Federal Signal Corporation (NYSE: FSS) witnessed a surge in its stock price, soaring 5.04% in the pre-market session on Thursday, February 27, 2025. The rally was driven by the company's impressive financial performance in 2024, a strategic acquisition, and a robust outlook for the current fiscal year.

Federal Signal reported record financial results for the fourth quarter and full year of 2024, fueling investor confidence in the company's prospects. Highlights include:

• Net sales of $1.86 billion for 2024, an 8% increase compared to the previous year, marking an all-time high.
• Operating income grew by a remarkable 25% year-over-year to $281.4 million.
• Adjusted EBITDA rose by 23% to $350.6 million, with a margin of 18.8%, up 220 basis points.
• GAAP diluted earnings per share (EPS) surged 37% to $3.50, while adjusted EPS climbed 29% to $3.34.

Furthermore, Federal Signal announced the acquisition of Hog Technologies for an initial purchase price of $78 million, strengthening its position in the road marking, line removal, and water blasting equipment markets. This strategic move expands the company's product portfolio and opens up new growth opportunities in domestic and international markets.

Looking ahead, Federal Signal provided an optimistic outlook for the current fiscal year, with expectations of double-digit improvement in pre-tax earnings and adjusted EPS. The company anticipates net sales ranging between $2.02 billion and $2.1 billion, reflecting continued strong demand for its products and services.