FEDERAL SIGNAL CORP /DE/
For the period ended Sep 30, 2025. Filed Oct 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.
Sep 30, 2025 · Filed Oct 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 2025-06-30; filed 2025-07-30.
0000277509-25-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000277509-25-000049
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 97 previous paragraphs and 97 current paragraphs.
31 unchanged; 40 reworded; 26 added; 26 removed; 0 previous and 0 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 (26)
Current report
Net sales for the three months ended September 30, 2025 increased by $80.8 million, or 17%, 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 $67.3 million, or 17%, primarily due to increases in sales of road-marking and line-removal equipment of $16.2 million, sewer cleaners of $7.0 million, street sweepers of $6.6 million, dump truck bodies of $5.2 million, industrial vacuum loaders of $4.6 million, safe-digging trucks of $4.2 million, and metal extraction support equipment of $2.9 million. In addition, aftermarket revenues improved by $15.4 million. Within our Safety and Security Systems Group, net sales increased by $13.5 million, or 18%, primarily due to improvements in sales of public safety equipment of $8.3 million and warning systems of $4.4 million, as well as a $0.8 million favorable foreign currency translation impact.
Current report
Net sales for the nine months ended September 30, 2025 increased by $193.9 million, or 14%, 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 $172.4 million, or 15%, primarily due to increases in sales of road-marking and line-removal equipment of $41.8 million, sewer cleaners of $23.4 million, dump truck bodies of $21.9 million, streets sweepers of $16.9 million, industrial vacuum loaders of $11.4 million, metal extraction support equipment of $7.1 million, safe-digging trucks of $6.3 million, and refuse trucks of $6.1 million. In addition, aftermarket revenues improved by $40.6 million. Partially offsetting these improvement were reductions in sales of trailers of $7.9 million and multi-purpose maintenance vehicles of $3.0 million, as well as a $4.3 million unfavorable foreign currency translation impact. Within our Safety and Security Systems Group, net sales increased by $21.5 million, or 9%, primarily due to improvements in sales of public safety equipment of $13.5 million and warning systems of $7.3 million, as well as a $1.1 million favorable foreign currency translation impact.
Current report
Operating income for the nine months ended September 30, 2025 increased by $46.1 million, or 22%, compared to the prior-year period, primarily driven by a $61.5 million improvement in gross profit, partially offset by a $12.9 million increase in SEG&A expenses, a $2.1 million increase in amortization expense, and a $0.4 million increase in acquisition and integration-related expenses, net. Consolidated operating margin for the nine months ended September 30, 2025 was 16.3%, compared to 15.2% in the prior-year period.
Current report
Net income for the three months ended September 30, 2025 increased by $14.2 million compared to the prior-year quarter, largely due to the aforementioned increase in income before taxes, partially offset by a $3.7 million increase in income tax expense.
Current report
Net income for the nine months ended September 30, 2025 increased by $19.5 million compared to the prior-year period, largely due to the aforementioned increase in income before taxes, partially offset by a $25.4 million increase in income tax expense.
Current report
Our consolidated backlog at September 30, 2025 was $992 million, compared to $1.03 billion at September 30, 2024.
Current report
Net sales for the three months ended September 30, 2025 increased by $80.8 million, or 17%, 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 $67.3 million, or 17%, primarily due to increases in sales of road-marking and line-removal equipment of $16.2 million, sewer cleaners of $7.0 million, street sweepers of $6.6 million, dump truck bodies of $5.2 million, industrial vacuum loaders of $4.6 million, safe-digging trucks of $4.2 million, and metal extraction support equipment of $2.9 million. In addition, aftermarket revenues improved by $15.4 million. Within the Safety and Security Systems Group, net sales increased by $13.5 million, or 18%, primarily due to improvements in sales of public safety equipment of $8.3 million and warning systems of $4.4 million, as well as a $0.8 million favorable foreign currency translation impact.
