TTM net income, with quarterly EBITDA of $123.50M. The operating margin expanded from 14.2% to 15.9%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (15.9%) and net margin (11.3%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 10.0% a year ago, signaling stronger bottom-line efficiency.
FSS trades at a P/E of 25.6x (in line with broad market averages) and a P/S of 3.0x. The price-to-book ratio of 4.8x reflects a moderate premium to book value.
The company generated $94.60M in free cash flow over the trailing twelve months, a 204.2% increase year-over-year, indicating cash generation ability. The balance sheet shows $2.45B in total assets with $548.60M in long-term debt against $1.43B in stockholders equity for a debt-to-equity ratio of 0.4, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~15.7%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 18.1% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~29.4% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~16.0% — no sign of cost or pricing stress.
FCF covers net income by 1.0x on average — earnings are well-supported by cash generation.
Debt-to-equity has risen 66.7% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation