FEDERAL SIGNAL CORP /DE/
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
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, 2026 · Filed Jul 30, 2026
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 2026-03-31; filed 2026-04-29.
0001628280-26-028312
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001628280-26-050993
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 66 previous paragraphs and 94 current paragraphs.
28 unchanged; 33 reworded; 31 added; 5 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 (31)
Current report
Net sales for the three months ended June 30, 2026 increased by $105.6 million, or 19%, compared to the prior-year quarter, primarily due to the effects of acquisitions, and pricing actions. Our Environmental Solutions Group reported a net sales increase of $97.2 million, or 20%, due to increases in sales of other specialty equipment of $47.7 million, aftermarket offerings of $28.4 million, vacuum trucks of $10.7 million, and dump truck bodies and trailers of $10.5 million. Within our Safety and Security Systems Group, net sales increased by $8.4 million, or 10%, primarily due to improvements in sales of public safety equipment of $7.5 million and industrial signaling equipment of $0.9 million.
Current report
Net sales for the six months ended June 30, 2026 increased by $267.4 million, or 26%, 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 $242.5 million, or 28%, due to increases in sales of other specialty equipment of $153.9 million, aftermarket offerings of $45.6 million, vacuum trucks of $21.0 million, dump truck bodies and trailers of $19.1 million, as well as a $2.9 million favorable foreign currency translation impact. Within our Safety and Security Systems Group, net sales increased by $24.9 million, or 16%, primarily due to improvements in sales of public safety equipment of $20.5 million and industrial signaling equipment of $2.3 million, as well as a $2.4 million favorable foreign currency translation impact.
Current report
Operating income for the six months ended June 30, 2026 increased by $54.5 million, or 33%, compared to the prior-year period, primarily driven by an $82.8 million improvement in gross profit, partially offset by a $23.2 million increase in SEG&A expenses, a $4.3 million increase in amortization expense, and a $0.8 million increase in acquisition and integration-related expenses, net. Consolidated operating margin for the six months ended June 30, 2026 was 16.8%, compared to 15.9% in the prior-year period.
Current report
Net income for the six months ended June 30, 2026 increased by $38.8 million compared to the prior-year period, largely due to the aforementioned increase in income before taxes, partially offset by a $9.4 million increase in income tax expense.
Current report
Total orders for the six months ended June 30, 2026 were $1.26 billion, an increase of $152 million, or 14%, compared to the prior-year period. Our Environmental Solutions Group reported total orders of $1.08 billion in the six months ended June 30, 2026, an increase of $161 million, or 17%, in comparison to the prior-year period. Orders in the six months ended June 30, 2026 within our Safety and Security Systems Group were $177 million, a reduction of $9 million, or 5%, compared to the prior-year period.
Current report
Net sales for the three months ended June 30, 2026 increased by $105.6 million, or 19%, compared to the prior-year quarter, primarily due to the effects of acquisitions and pricing actions. The Environmental Solutions Group reported a net sales increase of $97.2 million, or 20%, due to increases in sales of other specialty equipment of $47.7 million, aftermarket offerings of $28.4 million, vacuum trucks of $10.7 million, and dump truck bodies and trailers of $10.5 million. Within the Safety and Security Systems Group, net sales increased by $8.4 million, or 10%, primarily due to improvements in sales of public safety equipment of $7.5 million and industrial signaling equipment of $0.9 million.
Current report
Net sales for the six months ended June 30, 2026 increased by $267.4 million, or 26%, 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 $242.5 million, or 28%, due to increases in sales of other specialty equipment of $153.9 million, aftermarket offerings of $45.6 million, vacuum trucks of $21.0 million, dump truck bodies and trailers of $19.1 million, as well as a $2.9 million favorable foreign currency translation impact. Within the Safety and Security Systems Group, net sales increased by $24.9 million, or 16%, primarily due to improvements in sales of public safety equipment of $20.5 million and industrial signaling equipment of $2.3 million, as well as a $2.4 million favorable foreign currency translation impact.
Current report
Cost of sales increased by $184.6 million, or 25%, for the six months ended June 30, 2026 compared to the prior-year period, largely due to an increase of $170.7 million, or 27%, within the Environmental Solutions Group, primarily related to the addition of cost of sales from recent acquisitions as well as higher material costs and sales volumes. Within the Safety and Security Systems Group, cost of sales increased by $13.9 million, or 15%, primarily related to higher sales volumes and increased material costs.