Current report
Net sales for the nine months ended September 30, 2025 increased by $193.9 million, or 14%, 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 $172.4 million, or 15%, primarily due to increases in sales of road-marking and line-removal equipment of $41.8 million, sewer cleaners of $23.4 million, dump truck bodies of $21.9 million, streets sweepers of $16.9 million, industrial vacuum loaders of $11.4 million, metal extraction support equipment of $7.1 million, safe-digging trucks of $6.3 million, and refuse trucks of $6.1 million. In addition, aftermarket revenues improved by $40.6 million. Partially offsetting these improvement were reductions in sales of trailers of $7.9 million and multi-purpose maintenance vehicles of $3.0 million, as well as a $4.3 million unfavorable foreign currency translation impact. Within the Safety and Security Systems Group, net sales increased by $21.5 million, or 9%, primarily due to improvements in sales of public safety equipment of $13.5 million and warning systems of $7.3 million, as well as a $1.1 million favorable foreign currency translation impact.
Current report
Operating income for the three months ended September 30, 2025 increased by $18.1 million, or 24%, compared to the prior-year quarter, primarily driven by a $21.1 million improvement in gross profit, partially offset by a $1.3 million increase in SEG&A expenses, a $1.0 million increase in acquisition and integration-related expenses, net, and a $0.7 million increase in amortization expense. Consolidated operating margin for the three months ended September 30, 2025 was 16.9%, compared to 16.0% in the prior-year quarter.
Current report
Operating income for the nine months ended September 30, 2025 increased by $46.1 million, or 22%, compared to the prior-year period, primarily driven by a $61.5 million improvement in gross profit, partially offset by a $12.9 million increase in SEG&A expenses, a $2.1 million increase in amortization expense, and a $0.4 million increase in acquisition and integration-related expenses, net. Consolidated operating margin for the nine months ended September 30, 2025 was 16.3%, compared to 15.2% in the prior-year period.
Current report
Interest expense, net, for the three months ended September 30, 2025 decreased by $0.2 million compared to the prior-year quarter, largely due to reductions in average debt levels.
Current report
Net income for the three months ended September 30, 2025 increased by $14.2 million compared to the prior-year quarter, largely due to the aforementioned increase in income before taxes, partially offset by a $3.7 million increase in income tax expense.
Current report
Net income for the nine months ended September 30, 2025 increased by $19.5 million compared to the prior-year period, largely due to the aforementioned increase in income before taxes, partially offset by a $25.4 million increase in income tax expense.
Current report
Total orders for the three months ended September 30, 2025 increased by $18.4 million, or 5%, compared to the prior-year quarter. U.S. orders increased by $13.4 million, primarily due to improvements in orders for road-marking and line-removal equipment of $9.8 million, safe-digging trucks of $7.8 million, aftermarket offerings of $6.2 million, industrial vacuum loaders of $3.7 million, metal extraction support equipment of $3.4 million, and trailers of $3.0 million. Partially offsetting these improvements were reductions in orders for sewer cleaners of $12.7 million and street sweepers of $8.9 million. Non-U.S. orders increased by $5.0 million, largely due to improvements in orders for road-marking and line-removal equipment of $3.4 million, aftermarket offerings of $2.0 million, industrial vacuum loaders of $1.2 million, and refuse trucks of $1.0 million. Partially offsetting these improvements were reductions in orders for sewer cleaners of $2.6 million and dump truck bodies of $1.5 million.
Current report
Cost of sales for the three months ended September 30, 2025 increased by $52.6 million, or 18%, compared to the prior-year quarter, primarily related to higher sales volumes, the addition of cost of sales from recent acquisitions, and a $0.5 million increase in purchase accounting expense effects. Gross profit margin for the three months ended September 30, 2025 was 26.3%, compared to 27.1% in the prior-year quarter.
Current report
Operating income for the three months ended September 30, 2025 increased by $13.8 million, or 19%, compared to the prior-year quarter, largely due to a $14.7 million improvement in gross profit and a $0.1 million reduction in acquisition and integration-related expenses, net, partially offset by a $0.7 million increase in amortization expense and the $0.3 million increase in SEG&A expenses.
