Federal Signal Corporation
FSS Industrials Farm & Heavy Construction Machinery
Federal Signal Corporation’s revenue for fiscal 2025 (year ended December 2025) was $2.2 billion, up 17.1% from fiscal 2024. In the quarter to June 2026, revenue grew 18.7%, EPS grew 19.5%, free cash flow grew 92.8% and total debt rose 68.6%, each against the same quarter a year earlier. Dividend growth for ten consecutive years, revenue growth for five, operating cash flow growth for three; insiders bought in the last twelve months.
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Federal Signal Corporation (FSS) Altman Z-score
Federal Signal Corporation's Altman Z-score for fiscal 2025 is 6.36, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 6.36 | (2.20) |
| FY2024 | 8.56 | 1.45 |
| FY2023 | 7.11 | 2.28 |
| FY2022 | 4.83 | (0.02) |
| FY2021 | 4.85 | 0.23 |
| FY2020 | 4.62 | 0.09 |
| FY2019 | 4.53 | 0.83 |
| FY2018 | 3.69 | 0.48 |
| FY2017 | 3.21 | (1.46) |
| FY2016 | 4.67 | (0.20) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.24 | — | 0.29 | |
| Retained earnings / total assets | 0.55 | — | 0.77 | |
| EBIT / total assets | 0.14 | — | 0.47 | |
| Market value of equity / total liabilities | 6.53 | — | 3.92 | |
| Sales / total assets | 0.91 | — | 0.91 | |
| Altman Z-score | Safe zone | 6.36 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 5.75 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| BLBD Blue Bird Corporation compare | 6.8× |
| FSS Federal Signal Corporation | 6.4× |
| LNN Lindsay Corporation compare | 5.8× |
| ALG Alamo Group, Inc. compare | 5.4× |
| OSK Oshkosh Corporation compare | 3.2× |
| ASTE Astec Industries, Inc. compare | 3.1× |
| AGCO AGCO Corporation compare | 2.5× |
| TEX Terex Corporation compare | 2.4× |
| CNH CNH Industrial N.V. compare | 2.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets