FEDERAL SIGNAL CORP /DE/
For the period ended Jun 30, 2025. Filed Jul 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 30, 2025
FSS$113.44+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0000277509-25-000031
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0000277509-25-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 68 previous paragraphs and 97 current paragraphs.
26 unchanged; 29 reworded; 40 added; 13 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (40)
Current report
Net sales for the three months ended June 30, 2025 increased by $74.2 million, or 15%, compared to the prior-year quarter, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. Our Environmental Solutions Group reported a net sales increase of $71.7 million, or 18%, primarily due to increases in sales of road-marking and line-removal equipment of $18.8 million, street sweepers of $10.5 million, safe-digging trucks of $10.5 million, dump truck bodies of $6.3 million, metal extraction support equipment of $4.7 million, and refuse trucks of $4.4 million. In addition, aftermarket revenues improved by $14.0 million. Partially offsetting these improvements was a $2.1 million reduction in sales of trailers. Within our Safety and Security Systems Group, net sales increased by $2.5 million, or 3%, primarily due to a $2.8 million improvement in sales of warning systems.
Current report
Net sales for the six months ended June 30, 2025 increased by $113.1 million, or 12%, compared to the prior-year period, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. Our Environmental Solutions Group reported a net sales increase of $105.1 million, or 14%, primarily due to increases in road-marking and line-removal equipment of $25.6 million, dump truck bodies of $16.7 million, sewer cleaners of $16.4 million, street sweepers of $10.3 million, industrial vacuum loaders of $6.8 million, refuse trucks of $4.2 million, metal extraction support equipment of $4.2 million, and safe-digging trucks of $2.1 million. In addition, aftermarket revenues improved by $25.2 million. Partially offsetting these improvements was a $6.7 million reduction in sales of trailers, as well as a $3.7 million unfavorable foreign currency translation impact. Within our Safety and Security Systems Group, net sales increased by $8.0 million, or 5%, primarily due to improvements in sales of public safety equipment of $5.2 million and warning systems of $2.9 million.
Current report
Operating income for the six months ended June 30, 2025 increased by $28.0 million, or 21%, compared to the prior-year period, primarily driven by a $40.4 million improvement in gross profit and a $0.6 million reduction in acquisition and integration-related expenses, net, partially offset by a $11.6 million increase in SEG&A expenses and a $1.4 million increase in amortization expense. Consolidated operating margin for the six months ended June 30, 2025 was 15.9%, compared to 14.8% in the prior-year period.
Current report
Net income for the three months ended June 30, 2025 increased by $10.6 million compared to the prior-year quarter, largely due to the aforementioned increase in income before taxes, partially offset by a $5.3 million increase in income tax expense.
Current report
Net income for the six months ended June 30, 2025 increased by $5.3 million compared to the prior-year period, largely due to the aforementioned increase in income before taxes, partially offset by a $21.7 million increase in income tax expense.
Current report
Total orders for the six months ended June 30, 2025 were $1.11 billion, an increase of $132 million, or 14%, compared to the prior-year period. Our Environmental Solutions Group reported total orders of $921 million in the six months ended June 30, 2025, an increase of $97 million, or 12%, in comparison to the prior-year period. Orders in the six months ended June 30, 2025 within our Safety and Security Systems Group were $186 million, an increase of $35 million, or 23%, compared to the prior-year period.
Current report
Net sales for the three months ended June 30, 2025 increased by $74.2 million, or 15%, compared to the prior-year quarter, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. The Environmental Solutions Group reported a net sales increase of $71.7 million, or 18%, primarily due to increases in sales of road-marking and line-removal equipment of $18.8 million, street sweepers of $10.5 million, safe-digging trucks of $10.5 million, dump truck bodies of $6.3 million, metal extraction support equipment of $4.7 million, and refuse trucks of $4.4 million. In addition, aftermarket revenues improved by $14.0 million. Partially offsetting these improvements was a $2.1 million reduction in sales of trailers. Within the Safety and Security Systems Group, net sales increased by $2.5 million, or 3%, primarily due to a $2.8 million improvement in sales of warning systems.
Current report
Net sales for the six months ended June 30, 2025 increased by $113.1 million, or 12%, compared to the prior-year period, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. The Environmental Solutions Group reported a net sales increase of $105.1 million, or 14%, primarily due to increases in road-marking and line-removal equipment of $25.6 million, dump truck bodies of $16.7 million, sewer cleaners of $16.4 million, street sweepers of $10.3 million, industrial vacuum loaders of $6.8 million, refuse trucks of $4.2 million, metal extraction support equipment of $4.2 million, and safe-digging trucks of $2.1 million. In addition, aftermarket revenues improved by $25.2 million. Partially offsetting these improvements was a $6.7 million reduction in sales of trailers, as well as a $3.7 million unfavorable foreign currency translation impact. Within the Safety and Security Systems Group, net sales increased by $8.0 million, or 5%, primarily due to improvements in sales of public safety equipment of $5.2 million and warning systems of $2.9 million.
Current report
Cost of sales increased by $48.6 million, or 14%, for the three months ended June 30, 2025 compared to the prior-year quarter, largely due to an increase of $49.2 million, or 16%, within the Environmental Solutions Group, primarily related to higher sales volumes and additional cost of sales from recent acquisitions. Within the Safety and Security Systems Group, cost of sales decreased by $0.6 million, or 1%, primarily due to lower inventory reserves and benefits from insourcing initiatives, partially offset by a $0.4 million unfavorable foreign currency translation impact.
Current report
Gross profit increased by $40.4 million, or 16%, for the six months ended June 30, 2025 compared to the prior-year period, primarily due to a $34.8 million improvement within the Environmental Solutions Group and a $5.6 million increase within the Safety and Security Systems Group. Gross profit margin for the six months ended June 30, 2025 was 29.2%, compared to 28.4% in the prior-year period, primarily due to improvements within the Environmental Solutions Group of 90 basis points and the Safety and Security Systems Group of 140 basis points.
Current report
SEG&A expenses for the three months ended June 30, 2025 increased by $8.6 million, or 15%, compared to the prior-year quarter, primarily due to a $5.4 million increase in Corporate SEG&A expenses and a $3.3 million increase within the Environmental Solutions Group, partially offset by a $0.1 million reduction within the Safety and Security Systems Group. As a percentage of net sales, SEG&A expenses were 11.8% in the current-year quarter, compared to 11.9% in the prior-year quarter.
