Federal Signal Corporation, a leader in environmental and safety solutions, reported record financial results for the second quarter of 2025, showcasing significant growth in key performance metrics. The company achieved net sales of $565 million, marking an increase of $74 million, or 15%, compared to the same quarter last year. Operating income rose by 20% to $97.7 million, reflecting a robust improvement from the previous year. The company reported a net income of $71.4 million, or $1.16 per diluted share, compared to $60.8 million, or $0.99 per diluted share, in the prior-year quarter. Adjusted earnings per share $(EPS)$ stood at $1.17, representing a 23% increase from last year's $0.95. Federal Signal experienced strong customer demand, with orders amounting to $540 million, up by $67 million, or 14%, from the prior year. Operating cash flow also improved significantly, reaching $60 million, a 47% increase from last year. In terms of outlook, the company raised its 2025 net sales guidance to a range of $2.07 billion to $2.13 billion, up from the previous range of $2.02 billion to $2.10 billion. The adjusted EPS outlook was elevated to a new range of $3.92 to $4.10, from the prior range of $3.63 to $3.90. Additionally, Federal Signal increased its consolidated EBITDA margin target to a range of 16% to 22%, from the previous target of 14% to 20%. The Environmental Solutions Group within the company posted an 18% year-over-year net sales growth and a 26% increase in adjusted EBITDA. Meanwhile, the Safety and Security Systems Group achieved a 3% top-line growth with an adjusted EBITDA margin of 27%. Overall, Federal Signal's performance in the second quarter underscores its strong operational execution and strategic initiatives, prompting the upward revision of its financial targets for the year.
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