Federal Signal Corporation announced the completion of its acquisition of New Way Trucks, a leading U.S. designer and manufacturer of refuse‑collection vehicles, on November 26, 2025. The deal adds more than 750 employees to the Federal Signal family and brings New Way’s automated side‑loader technology into the company’s Environmental Solutions Group, positioning the combined entity as a dominant player in the municipal equipment market.
The transaction was structured for a purchase price of $396 million, plus $30 million for facilities and real‑estate assets, and includes a potential earn‑out of up to $54 million. The acquisition is expected to be neutral to adjusted earnings per share (EPS) in 2025 but accretive in later years, with synergies of $15 million–$20 million projected by the end of 2028. The added backlog of more than $100 million provides a solid foundation for future margin expansion through product optimization and aftermarket services.
Federal Signal raised its full‑year 2025 net sales outlook to $2.12 billion–$2.16 billion, up from $2.10 billion–$2.14 billion, and its adjusted EPS outlook to $4.12–$4.20, up from $4.09–$4.17. The guidance increase reflects management’s confidence that the New Way integration will strengthen sales momentum and improve operating leverage, especially in the refuse‑collection vehicle segment where demand remains resilient amid municipal infrastructure spending.
The acquisition strengthens Federal Signal’s market position in the refuse‑collection vehicle segment, adding a high‑margin product line that complements its existing portfolio. New Way’s automated side‑loader technology is expected to drive incremental revenue growth and enable cross‑selling opportunities within Federal Signal’s dealer network. The combined backlog and projected synergies signal a clear path to higher profitability, reinforcing the company’s strategy to broaden its product portfolio and enhance its competitive moat in essential municipal equipment markets.
Management highlighted the strategic fit, noting that New Way’s “leading market position in automated side loaders and its strong reputation for quality and customer focus make it a natural fit within our Environmental Solutions Group.” The acquisition is part of a broader trend of consolidation in the waste‑and‑recycling industry, a sector that remains recession‑resilient and offers long‑term growth prospects for companies that can deliver reliable, high‑quality equipment.
The deal also aligns with Federal Signal’s focus on operational excellence. By integrating New Way’s manufacturing processes and dealer relationships, the company expects to realize cost efficiencies and scale benefits that will support margin expansion in the coming years. The projected $15 million–$20 million in synergies by 2028 underscores the management’s belief that the combined entity will generate incremental value beyond the standalone businesses.
Overall, the acquisition positions Federal Signal to capture a larger share of the municipal equipment market, enhance its product offering, and strengthen its financial outlook for 2025 and beyond. The deal’s completion and the accompanying guidance raise signal a positive trajectory for the company’s growth strategy and operational execution.
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