Federal Signal Corporation announced record-setting results for the second quarter ended June 30, 2025, with consolidated net sales of $565 million, a 15% increase compared to the prior-year quarter. Adjusted net income reached $71.9 million, or $1.17 per diluted share, up from $0.95 per diluted share in the same period last year. Consolidated operating income improved by 20% to $97.7 million, with the operating margin expanding to 17.3% from 16.5%.
The Environmental Solutions Group (ESG) led with an 18% year-over-year net sales growth and a 26% increase in adjusted EBITDA, driven by production increases, higher sales of aftermarket offerings, and contributions from recent acquisitions. The Safety and Security Systems Group (SSG) also delivered strong results with 3% top-line growth and an adjusted EBITDA margin of 26.9%. The company increased its ESG EBITDA margin target to a new range of 18% to 24% and its consolidated EBITDA margin target to a new range of 16% to 22%.
Consolidated orders for the second quarter were $540 million, a 14% increase year-over-year, contributing to a consolidated backlog of $1.08 billion as of June 30, 2025. Based on this performance, Federal Signal raised its full-year adjusted EPS outlook to a new range of $3.92 to $4.10 and increased its full-year net sales outlook to between $2.07 billion and $2.13 billion.
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