Federal Signal Corporation reported consolidated net sales of $474 million for the third quarter ended September 30, 2024, an increase of 6% compared to the prior-year quarter. The company achieved adjusted net income of $54.2 million, or $0.88 per diluted share, up from $0.71 per diluted share in the same period last year. Consolidated operating income rose by 21% to $75.9 million, with the operating margin expanding to 16.0% from 14.0%.
The Environmental Solutions Group (ESG) saw net sales increase by 7% to $398 million, and its adjusted EBITDA grew by 21% to $87.2 million, resulting in an adjusted EBITDA margin of 21.9%. The Safety and Security Systems Group (SSG) also contributed positively with 4% top-line growth and an adjusted EBITDA margin of 23.4%. The company raised the EBITDA margin targets for its SSG segment to a new range of 18% to 24%, from the previous range of 17% to 21%.
Federal Signal's consolidated backlog stood at $1.03 billion as of September 30, 2024, representing a 3% increase from the prior year. Net cash provided by operating activities during the quarter was $69 million, a 43% increase year-over-year. Management raised its full-year adjusted EPS outlook to a new range of $3.30 to $3.40 and narrowed its full-year net sales outlook to between $1.86 billion and $1.88 billion.
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