FEDERAL SIGNAL CORP /DE/

Previous wording

The Company is a leading global manufacturer and supplier of (i) vehicles and equipment for maintenance and infrastructure end-markets, including vacuum trucks (i.e., sewer cleaners, vacuum- and hydro-excavation (“safe-digging”) trucks, and industrial vacuum loaders), dump truck bodies and trailers, and other specialty equipment (i.e., street sweepers, waterblasting equipment, refuse collection vehicles, road-marking and line-removal equipment, metal extraction support equipment, and multi-purpose maintenance vehicles), and (ii) public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems. Product offerings also include certain products manufactured by other companies. In addition to vehicle and equipment sales, the Company engages in the sale of parts, service and repair, equipment rentals, and training as part of a comprehensive aftermarket offering to its customers. The Company operates 21 principal manufacturing facilities in the U.S., three in Canada, two in Europe, and one in South Africa and provides products and integrated solutions to municipal, governmental, industrial, and commercial customers in all regions of the world.

Current wording

The Company is a leading global manufacturer and supplier of (i) vehicles and equipment for maintenance and infrastructure end-markets, including vacuum trucks (i.e., sewer cleaners, vacuum- and hydro-excavation (“safe-digging”) trucks, and industrial vacuum loaders), dump truck bodies and trailers, and other specialty equipment (i.e., street sweepers, waterblasting equipment, refuse collection vehicles, road-marking and line-removal equipment, metal extraction support equipment, and multi-purpose maintenance vehicles), and (ii) public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems. Product offerings also include certain products manufactured by other companies. In addition to vehicle and equipment sales, the Company engages in the sale of parts, service and repair, equipment rentals, and training as part of a comprehensive aftermarket offering to its customers. The Company operates 22 principal manufacturing facilities in the U.S., three in Canada, two in Europe, and one in South Africa and provides products and integrated solutions to municipal, governmental, industrial, and commercial customers in all regions of the world.

Previous wording

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 wording

Net sales for the nine months ended September 30, 2026 increased by $367.9 million, or 23%, 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 $340.8 million, or 26%, primarily due to increases in sales of other specialty equipment of $219.1 million, aftermarket offerings of $71.9 million, dump truck bodies and trailers of $26.9 million, and vacuum trucks of $20.8 million. Within our Safety and Security Systems Group, net sales increased by $27.1 million, or 11%, primarily due to increases in sales of public safety equipment of $20.5 million and industrial signaling equipment of $5.1 million, as well as a $2.4 million favorable foreign currency translation impact, partially offset by a $0.9 million reduction in sales of warning systems.

Previous wording

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 wording

Income before income taxes for the three months ended September 30, 2026 increased by $14.6 million, or 16%, 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, and a $0.3 million increase in other expense, net.

Previous 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.

Current wording

Income before income taxes for the nine months ended September 30, 2026 increased by $62.8 million, or 26%, compared to the prior-year period. The increase resulted from the higher operating income, partially offset by an $8.9 million increase in interest expense, net, and a $0.2 million increase in other expense, net.

Previous 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.

Current wording

Net income for the three months ended September 30, 2026 increased by $11.5 million compared to the prior-year quarter, largely due to the aforementioned increase in income before taxes, partially offset by a $3.1 million increase in income tax expense.

Previous 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 aforementioned increase in income before taxes, partially offset by a $9.4 million increase in income tax expense.

Current wording

Net income for the nine months ended September 30, 2026 increased by $50.3 million compared to the prior-year period, largely due to the aforementioned increase in income before taxes, partially offset by a $12.5 million increase in income tax expense.

Previous 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.

Current wording

Total orders for the three months ended September 30, 2026 were $620 million, an increase of $153 million, or 33%, compared to the prior-year quarter. Our Environmental Solutions Group reported total orders of $530 million in the three months ended September 30, 2026, an increase of $159 million, or 43%, in comparison to the prior-year quarter. Orders in the three months ended September 30, 2026 within our Safety and Security Systems Group were $90 million, a reduction of $5 million, or 6%, compared to the prior-year quarter.

Previous wording

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 wording

Total orders for the nine months ended September 30, 2026 were $1.88 billion, an increase of $305 million, or 19%, compared to the prior-year period. Our Environmental Solutions Group reported total orders of $1.61 billion in the nine months ended September 30, 2026, an increase of $320 million, or 25%, in comparison to the prior-year period. Orders in the nine months ended September 30, 2026 within our Safety and Security Systems Group were $268 million, a reduction of $14 million, or 5%, compared to the prior-year period.

Previous wording

Our consolidated backlog at June 30, 2026 was $1.00 billion, compared to $1.08 billion at June 30, 2025.