Current report
Gross profit increased by $82.8 million, or 28%, for the six months ended June 30, 2026 compared to the prior-year period, primarily due to a $71.8 million improvement within the Environmental Solutions Group and an $11.0 million improvement within the Safety and Security Systems Group. Gross profit margin for the six months ended June 30, 2026 was 29.6%, compared to 29.2% in the prior-year period, primarily due to a 70 basis point improvement within the Environmental Solutions Group and a 20 basis point improvement within the Safety and Security Systems Group.
Current report
SEG&A expenses for the six months ended June 30, 2026 increased by $23.2 million, or 18%, compared to the prior-year period, primarily due to a $16.1 million increase within the Environmental Solutions Group, a $2.6 million increase within the Safety and Security Systems Group, and a $4.5 million increase in Corporate SEG&A expenses. As a percentage of net sales, SEG&A expenses were 11.6% in the current-year period, compared to 12.4% in the prior-year period.
Current report
Operating income for the three months ended June 30, 2026 increased by $20.5 million, or 21%, compared to the prior-year quarter, primarily driven by a $34.2 million improvement in gross profit, partially offset by an $11.4 million increase in SEG&A expenses, a $2.1 million increase in amortization expense, and a $0.2 million increase in acquisition and integration-related expenses, net. Consolidated operating margin for the three months ended June 30, 2026 was 17.6%, compared to 17.3% in the prior-year quarter.
Current report
Operating income for the six months ended June 30, 2026 increased by $54.5 million, or 33%, compared to the prior-year period, primarily driven by an $82.8 million improvement in gross profit, partially offset by a $23.2 million increase in SEG&A expenses, a $4.3 million increase in amortization expense, and a $0.8 million increase in acquisition and integration-related expenses, net. Consolidated operating margin for the six months ended June 30, 2026 was 16.8%, compared to 15.9% in the prior-year period.
Current report
Interest expense, net, for the six months ended June 30, 2026 increased by $6.4 million compared to the prior-year period, largely due to higher average debt levels.
Current report
Other expense, net, for the three months ended June 30, 2026 was flat as compared to the prior-year quarter.
Current report
Net income for the three months ended June 30, 2026 increased by $14.7 million compared to the prior-year quarter, largely due to the $20.5 million increase in operating income, partially offset by a $3.3 million increase in income tax expense and a $2.5 million increase in interest expense, net.
Current report
Three months ended June 30, 2026 vs. three months ended June 30, 2025
Current report
Total orders for the three months ended June 30, 2026 increased by $106.7 million, or 24%, compared to the prior-year quarter, inclusive of the effects of acquisitions. U.S. orders increased by $82.0 million, primarily due to improvements in orders for other specialty equipment of $35.6 million, inclusive of higher refuse truck orders associated with the New Way acquisition and higher metal extraction support equipment orders partially due to the Mega acquisition, as well as increases in orders for dump truck bodies and trailers of $17.2 million, aftermarket offerings of $16.5 million, and vacuum trucks of $12.7 million. Non-U.S. orders increased by $24.7 million, largely due to improvements in orders for other specialty equipment of $8.9 million, aftermarket offerings of $7.8 million, vacuum trucks of $4.9 million, and dump truck bodies and trailers of $3.1 million.
Current report
Net sales for the three months ended June 30, 2026 increased by $97.2 million, or 20%, compared to the prior-year quarter, primarily due to the effects of acquisitions and pricing actions. For the three months ended June 30, 2026, U.S. sales increased by $98.9 million due to increases in sales of other specialty equipment of $58.1 million, primarily driven by higher sales of refuse trucks due to the New Way acquisition and higher sales of metal extraction support equipment partially due to the Mega acquisition, as well as increases in sales of aftermarket offerings of $22.7 million, dump truck bodies and trailers of $10.4 million, and vacuum trucks of $7.7 million. Non-U.S. sales decreased by $1.7 million, primarily due to a $10.4 million reduction in sales of other specialty equipment, partially offset by increases in sales of aftermarket offerings of $5.7 million and vacuum trucks of $3.0 million.
Current report
Operating income for the three months ended June 30, 2026 increased by $22.0 million, or 24%, compared to the prior-year quarter, largely due to a $31.9 million improvement in gross profit, partially offset by the $7.7 million increase in SEG&A expenses, a $2.1 million increase in amortization expense, and a $0.1 million increase in acquisition and integration-related expenses, net.