Current report
SEG&A expenses for the six months ended June 30, 2025 increased by $11.6 million, or 10%, compared to the prior-year period, primarily due to a $7.3 million increase within the Environmental Solutions Group, a $3.9 million increase in Corporate SEG&A expenses, and a $0.4 million increase within the Safety and Security Systems Group. As a percentage of net sales, SEG&A expenses were 12.4% in the current-year period, compared to 12.6% in the prior-year period.
Current report
Operating income for the three months ended June 30, 2025 increased by $16.6 million, or 20%, compared to the prior-year quarter, primarily driven by a $25.6 million improvement in gross profit and a $0.3 million reduction in acquisition and integration-related expenses, net, partially offset by a $8.6 million increase in SEG&A expenses and a $0.7 million increase in amortization expense. Consolidated operating margin for the three months ended June 30, 2025 was 17.3%, compared to 16.5% in the prior-year quarter.
Current report
Operating income for the six months ended June 30, 2025 increased by $28.0 million, or 21%, compared to the prior-year period, primarily driven by a $40.4 million improvement in gross profit and a $0.6 million reduction in acquisition and integration-related expenses, net, partially offset by a $11.6 million increase in SEG&A expenses and a $1.4 million increase in amortization expense. Consolidated operating margin for the six months ended June 30, 2025 was 15.9%, compared to 14.8% in the prior-year period.
Current report
Interest expense, net, for the three months ended June 30, 2025 increased by $0.3 million compared to the prior-year quarter, largely due to higher average debt levels associated with the funding of acquisitions.
Current report
Interest expense, net, for the six months ended June 30, 2025 increased by $0.1 million compared to the prior-year period, largely due to higher average debt levels associated with the funding of acquisitions.
Current report
Other expense, net, for the six months ended June 30, 2025 increased by $0.9 million compared to the prior-year period, primarily due to higher non-operating pension costs.
Current report
Income tax expense
Current report
On July 4, 2025, H.R.1, new tax legislation commonly referred to as OBBBA, was enacted in the U.S. The OBBBA includes a broad range of tax provisions, including the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing the impact of this new legislation on its financial statements.
Current report
Net income for the three months ended June 30, 2025 increased by $10.6 million compared to the prior-year quarter, largely due to the aforementioned increase in income before taxes, partially offset by a $5.3 million increase in income tax expense.
Current report
Net income for the six months ended June 30, 2025 increased by $5.3 million compared to the prior-year period, largely due to the aforementioned increase in income before taxes, partially offset by a $21.7 million increase in income tax expense.
Current report
Three months ended June 30, 2025 vs. three months ended June 30, 2024
Current report
Total orders for the three months ended June 30, 2025 increased by $44.9 million, or 11%, compared to the prior-year quarter. U.S. orders increased by $57.8 million, primarily due to improvements in orders for safe-digging trucks of $26.9 million, aftermarket offerings of $16.8 million, road-marking and line removal equipment of $8.7 million, industrial vacuum loaders of $7.3 million, and street sweepers of $6.5 million. Partially offsetting these improvements were reductions in orders for refuse trucks of $4.9 million, dump truck bodies of $3.3 million, and sewer cleaners of $1.3 million. Non-U.S. orders decreased by $12.9 million, largely due to reductions in orders for refuse trucks of $25.0 million, dump truck bodies of $3.6 million, and aftermarket offerings of $2.9 million, as well as a $0.6 million unfavorable foreign currency translation impact. Partially offsetting these reductions were improvements in orders for metal extraction support equipment of $8.7 million, sewer cleaners of $4.6 million, road-marking and line-removal equipment of $3.0 million, and multi-purpose maintenance vehicles of $2.1 million.
Current report
Operating income for the three months ended June 30, 2025 increased by $19.0 million, or 26%, compared to the prior-year quarter, largely due to a $22.5 million improvement in gross profit and a $0.5 million reduction in acquisition and integration-related expenses, net, partially offset by the $3.3 million increase in SEG&A expenses and a $0.7 million increase in amortization expense.
Current report
Six months ended June 30, 2025 vs. six months ended June 30, 2024
Current report
Net sales for the six months ended June 30, 2025 increased by $105.1 million, or 14%, compared to the prior-year period, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. For the six months ended June 30, 2025, U.S. sales increased by $85.9 million, largely due to increases in sales of road-marking and line-removal equipment of $21.2 million, dump truck bodies of $20.8 million, sewer cleaners of $15.0 million, industrial vacuum loaders of $6.8 million, and street sweepers of $4.9 million. Additionally, aftermarket revenues increased by $26.0 million. Partially offsetting these improvements were reductions in shipments of trailers of $6.7 million, safe-digging trucks of $2.3 million, and waterblasting equipment of $2.1 million. Non-U.S. sales increased by $19.2 million, primarily due to increases in shipments of street sweepers of $5.4 million, refuse trucks of $5.1 million, road-marking and line-removal equipment of $4.4 million, safe-digging trucks of $4.4 million, metal extraction support equipment of $3.0 million, waterblasting equipment of $2.2 million, and sewer cleaners of $1.4 million. Partially offsetting these improvements were reductions in shipments of dump truck bodies of $4.1 million, as well as a $3.7 million unfavorable foreign currency translation impact.
Current report
Cost of sales for the six months ended June 30, 2025 increased by $70.3 million, or 12%, compared to the prior-year period, primarily related to higher sales volumes and additional cost of sales from recent acquisitions. Gross profit margin for the six months ended June 30, 2025 was 26.6%, compared to 25.7% in the prior-year period, with the improvement primarily attributable to improved operating leverage from higher sales volumes, benefits from pricing actions, and favorable sales mix.
Current report
SEG&A expenses for the six months ended June 30, 2025 increased by $7.3 million, or 12%, compared to the prior-year period, primarily due to additional SEG&A expenses from recent acquisitions and higher employee-related costs. As a percentage of net sales, SEG&A expenses were 8.1% in the current-year period, compared to 8.3% in the prior-year period.