Current wording

Our consolidated backlog at September 30, 2026 was $967 million, compared to $992 million at September 30, 2025.

Previous wording

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 wording

Net sales for the nine months ended September 30, 2026 increased by $367.9 million, or 23%, 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 $340.8 million, or 26%, primarily due to increases in sales of other specialty equipment of $219.1 million, aftermarket offerings of $71.9 million, dump truck bodies and trailers of $26.9 million, and vacuum trucks of $20.8 million. Within the Safety and Security Systems Group, net sales increased by $27.1 million, or 11%, primarily due to increases in sales of public safety equipment of $20.5 million and industrial signaling equipment of $5.1 million, as well as a $2.4 million favorable foreign currency translation impact, partially offset by a $0.9 million reduction in sales of warning systems.

Previous 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.

Current wording

Cost of sales increased by $72.8 million, or 19%, for the three months ended September 30, 2026 compared to the prior-year quarter, largely due to an increase of $71.9 million, or 21%, 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 $0.9 million, or 2%, primarily related to unfavorable sales mix.

Previous wording

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 wording

Cost of sales increased by $257.4 million, or 23%, for the nine months ended September 30, 2026 compared to the prior-year period, largely due to an increase of $242.6 million, or 25%, within the Environmental Solutions Group, primarily related to the addition of cost of sales from recent acquisitions, higher material costs, higher sales volumes, and a $2.3 million increase in purchase accounting expense effects. Within the Safety and Security Systems Group, cost of sales increased by $14.8 million, or 10%, primarily related to higher sales volumes, unfavorable sales mix, and a $1.9 million unfavorable foreign currency translation impact.

Previous 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.

Current wording

Gross profit increased by $27.7 million, or 17%, for the three months ended September 30, 2026 compared to the prior-year quarter, primarily due to a $26.4 million improvement within the Environmental Solutions Group and a $1.3 million improvement within the Safety and Security Systems Group. Gross profit as a percentage of revenues (“gross profit margin”) for the three months ended September 30, 2026 was 28.9%, compared to 29.1% in the prior-year quarter, inclusive of a 10 basis point improvement within the Environmental Solutions Group and a 30 basis point improvement within the Safety and Security Systems Group.

Previous wording

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 wording

Gross profit increased by $110.5 million, or 24%, for the nine months ended September 30, 2026 compared to the prior-year period, primarily due to a $98.2 million improvement within the Environmental Solutions Group and a $12.3 million improvement within the Safety and Security Systems Group. Gross profit margin for the nine months ended September 30, 2026 was 29.3%, compared to 29.2% in the prior-year period, inclusive of a 50 basis point improvement within the Environmental Solutions Group and a 20 basis point improvement within the Safety and Security Systems Group.

Previous 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.

Current wording

SEG&A expenses for the three months ended September 30, 2026 increased by $8.4 million, or 14%, compared to the prior-year quarter, primarily due to a $7.6 million increase within the Environmental Solutions Group, a $0.4 million increase within the Safety and Security Systems Group, and a $0.4 million increase in Corporate SEG&A expenses. As a percentage of net sales, SEG&A expenses were 10.6% in the current-year quarter, compared to 11.1% in the prior-year quarter.

Previous wording

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 wording

SEG&A expenses for the nine months ended September 30, 2026 increased by $31.6 million, or 17%, compared to the prior-year period, primarily due to a $23.7 million increase within the Environmental Solutions Group, a $4.9 million increase in Corporate SEG&A expenses, and a $3.0 million increase within the Safety and Security Systems Group. As a percentage of net sales, SEG&A expenses were 11.3% in the current-year period, compared to 11.9% in the prior-year period.

Previous wording

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 wording

Interest expense, net, for the nine months ended September 30, 2026 increased by $8.9 million compared to the prior-year period, largely due to higher average debt levels.

Previous 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.

Current wording

The Company recognized income tax expense of $25.5 million for the three months ended September 30, 2026, compared to $22.4 million in the three months ended September 30, 2025, with the increase primarily due to the effects of higher pre-tax income levels and a $0.7 million reduction in excess tax benefits associated with stock-based compensation activity, partially offset by the tax effects of favorable changes in foreign-based income items and executive compensation limitations. The Company’s effective tax rate for the three months ended September 30, 2026 was 24.3%, compared to 24.8% in the prior-year quarter.

Previous wording

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.

