Federal Signal Reports Record Third Quarter Results Including 18% Net Sales Growth, 19% Operating Income Improvement, Strong Cash Generation, and 33% Increase in Orders

Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal

“Our businesses were able to deliver 18% year-over-year net sales growth, 19% operating income improvement, a 33% increase in orders, and a 50-basis point increase in adjusted EBITDA margin during a record-setting third quarter.”

Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal

“Within our Environmental Solutions Group, orders were up 43% year-over-year, including organic growth in the high teens, while net sales and adjusted EBITDA each increased by more than 20%, with contributions from recent acquisitions, higher sales of our aftermarket offerings, and proactive management of price/cost dynamics representing meaningful year-over-year growth drivers.”

Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal

“Our Safety and Security Systems Group also delivered strong results, with 2% top-line growth and an adjusted EBITDA margin of approximately 26%.”

Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal

“Our cash generation this quarter was again outstanding, bringing the total year-to-date cash generated from operations to $306 million, an increase of $148 million, or 94%, compared to the prior-year period.”

Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal

“With the increased cash generation and available capacity under our credit facility, we have significant financial flexibility to invest in organic growth initiatives, pursue additional strategic acquisitions, and provide returns to stockholders through dividends and opportunistic stock repurchases.”

Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal

“Demand for our products and our aftermarket offerings remains strong overall, with our third quarter orders up 33% year-over-year.”

Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal

“With our third quarter performance, our current backlog, and continued execution against our strategic initiatives, we are raising our full-year adjusted EPS* outlook to a new range of $5.20 to $5.32, from the prior range of $5.12 to $5.30.”

Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal

“Primarily due to anticipated delays in deliveries of third-party refuse trucks, we are also narrowing our full-year net sales outlook to a new range of between $2.61 billion and $2.64 billion, from the prior range of between $2.58 billion and $2.67 billion.”