Franklin Electric (NASDAQ:FELE) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Franklin Electric beat quarterly expectations: EPS reached $1.50 versus the $1.40 consensus, while revenue rose 8.9% year over year to $633.6 million.
• Management raised full-year 2026 guidance after strong performance in Distribution and Energy Systems, projecting sales of $2.23–$2.30 billion and adjusted EPS of $4.62–$4.82.
• Water Systems faced margin pressure from plant moves, higher material and freight costs, acquisition accounting, and weakness in several international markets, though acquisitions are expected to support longer-term growth.

Franklin Electric (NASDAQ:FELE - Get Free Report) posted its quarterly earnings results on Wednesday. The industrial products company reported $1.50 EPS for the quarter, beating the consensus estimate of $1.40 by $0.10, FiscalAI reports. The business had revenue of $633.62 million during the quarter, compared to analyst estimates of $617.19 million. During the same period last year, the firm posted $1.30 earnings per share. The company's quarterly revenue was up 8.9% on a year-over-year basis.

Here are the key takeaways from Franklin Electric's conference call:

• Strong third-quarter results led to raised 2026 guidance. Revenue increased 9% to $633.6 million, adjusted operating income rose 11%, and adjusted diluted EPS increased 15% to a record $1.50; full-year sales and adjusted EPS outlooks were raised to $2.23–$2.30 billion and $4.62–$4.82, respectively.
• Distribution and Energy Systems delivered particularly strong performance. Distribution sales rose 15% to a quarterly record with an 80-basis-point margin improvement, while Energy Systems adjusted operating income increased 24% on pricing, volume, and Cat Pumps contributions.
• Water Systems profitability was pressured by operational and macroeconomic headwinds. Adjusted operating margin declined to 17% from 18.2% due to plant moves, higher material and freight costs, acquisition accounting, and softness in EMEA, Latin America, and certain conflict-affected markets.
• Recent and planned acquisitions expand exposure to faster-growing, recurring-revenue markets. Cat Pumps is expected to contribute more than $100 million in revenue with EBITDA margins above 35%, while the planned $52 million Challenge Pumps acquisition adds underground mine-dewatering capabilities and a business generating more than 55% of revenue from recurring parts and service activity.
• Management expects productivity benefits to emerge in 2027 while maintaining capital flexibility. Site consolidations and restructuring are largely expected to be completed by year-end, with pricing and productivity intended to offset inflation; the company also reiterated its commitment to dividends, share repurchases, and growth investments.

Franklin Electric Price Performance

FELE stock traded down $2.03 on Wednesday, reaching $96.04. The company's stock had a trading volume of 108,900 shares, compared to its average volume of 307,799. Franklin Electric has a 52 week low of $89.54 and a 52 week high of $115.82. The company has a market capitalization of $4.25 billion, a P/E ratio of 27.81 and a beta of 1.03. The firm has a fifty day moving average of $98.83 and a two-hundred day moving average of $100.24.

Franklin Electric Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, November 5th. Franklin Electric's dividend payout ratio is 32.28%.

Analyst Ratings Changes

FELE has been the topic of a number of recent research reports. Weiss Ratings raised shares of Franklin Electric from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, October 14th. Wall Street Zen raised Franklin Electric from a "hold" rating to a "buy" rating in a report on Sunday. DA Davidson reiterated a "neutral" rating and set a $105.00 price target on shares of Franklin Electric in a research report on Wednesday, September 9th. Finally, Robert W. Baird increased their price target on Franklin Electric from $118.00 to $124.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $114.50.

About Franklin Electric

Franklin Electric Co, Inc NASDAQ: FELE designs, manufactures and distributes systems and components used to move, manage and control water and other fluids. The company serves residential, agricultural, commercial, industrial and municipal customers through products such as submersible pumps, motors, pumping systems, drives, controls, monitoring equipment and water-treatment solutions.

Its Water Systems business provides equipment for groundwater and surface-water applications, including well pumps, pressure systems, wastewater and dewatering products, and related controls and accessories.

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