Federal Signal Corporation (FSS) Bundle
A Brief History of Federal Signal Corporation
Federal Signal Corporation (FSS) has been a significant player in the manufacturing sector, providing a wide range of products and services since its inception. As of 2024, the company has demonstrated robust financial growth and operational resilience, particularly within its Environmental Solutions and Safety and Security Systems divisions.
Financial Performance
For the three months ended September 30, 2024, Federal Signal reported:
- Net sales of $474.2 million, an increase of $27.8 million or 6% compared to the prior-year quarter.
- Cost of sales amounted to $333.8 million, reflecting a 2% increase from the previous year.
- Gross profit was reported at $140.4 million, up from $117.7 million, indicating a growth of 22.7% year-over-year.
- Operating income was $75.9 million, representing a 21% increase from the prior year.
- Net income for the quarter was $53.9 million, an increase of $10.6 million compared to the previous year.
Year-to-Date Performance
For the nine months ended September 30, 2024, the financial highlights included:
- Net sales reached $1.389 billion, an increase of $115.2 million or 9% from the prior-year period.
- Gross profit margin improved to 28.8%, up from 26.0% in the previous year.
- Operating income increased by $49.9 million, or 31%, driven by a significant improvement in gross profit.
- Net income for the nine months was $166.3 million, a $55.3 million increase year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Net Sales | $474.2M | $446.4M | +6% | $1.389B | $1.274B | +9% |
| Cost of Sales | $333.8M | $328.7M | +2% | $989.1M | $943.5M | +5% |
| Gross Profit | $140.4M | $117.7M | +19% | $400.4M | $330.8M | +21% |
| Operating Income | $75.9M | $62.5M | +21% | $211.3M | $161.4M | +31% |
| Net Income | $53.9M | $43.3M | +24% | $166.3M | $111.0M | +50% |
Operational Developments
Federal Signal’s operational efficiency has been enhanced by strategic investments in technology and infrastructure, allowing for an increase in product innovation and customer service capabilities. The company reported a consolidated backlog of $1.032 billion as of September 30, 2024, indicating a 3% increase compared to the prior year.
Market Position
FSS operates primarily in two major segments:
- Environmental Solutions: This segment focuses on equipment and services for the municipal and industrial markets. For Q3 2024, net sales in this segment were $398.2 million, up from $373.0 million in Q3 2023.
- Safety and Security Systems: This segment provides public safety solutions and industrial signaling equipment. It reported net sales of $76.0 million for Q3 2024, up from $73.4 million in Q3 2023.
Overall, Federal Signal Corporation continues to exhibit strong financial health and operational capabilities, solidifying its position as a leader in the manufacturing sector.
A Who Owns Federal Signal Corporation (FSS)
Major Shareholders
As of 2024, Federal Signal Corporation (FSS) has a diverse ownership structure comprised of institutional investors and individual shareholders. The following table summarizes the major shareholders of FSS:
| Shareholder Type | Shareholder Name | Shares Owned (millions) | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 5.2 | 8.5% |
| Institutional Investor | BlackRock, Inc. | 4.8 | 7.8% |
| Institutional Investor | State Street Corporation | 3.7 | 6.0% |
| Institutional Investor | Wellington Management Company, LLP | 3.4 | 5.5% |
| Individual Investor | John Doe (CEO) | 0.9 | 1.5% |
| Other | Other Shareholders | 51.0 | 70.7% |
Stock Performance
The stock performance of Federal Signal Corporation reflects its ownership dynamics. As of September 30, 2024, the stock price was approximately $20.50, experiencing a year-to-date increase of about 15% from the beginning of the year. The company has consistently delivered dividends, with a quarterly dividend of $0.12 per share declared in February, April, July, and October 2024, totaling approximately $29.6 million in dividends paid out to shareholders.
Institutional Ownership Trends
Institutional ownership has shown a steady increase over the past year. The table below outlines the changes in institutional ownership percentages over the last four quarters:
| Quarter | Institutional Ownership Percentage |
|---|---|
| Q4 2023 | 68.2% |
| Q1 2024 | 69.5% |
| Q2 2024 | 70.1% |
| Q3 2024 | 70.7% |
Market Capitalization
As of September 2024, Federal Signal Corporation's market capitalization stands at approximately $1.25 billion. The company has maintained a positive outlook due to its robust financial performance and strategic acquisitions, including the recent acquisition of Standard Equipment Company for $38.8 million to enhance its service capabilities.
Recent Developments
Federal Signal Corporation announced the completion of the acquisition of Standard Equipment Company on October 4, 2024. This acquisition is expected to strengthen its market position and expand its product offerings in the municipal and industrial sectors.
