FEDERAL SIGNAL CORP /DE/FSS
FEDERAL SIGNAL CORP /DE/ Segments Disclosure
SEGMENT INFORMATION
The Company has two reportable segments. Business units are organized under each reportable segment because they share certain characteristics, such as technology, marketing, distribution, and product application, which are expected to create long-term synergies. The principal activities of the Company’s reportable segments are as follows:
Environmental Solutions — The Environmental Solutions Group is a leading manufacturer and supplier of a full range of street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, high-performance waterblasting equipment, road-marking and line-removal equipment, refuse collection vehicles, dump truck bodies, trailers, metal extraction support equipment, and multi-purpose maintenance vehicles. The Environmental Solutions Group manufactures vehicles and equipment in the U.S. and Canada that are sold under the Elgin®, Vactor®, Guzzler®, TRUVAC®, WestechTM, Jetstream®, Blasters, Mark Rite Lines, Hog, New Way®, Trackless, Ox Bodies®, Crysteel®, J-Craft®, Duraclass®, Rugby®, Travis®, OSW, NTE, WTB, Ground Force, TowHaul®, Bucks®, and Switch-N-Go® brand names. Product offerings also include certain products manufactured by other companies, such as refuse and recycling collection vehicles. Products are sold to both municipal and industrial customers either through a dealer network or direct sales to service customers generally depending on the type and geographic location of the customer. In addition to vehicle and equipment sales, the Environmental Solutions Group also engages in the sale of parts, service and repair, equipment rentals, and training as part of a comprehensive aftermarket offering to its current and potential customers through its service centers located across North America. The Environmental Solutions Group includes the aggregated results of two operating segments, including TBEI.
In addition, as discussed in Note 2 – Acquisitions, the Company completed the acquisition of substantially all of the assets and operations of Hog, the acquisition of all of the outstanding equity interests of New Way, and the acquisition of certain assets and operations of Kinloch during the year ended December 31, 2025. The assets and liabilities of Hog, New Way, and Kinloch have been consolidated into the Consolidated Balance Sheet as of December 31, 2025, while the post-acquisition results of operations of Hog, New Way, and Kinloch have been included in the Consolidated Statements of Operations subsequent to their respective closing dates, within the Environmental Solutions Group reportable segment.
Safety and Security Systems — The Safety and Security Systems Group is a leading manufacturer and supplier of comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. Offerings include systems for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications. Specific products include public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems. Products are sold under the Federal SignalTM, Federal Signal VAMA®, and Victor® brand names. The Safety and Security Systems Group operates manufacturing facilities in the U.S., Spain, the U.K., and South Africa.
The Company’s chief operating decision maker (“CODM”) is its President and CEO. The CODM evaluates segment performance using each segments’ operating income. Annually, the CODM uses segment operating income during the budgeting process to allocate resources, including capital and personnel, for the upcoming fiscal year to each segment. Monthly, the CODM compares actual segment operating income results to forecasts and refines, as necessary, resource allocations for the remainder of the year. The CODM also uses segment operating income as a factor in determining the compensation of certain employees. Segment operating income includes all revenues, costs, and expenses directly related to the segment and does not include corporate expenses or interest expenses.
The CODM also regularly reviews net sales by reportable segment. Net sales by reportable segment reflect sales of products and services to external customers, as reported in the Company’s Consolidated Statements of Operations. Intersegment sales are insignificant. Additionally, the CODM reviews depreciation and amortization expense, total assets, and capital expenditures by reportable segment. Assets not associated with a reportable segment consist principally of cash and cash equivalents, deferred tax assets, and fixed assets related to Corporate. The accounting policies of each reportable segment are the same as those described in Note 1 – Summary of Significant Accounting Policies.