Current report
Six months ended June 30, 2026 vs. six months ended June 30, 2025
Current report
Cost of sales for the six months ended June 30, 2026 increased by $170.7 million, or 27%, compared to the prior-year period, primarily related to the addition of cost of sales from recent acquisitions, higher material costs, higher sales volumes, and a $2.2 million increase in purchase accounting expense effects. Gross profit margin for the six months ended June 30, 2026 was 27.3%, compared to 26.6% in the prior-year period, with the increase primarily due to 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, 2026 increased by $16.1 million, or 23%, compared to the prior-year period, primarily due to the addition of SEG&A expenses from recent acquisitions, higher employee-related costs, and higher marketing expenses. As a percentage of net sales, SEG&A expenses were 7.8% in the current-year period, compared to 8.1% in the prior-year period.
Current report
Three months ended June 30, 2026 vs. three months ended June 30, 2025
Current report
Total orders for the three months ended June 30, 2026 decreased by $9.7 million, or 10%, compared to the prior-year quarter. U.S. orders decreased by $5.4 million, primarily due to reductions in orders for public safety equipment. Non-U.S. orders decreased by $4.3 million, primarily due to a $6.5 million reduction in orders for public safety equipment, partially offset by increases in orders for industrial signaling equipment of $0.8 million and warning systems of $0.8 million, as well as a $0.6 million favorable foreign currency translation impact.
Current report
Operating income for the three months ended June 30, 2026 increased by $0.6 million, or 3%, compared to the prior-year quarter, primarily due to a $2.3 million improvement in gross profit, partially offset by the $1.7 million increase in SEG&A expenses.
Current report
Six months ended June 30, 2026 vs. six months ended June 30, 2025
Current report
Net sales for the six months ended June 30, 2026 increased by $24.9 million, or 16%, compared to the prior-year period, inclusive of the effects of higher sales volumes and pricing actions. U.S. sales increased by $24.9 million, primarily driven by increases in sales of public safety equipment of $21.3 million and warning systems of $3.6 million. Non-U.S. sales were flat as compared to the prior-year period, primarily due to reductions in sales of warning systems of $3.9 million and public safety equipment of $0.8 million, offset by a $2.3 million increase in sales of industrial signaling equipment and a $2.4 million favorable foreign currency translation impact.
Current report
Cost of sales for the six months ended June 30, 2026 increased by $13.9 million, or 15%, compared to the prior-year period, primarily related to higher sales volumes and increased material costs, as well as a $1.9 million unfavorable foreign currency translation impact. Gross profit margin for the six months ended June 30, 2026 was 43.4%, compared to 43.2% in the prior-year period, with the improvement primarily attributable to improved operating leverage from higher sales volumes and benefits from pricing actions.
Current report
SEG&A expenses for the six months ended June 30, 2026 increased by $2.6 million, or 8%, compared to the prior-year period, primarily due to higher employee-related costs and marketing expenses. As a percentage of net sales, SEG&A expenses were 18.7% in the current-year period, compared to 20.0% in the prior-year period.
Current report
Operating income for the six months ended June 30, 2026 increased by $8.4 million, or 23%, compared to the prior-year period, primarily due to a $11.0 million improvement in gross profit, partially offset by the $2.6 million increase in SEG&A expenses.
Current report
Corporate operating expenses for the three months ended June 30, 2026 were $17.8 million, compared to $15.7 million in the prior-year quarter, with the increase primarily due to higher post-retirement expenses and medical costs, partially offset by lower stock compensation costs.
Removed paragraphs (5)
Previous report
Net sales for the three months ended March 31, 2026 increased by $161.8 million, or 35%, 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 $145.3 million, or 38%, due to increases in sales of other specialty equipment of $106.6 million, aftermarket offerings of $17.2 million, vacuum trucks of $10.3 million, dump truck bodies and trailers of $8.2 million, as well as a $3.0 million favorable foreign currency translation impact. Within our Safety and Security Systems Group, net sales increased by $16.5 million, or 22%, primarily due to improvements in sales of public safety equipment of $13.1 million and industrial signaling equipment of $1.4 million, as well as a $1.9 million favorable foreign currency translation impact.
Previous report
Net sales for the three months ended March 31, 2026 increased by $161.8 million, or 35%, 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 $145.3 million, or 38%, due to increases in sales of other specialty equipment of $106.6 million, aftermarket offerings of $17.2 million, vacuum trucks of $10.3 million, dump truck bodies and trailers of $8.2 million, as well as a $3.0 million favorable foreign currency translation impact. Within the Safety and Security Systems Group, net sales increased by $16.5 million, or 22%, primarily due to improvements in sales of public safety equipment of $13.1 million and industrial signaling equipment of $1.4 million, as well as a $1.9 million favorable foreign currency translation impact.
Previous report
SEG&A expenses were 11.5% in the current-year quarter, compared to 13.0% in the prior-year quarter.