Current report
Nine months ended September 30, 2025 vs. nine months ended September 30, 2024
Current report
Cost of sales for the nine months ended September 30, 2025 increased by $122.9 million, or 14%, compared to the prior-year period, primarily related to higher sales volumes, the addition of cost of sales from recent acquisitions, and a $1.2 million increase in purchase accounting expense effects. Gross profit margin for the nine months ended September 30, 2025 was 26.5%, compared to 26.2% in the prior-year period.
Current report
Operating income for the nine months ended September 30, 2025 increased by $40.8 million, or 21%, compared to the prior-year period, largely due to a $49.5 million improvement in gross profit and a $1.0 million reduction in acquisition and integration-related expenses, net, partially offset by the $7.6 million increase in SEG&A expenses and a $2.1 million increase in amortization expense.
Current report
Net sales for the three months ended September 30, 2025 increased by $13.5 million, or 18%, compared to the prior-year quarter, inclusive of the effects of higher sales volumes. U.S. sales increased by $9.3 million, driven by increases in sales of public safety equipment of $6.9 million and warning systems of $2.4 million. Non-U.S. sales increased by $4.2 million, primarily due to increases in sales of warning systems of $2.0 million and public safety equipment of $1.4 million, as well as a $0.8 million favorable foreign currency translation impact.
Current report
Operating income for the three months ended September 30, 2025 increased by $5.1 million, or 30%, compared to the prior-year quarter, primarily due to a $6.4 million improvement in gross profit, partially offset by the $1.3 million increase in SEG&A expenses.
Current report
Nine months ended September 30, 2025 vs. nine months ended September 30, 2024
Current report
Total orders for the nine months ended September 30, 2025 increased by $57.2 million, or 25%, compared to the prior-year period. U.S. orders increased by $32.9 million, primarily due to improvements in orders for public safety equipment of $27.4 million, warnings systems of $4.7 million, and industrial signaling equipment of $0.8 million. Non-U.S. orders increased by $24.3 million, primarily due to improvements in orders for public safety equipment of $24.1 million and warning systems of $0.5 million, as well as a $1.7 million favorable foreign currency translation impact, partially offset by a $2.0 million reduction in orders for industrial signaling equipment.
Current report
Operating income for the nine months ended September 30, 2025 increased by $10.3 million, or 21%, compared to the prior-year period, primarily due to a $12.0 million improvement in gross profit, partially offset by the $1.7 million increase in SEG&A expenses.
Current report
Backlog was $88 million at September 30, 2025, compared to $53 million at September 30, 2024.
Current report
On October 29, 2025, the Company entered into the 2025 Credit Agreement, which amends and restates the 2022 Credit Agreement. The 2025 Credit Agreement increases the Company’s revolving credit facility from up to $675 million to up to $1.1 billion, and includes a delayed draw term loan facility in an amount of up to $400 million. In addition, the Company may expand its borrowing capacity under the 2025 Credit Agreement by an aggregate amount of up to the sum of (x) the greater of (i) $500 million and (ii) 100% of Consolidated EBITDA for the applicable four-quarter period preceding such expansion, and (y) the amount of additional indebtedness (if any) that could be incurred without causing the Consolidated Total Net Leverage Ratio for the applicable four-quarter period preceding such expansion, on a pro forma basis, to exceed 2.75 to 1.00, subject to the approval of the applicable lenders providing such additional borrowings.
Removed paragraphs (26)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Our consolidated backlog at June 30, 2025 was $1.08 billion, up $4 million from the prior-year quarter.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Six months ended June 30, 2025 vs. six months ended June 30, 2024
Previous 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.
Previous 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.
Previous report
Backlog was $1.00 billion at June 30, 2025, compared to $1.02 billion at June 30, 2024.
Previous 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.
Previous 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.
Previous 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.
Previous report
Six months ended June 30, 2025 vs. six months ended June 30, 2024
Previous 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.
Previous report
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.
Reworded paragraphs (40)
Previous 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.
Current wording
While the tariffs implemented did not have a significant impact on the Company’s year-to-date 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 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.