The following tables summarize the Company’s financial performance by reportable segment and include reconciliations of segment operating income to consolidated income before income taxes:
| For the Year Ended December 31, 2025 | |||||||||||||||||
| (in millions of dollars) | Environmental Solutions | Safety and Security Systems | Total | ||||||||||||||
Net sales (a) | $ | 1,837.5 | $ | 343.0 | $ | 2,180.5 | |||||||||||
| Less: Cost of sales | 1,353.1 | 196.2 | 1,549.3 | ||||||||||||||
| Gross profit | 484.4 | 146.8 | 631.2 | ||||||||||||||
| Less: | |||||||||||||||||
| Selling, engineering, general, and administrative expenses | 141.0 | 65.3 | 206.3 | ||||||||||||||
Other segment items (b) | 18.8 | — | 18.8 | ||||||||||||||
| Segment operating income | 324.6 | 81.5 | 406.1 | ||||||||||||||
| Reconciliation to income before income taxes: | |||||||||||||||||
All other (income) loss (c) | 65.2 | ||||||||||||||||
| Interest expense, net | 14.1 | ||||||||||||||||
| Other expense, net | 2.3 | ||||||||||||||||
| Income before income taxes | $ | 324.5 | |||||||||||||||
(a) Represents net sales from external customers. Intersegment net sales are insignificant. Total of segment net sales agrees to Net sales on the Consolidated Statement of Operations.
(b) Other segment items includes amortization expense and acquisition and integration-related expenses, net, within the Environmental Solutions Group.
(c) Represents general corporate expenses.
| For the Year Ended December 31, 2024 | |||||||||||||||||
| (in millions of dollars) | Environmental Solutions | Safety and Security Systems | Total | ||||||||||||||
Net sales (a) | $ | 1,557.1 | $ | 304.4 | $ | 1,861.5 | |||||||||||
| Less: Cost of sales | 1,152.0 | 176.5 | 1,328.5 | ||||||||||||||
| Gross profit | 405.1 | 127.9 | 533.0 | ||||||||||||||
| Less: | |||||||||||||||||
| Selling, engineering, general, and administrative expenses | 127.5 | 63.5 | 191.0 | ||||||||||||||
Other segment items (b) | 16.4 | — | 16.4 | ||||||||||||||
| Segment operating income | 261.2 | 64.4 | 325.6 | ||||||||||||||
| Reconciliation to income before income taxes: | |||||||||||||||||
All other (income) loss (c) | 44.2 | ||||||||||||||||
| Interest expense, net | 12.5 | ||||||||||||||||
| Other expense, net | 5.0 | ||||||||||||||||
| Income before income taxes | $ | 263.9 | |||||||||||||||
(a) Represents net sales from external customers. Intersegment net sales are insignificant. Total of segment net sales agrees to Net sales on the Consolidated Statement of Operations.
(b) Other segment items includes amortization expense and acquisition and integration-related expenses, net, within the Environmental Solutions Group.
(c) Represents general corporate expenses.
| For the Year Ended December 31, 2023 | |||||||||||||||||
| (in millions of dollars) | Environmental Solutions | Safety and Security Systems | Total | ||||||||||||||
Net sales (a) | $ | 1,437.9 | $ | 284.8 | $ | 1,722.7 | |||||||||||
| Less: Cost of sales | 1,098.6 | 173.9 | 1,272.5 | ||||||||||||||
| Gross profit | 339.3 | 110.9 | 450.2 | ||||||||||||||
| Less: | |||||||||||||||||
| Selling, engineering, general, and administrative expenses | 113.6 | 56.1 | 169.7 | ||||||||||||||
Other segment items (b) | 16.5 | — | 16.5 | ||||||||||||||
| Segment operating income | 209.2 | 54.8 | 264.0 | ||||||||||||||
| Reconciliation to income before income taxes: | |||||||||||||||||
All other (income) loss (c) | 39.5 | ||||||||||||||||
| Interest expense, net | 19.7 | ||||||||||||||||
| Other income, net | 1.8 | ||||||||||||||||
| Income before income taxes | $ | 203.0 | |||||||||||||||
(a) Represents net sales from external customers. Intersegment net sales are insignificant. Total of segment net sales agrees to Net sales on the Consolidated Statement of Operations.
(b) Other segment items includes amortization expense and acquisition and integration-related expenses, net, within the Environmental Solutions Group.
(c) Represents general corporate expenses.
