Federal Signal Acquires Mega Corp. for $45.5M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
0mins
Federal Signal signed a definitive agreement to acquire Mega Corp., a manufacturer of specialty vehicles and equipment for use in global metal extraction and construction markets, for cash consideration of $45.5M, subject to post-closing adjustments. The purchase price includes the acquisition of Mega's manufacturing facility in Albuquerque, New Mexico. For nearly 50 years, Mega has designed and manufactured water distribution equipment, service bodies, and specialty haulage equipment compatible with articulated trucks, rigid-frame trucks, and wheel tractor scrapers. Mega generated net sales of approximately $40M for the year ended December 31, 2024, with aftermarket parts representing approximately 30% of net sales. The transaction is expected to be accretive to earnings and cash flow in 2026. The company anticipates completing the transaction during Q1 of 2026, subject to customary closing conditions.
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Analyst Views on FSS
Wall Street analysts forecast FSS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FSS is 112.00 USD with a low forecast of 112.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 108.280
Low
112.00
Averages
112.00
High
112.00
Current: 108.280
Low
112.00
Averages
112.00
High
112.00
About FSS
Federal Signal Corporation is a global designer, manufacturer and supplier of products and total solutions that serve municipal, governmental, industrial, and commercial customers. Its segments include Environmental Solutions Group (Environmental Solutions) and Safety and Security Systems Group (Safety and Security Systems). The Environmental Solutions segment manufactures and supplies a full range of street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, high-performance water blasting equipment, road-marking and line-removal equipment, dump truck bodies, trailers, metal extraction support equipment, and multipurpose maintenance vehicles. The Safety and Security Systems segment manufactures and supplies systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. Its brands include Jetstream, Blasters, Federal Signal VAMA, and Victor, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Federal Signal Corporation to Announce Q4 Earnings
- Earnings Announcement: Federal Signal Corporation is set to release its fourth-quarter earnings before the market opens on February 25, 2026, which is expected to provide investors with insights into the company's financial performance and future outlook.
- Investor Conference Call: On the same day at 10 a.m. Eastern Time, the company will host an investor conference call led by CEO Jennifer L. Sherman and CFO Ian A. Hudson, aimed at addressing questions from investors and analysts.
- Webcast Access: Investors and analysts can access the webcast via the company’s website, ensuring transparency and enhancing engagement with investors, which may bolster market confidence.
- Replay Availability: An archived replay of the conference call will be available shortly after the call concludes on the company’s website, further enhancing information accessibility and transparency, aiding investors in making informed decisions.
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Federal Signal Corporation to Announce Q4 Earnings
- Earnings Announcement Schedule: Federal Signal Corporation is set to announce its fourth-quarter earnings before the market opens on February 25, 2026, which is expected to provide investors with critical financial performance data to assess the company's future growth potential.
- Investor Conference Call: On the same day at 10 a.m. Eastern Time, the company will host an investor conference call led by CEO Jennifer L. Sherman and CFO Ian A. Hudson, aimed at addressing questions from investors and analysts to enhance transparency.
- Webcast Access: Investors and analysts can access the webcast via the company's website, ensuring broad participation and further enhancing interaction and communication between the company and its investors.
- Replay Service: After the call concludes, investors can access a replay of the conference call through the company's website, providing a convenient way for those unable to participate live to obtain important information, thereby increasing information accessibility.
Continue Reading