Current wording
Operating income for the three months ended September 30, 2025 increased by $18.1 million, or 24%, compared to the prior-year quarter, primarily driven by a $21.1 million improvement in gross profit, partially offset by a $1.3 million increase in Selling, Engineering, General and Administrative (“SEG&A”) expenses, a $1.0 million increase in acquisition and integration-related expenses, net, and a $0.7 million increase in amortization expense. Consolidated operating margin for the three months ended September 30, 2025 was 16.9%, compared to 16.0% in the prior-year quarter.
Previous 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.
Current wording
Income before income taxes for the three months ended September 30, 2025 increased by $17.9 million, or 25%, 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 $0.4 million increase in other expense, net.
Previous wording
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 wording
Income before income taxes for the nine months ended September 30, 2025 increased by $44.9 million, or 22%, compared to the prior-year period. The increase resulted from the higher operating income, partially offset by a $1.3 million increase in other expense, net.
Previous 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.
Current wording
Total orders for the three months ended September 30, 2025 were $467 million, an increase of $41 million, or 10%, compared to the prior-year quarter. The Environmental Solutions Group reported total orders of $371 million in the three months ended September 30, 2025, an increase of $18 million, or 5%, in comparison to the prior-year quarter. Orders in the three months ended September 30, 2025 within the Safety and Security Systems Group were $96 million, an increase of $23 million, or 31%, compared to the prior-year quarter.
Previous wording
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 wording
Total orders for the nine months ended September 30, 2025 were $1.57 billion, an increase of $173 million, or 12%, compared to the prior-year period. The Environmental Solutions Group reported total orders of $1.29 billion in the nine months ended September 30, 2025, an increase of $116 million, or 10%, in comparison to the prior-year period. Orders in the nine months ended September 30, 2025 within the Safety and Security Systems Group were $282 million, an increase of $57 million, or 25%, compared to the prior-year period.
Previous wording
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 wording
Cost of sales increased by $59.7 million, or 18%, for the three months ended September 30, 2025 compared to the prior-year quarter, largely due to an increase of $52.6 million, or 18%, 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 $7.1 million, or 16%, primarily related to higher sales volumes.
Previous 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.
Current wording
Cost of sales increased by $132.4 million, or 13%, for the nine months ended September 30, 2025 compared to the prior-year period, largely due to an increase of $122.9 million, or 14%, 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 $9.5 million, or 7%, primarily related to higher sales volumes.
Previous 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.
Current wording
Gross profit increased by $21.1 million, or 15%, for the three months ended September 30, 2025 compared to the prior-year quarter, primarily due to a $14.7 million improvement within the Environmental Solutions Group and a $6.4 million improvement within the Safety and Security Systems Group. Gross profit as a percentage of revenues (“gross profit margin”) for the three months ended September 30, 2025 was 29.1%, compared to 29.6% in the prior-year quarter, primarily due to an 80 basis point reduction within the Environmental Solutions Group, partially offset by a 70 basis point improvement within the Safety and Security Systems Group.
Previous wording
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 wording
Gross profit increased by $61.5 million, or 15%, for the nine months ended September 30, 2025 compared to the prior-year period, primarily due to a $49.5 million improvement within the Environmental Solutions Group and a $12.0 million improvement within the Safety and Security Systems Group. Gross profit margin for the nine months ended September 30, 2025 was 29.2%, compared to 28.8% in the prior-year period, primarily due to improvements within the Environmental Solutions Group of 30 basis points and the Safety and Security Systems Group of 120 basis points.
Previous wording
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 wording
SEG&A expenses for the three months ended September 30, 2025 increased by $1.3 million, or 2%, compared to the prior-year quarter, primarily due to a $1.3 million increase within the Safety and Security Systems Group and a $0.3 million increase within the Environmental Solutions Group, partially offset by a $0.3 million decrease in Corporate SEG&A expenses. As a percentage of net sales, SEG&A expenses were 11.1% in the current-year quarter, compared to 12.7% in the prior-year quarter.