Current report
Operating income for the six months ended June 30, 2025 increased by $27.0 million, or 22%, compared to the prior-year period, largely due to a $34.8 million improvement in gross profit and a $0.9 million reduction in acquisition and integration-related expenses, net, partially offset by the $7.3 million increase in SEG&A expenses and a $1.4 million increase in amortization expense.
Current report
Backlog was $1.00 billion at June 30, 2025, compared to $1.02 billion at June 30, 2024.
Current report
Three months ended June 30, 2025 vs. three months ended June 30, 2024
Current report
Total orders for the three months ended June 30, 2025 increased by $21.8 million, or 28%, compared to the prior-year quarter. U.S. orders increased by $16.5 million, primarily due to improvements in orders for public safety equipment of $11.4 million, warning systems of $3.2 million, and industrial signaling equipment of $1.9 million. Non-U.S. orders increased by $5.3 million, primarily due to a $5.3 million improvement in orders for public safety equipment and a $0.7 million favorable foreign currency translation impact, partially offset by a $0.9 million reduction in orders for warning systems.
Current report
Net sales for the three months ended June 30, 2025 increased by $2.5 million, or 3%, compared to the prior-year quarter. U.S. sales increased by $2.7 million, driven by increases in sales of public safety equipment of $1.9 million, industrial signaling equipment of $0.5 million, and warning systems of $0.3 million. Non-U.S. sales decreased by $0.2 million, primarily due to reductions in public safety equipment of $2.5 million and industrial signaling equipment of $0.7 million, partially offset by a $2.5 million increase in sales of warning systems a $0.5 million favorable foreign currency translation impact.
Current report
Cost of sales for the three months ended June 30, 2025 decreased by $0.6 million, or 1%, compared to the prior-year quarter, primarily due to lower inventory reserves and benefits from insourcing initiatives, partially offset by a $0.4 million unfavorable foreign currency translation impact. Gross profit margin for the three months ended June 30, 2025 was 44.7%, compared to 42.3% in the prior-year quarter, with the improvement primarily attributable due to improved operating leverage from higher sales volumes and benefits from pricing actions.
Current report
SEG&A expenses for the three months ended June 30, 2025 decreased by $0.1 million, or 1%, compared to the prior-year quarter, primarily due to lower sales commissions, partially offset by higher employee-related costs. As a percentage of net sales, SEG&A expenses were 19.1% in the current-year quarter, compared to 19.9% in the prior-year quarter.
Current report
Operating income for the three months ended June 30, 2025 increased by $3.2 million, or 17%, compared to the prior-year quarter, primarily due to a $3.1 million improvement in gross profit and the $0.1 million reduction in SEG&A expenses.
Current report
Six months ended June 30, 2025 vs. six months ended June 30, 2024
Current report
Total orders for the six months ended June 30, 2025 increased by $34.6 million, or 23%, compared to the prior-year period. U.S. orders increased by $26.1 million, primarily due to improvements in orders for public safety equipment of $19.7 million and warning systems of $6.0 million. Non-U.S. orders increased by $8.5 million, primarily due to a $8.6 million improvement in orders for public safety equipment.
Current report
Cost of sales for the six months ended June 30, 2025 increased by $2.4 million, or 3%, compared to the prior-year period, primarily related to higher sales volumes. Gross profit margin for the six months ended June 30, 2025 was 43.2%, compared to 41.8% in the prior-year period, with the improvement primarily attributable due to improved operating leverage from higher sales volumes, benefits from pricing actions, and favorable sales mix.
Current report
Corporate operating expenses for the three months ended June 30, 2025 were $15.7 million, compared to $10.1 million in the prior-year quarter, with the increase primarily due to higher post-retirement, stock compensation, and medical expenses, and a $0.2 million increase in acquisition and integration-related expenses, net.
Removed paragraphs (13)
Previous report
Net sales for the three months ended March 31, 2025 increased by $38.9 million, or 9%, compared to the prior-year quarter, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. The Environmental Solutions Group reported a net sales increase of $33.4 million, or 9%, primarily due to increases in sales of sewer cleaners of $15.1 million, dump truck bodies of $10.4 million, road-marking and line-removal equipment of $6.8 million, and industrial vacuum loaders of $5.7 million. In addition, aftermarket revenues improved by $11.2 million. Partially offsetting these improvements were reductions in sales of safe-digging trucks of $8.4 million and trailers of $4.6 million, as well as a $3.0 million unfavorable foreign currency translation impact. Within the Safety and Security Systems Group, net sales increased by $5.5 million, or 8%, primarily due to a $5.8 million improvement in sales of public safety equipment.
Previous report
Net income for the three months ended March 31, 2025 decreased by $5.3 million compared to the prior-year quarter, largely due to a $16.4 million increase in income tax expense, partially offset by the aforementioned increase in income before taxes.
Previous report
Net sales for the three months ended March 31, 2025 increased by $38.9 million, or 9%, compared to the prior-year quarter, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. The Environmental Solutions Group reported a net sales increase of $33.4 million, or 9%, primarily due to increases in sales of sewer cleaners of $15.1 million, dump truck bodies of $10.4 million, road-marking and line-removal equipment of $6.8 million, and industrial vacuum loaders of $5.7 million. In addition, aftermarket revenues improved by $11.2 million. Partially offsetting these improvements were reductions in sales of safe-digging trucks of $8.4 million and trailers of $4.6 million, as well as a $3.0 million unfavorable foreign currency translation impact. Within the Safety and Security Systems Group, net sales increased by $5.5 million, or 8%, primarily due to a $5.8 million improvement in sales of public safety equipment.
Previous report
SEG&A expenses for the three months ended March 31, 2025 increased by $3.0 million, or 5%, compared to the prior-year quarter, primarily due to a $4.0 million increase within the Environmental Solutions Group and a $0.5 million increase within the Safety and Security Systems Group, which were partially offset by a $1.5 million decrease in Corporate SEG&A expenses. As a percentage of net sales, SEG&A expenses were 13.0% in the current-year quarter, compared to 13.5% in the prior-year quarter.