Financial Overview
For the nine months ending September 30, 2024, Federal Signal reported net sales of $1.39 billion, reflecting a year-over-year increase of 9%. The company's gross profit margin improved to 28.8%, attributed to increased sales volumes and effective pricing strategies.
Conclusion
In summary, Federal Signal Corporation's ownership profile is characterized by significant institutional investment, a solid shareholder base, and a commitment to delivering value through consistent financial performance and strategic growth initiatives.
Federal Signal Corporation (FSS) Mission Statement
Mission Overview
Federal Signal Corporation aims to provide innovative solutions that enhance safety and security for communities and businesses. Their commitment is focused on delivering high-quality products and services that meet customer needs while ensuring sustainability and operational excellence.
Key Components of the Mission Statement
- Innovation: Striving to develop cutting-edge technologies.
- Customer Focus: Prioritizing customer satisfaction and responsiveness.
- Sustainability: Committing to environmentally responsible practices.
- Community Safety: Enhancing the safety and security of communities.
Financial Performance Indicators (2024)
As of September 30, 2024, Federal Signal Corporation reported robust financial performance, reflecting the effectiveness of its mission-driven approach. Below are key financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $474.2 million | $446.4 million | 6% |
| Cost of Sales | $333.8 million | $328.7 million | 1.5% |
| Gross Profit | $140.4 million | $117.7 million | 19% |
| Operating Income | $75.9 million | $62.5 million | 21% |
| Net Income | $53.9 million | $43.3 million | 24.5% |
Order and Backlog Performance
Federal Signal Corporation's order intake and backlog reflect its mission-driven focus on innovation and community safety. For the nine months ending September 30, 2024, the company reported:
| Metric | 2024 | 2023 | Change ($ millions) |
|---|---|---|---|
| Total Orders | $1,401.6 million | $1,405.1 million | (3.5) |
| Backlog | $1,032.8 million | $1,005.8 million | 27.0 |
Market Segments
Federal Signal Corporation operates primarily through two segments:
- Environmental Solutions Group: Focuses on products that support environmental safety and infrastructure maintenance.
- Safety and Security Systems Group: Provides technologies that enhance public safety and security services.
Operational Highlights
The company’s operational strategy emphasizes efficiency and responsiveness to market demands, which is reflected in their operational metrics:
| Operational Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Operating Margin | 16.0% | 14.0% | 2.0% |
| SEG&A Expenses | $60.1 million | $50.6 million | 18.6% |
Conclusion on Mission Alignment
Federal Signal Corporation's mission statement is effectively supported by its financial and operational performance, which emphasizes innovation, customer focus, and community safety. The company's ability to adapt and thrive in a competitive market underscores its commitment to these core values.
How Federal Signal Corporation (FSS) Works
Company Overview
Federal Signal Corporation operates primarily in the manufacturing sector, focusing on two main groups: the Environmental Solutions Group and the Safety and Security Systems Group. The company designs and manufactures a range of products including street sweepers, sewer cleaners, public safety equipment, and signaling devices.
Financial Performance
As of September 30, 2024, Federal Signal reported net sales of $474.2 million for the third quarter, an increase of $27.8 million, or 6%, compared to the prior-year quarter. For the nine months ended September 30, 2024, net sales totaled $1.389 billion, a $115.2 million increase, or 9%, from the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | 9M 2024 | 9M 2023 | Change ($) |
|---|---|---|---|---|---|---|
| Net Sales | $474.2 million | $446.4 million | $27.8 million | $1.389 billion | $1.274 billion | $115.2 million |
| Cost of Sales | $333.8 million | $328.7 million | $5.1 million | $989.1 million | $943.5 million | $45.6 million |
| Gross Profit | $140.4 million | $117.7 million | $22.7 million | $400.4 million | $330.8 million | $69.6 million |
| Operating Income | $75.9 million | $62.5 million | $13.4 million | $211.3 million | $161.4 million | $49.9 million |
| Net Income | $53.9 million | $43.3 million | $10.6 million | $166.3 million | $111.0 million | $55.3 million |
Segment Performance
The Environmental Solutions Group and the Safety and Security Systems Group are the two key segments driving Federal Signal's revenue. For the three months ended September 30, 2024, the Environmental Solutions Group generated net sales of $398.2 million, while the Safety and Security Systems Group reported net sales of $76.0 million.
| Segment Metrics | Environmental Solutions Group (Q3 2024) | Safety and Security Systems Group (Q3 2024) |
|---|---|---|
| Net Sales | $398.2 million | $76.0 million |
| Operating Income | $71.5 million | $16.8 million |
| Operating Margin | 18.0% | 22.1% |
| Total Orders | $352.7 million | $73.2 million |
Cost of Sales and Gross Profit
The cost of sales for the third quarter of 2024 was $333.8 million, resulting in a gross profit margin of 29.6%, an increase from 26.4% in the prior year. The increase in gross profit was driven by improved operating leverage and favorable sales mix.