The following table summarizes the Company’s total depreciation and amortization by reportable segment and includes a reconciliation of total segment depreciation and amortization to total depreciation and amortization:
| For the Years Ended December 31, | |||||||||||||||||
| (in millions of dollars) | 2025 | 2024 | 2023 | ||||||||||||||
| Depreciation and amortization: | |||||||||||||||||
Environmental Solutions (a) | $ | 75.7 | $ | 60.9 | $ | 56.0 | |||||||||||
Safety and Security Systems (a) | 4.2 | 3.9 | 4.2 | ||||||||||||||
| Total segment depreciation and amortization | 79.9 | 64.8 | 60.2 | ||||||||||||||
| Corporate | 0.6 | 0.5 | 0.2 | ||||||||||||||
| Total depreciation and amortization | $ | 80.5 | $ | 65.3 | $ | 60.4 | |||||||||||
(a) The amounts of depreciation and amortization disclosed by reportable segment are included within cost of sales; selling, engineering, general, and administrative expenses; and other segment items in the tables above.
The following table summarizes the Company’s total assets by reportable segment and includes a reconciliation of total segment assets to total assets:
| For the Years Ended December 31, | |||||||||||||||||
| (in millions of dollars) | 2025 | 2024 | 2023 | ||||||||||||||
| Total assets: | |||||||||||||||||
| Environmental Solutions | $ | 2,040.7 | $ | 1,424.7 | $ | 1,290.9 | |||||||||||
| Safety and Security Systems | 303.5 | 279.5 | 288.1 | ||||||||||||||
| Total segment assets | 2,344.2 | 1,704.2 | 1,579.0 | ||||||||||||||
| Corporate and eliminations | 48.4 | 61.0 | 41.5 | ||||||||||||||
| Total assets | $ | 2,392.6 | $ | 1,765.2 | $ | 1,620.5 | |||||||||||
The following table summarizes the Company’s total capital expenditures by reportable segment and includes a reconciliation of total segment capital expenditures to total capital expenditures:
| For the Years Ended December 31, | |||||||||||||||||
| (in millions of dollars) | 2025 | 2024 | 2023 | ||||||||||||||
| Capital expenditures | |||||||||||||||||
| Environmental Solutions | $ | 21.7 | $ | 31.6 | $ | 23.0 | |||||||||||
| Safety and Security Systems | 4.6 | 6.1 | 5.2 | ||||||||||||||
| Total segment capital expenditures | 26.3 | 37.7 | 28.2 | ||||||||||||||
| Corporate | 1.3 | 2.9 | 2.1 | ||||||||||||||
| Total capital expenditures | $ | 27.6 | $ | 40.6 | $ | 30.3 | |||||||||||
Geographic Financial Information:
The following table summarizes net sales by geographic region based on the location of the end-customer:
| For the Years Ended December 31, | |||||||||||||||||
| (in millions of dollars) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales: | |||||||||||||||||
| U.S. | $ | 1,712.3 | $ | 1,469.1 | $ | 1,337.4 | |||||||||||
| Canada | 297.6 | 257.4 | 237.8 | ||||||||||||||
| Europe/Other | 170.6 | 135.0 | 147.5 | ||||||||||||||
| Total net sales | $ | 2,180.5 | $ | 1,861.5 | $ | 1,722.7 | |||||||||||
Net sales exported from the U.S. aggregated to $175.0 million in 2025, $131.4 million in 2024, and $136.0 million in 2023.
The following table summarizes long-lived assets by geographic region based on the location of the Company’s subsidiaries:
| For the Years Ended December 31, | |||||||||||||||||
| (in millions of dollars) | 2025 | 2024 | 2023 | ||||||||||||||
Long-lived assets (a): | |||||||||||||||||
| U.S. | $ | 406.1 | $ | 318.1 | $ | 261.6 | |||||||||||
| Canada | 94.6 | 97.4 | 80.7 | ||||||||||||||
| Europe/Other | 5.0 | 4.4 | 4.3 | ||||||||||||||
| Total long-lived assets | $ | 505.7 | $ | 419.9 | $ | 346.6 | |||||||||||
(a) Long-lived assets are comprised of properties and equipment, net, rental equipment, net, and operating lease right-of-use assets.
Concentration of Risk:
No single customer accounted for 10% or more of the Company’s net sales in any year within the three-year period ended December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.