Previous wording
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 wording
SEG&A expenses for the nine months ended September 30, 2025 increased by $12.9 million, or 7%, compared to the prior-year period, primarily due to a $7.6 million increase within the Environmental Solutions Group, a $3.6 million increase in Corporate SEG&A expenses, and a $1.7 million increase within the Safety and Security Systems Group. As a percentage of net sales, SEG&A expenses were 11.9% in the current year, compared to 12.6% in the prior-year period.
Previous wording
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 wording
Interest expense, net, for the nine months ended September 30, 2025 decreased by $0.1 million compared to the prior-year period, largely due to reductions in average debt levels.
Previous wording
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 wording
Other expense, net, for the nine months ended September 30, 2025 increased by $1.3 million compared to the prior-year period, primarily due to higher non-operating pension costs.
Previous wording
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.
Current wording
The Company recognized income tax expense of $22.4 million for the three months ended September 30, 2025, compared to $18.7 million in the three months ended September 30, 2024, with the increase primarily due to the effects of higher pre-tax income levels, partially offset by a $0.9 million increase in excess tax benefits associated with stock-based compensation activity. The Company’s effective tax rate for the three months ended September 30, 2025 was 24.8%, compared to 25.8% in the prior-year quarter.
Previous 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.
Current wording
The Company recognized income tax expense of $60.1 million for the nine months ended September 30, 2025, compared to $34.7 million in the nine months ended September 30, 2024, with the increase primarily due to the effects of higher pre-tax income levels 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, 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 nine months ended September 30, 2025 was 24.4%, compared to 17.3% in the prior-year period.
Previous 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:
Current wording
The following table summarizes the Environmental Solutions Group’s operating results as of and for the three and nine months ended September 30, 2025 and 2024:
Previous 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.
Current wording
Net sales for the three months ended September 30, 2025 increased by $67.3 million, or 17%, 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 September 30, 2025, U.S. sales increased by $52.1 million, largely due to increases in sales of road-marking and line-removal equipment of $15.1 million, sewer cleaners of $9.1 million, dump truck bodies of $7.1 million, industrial vacuum loaders of $4.6 million, street sweepers of $3.6 million, and safe-digging trucks of $3.0 million. Additionally, aftermarket revenues increased by $13.4 million. Partially offsetting these improvements was a $4.1 million reduction in shipments of refuse trucks. Non-U.S. sales increased by $15.2 million, primarily due to increases in shipments of refuse trucks of $6.0 million, metal extraction support equipment of $3.8 million, street sweepers of $3.0 million, aftermarket offerings of $2.0 million, safe-digging trucks of $1.2 million, and road-marking and line-removal equipment of $1.1 million. Partially offsetting these improvements were reductions in shipments of sewer cleaners of $2.1 million and dump truck bodies of $1.9 million.
Previous 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.
Current wording
SEG&A expenses for the three months ended September 30, 2025 increased by $0.3 million, or 1%, 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 7.0% in the current-year quarter, compared to 8.1% in the prior-year quarter.
Previous 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.
Current wording
Total orders for the nine months ended September 30, 2025 increased by $115.7 million, or 10%, compared to the prior-year period. U.S. orders increased by $135.2 million, primarily due to increases in orders for safe-digging trucks of $44.9 million, road-marking and line-removal equipment of $42.5 million, inclusive of the acquisition of a $16.1 million U.S. order backlog attributable to the Hog transaction, as well as increases in orders for aftermarket offerings of $36.8 million, industrial vacuum loaders of $12.2 million, street sweepers of $8.5 million, dump truck bodies of $8.4 million, trailers of $6.1 million, and metal extraction support equipment of $3.0 million. Partially offsetting these improvements were reductions in orders for sewer cleaners of $19.5 million and refuse trucks of $9.9 million. Non-U.S. orders decreased by $19.5 million, largely due to reductions in orders for refuse trucks of $61.3 million, dump truck bodies of $7.6 million, and a $4.4 million unfavorable foreign currency translation impact. Partially offsetting these reductions were improvements in orders for sewer cleaners of $16.0 million, metal extraction support equipment of $13.5 million, road-marking and line-removal equipment of $10.4 million, inclusive of the acquisition of a $3.4 million non-U.S. order backlog attributable to the Hog transaction, aftermarket offerings of $2.9 million, safe-digging trucks of $2.3 million, waterblasting equipment of $2.2 million, street sweepers of $2.0 million, and industrial vacuum loaders of $1.7 million.
