Federal Signal Corporation (FSS) stock surged 5.86% in pre-market trading on Wednesday following the release of its impressive second-quarter 2025 financial results and an upward revision of its full-year outlook. The environmental and safety solutions leader reported record-breaking performance that significantly exceeded analyst expectations.

The company's Q2 net sales reached $564.6 million, marking a 15% increase year-over-year and surpassing the analyst consensus estimate of $537.3 million. Adjusted earnings per share (EPS) stood at $1.17, beating the expected $1.06 and representing a 23% rise from the previous year. Federal Signal's strong performance was attributed to increased production across several businesses, higher aftermarket sales, and contributions from recent acquisitions.

In light of these stellar results, Federal Signal raised its full-year 2025 guidance. The company now expects net sales between $2.07 billion and $2.13 billion, up from the previous range of $2.02 billion to $2.10 billion. The adjusted EPS outlook was also increased to $3.92-$4.10, compared to the prior range of $3.63-$3.90. Additionally, Federal Signal elevated its consolidated EBITDA margin target to 16%-22%, up from 14%-20%, further boosting investor confidence in the company's profitability prospects. These positive developments have clearly resonated with investors, driving the significant pre-market stock price increase.