Previous report
Operating income for the three months ended March 31, 2025 increased by $11.4 million, or 21%, compared to the prior-year quarter, primarily driven by a $14.8 million improvement in gross profit and a $0.3 million reduction in acquisition and integration-related expenses, net, partially offset by a $3.0 million increase in SEG&A expenses and a $0.7 million increase in amortization expense. Consolidated operating margin for the three months ended March 31, 2025 was 14.2%, compared to 12.8% in the prior-year quarter.
Previous report
Interest expense, net, for the three months ended March 31, 2025 decreased by $0.2 million compared to the prior-year quarter, largely due to reductions in average debt levels.
Previous report
Income tax expense (benefit)
Previous report
March 31, 2025 was an expense of 25.3%, compared to a benefit of 1.4% in the prior-year quarter.
Previous report
Net income for the three months ended March 31, 2025 decreased by $5.3 million compared to the prior-year quarter, largely due to the $16.4 million increase in income tax expense, partially offset by the aforementioned increase in income before taxes.
Previous report
Operating income for the three months ended March 31, 2025 increased by $8.0 million, or 15%, compared to the prior-year quarter, largely due to a $12.3 million improvement in gross profit and a $0.4 million reduction in acquisition and integration-related expenses, partially offset by the $4.0 million increase in SEG&A expenses and a $0.7 million increase in amortization expense.
Previous report
Backlog was $1.03 billion at March 31, 2025, compared to $1.04 billion in the prior-year quarter.
Previous report
Total orders for the three months ended March 31, 2025 increased by $12.8 million, or 17%, compared to the prior-year quarter. U.S. orders increased by $9.6 million, primarily due to improvements in orders for public safety equipment of $8.3 million and warning systems of $2.8 million, partially offset by a $1.5 million reduction in orders for industrial signaling equipment. Non-U.S. orders increased by $3.2 million, primarily due to a $3.3 million improvement in orders for public safety equipment.
Previous report
Cost of sales for the three months ended March 31, 2025 increased by $3.0 million, or 7%, compared to the prior-year quarter, primarily related to higher sales volumes. Gross profit margin for the three months ended March 31, 2025 was 41.6%, compared to 41.3% in the prior-year quarter, with the improvement primarily attributable to favorable sales mix.
Reworded paragraphs (29)
Previous wording
The Company is a leading global manufacturer and supplier of (i) vehicles and equipment for maintenance and infrastructure end-markets, including sewer cleaners, industrial vacuum loaders, vacuum- and hydro-excavation trucks (collectively, “safe-digging trucks”), street sweepers, waterblasting equipment, road-marking and line-removal equipment, dump truck bodies, trailers, metal extraction support equipment, and multi-purpose maintenance vehicles, and (ii) public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems. In addition, we engage in the sale of parts, service and repair, equipment rentals, and training as part of a comprehensive aftermarket offering to our customer base. We operate 18 principal manufacturing facilities in the U.S., three in Canada, two in Europe, and one in South Africa and provide products and integrated solutions to municipal, governmental, industrial, and commercial customers in all regions of the world.
Current wording
The Company is a leading global manufacturer and supplier of (i) vehicles and equipment for maintenance and infrastructure end-markets, including sewer cleaners, industrial vacuum loaders, vacuum- and hydro-excavation trucks (collectively, “safe-digging trucks”), street sweepers, waterblasting equipment, road-marking and line-removal equipment, dump truck bodies, trailers, metal extraction support equipment, and multi-purpose maintenance vehicles, and (ii) public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems. Product offerings also include certain products manufactured by other companies, such as refuse and recycling collection vehicles. In addition to vehicle and equipment sales, the Company engages in the sale of parts, service and repair, equipment rentals, and training as part of a comprehensive aftermarket offering to its customers. The Company operates 18 principal manufacturing facilities in the U.S., three in Canada, two in Europe, and one in South Africa and provides products and integrated solutions to municipal, governmental, industrial, and commercial customers in all regions of the world.
Previous wording
A substantial majority of the Company’s manufacturing operations are located within the U.S., and the substantial majority of the raw materials and component parts used to support the Company’s domestic production processes are sourced from within the U.S. Similarly, in the locations where the Company manufactures products outside of the U.S, the respective supply chains and end customers are predominantly localized. While the Company primarily sources its products within the respective countries in which it manufactures, certain raw materials and component parts that go into making its products are imported into the U.S. from various countries, including China, and are subject to tariffs, sanctions, embargoes, export and import controls, and other trade restrictions. Additionally, the Company sells certain products to customers outside of the U.S., including in Canada, that are covered by international trade agreements and regulations, including tariffs. In March and April 2025, the U.S. federal government implemented or threatened broad new tariffs on imports, which has resulted in certain retaliatory tariffs being levied or threatened by a number of impacted countries. The U.S. federal government has also indicated that they may increase the existing tariffs, impose additional tariffs, and/or expand tariffs on goods imported from various countries. Although certain exemptions to the tariffs have been announced, their duration and scope remain unclear at this time, and such exemptions may be subject to change.
Current wording
A substantial majority of the Company’s manufacturing operations are located within the U.S., and the substantial majority of the raw materials and component parts used to support the Company’s domestic production processes are sourced from within the U.S. Similarly, in the locations where the Company manufactures products outside of the U.S, the respective supply chains and end customers are predominantly localized. While the Company primarily sources its products within the respective countries in which it manufactures, certain raw materials and component parts that go into making its products are imported into the U.S. from various countries, including China, and are subject to tariffs, sanctions, embargoes, export and import controls, and other trade restrictions. Additionally, the Company sells certain products to customers outside of the U.S., including in Canada, that are covered by international trade agreements and regulations, including tariffs. In 2025, the U.S. federal government has implemented or threatened broad new tariffs on imports, which has resulted in certain retaliatory tariffs being levied or threatened by a number of impacted countries. The U.S. federal government has also indicated that they may increase the existing tariffs, impose additional tariffs, and/or expand tariffs on goods imported from various countries. Although certain exemptions to the tariffs have been announced, their duration and scope remain unclear at this time, and such exemptions may be subject to change.
