#United States #Downers Grove #Federal Signal #Environmental Solutions #New Way Trucks

Federal Signal Expands Market Reach with New Way Trucks Acquisition

Federal Signal Corporation (NYSE: FSS), renowned for its commitment to environmental and safety solutions, has successfully concluded its acquisition of Scranton Manufacturing Company LLC, commonly known as New Way Trucks. This acquisition was officially announced on September 24, 2025, but its completion marks a significant strategic milestone for Federal Signal.

With this acquisition, Federal Signal is welcoming over 750 dedicated employees from New Way into its corporate family. Jennifer L. Sherman, the President and CEO of Federal Signal, expressed enthusiasm about this development. She emphasized that New Way’s established reputation in the automated side loader market, paired with its commitment to quality and customer service, makes it an excellent addition to the company’s Environmental Solutions Group.

The acquisition comes with a robust current backlog exceeding $100 million, hinting at promising growth prospects in the short term, especially in the first half of the following year. Beyond immediate benefits, Federal Signal plans to leverage New Way’s capabilities through its specialty vehicle platform, aiming for product optimization and aftermarket expansion. This synergy is expected to enhance sales growth and profit margins while delivering substantial value for both customers and stockholders.

In light of this acquisition, Federal Signal has revised its sales outlook for the full year 2025, now forecasting net sales in the range of $2.12 billion to $2.16 billion, up from the previous estimate of $2.10 billion to $2.14 billion. While the acquisition is anticipated to be neutral concerning earnings per share (EPS) for this fiscal year, the company has also increased its adjusted EPS outlook to a range of $4.12 to $4.20, slightly above earlier predictions.

Looking into 2026, Federal Signal believes the acquisition's impact on EPS will remain neutral due to expected business investments and operational integration costs. The transaction, however, is projected to contribute positively to EPS in subsequent years. Specifically, by 2028, the company estimates an EPS accretion between $0.40 and $0.45 due to anticipated annual run-rate synergies ranging from $15 million to $20 million, which are expected to be largely realized by the end of that year.

About Federal Signal

Founded in 1901, Federal Signal is a leading global designer and manufacturer of products that help to move materials, clean infrastructure, and enhance community safety. The company operates with a strong commitment to delivering unmatched quality and value across its Environmental Solutions and Safety and Security Systems segments. Their headquarters is situated in Downers Grove, Illinois, with manufacturing units spread worldwide.

In conclusion, the acquisition of New Way Trucks not only strengthens Federal Signal’s market position but also opens up new avenues for growth, innovation, and value creation, positioning the company well for future success in the environmental solutions marketplace. For more information about Federal Signal, visit www.federalsignal.com.