Federal Signal's stock soared 5.35% during intraday trading on Wednesday, driven by the company's release of better-than-expected fourth-quarter results and optimistic guidance for the coming year.

The environmental solutions and safety systems provider reported Q4 adjusted earnings per share of $1.16, surpassing the analyst consensus estimate of $1.07 and representing a 33% increase year-over-year. Quarterly sales reached $597.1 million, beating expectations of $545.5 million and growing 27% from the same period last year.

Key drivers included record quarterly orders of $647 million, a 45% increase, with strong performance in both the Environmental Solutions and Safety & Security Systems segments. The company also issued 2026 guidance projecting sales between $2.55 billion and $2.65 billion and adjusted EPS of $4.50 to $4.80, both above current analyst estimates.