Previous wording
While the tariffs implemented in March 2025 did not have a significant impact on the Company’s first quarter results, the long-term effects of those implemented then, and implemented in April 2025, remain uncertain. Although the Company believes that many of its products are included in the current tariff exemptions, the Company continues to closely monitor the evolving tariff and trade policy environment, which could change or alter these exemptions. Further, the Company is monitoring the potential for supply disruptions as a result of these trade disputes and negotiations, including those related to restrictions around exporting certain rare earth minerals and magnets by China, some of which are used in the production of certain of the Company’s products. While the collective impact of these trade issues is uncertain, the Company continues to monitor the potential for higher product and operating costs and to evaluate the need to counteract any adverse effects on the Company’s financial position, results of operations, or cash flow.
Current wording
While the tariffs implemented in the first half of 2025 did not have a significant impact on the Company’s first or second quarter results, the long-term effects of those implemented then, or those that may be implemented in the future, remain uncertain. Although the Company believes that many of its products are included in the current tariff exemptions, the Company continues to closely monitor the evolving tariff and trade policy environment, which could change or alter these exemptions. Further, the Company is monitoring the potential for supply disruptions as a result of these trade disputes and negotiations, including those related to restrictions around exporting certain rare earth minerals and magnets by China, some of which are used in the production of certain of the Company’s products. While the collective impact of these trade issues is uncertain, the Company continues to monitor the potential for higher product and operating costs and to evaluate the need to counteract any adverse effects on the Company’s financial position, results of operations, or cash flow.
Previous wording
Operating income for the three months ended March 31, 2025 increased by $11.4 million, or 21%, compared to the prior-year quarter, primarily driven by a $14.8 million improvement in gross profit and a $0.3 million reduction in acquisition and integration-related expenses, net, partially offset by a $3.0 million increase in Selling, Engineering, General and Administrative (“SEG&A”) expenses and a $0.7 million increase in amortization expense. Consolidated operating margin for the three months ended March 31, 2025 was 14.2%, compared to 12.8% in the prior-year quarter.
Current wording
Operating income for the three months ended June 30, 2025 increased by $16.6 million, or 20%, compared to the prior-year quarter, primarily driven by a $25.6 million improvement in gross profit and a $0.3 million reduction in acquisition and integration-related expenses, net, partially offset by a $8.6 million increase in Selling, Engineering, General and Administrative (“SEG&A”) expenses and a $0.7 million increase in amortization expense. Consolidated operating margin for the three months ended June 30, 2025 was 17.3%, compared to 16.5% in the prior-year quarter.
Previous wording
Income before income taxes for the three months ended March 31, 2025 increased by $11.1 million, or 22%, compared to the prior-year quarter. The increase resulted from the higher operating income and a $0.2 million reduction in interest expense, net, partially offset by a $0.5 million increase in other expense, net.
Current wording
Income before income taxes for the three months ended June 30, 2025 increased by $15.9 million, or 21%, compared to the prior-year quarter. The increase resulted from the higher operating income, partially offset by a $0.4 million increase in other expense, net, and a $0.3 million increase in interest expense, net.
Previous wording
Total orders for the three months ended March 31, 2025 were $568 million, an increase of $65 million, or 13%, compared to the prior-year quarter. The Environmental Solutions Group reported total orders of $480 million in the three months ended March 31, 2025, an increase of $52 million, or 12%, in comparison to the prior-year quarter. Orders in the three months ended March 31, 2025 within the Safety and Security Systems Group were $88 million, an increase of $13 million, or 17%, compared to the prior-year quarter.
Current wording
Total orders for the three months ended June 30, 2025 were $540 million, an increase of $67 million, or 14%, compared to the prior-year quarter. Our Environmental Solutions Group reported total orders of $441 million in the three months ended June 30, 2025, an increase of $45 million, or 11%, in comparison to the prior-year quarter. Orders in the three months ended June 30, 2025 within our Safety and Security Systems Group were $99 million, an increase of $22 million, or 28%, compared to the prior-year quarter.
Previous wording
Our consolidated backlog at March 31, 2025 was $1.10 billion, an increase of $3 million compared to the prior-year quarter.
Current wording
Our consolidated backlog at June 30, 2025 was $1.08 billion, up $4 million from the prior-year quarter.
Previous wording
Cost of sales increased by $24.1 million, or 8%, for the three months ended March 31, 2025 compared to the prior-year quarter, largely due to an increase of $21.1 million, or 8%, within the Environmental Solutions Group, primarily related to higher sales volumes and the addition of cost of sales from recent acquisitions. Within the Safety and Security Systems Group, cost of sales increased by $3.0 million, or 7%, primarily related to higher sales volumes.
Current wording
Cost of sales increased by $72.7 million, or 11%, for the six months ended June 30, 2025 compared to the prior-year period, largely due to an increase of $70.3 million, or 12%, within the Environmental Solutions Group, primarily related to higher sales volumes and additional cost of sales from recent acquisitions. Within the Safety and Security Systems Group, cost of sales increased by $2.4 million, or 3%, primarily related to higher sales volumes.
Previous wording
Gross profit increased by $14.8 million, or 13%, for the three months ended March 31, 2025 compared to the prior-year quarter, primarily due to a $12.3 million improvement within the Environmental Solutions Group and a $2.5 million increase within the Safety and Security Systems Group. Gross profit as a percentage of revenues (“gross profit margin”) for the three months ended March 31, 2025 was 28.2%, compared to 27.3% in the prior-year quarter, primarily due to improvements within the Environmental Solutions Group of 110 basis points and the Safety and Security Systems Group of 30 basis points.
Current wording
Gross profit increased by $25.6 million, or 18%, for the three months ended June 30, 2025 compared to the prior-year quarter, primarily due to a $22.5 million improvement within the Environmental Solutions Group and a $3.1 million increase within the Safety and Security Systems Group. Gross profit as a percentage of revenues (“gross profit margin”) for the three months ended June 30, 2025 was 30.0%, compared to 29.4% in the prior-year quarter, primarily due to improvements within the Environmental Solutions Group of 70 basis points and the Safety and Security Systems Group of 240 basis points.
Previous wording
Other expense, net, for the three months ended March 31, 2025 increased by $0.5 million compared to the prior-year quarter, primarily due to higher non-operating pension costs.
Current wording
Other expense, net, for the three months ended June 30, 2025 increased by $0.4 million compared to the prior-year quarter, primarily due to higher non-operating pension costs.