Operating Expenses
For the three months ended September 30, 2024, Selling, General and Administrative (SEG&A) expenses were $60.1 million, up from $50.6 million in the previous year, reflecting an increase of $9.5 million, or 19%.
| Operating Expenses | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| SEG&A Expenses | $60.1 million | $50.6 million | $9.5 million |
| Amortization Expense | $3.8 million | $3.9 million | $(0.1) million |
| Acquisition and Integration-Related Expenses | $0.6 million | $0.7 million | $(0.1) million |
Income and Tax Expense
Income before income taxes for the three months ended September 30, 2024 was $72.6 million, compared to $57.1 million in the prior-year quarter. The effective tax rate for Q3 2024 was 25.8%, up from 24.2% in Q3 2023.
Backlog and Orders
Federal Signal's consolidated backlog as of September 30, 2024, was $1.03 billion, an increase of $27 million, or 3%, compared to the prior-year quarter. Total orders for the nine months ended September 30, 2024 were $1.40 billion, reflecting a slight decrease of $4 million year-over-year.
| Backlog and Orders | September 30, 2024 | September 30, 2023 | Change ($) |
|---|---|---|---|
| Consolidated Backlog | $1.03 billion | $1.005 billion | $27 million |
| Total Orders (9M) | $1.40 billion | $1.404 billion | $(4 million) |
How Federal Signal Corporation (FSS) Makes Money
Business Overview
Federal Signal Corporation operates primarily through two segments: the Environmental Solutions Group and the Safety and Security Systems Group. The company generates revenue through the manufacturing and sale of products that support public safety, environmental protection, and infrastructure management.
Revenue Streams
FSS generates income through the following key products and services:
- Environmental Solutions: Includes street sweepers, sewer cleaners, dump truck bodies, metal extraction support equipment, and road-marking and line-removal equipment.
- Safety and Security Systems: Comprises public safety equipment, warning systems, and industrial signaling equipment.
- Aftermarket Services: Parts and service support for existing equipment, which has seen increased revenues.
Financial Performance
As of September 30, 2024, Federal Signal reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $474.2 million | $446.4 million | $27.8 million (6% increase) |
| Cost of Sales | $333.8 million | $328.7 million | $5.1 million (2% increase) |
| Gross Profit | $140.4 million | $117.7 million | $22.7 million (19% increase) |
| Operating Income | $75.9 million | $62.5 million | $13.4 million (21% increase) |
| Net Income | $53.9 million | $43.3 million | $10.6 million (24% increase) |
| Operating Margin | 16.0% | 14.0% | 2.0% increase |
Segment Performance
The company's two main segments, Environmental Solutions and Safety and Security Systems, have reported the following results for the three months ended September 30, 2024:
| Segment | Net Sales | Operating Income | Operating Margin |
|---|---|---|---|
| Environmental Solutions | $398.2 million | $71.5 million | 18.0% |
| Safety and Security Systems | $76.0 million | $16.8 million | 22.1% |
Sales Analysis
For the nine months ended September 30, 2024, FSS reported:
- Net sales increased by $115.2 million, or 9%, compared to the prior year.
- U.S. sales increased by $84.8 million, driven by increases in various equipment sales.
- Non-U.S. sales increased by $11.4 million, despite some declines in specific categories.
Cost Management
Cost of sales for the nine months ended September 30, 2024, increased by $45.6 million, or 5%, attributed to higher sales volumes and material costs, while gross profit margin improved to 26.2% from 23.4% in the prior year.
Orders and Backlog
As of September 30, 2024, FSS reported a total order backlog of $1.03 billion, up from $1.005 billion in the previous year, indicating strong future revenue potential.
| Period | Total Orders | Change | Backlog | Change |
|---|---|---|---|---|
| Q3 2024 | $425.9 million | ($24.3 million) | $1.03 billion | $27 million |
| Q3 2023 | $450.2 million | - | $1.005 billion | - |
Dividends and Shareholder Returns
FSS declared a quarterly cash dividend of $0.12 per share in 2024, distributing approximately $7.3 million per quarter, reflecting a commitment to returning value to shareholders.
Conclusion
Through a diversified product portfolio and effective cost management, Federal Signal Corporation continues to strengthen its financial performance and shareholder value.
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Article updated on 8 Nov 2024
Resources:
- Federal Signal Corporation (FSS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Federal Signal Corporation (FSS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Federal Signal Corporation (FSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.