Previous report
Operating income for the three months ended March 31, 2026 increased by $34.0 million, or 52%, compared to the prior-year quarter, primarily driven by a $48.6 million improvement in gross profit, partially offset by a $11.8 million increase in SEG&A expenses, a $2.2 million increase in amortization expense, and a $0.6 million increase in acquisition and integration-related expenses, net. Consolidated operating margin for the three months ended March 31, 2026 was 15.9%, compared to 14.2% in the prior-year quarter.
Previous report
Operating income for the three months ended March 31, 2026 increased by $7.8 million, or 49%, compared to the prior-year quarter, primarily due to a $8.7 million improvement in gross profit, partially offset by the $0.9 million increase in SEG&A expenses.
Reworded paragraphs (33)
Previous wording
Operating income for the three months ended March 31, 2026 increased by $34.0 million, or 52%, compared to the prior-year quarter, primarily driven by a $48.6 million improvement in gross profit, partially offset by a $11.8 million increase in Selling, Engineering, General and Administrative (“SEG&A”) expenses, a $2.2 million increase in amortization expense, and a $0.6 million increase in acquisition and integration-related expenses, net. Consolidated operating margin for the three months ended March 31, 2026 was 15.9%, compared to 14.2% in the prior-year quarter.
Current wording
Operating income for the three months ended June 30, 2026 increased by $20.5 million, or 21%, compared to the prior-year quarter, primarily driven by a $34.2 million improvement in gross profit, partially offset by an $11.4 million increase in Selling, Engineering, General and Administrative (“SEG&A”) expenses, a $2.1 million increase in amortization expense, and a $0.2 million increase in acquisition and integration-related expenses, net. Consolidated operating margin for the three months ended June 30, 2026 was 17.6%, compared to 17.3% in the prior-year quarter.
Previous wording
Income before income taxes for the three months ended March 31, 2026 increased by $30.2 million, or 49%, compared to the prior-year quarter. The increase resulted from the higher operating income and a $0.1 million reduction in other expense, partially offset by a $3.9 million increase in interest expense, net.
Current wording
Income before income taxes for the six months ended June 30, 2026 increased by $48.2 million, or 31%, compared to the prior-year period. The increase resulted from the higher operating income and a $0.1 million reduction in other expense, partially offset by a $6.4 million increase in interest expense, net.
Previous wording
Net income for the three months ended March 31, 2026 increased by $24.1 million compared to the prior-year quarter, largely due to the aforementioned increase in income before taxes, partially offset by a $6.1 million increase in income tax expense.
Current wording
Net income for the three months ended June 30, 2026 increased by $14.7 million compared to the prior-year quarter, largely due to the aforementioned increase in income before taxes, partially offset by a $3.3 million increase in income tax expense.
Previous wording
Total orders for the three months ended March 31, 2026 were $623 million, an increase of $55 million, or 10%, compared to the prior-year quarter. Our Environmental Solutions Group reported total orders of $534 million in the three months ended March 31, 2026, an increase of $54 million, or 11%, in comparison to the prior-year quarter. Orders in the three months ended March 31, 2026 within our Safety and Security Systems Group were $89 million, an increase of $1 million, or 1%, compared to the prior-year quarter.
Current wording
Total orders for the three months ended June 30, 2026 were $637 million, an increase of $97 million, or 18%, compared to the prior-year quarter. Our Environmental Solutions Group reported total orders of $548 million in the three months ended June 30, 2026, an increase of $107 million, or 24%, in comparison to the prior-year quarter. Orders in the three months ended June 30, 2026 within our Safety and Security Systems Group were $89 million, a reduction of $10 million, or 10%, compared to the prior-year quarter.
Previous wording
Our consolidated backlog at March 31, 2026 was $1.04 billion, compared to $1.10 billion at March 31, 2025.
Current wording
Our consolidated backlog at June 30, 2026 was $1.00 billion, compared to $1.08 billion at June 30, 2025.
Previous wording
Cost of sales increased by $113.2 million, or 34%, for the three months ended March 31, 2026 compared to the prior-year quarter, largely due to an increase of $105.4 million, or 37%, 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 $7.8 million, or 17%, primarily related to higher sales volumes.
Current wording
Cost of sales increased by $71.4 million, or 18%, for the three months ended June 30, 2026 compared to the prior-year quarter, largely due to an increase of $65.3 million, or 19%, within the Environmental Solutions Group, primarily related to the addition of cost of sales from recent acquisitions and higher material costs. Within the Safety and Security Systems Group, cost of sales increased by $6.1 million, or 13%, primarily related to higher sales volumes and increased material costs.