Previous wording
The Company recognized income tax expense of $15.7 million for the three months ended March 31, 2025, compared to a benefit of $0.7 million in the three months ended March 31, 2024, with the increase primarily due to the effects of higher pre-tax income levels and the non-recurrence of a $13.0 million discrete tax benefit, which was recognized in the prior-year quarter when the Company was notified that certain U.S. federal tax returns, which had been amended in 2023 to claim a worthless stock deduction, had been approved by the relevant tax authorities. The Company’s effective tax rate for the three months ended
Current wording
The Company recognized income tax expense of $22.0 million for the three months ended June 30, 2025, compared to $16.7 million in the three months ended June 30, 2024, with the increase primarily due to the effects of higher pre-tax income and the non-recurrence of a $2.6 million discrete tax benefit, which was recognized in the prior-year quarter in connection with the amendment of certain U.S. state tax returns to claim a worthless stock deduction, partially offset by a $0.7 million increase in excess tax benefits associated with stock-based compensation activity. The Company’s effective tax rate for the three months ended June 30, 2025 was 23.6%, compared to 21.5% in the prior-year quarter.
Previous wording
The following table summarizes the Environmental Solutions Group’s operating results as of and for the three months ended March 31, 2025 and 2024:
Current wording
The following table summarizes the Environmental Solutions Group’s operating results as of and for the three and six months ended June 30, 2025 and 2024:
Previous wording
Net sales for the three months ended March 31, 2025 increased by $33.4 million, or 9%, compared to the prior-year quarter, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. For the three months ended March 31, 2025, U.S. sales increased by $27.8 million, largely due to increases in sales of sewer cleaners of $15.0 million, dump truck bodies of $12.0 million, road-marking and line-removal equipment of $6.1 million, and industrial vacuum loaders of $5.7 million. Additionally, aftermarket revenues increased by $11.9 million. Partially offsetting these improvements were reductions in shipments of safe-digging trucks of $11.1 million, trailers of $4.6 million, metal extraction support equipment of $3.7 million, and street sweepers of $2.8 million. Non-U.S. sales increased by $5.6 million, primarily due to increases in shipments of metal extraction support equipment of $3.2 million, safe-digging trucks of $2.7 million, and street sweepers of $2.6 million, partially offset by a $3.0 million unfavorable foreign currency translation impact.
Current wording
Net sales for the three months ended June 30, 2025 increased by $71.7 million, or 18%, compared to the prior-year quarter, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. For the three months ended June 30, 2025, U.S. sales increased by $58.1 million, largely due to increases in sales of road-marking and line-removal equipment of $15.1 million, dump truck bodies of $8.8 million, safe-digging trucks of $8.8 million, street sweepers of $7.7 million, and metal extraction support equipment of $4.9 million. Additionally, aftermarket revenues increased by $14.1 million. Partially offsetting these improvements was a $2.1 million reduction in shipments of trailers. Non-U.S. sales increased by $13.6 million, primarily due to increases in shipments of refuse trucks of $5.4 million, road-marking and line-removal equipment of $3.7 million, street sweepers of $2.8 million, safe-digging trucks of $1.7 million, waterblasting equipment of $1.5 million, and sewer cleaners of $1.3 million. Partially offsetting these improvements was a $2.5 million reduction in shipments of dump truck bodies.
Previous wording
Cost of sales for the three months ended March 31, 2025 increased by $21.1 million, or 8%, compared to the prior-year quarter, primarily related to higher sales volumes and the addition of cost of sales from recent acquisitions. Gross profit margin for the three months ended March 31, 2025 was 25.6%, compared to 24.5% in the prior-year quarter, with the improvement primarily attributable to improved operating leverage from higher sales volumes, benefits from pricing actions, and favorable sales mix.
Current wording
Cost of sales for the three months ended June 30, 2025 increased by $49.2 million, or 16%, compared to the prior-year quarter, primarily related to higher sales volumes and additional cost of sales from recent acquisitions. Gross profit margin for the three months ended June 30, 2025 was 27.5%, compared to 26.8% in the prior-year quarter, with the improvement primarily attributable to improved operating leverage from higher sales volumes, benefits from pricing actions, and favorable sales mix.
Previous wording
SEG&A expenses for the three months ended March 31, 2025 increased by $4.0 million, or 13%, compared to the prior-year quarter, primarily due to the addition of SEG&A expenses from recent acquisitions and higher employee-related costs. As a percentage of net sales, SEG&A expenses were 9.0% in the current-year quarter, compared to 8.7% in the prior-year quarter.
Current wording
SEG&A expenses for the three months ended June 30, 2025 increased by $3.3 million, or 10%, compared to the prior-year quarter, primarily due to additional SEG&A expenses from recent acquisitions and higher employee-related costs. As a percentage of net sales, SEG&A expenses were 7.4% in the current-year quarter, compared to 7.9% in the prior-year quarter.
Previous wording
Total orders for the three months ended March 31, 2025 increased by $52.4 million, or 12%, compared to the prior-year quarter. U.S. orders increased by $64.0 million, primarily due to a $24.0 million increase in orders for road-marking and line-removal equipment, inclusive of the acquisition of a $16.1 million U.S. order backlog from the Hog transaction, as well as increases in orders for aftermarket offerings of $13.8 million, dump truck bodies of $13.6 million, street sweepers of $10.9 million, safe-digging trucks of $10.2 million, and trailers of $2.6 million. Partially offsetting these improvements were reductions in orders for sewer cleaners of $5.5 million, refuse trucks of $4.3 million, and waterblasting equipment of $2.1 million. Non-U.S. orders decreased by $11.6 million, largely due to reductions in orders for refuse trucks of $37.3 million and dump truck bodies of $2.5 million, as well as a $3.5 million unfavorable foreign currency translation impact. Partially offsetting these reductions were improvements in orders for sewer cleaners of $14.0 million, street sweepers of $4.4 million, metal extraction support equipment of $4.2 million, road-marking and line-removal equipment of $4.0 million, inclusive of the acquisition of a $3.4 million non-U.S. order backlog from the Hog transaction, aftermarket offerings of $3.8 million, and waterblasting equipment of $1.7 million.