Previous wording
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 wording
Net sales for the nine months ended September 30, 2025 increased by $172.4 million, or 15%, compared to the prior-year period, primarily due to higher sales volumes, inclusive of the effects of acquisitions, and pricing actions. For the nine months ended September 30, 2025, U.S. sales increased by $138.0 million, largely due to increases in sales of road-marking and line-removal equipment of $36.3 million, dump truck bodies of $27.9 million, sewer cleaners of $24.1 million, industrial vacuum loaders of $11.4 million, and street sweepers of $8.5 million. Additionally, aftermarket revenues increased by $39.4 million. Partially offsetting these improvements were reductions in shipments of trailers of $7.9 million, refuse trucks of $5.0 million, and multi-purpose maintenance vehicles of $2.6 million. Non-U.S. sales increased by $34.4 million, primarily due to increases in shipments of refuse trucks of $11.1 million, street sweepers of $8.4 million, metal extraction support equipment of $6.8 million, safe-digging trucks of $5.6 million, road-marking and line-removal equipment of $5.5 million, and waterblasting equipment of $2.3 million. Partially offsetting these improvements was a $6.0 million reduction in shipments of dump truck bodies, and a $4.3 million unfavorable foreign currency translation impact.
Previous wording
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 wording
SEG&A expenses for the nine months ended September 30, 2025 increased by $7.6 million, or 8%, compared to the prior-year period, 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 7.7% in the current year, compared to 8.2% in the prior-year period.
Previous wording
Backlog was $83 million at June 30, 2025, compared to $57 million at June 30, 2024.
Current wording
Backlog was $904 million at September 30, 2025, compared to $980 million at September 30, 2024.
Previous 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:
Current wording
The following table summarizes the Safety and Security Systems Group’s operating results as of and for the three and nine months ended September 30, 2025 and 2024:
Previous wording
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 wording
Total orders for the three months ended September 30, 2025 increased by $22.6 million, or 31%, compared to the prior-year quarter. U.S. orders increased by $6.8 million, primarily due to improvements in orders for public safety equipment of $7.7 million and industrial signaling equipment of $0.4 million, partially offset by a $1.3 million reduction in orders for warning systems. Non-U.S. orders increased by $15.8 million, primarily due to a $15.5 million improvement in orders for public safety equipment and a $1.3 million favorable foreign currency translation impact, partially offset by a $1.0 million reduction in orders for industrial signaling equipment.
Previous 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.
Current wording
Cost of sales for the three months ended September 30, 2025 increased by $7.1 million, or 16%, compared to the prior-year quarter, primarily related to higher sales volumes. Gross profit margin for the three months ended September 30, 2025 was 43.6%, compared to 42.9% in the prior-year quarter, with the improvement primarily attributable to improved operating leverage from higher sales volumes.
Previous wording
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 wording
SEG&A expenses for the three months ended September 30, 2025 increased by $1.3 million, or 8%, compared to the prior-year quarter, primarily due to higher employee-related costs and sales commissions as well as increased investments in new product development initiatives. As a percentage of net sales, SEG&A expenses were 19.1% in the current-year quarter, compared to 20.8% in the prior-year quarter.
Previous 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.
Current wording
Net sales for the nine months ended September 30, 2025 increased by $21.5 million, or 9%, compared to the prior-year period, inclusive of the effects of higher sales volumes. U.S. sales increased by $14.4 million, driven by increases in sales of public safety equipment of $9.9 million, warning systems of $3.3 million, and industrial signaling equipment of $1.2 million. Non-U.S. sales increased by $7.1 million, primarily due to increases in sales of warning systems of $4.0 million and public safety equipment of $3.6 million, as well as a $1.1 million favorable foreign currency translation impact, partially offset by a $1.6 million reduction in sales of industrial signaling equipment.
