Federal Signal shares surged 9.06% in pre-market trading on Thursday, following the release of record second-quarter results that handily exceeded Wall Street expectations.

The company reported adjusted earnings of $1.42 per share, blowing past the analyst consensus estimate of $1.29 by 10.08%. Net sales climbed 19% to $670.2 million, also topping estimates of $667.1 million. Operating income improved 21% to $118.2 million, while orders jumped 18% to $637 million, pushing backlog to $1.00 billion. Operating cash flow more than doubled to $113 million, reflecting strong cash generation that enabled debt reduction and investment in growth initiatives.

Federal Signal also raised its full-year 2026 outlook, lifting its adjusted EPS guidance to a range of $5.12 to $5.30, well above the consensus estimate of $4.97. The company projects net sales between $2.58 billion and $2.67 billion, driven by strong demand for its products and aftermarket offerings, particularly in the Environmental Solutions Group segment.