Federal Signal names Reichelderfer as new board chair

DOWNERS GROVE, Ill. - Federal Signal Corporation (NYSE:FSS), a $4.66 billion market cap company specializing in equipment that serves municipal, governmental, industrial, and commercial customers, has undergone a change in leadership. The company, which according to InvestingPro analysis maintains a "GREAT" financial health score, has demonstrated strong operational performance with 8.06% revenue growth in the last twelve months. Brenda L. Reichelderfer has been appointed as the new Chair of the Board of Directors, effective April 22, 2025. She succeeds Dennis J. Martin, who has served in various leadership roles within the company since March 2008.

Ms. Reichelderfer, who joined the Board in October 2006, was the Lead Independent Director before her new appointment. Her extensive experience includes roles at Moog Inc., TriVista Business Group, and ITT Inc., bringing a wealth of knowledge in engineering, manufacturing, and corporate governance to her new position.

Dennis J. Martin, who has been a member of the Board since March 2008 and served as the Chair since January 2017, will continue to serve as Chair Emeritus after being re-elected for another one-year term at the annual meeting of stockholders on April 22, 2025. Under his leadership, Federal Signal has maintained dividend payments for 12 consecutive years, showcasing strong financial stability. For detailed analysis of FSS’s performance metrics and future potential, investors can access comprehensive research through InvestingPro’s exclusive reports. Martin’s tenure included roles such as Executive Chair and President and CEO of the company, contributing significantly to Federal Signal’s strategic direction and growth.

The leadership transition at Federal Signal is part of a strategic succession planning process. Martin expressed confidence in Reichelderfer’s abilities to guide the company forward, stating, "We are fortunate that we have someone with Brenda’s skillset and guidance to continue the Company’s growth trajectory."

Federal Signal, founded in 1901 and headquartered in Downers Grove, Ill., is recognized for its high-quality equipment that moves material, cleans infrastructure, and protects communities. The company operates globally with manufacturing facilities worldwide and is divided into two groups: Environmental Solutions and Safety and Security Systems. Currently trading below its InvestingPro Fair Value, the company maintains a healthy balance sheet with liquid assets exceeding short-term obligations and operates with a moderate level of debt.

This leadership change is expected to uphold the company’s momentum and commitment to delivering quality solutions to its customers. The information regarding this transition is based on a press release statement from Federal Signal Corporation.

In other recent news, Federal Signal Corporation reported its fourth-quarter and full-year 2024 financial results, showcasing steady growth. The company achieved a quarterly revenue of $472 million, marking a 5% increase compared to the previous year, and an adjusted earnings per share (EPS) of $0.87, meeting analyst expectations. Federal Signal also reported record annual net sales of $1.86 billion, an 8% increase from the prior year, and projected 2025 net sales between $2.02 billion and $2.10 billion. Additionally, Federal Signal declared a quarterly cash dividend of $0.14 per share and announced a new stock repurchase program of up to $150 million, supplementing the existing program.

In analyst updates, DA Davidson adjusted its price target for Federal Signal to $82 from $90, maintaining a Neutral rating. The firm noted the company’s strong track record but pointed out that its stock trades at a significant premium, suggesting a cautious outlook. The company also announced the strategic acquisition of Hogg Technologies, which is expected to contribute significantly to Federal Signal’s growth and align with its margin target range by 2026. These developments reflect Federal Signal’s ongoing efforts to enhance shareholder value and manage its capital structure effectively.

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