Thu, Oct 31, 6:27 PM (63 days ago)
Federal Signal Corporation (NYSE: FSS) reported strong financial results for Q3 2024, with net sales increasing 6% to $474.2 million, driven by higher sales volumes and pricing actions. The Environmental Solutions Group saw a 7% sales increase, while the Safety and Security Systems Group rose 4%. Gross profit rose 19% to $140.4 million, with a gross margin of 29.6%, up from 26.4% the previous year. Operating income surged 21% to $75.9 million, with an operating margin of 16%. Net income for the quarter was $53.9 million, yielding diluted EPS of $0.87. Cash flow from operations was robust at $140.7 million, supporting capital expenditures of $32.1 million. The company reduced debt, with $107 million drawn from its revolving credit facility. Despite a 5% decline in total orders to $426 million, backlog increased 3% to $1.03 billion. The company faces uncertainties from market conditions but anticipates continued growth driven by its acquisitions and strong demand in its segments.