Current wording
Total orders for the six months ended June 30, 2025 increased by $97.3 million, or 12%, compared to the prior-year period. U.S. orders increased by $121.8 million, primarily due to increases in orders for safe-digging trucks of $37.1 million, road-marking and line-removal equipment of $32.7 million, inclusive of the acquisition of a $16.1 million U.S. order backlog from the Hog transaction, aftermarket offerings of $30.6 million, street sweepers of $17.4 million, dump truck bodies of $10.3 million, industrial vacuum loaders of $8.5 million, and trailers of $3.1 million. Partially offsetting these improvements were reductions in orders for refuse trucks of $9.2 million, sewer cleaners of $6.8 million, and waterblasting equipment of $1.8 million. Non-U.S. orders decreased by $24.5 million, largely due to reductions in orders for refuse trucks of $62.3 million and dump truck bodies of $6.1 million, as well as a $4.1 million unfavorable foreign currency translation impact. Partially offsetting these reductions were improvements in orders for sewer cleaners of $18.6 million, metal extraction support equipment of $12.9 million, road-marking and line-removal equipment of $7.0 million, inclusive of the acquisition of a $3.4 million non-U.S. order backlog from the Hog transaction, street sweepers of $2.6 million, waterblasting equipment of $1.7 million, safe-digging trucks of $1.6 million, and multi-purpose maintenance vehicles of $1.3 million.
Previous wording
The following table summarizes the Safety and Security Systems Group’s operating results as of and for the three months ended March 31, 2025 and 2024:
Current wording
The following table summarizes the Safety and Security Systems Group’s operating results as of and for the three and six months ended June 30, 2025 and 2024:
Previous wording
Net sales for the three months ended March 31, 2025 increased by $5.5 million, or 8%, compared to the prior-year quarter, inclusive of the effects of higher sales volumes. U.S. sales increased by $2.4 million, driven by increases in sales of public safety equipment of $1.1 million, industrial signaling equipment of $0.7 million, and warning systems of $0.6 million. Non-U.S. sales increased by $3.1 million, primarily due to a $4.7 million improvement in sales of public safety equipment, partially offset by reductions in industrial signaling equipment of $0.9 million and warning systems of $0.5 million.
Current wording
Net sales for the six months ended June 30, 2025 increased by $8.0 million, or 5%, compared to the prior-year period, primarily due to higher sales volumes. U.S. sales increased by $5.1 million, driven by increases in sales of public safety equipment of $3.0 million, industrial signaling equipment of $1.2 million, and warning systems of $0.9 million. Non-U.S. sales increased by $2.9 million, primarily due to increases in sales of public safety equipment of $2.2 million and warning systems of $2.0 million, partially offset by a $1.6 million reduction in sales of industrial signaling equipment.
Previous wording
SEG&A expenses for the three months ended March 31, 2025 increased by $0.5 million, or 3%, compared to the prior-year quarter, primarily due to increased investment in new product development initiatives and higher sales commissions. As a percentage of net sales, SEG&A expenses were 20.9% in the current-year quarter, compared to 21.9% in the prior-year quarter.
Current wording
SEG&A expenses for the six months ended June 30, 2025 increased by $0.4 million, or 1%, compared to the prior-year period, primarily due to increased investment in new product development initiatives and higher employee-related costs, partially offset by lower marketing expense. As a percentage of net sales, SEG&A expenses were 20.0% in the current year, compared to 20.8% in the prior-year period.
Previous wording
Operating income for the three months ended March 31, 2025 increased by $2.0 million, or 14%, compared to the prior-year quarter, primarily due to a $2.5 million improvement in gross profit, partially offset by the $0.5 million increase in SEG&A expenses.
Current wording
Operating income for the six months ended June 30, 2025 increased by $5.2 million, or 16%, compared to the prior-year period, primarily due to a $5.6 million improvement in gross profit, partially offset by the $0.4 million increase in SEG&A expenses.
Previous wording
Backlog was $69 million at March 31, 2025, compared to $62 million at March 31, 2024.
Current wording
Backlog was $83 million at June 30, 2025, compared to $57 million at June 30, 2024.
Previous wording
Corporate operating expenses for the three months ended March 31, 2025 were $9.8 million, compared to $11.2 million in the prior-year quarter, with the decrease primarily due to reductions in post-retirement and stock compensation expenses, partially offset by the non-recurrence of a $1.8 million gain associated with an insurance recovery in the prior-year quarter.
Current wording
Corporate operating expenses for the six months ended June 30, 2025 were $25.5 million, compared to $21.3 million in the prior-year quarter, with the increase primarily due to higher information technology and medical expenses, a $0.3 million increase in acquisition and integration-related expenses, net, and the non-recurrence of a $1.8 million gain associated with an insurance recovery in the prior-year period.
Previous wording
The Company uses its cash flow from operations to fund growth and to make capital investments that sustain its operations, reduce costs, or both. Beyond these uses, remaining cash is used to pay down debt, repurchase shares, fund dividend payments and make pension contributions. The Company may also choose to invest in the acquisition of businesses, like the acquisition of substantially all the assets and operations of Hog that was completed on February 12, 2025. In the absence of significant unanticipated cash demands, we believe that the Company’s existing cash balances, cash flow from operations, and borrowings available under the Company’s credit facility will provide funds sufficient for these purposes.
Current wording
The Company uses its cash flow from operations to fund growth and to make capital investments that sustain its operations, reduce costs, or both. Beyond these uses, remaining cash is used to pay down debt, repurchase shares of its common stock, fund dividend payments, and make pension contributions. The Company may also choose to invest in the acquisition of businesses, like the acquisition of substantially all the assets and operations of Hog that was completed on February 12, 2025. In the absence of significant unanticipated cash demands, we believe that the Company’s existing cash balances, cash flow from operations, and borrowings available under the Company’s credit facility will provide funds sufficient for these purposes.
Previous wording
As of March 31, 2025, there was $155.5 million of cash drawn on the Revolver, $120.3 million outstanding under the term loan facility, and $10.9 million of undrawn letters of credit under the 2022 Credit Agreement, with $508.6 million of availability for borrowings. The net cash flows associated with the Company’s rental equipment transactions are included in cash flow from operating activities.