Current wording

The Company recognized income tax expense of $72.6 million for the nine months ended September 30, 2026, compared to $60.1 million in the nine months ended September 30, 2025, with the increase primarily due to the effects of higher pre-tax income levels, partially offset by a $1.5 million increase in excess tax benefits associated with stock-based compensation activity and the tax effects of favorable changes in foreign-based income items and executive compensation limitations. The Company’s effective tax rate for the nine months ended September 30, 2026 was 23.5%, compared to 24.4% in the prior-year period.

Previous 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 $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 wording

Net income for the three months ended September 30, 2026 increased by $11.5 million compared to the prior-year quarter, largely due to the $17.4 million increase in operating income, partially offset by a $3.1 million increase in income tax expense, a $2.5 million increase in interest expense, net, and a $0.3 million increase in other expense, net.

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, 2026 and 2025:

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, 2026 and 2025:

Previous wording

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 wording

Total orders for the three months ended September 30, 2026 increased by $158.6 million, or 43%, compared to the prior-year quarter, inclusive of the effects of acquisitions. U.S. orders increased by $135.9 million, primarily due to improvements in orders for other specialty equipment of $78.7 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 increases in orders for vacuum trucks of $37.5 million and aftermarket offerings of $23.0 million, partially offset by a $3.3 million reduction in orders for dump truck bodies and trailers. Non-U.S. orders increased by $22.7 million, largely due to increases in orders for vacuum trucks of $9.7 million, aftermarket offerings of $9.1 million, and other specialty equipment of $5.1 million, partially offset by a $0.5 million reduction in orders for dump truck bodies and trailers and a $0.7 million unfavorable foreign currency translation impact.

Previous wording

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 wording

Net sales for the three months ended September 30, 2026 increased by $98.3 million, or 21%, compared to the prior-year quarter, primarily due to the effects of acquisitions and pricing actions. For the three months ended September 30, 2026, U.S. sales increased by $92.5 million due to increases in sales of other specialty equipment of $74.9 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 $17.1 million, and dump truck bodies and trailers of $6.0 million, partially offset by a $5.5 million reduction in sales of vacuum trucks. Non-U.S. sales increased by $5.8 million, primarily due to increases in sales of aftermarket offerings of $9.2 million, vacuum trucks of $5.3 million, and dump truck bodies and trailers of$1.8 million, partially offset by a$9.7 million reduction in sales of other specialty equipment anda$0.8 million unfavorable foreign currency translation impact.

Previous 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.

Current wording

Cost of sales for the three months ended September 30, 2026 increased by $71.9 million, or 21%, compared to the prior-year quarter, primarily related to the addition of cost of sales from recent acquisitions and higher material costs. Gross profit margin for the three months ended September 30, 2026 was 26.4%, compared to 26.3% in the prior-year quarter, with the improvement primarily due to favorable sales mix and benefits from pricing actions, partially offset by higher material costs.

Previous 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.

Current wording

SEG&A expenses for the three months ended September 30, 2026 increased by $7.6 million, or 23%, 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 7.1% in the current-year quarter, compared to 7.0% in the prior-year quarter.

Previous 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.

Current wording

Total orders for the nine months ended September 30, 2026 increased by $319.5 million, or 25%, compared to the prior-year period, inclusive of the effects of acquisitions. U.S. orders increased by $287.1 million, primarily due to increases in orders for other specialty equipment of $181.4 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 $52.4 million increase in orders for aftermarket offerings, vacuum trucks of $41.6 million, and dump truck bodies and trailers of $11.7 million. Non-U.S. orders increased by $32.4 million, largely due to increases in orders for aftermarket offerings of $19.4 million, vacuum trucks of $12.0 million, dump truck bodies and trailers of $4.4 million, and a $1.6 million favorable foreign currency translation impact, partially offset by a $5.0 million reduction in orders for other specialty equipment.

Previous 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.

Current wording

Net sales for the nine months ended September 30, 2026 increased by $340.8 million, or 26%, 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, 2026, U.S. sales increased by $314.6 million due to increases in sales of other specialty equip ment of $225.8 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 $52.7 million, dump truck bodies and trailers of $25.2 million, and vacuum trucks of $10.9 million. Non-U.S. sales increased by $26.2 million, primarily due to increases in sales of aftermarket offerings of $19.2 million, vacuum trucks of $9.9 million, dump bodies and trailers of$1.7 million, and a $2.1 million favorable foreign currency translation impact, partially offset by a $6.7 million reduction in sales of other specialty equipment.

Previous wording

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 wording

Cost of sales for the nine months ended September 30, 2026 increased by $242.6 million, or 25%, 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 $2.3 million increase in purchase accounting expense effects. Gross profit margin for the nine months ended September 30, 2026 was 27.0%, compared to 26.5% in the prior-year period, with the improvement primarily due to operating leverage from higher sales volumes, benefits from pricing actions, and favorable sales mix.