Previous wording
Gross profit increased by $48.6 million, or 37%, for the three months ended March 31, 2026 compared to the prior-year quarter, primarily due to a $39.9 million improvement within the Environmental Solutions Group and a $8.7 million improvement within the Safety and Security Systems Group. Gross profit as a percentage of revenues (“gross profit margin”) for the three months ended March 31, 2026 was 28.7%, compared to 28.2% in the prior-year quarter, primarily due to a 200 basis point improvement within the Safety and Security Systems Group and a 50 basis point improvement within the Environmental Solutions Group.
Current wording
Gross profit increased by $34.2 million, or 20%, for the three months ended June 30, 2026 compared to the prior-year quarter, primarily due to a $31.9 million improvement within the Environmental Solutions Group and a $2.3 million improvement within the Safety and Security Systems Group. Gross profit as a percentage of revenues (“gross profit margin”) for the three months ended June 30, 2026 was 30.4%, compared to 30.0% in the prior-year quarter, primarily due to a 90 basis point improvement within the Environmental Solutions Group, partially offset by a 160 basis point reduction within the Safety and Security Systems Group.
Previous wording
SEG&A expenses for the three months ended March 31, 2026 increased by $11.8 million, or 20%, compared to the prior-year quarter, primarily due to an $8.4 million increase within the Environmental Solutions Group, a $0.9 million increase within the Safety and Security Systems Group, and a $2.5 million increase in Corporate SEG&A expenses. As a percentage of net sales,
Current wording
SEG&A expenses for the three months ended June 30, 2026 increased by $11.4 million, or 17%, compared to the prior-year quarter, primarily due to a $7.7 million increase within the Environmental Solutions Group, a $1.7 million increase within the Safety and Security Systems Group, and a $2.0 million increase in Corporate SEG&A expenses. As a percentage of net sales, SEG&A expenses were 11.7% in the current-year quarter, compared to 11.8% in the prior-year quarter.
Previous wording
Interest expense, net, for the three months ended March 31, 2026 increased by $3.9 million compared to the prior-year quarter, largely due to higher average debt levels.
Current wording
Interest expense, net, for the three months ended June 30, 2026 increased by $2.5 million compared to the prior-year quarter, largely due to higher average debt levels.
Previous wording
Other expense, net, for the three months ended March 31, 2026 decreased by $0.1 million compared to the prior-year quarter, primarily due to higher foreign currency transaction gains.
Current wording
Other expense, net, for the six months ended June 30, 2026 decreased by $0.1 million compared to the prior-year period.
Previous wording
The Company recognized income tax expense of $21.8 million for the three months ended March 31, 2026, compared to $15.7 million in the three months ended March 31, 2025, with the increase primarily due to the effects of higher pre-tax income levels, partially offset by a $1.1 million increase in excess tax benefits associated with stock-based compensation activity. The Company’s effective tax rate for the three months ended March 31, 2026 was 23.6%, compared to 25.3% in the prior-year quarter.
Current wording
The Company recognized income tax expense of $25.3 million for the three months ended June 30, 2026, compared to $22.0 million in the three months ended June 30, 2025, with the increase primarily due to the effects of higher pre-tax income levels, partially offset by a $1.1 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, 2026 was 22.7%, compared to 23.6% in the prior-year quarter.
Previous wording
Net income for the three months ended March 31, 2026 increased by $24.1 million compared to the prior-year quarter, largely due to the $34.0 million increase in operating income and the $0.1 million reduction in other expense, partially offset by a $6.1 million increase in income tax expense and a $3.9 million increase in interest expense, net.
Current wording
Net income for the six months ended June 30, 2026 increased by $38.8 million compared to the prior-year period, largely due to the $54.5 million increase in operating income and the $0.1 million reduction in other expense, net, partially offset by a $9.4 million increase in income tax expense and a $6.4 million increase in interest expense, net.
Previous wording
The following table summarizes the Environmental Solutions Group’s operating results as of and for the three months ended March 31, 2026 and 2025:
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, 2026 and 2025:
Previous wording
Cost of sales for the three months ended March 31, 2026 increased by $105.4 million, or 37%, compared to the prior-year quarter, primarily related to higher sales volumes, the addition of cost of sales from recent acquisitions, and a $1.5 million increase in purchase accounting expense effects. Gross profit margin for the three months ended March 31, 2026 was 26.1%, compared to 25.6% in the prior-year quarter.
Current wording
Cost of sales for the three months ended June 30, 2026 increased by $65.3 million, or 19%, compared to the prior-year quarter, primarily related to the addition of cost of sales from recent acquisitions, higher material costs, and a $0.7 million increase in purchase accounting expense effects. Gross profit margin for the three months ended June 30, 2026 was 28.4%, compared to 27.5% in the prior-year quarter, with the increase primarily due to favorable sales mix, production efficiencies, and benefits from pricing actions.
