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• Net Sales (Full Year 2024): $1.86 billion, an increase of $139 million or 8% compared to last year.

• Operating Income (Full Year 2024): $281.4 million, up $56.9 million or 25% from last year.

• Adjusted EBITDA (Full Year 2024): $350.6 million, up $64.6 million or 23% from last year; margin of 18.8%, up 220 basis points.

• GAAP Diluted EPS (Full Year 2024): $3.50 per share, up $0.94 or 37% from last year.

• Adjusted EPS (Full Year 2024): $3.34 per share, up $0.76 or 29% from last year.

• Orders (Full Year 2024): $1.85 billion, second highest in company history; backlog of approximately $1 billion.

• Net Sales (Q4 2024): $472 million, an increase of $24 million or 5% compared to last year.

• Operating Income (Q4 2024): $70.1 million, up $7 million or 11% compared to last year.

• Adjusted EBITDA (Q4 2024): $89.3 million, up $11.8 million or 15% compared to last year; margin of 18.9%, up 160 basis points.

• GAAP Diluted EPS (Q4 2024): $0.81 per share, up $0.06 or 8% from last year.

• Adjusted EPS (Q4 2024): $0.87 per share, up $0.13 or 18% from last year.

• Orders (Q4 2024): $446 million, compared to $465 million in Q4 last year.

• Cash Flow from Operations (Q4 2024): $91 million; full year operating cash generation of $231 million, up $37 million or 19% from last year.

• Net Debt (End of 2024): $133 million; availability under credit facility of $574 million.

• Dividends (Q4 2024): $7.3 million, reflecting a dividend of $0.12 per share; announced increase to $0.14 per share for Q1 2025.

• Share Repurchases (Q4 2024): $2.2 million funded.

• Warning! GuruFocus has detected 3 Warning Sign with FSS.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Federal Signal Corp (NYSE:FSS) achieved record net sales of approximately $1.86 billion for 2024, marking an 8% increase from the previous year.

• The company reported a significant increase in operating income, up 25% to $281.4 million compared to last year.

• Adjusted EBITDA for the year rose by 23% to $350.6 million, translating to a margin of 18.8%, an improvement of 220 basis points.

• Federal Signal Corp (NYSE:FSS) successfully completed the acquisition of Hog Technologies, which is expected to enhance their road marking and water blasting business.

• The company announced a 17% increase in dividends, reflecting strong financial health and commitment to returning value to shareholders.

Negative Points

• Orders for the fourth quarter of 2024 were $446 million, down from $465 million in the same quarter last year.

• The company faced a $7 million headwind from fewer chassis pass-through sales in the fourth quarter.

• There was a $3.8 million pre-tax non-cash pension settlement charge recognized during the quarter.

• Federal Signal Corp (NYSE:FSS) expects a higher effective tax rate of approximately 26% in 2025, up from 18% in 2024.

• Extended lead times for products like street sweepers and sewer cleaners have impacted orders, with backlogs stretching into 2026.