Previous wording

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 wording

SEG&A expenses for the nine months ended September 30, 2026 increased by $23.7 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 7.6% in the current-year period, compared to 7.7% in the prior-year period.

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, 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 nine months ended September 30, 2026 and 2025:

Previous wording

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 wording

Total orders for the three months ended September 30, 2026 decreased by $5.4 million, or 6%, compared to the prior-year quarter. U.S. orders increased by $7.4 million, primarily due to improvements in orders for warning systems of $3.5 million, industrial signaling equipment of $2.6 million, inclusive of orders associated with the acquisition of Western Technology, and public safety equipment of $1.3 million. Non-U.S. orders decreased by $12.8 million, primarily due to a $14.3 million reduction in orders for public safety equipment, partially offset by a $2.1 million increase in orders for industrial signaling equipment.

Previous 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.

Current wording

Cost of sales for the three months ended September 30, 2026 increased by $0.9 million, or 2%, compared to the prior-year quarter, primarily related to unfavorable sales mix. Gross profit margin for the three months ended September 30, 2026 was 43.9%, compared to 43.6% in the prior-year quarter, with the improvement primarily attributable to benefits from pricing actions, partially offset by unfavorable sales mix.

Previous 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.

Current wording

SEG&A expenses for the three months ended September 30, 2026 increased by $0.4 million, or 2%, 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 19.1% in both the current-year and prior-year quarters.

Previous 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.

Current wording

Total orders for the nine months ended September 30, 2026 decreased by $14.4 million, or 5%, compared to the prior-year period. U.S. orders increased by $8.5 million, primarily due to increases in orders for warning systems of $6.7 million and industrial signaling equipment of $4.0 million, inclusive of orders associated with the acquisition of Western Technology, partially offset by a $2.2 million reduction in orders for public safety equipment. Non-U.S. orders decreased by $22.8 million, primarily due to decreases in orders for public safety equipment of $27.0 million and warning systems of $1.1 million, partially offset by a $3.4 million increase in orders for industrial signaling equipment and a $1.9 million favorable foreign currency impact.

Previous 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.

Current wording

Net sales for the nine months ended September 30, 2026 increased by $27.1 million, or 11%, compared to the prior-year period, inclusive of the effects of higher sales volumes, pricing actions, and acquisitions. U.S. sales increased by $31.3 million, primarily driven by increases in sales of public safety equipment of $24.0 million, warning systems of $4.8 million, and industrial signaling equipment of $2.5 million, inclusive of sales associated with the Western Technology acquisition. Non-U.S. sales decreased by $4.2 million, primarily due to reductions in sales of warning systems of $5.7 million and public safety equipment of $3.5 million, partially offset by a $2.6 million increase in sales of industrial signaling equipment and a $2.4 million favorable foreign currency impact.

Previous wording

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 wording

Cost of sales for the nine months ended September 30, 2026 increased by $14.8 million, or 10%, compared to the prior-year period, primarily related to higher sales volumes, unfavorable sales mix, and a $1.9 million unfavorable foreign currency translation impact. Gross profit margin for the nine months ended September 30, 2026 was 43.6%, compared to 43.4% in the prior-year period, with the improvement primarily attributable to improved operating leverage from higher sales volumes and benefits from pricing actions, partially offset by unfavorable sales mix.

Previous wording

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 wording

SEG&A expenses for the nine months ended September 30, 2026 increased by $3.0 million, or 6%, 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 18.8% in the current-year period, compared to 19.7% in the prior-year period.

Previous 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.

Current wording

Corporate operating expenses for the three months ended September 30, 2026 were $12.8 million, compared to $13.2 million in the prior-year quarter, with the decrease primarily due to lower post-retirement expenses and a $0.8 million reduction in acquisition and integration-related expenses, net, partially offset by the recognition of $2.0 million in charges related to a legal dispute associated with a business discontinued in 2012 and higher stock compensation costs.

Previous wording

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.

Current wording

Corporate operating expenses for the nine months ended September 30, 2026 were $43.6 million, compared to $38.7 million in the prior-year period, with the increase primarily due to the recognition of $3.0 million in charges related to a legal dispute associated with a business discontinued in 2012, as well as higher stock compensation, medical, and other employee-related costs, partially offset by lower post-retirement expenses.

Previous 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.

Current wording

As of September 30, 2026, there was $44.3 million of cash drawn under the revolving credit facility, $375.0 million outstanding under the term loan facility, and $11.1 million of undrawn letters of credit under the 2025 Credit Agreement, with $1.04 billion of availability for borrowings.