Previous wording
SEG&A expenses for the three months ended March 31, 2026 increased by $8.4 million, or 24%, compared to the prior-year quarter, primarily due to the addition of SEG&A expenses from recent acquisitions, higher employee-related costs, and increased sales commissions. As a percentage of net sales, SEG&A expenses were 8.1% in the current-year quarter, compared to 9.0% in the prior-year quarter.
Current wording
SEG&A expenses for the three months ended June 30, 2026 increased by $7.7 million, or 22%, compared to the prior-year quarter, primarily due to the addition of SEG&A expenses from recent acquisitions, higher employee-related costs, and higher marketing expenses. As a percentage of net sales, SEG&A expenses were 7.5% in the current-year quarter, compared to 7.4% in the prior-year quarter.
Previous wording
Total orders for the three months ended March 31, 2026 increased by $54.2 million, or 11%, compared to the prior-year quarter, inclusive of the effects of acquisitions. U.S. orders increased by $69.2 million, primarily due to improvements in orders for other specialty equipment of $67.1 million, inclusive of higher refuse truck orders associated with the New Way acquisition and the acquisition of a $15.8 million U.S. order backlog attributable to the Mega transaction, as well as a $12.9 million increase in orders for aftermarket offerings. Partially offsetting these improvements were reductions in orders for vacuum trucks of $8.6 million and dump truck bodies and trailers of $2.2 million. Non-U.S. orders decreased by $15.0 million, largely due to reductions in orders for other specialty equipment of $19.0 million, primarily driven by lower third-party refuse truck orders, and vacuum trucks of $2.6 million. Partially offsetting these reductions were improvements in orders for aftermarket offerings of $2.5 million, dump truck bodies and trailers of $1.8 million, and a $2.3 million favorable foreign currency translation impact.
Current wording
Total orders for the six months ended June 30, 2026 increased by $160.9 million, or 17%, compared to the prior-year period, inclusive of the effects of acquisitions. U.S. orders increased by $151.2 million, primarily due to improvements in orders for other specialty equipment of $102.7 million, inclusive of higher refuse truck orders associated with the New Way acquisition and higher metal extraction support equipment orders partially due to the Mega acquisition, as well as a $29.4 million increase in orders for aftermarket offerings, dump truck bodies and trailers of $15.0 million, and vacuum trucks of $4.1 million. Non-U.S. orders increased by $9.7 million, largely due to improvements in orders for aftermarket offerings of $10.3, dump truck bodies and trailers of $4.9 million, vacuum trucks of $2.3 million, and a $2.3 million favorable foreign currency translation impact. Partially offsetting these reductions was a decrease in orders for other specialty equipment of $10.1 million.
Previous wording
Net sales for the three months ended March 31, 2026 increased by $145.3 million, or 38%, 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, 2026, U.S. sales increased by $123.2 million due to increases in sales of other specialty equipment of $93.1 million, primarily driven by higher sales of refuse trucks due to the New Way acquisition and higher sales of metal extraction support equipment due to the Mega acquisition, as well as increases in sales of aftermarket offerings of $12.9 million, vacuum trucks of $8.7 million, and dump truck bodies and trailers of $8.5 million. Non-U.S. sales increased by $22.1 million, primarily due to increases in sales of other specialty equipment of $13.5 million, aftermarket offerings of $4.3 million, vacuum trucks of $1.6 million, and a $3.0 million favorable foreign currency translation impact.
Current wording
Net sales for the six months ended June 30, 2026 increased by $242.5 million, or 28%, 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, 2026, U.S. sales increased by $222.1 million due to increases in sales of other specialty equipment of $150.9 million, primarily driven by higher sales of refuse trucks due to the New Way acquisition and higher sales of metal extraction support equipment due to the Mega acquisition, as well as increases in sales of aftermarket offerings of $35.6 million, dump truck bodies and trailers of $19.2 million, and vacuum trucks of $16.4 million. Non-U.S. sales increased by $20.4 million, primarily due to increases in sales of aftermarket offerings of $10.0 million, vacuum trucks of $4.6 million, other specialty equipment of $3.0 million, and a $2.9 million favorable foreign currency translation impact.
Previous wording
Operating income for the three months ended March 31, 2026 increased by $29.4 million, or 49%, compared to the prior-year quarter, largely due to a $39.9 million improvement in gross profit, partially offset by the $8.4 million increase in SEG&A expenses and a $2.2 million increase in amortization expense.