Current wording
As of June 30, 2025, there was $149.2 million of cash drawn on the Revolver, $118.8 million outstanding under the term loan facility, and $11.3 million of undrawn letters of credit under the 2022 Credit Agreement, with $514.5 million of availability for borrowings. The net cash flows associated with the Company’s rental equipment transactions are included in cash flow from operating activities.
Previous wording
The Company’s cash and cash equivalents totaled $57.5 million as of March 31, 2025 and $91.1 million as of December 31, 2024. As of March 31, 2025, $21.5 million of cash and cash equivalents was held by foreign subsidiaries. Cash and cash equivalents held by subsidiaries outside the U.S. typically are held in the currency of the country in which it is located. The Company uses this cash to fund the operating activities of its foreign subsidiaries and for further investment in foreign operations. Generally, the Company has considered such cash to be permanently reinvested in its foreign operations and the Company’s current plans do not demonstrate a need to repatriate such cash to fund U.S. operations. However, in the event that these funds are needed to fund U.S. operations or to satisfy U.S. obligations, they generally could be repatriated. The repatriation of these funds may cause the Company to incur additional tax expense, dependent on income tax laws and other circumstances at the time any such amounts are repatriated.
Current wording
The Company’s cash and cash equivalents totaled $64.7 million as of June 30, 2025 and $91.1 million as of December 31, 2024. As of June 30, 2025, $25.9 million of cash and cash equivalents was held by foreign subsidiaries. Cash and cash equivalents held by subsidiaries outside the U.S. typically are held in the currency of the country in which it is located. The Company uses this cash to fund the operating activities of its foreign subsidiaries and for further investment in foreign operations. Generally, the Company has considered such cash to be permanently reinvested in its foreign operations and the Company’s current plans do not demonstrate a need to repatriate such cash to fund U.S. operations. However, in the event that these funds are needed to fund U.S. operations or to satisfy U.S. obligations, they generally could be repatriated. The repatriation of these funds may cause the Company to incur additional tax expense, dependent on income tax laws and other circumstances at the time any such amounts are repatriated.
Previous wording
Net cash of $36.7 million was provided by operating activities in the three months ended March 31, 2025, compared to $31.3 million in the prior-year period, with the year-over-year increase primarily due to working capital improvements.
Current wording
Net cash of $96.4 million was provided by operating activities in the six months ended June 30, 2025, compared to $71.9 million in the prior-year period, with the year-over-year increase primarily due to higher net income and working capital improvements, partially offset by rental fleet investments and the non-recurrence of a U.S. federal worthless stock deduction refund of approximately $14 million received in the prior-year period.
Previous wording
Net cash of $87.7 million was used for investing activities in the three months ended March 31, 2025, compared to $7.6 million in the prior-year period. During the three months ended March 31, 2025, the Company funded $5.6 million of capital expenditures and made an initial payment of $82.1 million to acquire Hog. During the three months ended March 31, 2024, the Company funded $8.4 million of capital expenditures.
Current wording
Net cash of $94.3 million was used for investing activities in the six months ended June 30, 2025, compared to $23.0 million in the prior-year period. During the six months ended June 30, 2025, the Company funded $12.9 million of capital expenditures and made an initial payment of $82.1 million to acquire Hog. During the six months ended June 30, 2024, the Company funded $24.2 million of capital expenditures.
Previous wording
Net cash of $16.9 million was provided by financing activities in the three months ended March 31, 2025, whereas in the prior-year period, net cash of $35.3 million was used for financing activities. In the three months ended March 31, 2025, the Company increased net borrowings under the Revolver by $64.2 million, paid $11.5 million to acquire a previously-leased manufacturing facility, funded cash dividends of $8.6 million and share repurchases of $18.5 million, and redeemed $8.6 million of stock in order to remit funds to tax authorities to satisfy employees’ tax withholdings following the vesting of stock-based compensation and the exercise of stock options. In the three months ended March 31, 2024, the Company paid down $23.5 million of borrowings under the Revolver and $0.8 million under its term loan facility, funded cash dividends of $7.3 million and share repurchases of $0.1 million, and redeemed $4.1 million of stock in order to remit funds to tax authorities to satisfy employees’ tax withholdings following the vesting of stock-based compensation and the exercise of stock options.
Current wording
Net cash of $29.8 million was used for financing activities in the six months ended June 30, 2025, compared to $60.5 million in the prior-year period. In the six months ended June 30, 2025, the Company increased net borrowings under the Revolver by $55.0 million, primarily to fund the acquisition of Hog. In addition, the Company paid down $1.6 million under its term loan facility, funded payments of $4.3 million relating to the 2023 Trackless acquisition, paid $11.5 million to acquire a previously-leased manufacturing facility, funded cash dividends of $17.1 million and share repurchases of $39.7 million, and redeemed $11.4 million of stock in order to remit funds to tax authorities to satisfy employees’ tax withholdings following the vesting of stock-based compensation and the exercise of stock options. In the six months ended June 30, 2024, the Company paid down $39.2 million of borrowings under the Revolver and $1.6 million under its term loan facility, funded cash dividends of $14.7 million and share repurchases of $0.1 million, and redeemed $5.9 million of stock in order to remit funds to tax authorities to satisfy employees’ tax withholdings following the vesting of stock-based compensation and the exercise of stock options.
Previous wording
During the three months ended March 31, 2025, there have been no material changes in the Company’s contractual obligations and off-balance sheet arrangements as described in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
During the six months ended June 30, 2025, there have been no material changes in the Company’s contractual obligations and off-balance sheet arrangements as described in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Income before income taxes for the six months ended June 30, 2025 increased by $27.0 million, or 21%, compared to the prior-year period. The increase resulted from the higher operating income, partially offset by a $0.9 million increase in other expense, net, and a $0.1 million increase in interest expense, net.
Current report — wording carried from elsewhere
The Company recognized income tax expense of $37.7 million for the six months ended June 30, 2025, compared to $16.0 million in the six months ended June 30, 2024, with the increase primarily due to the effects of higher pre-tax income and the non-recurrence of a $15.6 million discrete tax benefit, which was recognized in the prior-year period in connection with the amendment of certain U.S. federal and state tax returns to claim a worthless stock deduction. The Company’s effective tax rate for the six months ended June 30, 2025 was 24.3%, compared to 12.5% in the prior-year period.