Previous wording
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 wording
Cost of sales for the nine months ended September 30, 2025 increased by $9.5 million, or 7%, compared to the prior-year period, primarily related to higher sales volumes. Gross profit margin for the nine months ended September 30, 2025 was 43.4%, compared to 42.2% in the prior-year period, with the improvement primarily attributable to improved operating leverage from higher sales volumes.
Previous 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.
Current wording
SEG&A expenses for the nine months ended September 30, 2025 increased by $1.7 million, or 4%, compared to the prior-year period, primarily due to higher employee-related costs and increased investment in new product development initiatives. As a percentage of net sales, SEG&A expenses were 19.7% in the current year, compared to 20.8% in the prior-year period.
Previous wording
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.
Current wording
Corporate operating expenses for the three months ended September 30, 2025 were $13.2 million, compared to $12.4 million in the prior-year quarter, with the increase primarily due to a $1.1 million increase in acquisition and integration-related expenses, net.
Previous 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.
Current wording
Corporate operating expenses for the nine months ended September 30, 2025 were $38.7 million, compared to $33.7 million in the prior-year quarter, with the increase primarily due to a $1.4 million increase in acquisition and integration-related expenses, net, the non-recurrence of a $1.8 million gain associated with an insurance recovery in the prior-year period, as well as increases in information technology costs, and higher post-retirement and incentive compensation expenses.
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 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.
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, 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 new credit facility will provide funds sufficient for these purposes.
Previous 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.
Current wording
As of September 30, 2025, there was $94.4 million of cash drawn under the revolving credit facility, $117.2 million outstanding under the term loan facility, and $10.9 million of undrawn letters of credit under the 2022 Credit Agreement, with $569.7 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 $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.
Current wording
The Company’s cash and cash equivalents totaled $54.4 million as of September 30, 2025 and $91.1 million as of December 31, 2024. As of September 30, 2025, $18.6 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 $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.
Current wording
Net cash of $157.5 million was provided by operating activities in the nine months ended September 30, 2025, compared to $140.7 million in the prior-year period, with the year-over-year increase primarily due to higher net income partially offset by 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 $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.
Current wording
Net cash of $101.3 million was used for investing activities in the nine months ended September 30, 2025, compared to $30.8 million in the prior-year period. During the nine months ended September 30, 2025, the Company funded $19.9 million of capital expenditures and made an initial payment of $82.1 million to acquire Hog. During the nine months ended September 30, 2024, the Company funded $32.1 million of capital expenditures.
Previous 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.
Current wording
Net cash of $94.4 million was used for financing activities in the nine months ended September 30, 2025, compared to $97.2 million in the prior-year period. In the nine months ended September 30, 2025, the Company increased net borrowings under its revolving credit facility by $1.1 million, paid down $3.1 million under its term loan facility, funded payments of $4.3 million relating to the 2023 acquisition of Trackless, paid $11.5 million to acquire a previously-leased manufacturing facility, funded cash dividends of $25.6 million and share repurchases of $39.7 million, and redeemed $12.2 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 nine months ended September 30, 2024, the Company paid down $64.4 million of net borrowings under its revolving credit facility and $1.6 million under its term loan facility, funded cash dividends of $22.0 million and share repurchases of $4.5 million, and redeemed $6.0 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
The Company is subject to certain net leverage ratio and interest coverage ratio financial covenants under the 2022 Credit Agreement that are measured at each fiscal quarter-end. The Company was in compliance with all such covenants as of June 30, 2025.
Current wording
The Company was subject to certain net leverage ratio and interest coverage ratio financial covenants under the 2022 Credit Agreement that are measured at each fiscal quarter-end. The Company was in compliance with all such covenants as of September 30, 2025. The Company will be subject to similar financial covenants under the 2025 Credit Agreement.
Previous 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.
Current wording
During the nine months ended September 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.