Current wording
Operating income for the six months ended June 30, 2026 increased by $51.4 million, or 34%, compared to the prior-year period, largely due to a $71.8 million improvement in gross profit, partially offset by the $16.1 million increase in SEG&A expenses and a $4.3 million increase in amortization expense.
Previous wording
Backlog was $966 million at March 31, 2026, compared to $1.03 billion at March 31, 2025.
Current wording
Backlog was $935 million at June 30, 2026, compared to $1.00 billion at June 30, 2025.
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, 2026 and 2025:
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, 2026 and 2025:
Previous wording
Net sales for the three months ended March 31, 2026 increased by $16.5 million, or 22%, compared to the prior-year quarter, inclusive of the effects of higher sales volumes and pricing actions. U.S. sales increased by $13.8 million, driven by increases in sales of public safety equipment of $13.2 million and warning systems of $0.6 million. Non-U.S. sales increased by $2.7 million, primarily due to a $1.4 million increase in sales of industrial signaling equipment and a $1.9 million favorable foreign currency translation impact.
Current wording
Net sales for the three months ended June 30, 2026 increased by $8.4 million, or 10%, compared to the prior-year quarter, inclusive of the effects of higher sales volumes and pricing actions. U.S. sales increased by $11.1 million, primarily driven by increases in sales of public safety equipment of $8.1 million and warning systems of $3.0 million. Non-U.S. sales decreased by $2.7 million, primarily due to reductions in warning systems of $3.5 million and public safety equipment of $0.6 million, partially offset by a $0.9 million increase in sales of industrial signaling equipment and a $0.5 million favorable foreign currency translation impact.
Previous wording
Cost of sales for the three months ended March 31, 2026 increased by $7.8 million, or 17%, compared to the prior-year quarter, primarily related to higher sales volumes. Gross profit margin for the three months ended March 31, 2026 was 43.6%, compared to 41.6% in the prior-year quarter, with the improvement primarily attributable to improved operating leverage from higher sales volumes and benefits from pricing actions.
Current wording
Cost of sales for the three months ended June 30, 2026 increased by $6.1 million, or 13%, compared to the prior-year quarter, primarily related to higher sales volumes and increased material costs. Gross profit margin for the three months ended June 30, 2026 was 43.1%, compared to 44.7% in the prior-year quarter, with the decrease primarily attributable to unfavorable sales mix and higher material costs, partially offset by operating leverage from higher sales volumes and benefits from pricing actions.
Previous wording
SEG&A expenses for the three months ended March 31, 2026 increased by $0.9 million, or 6%, compared to the prior-year quarter, primarily due to higher employee-related costs and marketing expenses. As a percentage of net sales, SEG&A expenses were 18.2% in the current-year quarter, compared to 20.9% in the prior-year quarter.
Current wording
SEG&A expenses for the three months ended June 30, 2026 increased by $1.7 million, or 11%, compared to the prior-year quarter, primarily due to higher employee-related costs and marketing expenses. As a percentage of net sales, SEG&A expenses were 19.2% in the current-year quarter, compared to 19.1% in the prior-year quarter.
Previous wording
Total orders for the three months ended March 31, 2026 increased by $0.7 million, or 1%, compared to the prior-year quarter. U.S. orders increased by $6.4 million, primarily due to improvements in orders for warning systems of $3.3 million, public safety equipment of $1.9 million, and industrial signaling equipment of $1.2 million. Non-U.S. orders decreased by $5.7 million, primarily due to decreases in orders for public safety equipment of $6.2 million and warning systems of $1.4 million, partially offset by a $1.3 million favorable foreign currency translation impact.
Current wording
Total orders for the six months ended June 30, 2026 decreased by $9.0 million, or 5%, compared to the prior-year period. U.S. orders increased by $1.0 million, primarily due to improvements in orders for warning systems of $3.2 million and industrial signaling equipment of $1.3 million, partially offset by a $3.5 million reduction in orders for public safety equipment. Non-U.S. orders decreased by $10.0 million, primarily due to decreases in orders for public safety equipment of $12.7 million and warning systems of $0.6 million, partially offset by a $1.4 million increase in orders for industrial signaling equipment and a $1.9 million favorable foreign currency translation impact.
Previous wording
Backlog was $72 million at March 31, 2026, compared to $69 million at March 31, 2025.
Current wording
Backlog was $67 million at June 30, 2026, compared to $83 million at June 30, 2025.
Previous wording
Corporate operating expenses for the three months ended March 31, 2026 were $13.0 million, compared to $9.8 million in the prior-year quarter, with the increase primarily due to a $0.7 million increase in acquisition and integration-related expenses, net, as well as higher legal, stock compensation, and incentive-based compensation costs.
