Federal Signal Corporation (FSS) shares surged 9.70% intraday, following the release of record second-quarter results that handily exceeded Wall Street estimates and prompted the company to raise its full-year outlook.

The company reported adjusted earnings of $1.42 per share, significantly beating the analyst consensus estimate of $1.29. 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. Strong operating cash flow more than doubled to $113 million, enabling debt reduction and investment in growth initiatives.

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