Current wording
Corporate operating expenses for the six months ended June 30, 2026 were $30.8 million, compared to $25.5 million in the prior-year period, with the increase primarily due to higher post-retirement expenses and legal costs, a $0.8 million increase in acquisition and integration-related expenses, net, as well as increased medical costs.
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 all of the outstanding equity interests of Mega that was completed on January 16, 2026. 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 2025 Credit Agreement will provide funds sufficient for these purposes. The net cash flows associated with the Company’s rental equipment transactions are included in cash flow from operating activities.
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. 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 2025 Credit Agreement will provide funds sufficient for these purposes. The net cash flows associated with the Company’s rental equipment transactions are included in cash flow from operating activities.
Previous wording
As of March 31, 2026, there was $150.6 million of cash drawn under the revolving credit facility, $400.0 million outstanding under the term loan facility, and $10.7 million of undrawn letters of credit under the 2025 Credit Agreement, with $938.7 million of availability for borrowings.
Current wording
As of June 30, 2026, there was $52.7 million of cash drawn under the revolving credit facility, $400.0 million outstanding under the term loan facility, and $10.7 million of undrawn letters of credit under the 2025 Credit Agreement, with $1.04 billion of availability for borrowings.
Previous wording
The Company’s cash and cash equivalents totaled $71.4 million as of March 31, 2026 and $63.7 million as of December 31, 2025. As of March 31, 2026, $25.6 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.
Current wording
The Company’s cash and cash equivalents totaled $62.8 million as of June 30, 2026 and $63.7 million as of December 31, 2025. As of June 30, 2026, $14.9 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 $101.3 million was provided by operating activities in the three months ended March 31, 2026, compared to $36.7 million in the prior-year period, with the year-over-year increase primarily due to higher net income and favorable changes in net working capital.
Current wording
Net cash of $214.2 million was provided by operating activities in the six months ended June 30, 2026, compared to $96.4 million in the prior-year period, with the year-over-year increase primarily due to higher net income, inclusive of the effects of acquisitions, and favorable changes in net working capital.
Previous wording
Net cash of $51.6 million was used for investing activities in the three months ended March 31, 2026, compared to $87.7 million in the prior-year period. During the three months ended March 31, 2026, the Company funded $6.7 million of capital expenditures and made an initial payment of $45.0 million to acquire Mega. 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.
Current wording
Net cash of $62.1 million was used for investing activities in the six months ended June 30, 2026, compared to $94.3 million in the prior-year period. During the six months ended June 30, 2026, the Company funded $18.6 million of capital expenditures and made an initial payment of $44.9 million to acquire Mega, net of cash acquired. 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.
Previous wording
Net cash of $41.7 million was used for financing activities in the three months ended March 31, 2026, whereas in the prior-year quarter, net cash of $16.9 million was provided by financing activities. In the three months ended March 31, 2026, the Company paid down $12.8 million of borrowings under its revolving credit facility, funded cash dividends of $9.2 million, and redeemed $8.2 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. Additionally, the Company funded payments of $11.5 million relating to the Hog acquisition. In the three months ended March 31, 2025, the Company increased net borrowings under its revolving credit facility 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.
Current wording
Net cash of $152.9 million was used for financing activities in the six months ended June 30, 2026, compared to $29.8 million in the prior year period. In the six months ended June 30, 2026, the Company paid down $109.8 million of borrowings under its revolving credit facility, funded cash dividends of $18.3 million, and redeemed $13.5 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. Additionally, the Company funded payments of $11.5 million relating to the Hog acquisition. In the six months ended June 30, 2025, the Company increased net borrowings under its revolving credit facility by $55.0 million, paid down $1.6 million under its previous term loan facility, funded $4.3 million of acquisition-related payments, 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.
Previous wording
During the three months ended March 31, 2026, 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, 2025.
Current wording
During the six months ended June 30, 2026, 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, 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Income before income taxes for the three months ended June 30, 2026 increased by $18.0 million, or 19%, compared to the prior-year quarter. The increase resulted from the higher operating income, partially offset by a $2.5 million increase in interest expense, net.
Current report — wording carried from elsewhere
The Company recognized income tax expense of $47.1 million for the six months ended June 30, 2026, compared to $37.7 million in the six months ended June 30, 2025, with the increase primarily due to the effects of higher pre-tax income levels, partially offset by a $2.2 million increase in excess tax benefits associated with stock-based compensation activity. The Company’s effective tax rate for the six months ended June 30, 2026 was 23.1%, compared to 24.3% in the prior-year period.