Franklin Electric Reports First Quarter 2026 Results
Rhea-AI Summary
Franklin Electric (NYSE:FELE) reported first quarter 2026 net sales of $500.4 million, up 10% year-over-year, with consolidated operating income of $48.1 million and GAAP diluted EPS of $0.77. Adjusted diluted EPS was $0.83, a 24% increase. The company maintained full-year 2026 guidance of $2.17–$2.24 billion in net sales and $4.40–$4.60 in adjusted diluted EPS. Segment growth: Water Systems sales +11% to $318.0 million; Energy Systems +7% to $71.8 million; Distribution +6% to $150.9 million. Management cited volume, pricing, acquisitions, and productivity actions as drivers.
Positive
- Consolidated net sales +10% YoY to $500.4 million
- Adjusted diluted EPS +24% YoY to $0.83
- Distribution operating income +43% YoY to $3.0 million
Negative
- Cash and equivalents declined by $19.3 million to $80.4 million quarter-end
- Receivables increased by $50.3 million to $297.9 million (~20% increase)
- Current maturities of debt rose to $89.8 million from $31.8 million at year-end
Key Figures
Market Reality Check
Peers on Argus
FELE was up 1.53% pre‑earnings while peers were mixed: KAI +0.66%, MWA +0.46%, NPO -0.96%, MIR -2.63%, SMR +7.57%. Momentum scanner flagged only SMR (down) intraday, supporting a stock‑specific setup.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Q4 & FY 2025 earnings | Positive | -14.7% | Record 2025 sales and EPS with 2026 growth guidance introduced. |
| Oct 28 | Q3 2025 earnings | Positive | -3.3% | Q3 2025 sales and margins up, guidance maintained excluding pension impact. |
| Jul 29 | Q2 2025 earnings | Positive | +2.8% | Q2 2025 broad segment growth with higher margin and steady guidance. |
| Apr 29 | Q1 2025 earnings | Negative | -4.4% | Q1 2025 sales and EPS slightly down, guidance range adjusted at low end. |
| Feb 18 | Q4 & FY 2024 earnings | Neutral | +6.0% | Modest Q4 growth, full‑year 2024 sales down but solid margins and outlook. |
Recent earnings releases averaged a -2.71% 1‑day move, with several strong fundamental updates met by flat or negative reactions, including a -14.65% drop on Q4 2025 results despite record sales.
Over the last five earnings cycles, Franklin Electric has consistently reported year‑over‑year growth in quarterly net sales and generally higher operating income, while maintaining or modestly raising annual guidance. Results often highlight broad‑based segment growth in Water, Energy, and Distribution and continued emphasis on margin performance. However, price reactions have been mixed, including a sharp -14.65% move on Feb 17, 2026 despite record 2025 results and reiterated 2026 guidance. Today’s Q1 2026 print extends the same guidance range introduced with Q4 2025.
Historical Comparison
In the past five earnings reports, FELE’s average 1‑day move was -2.71%, with several strong fundamental updates sold off. Pre‑Q1 2026, shares were up 1.53%, contrasting with that tendency.
Earnings releases since early 2024 show steady quarterly sales growth, improving operating income, and recurring maintenance of full‑year guidance ranges, with 2026 guidance of $2.17B–$2.24B sales and $4.40–$4.60 adjusted EPS reiterated from Q4 2025.
Market Pulse Summary
This announcement delivers broad‑based Q1 2026 growth, with consolidated net sales of $500.4M, operating income of $48.1M, and adjusted EPS of $0.83, all up year‑over‑year. Management maintained 2026 guidance of $2.17B–$2.24B in sales and $4.40–$4.60 adjusted EPS, extending the outlook first given with Q4 2025 results. Investors may watch segment margins, cash generation, and future guidance updates across upcoming quarters.
Key Terms
operating margin financial
gaap financial
adjusted diluted eps financial
non-gaap financial
restructuring expense financial
foreign exchange financial
schedule 13g/a regulatory
AI-generated analysis. Not financial advice.
First Quarter 2026 Highlights
- Consolidated net sales of
$500.4 million , an increase of10% to the prior year - Net sales increased across all three segments:
11% in Water Systems,7% in Energy Systems, and6% in Distribution - Operating income was
$48.1 million , an increase of9% to the prior year, with operating margin of9.6% - GAAP fully diluted earnings per share (EPS) was
$0.77 , an increase of 15 percent; Adjusted diluted EPS was$0.83 1, an increase of 24 percent
FORT WAYNE, Ind., April 28, 2026 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its first quarter financial results for fiscal year 2026.
First quarter 2026 net sales were
1 – Adjusted diluted EPS is a non-GAAP measure. Please refer to our Note Regarding Non-GAAP Financial Measures below for further explanation as well as the final page of this release for a reconciliation of non-GAAP measures to the appropriate GAAP measure.
“Our teams delivered a strong start to 2026, with first quarter results in line with our expectations and reflecting solid execution across the business. Sales increased nearly 10 percent year-over-year, driven by higher volumes, effective pricing, and incremental contributions from acquisitions, while operating income and adjusted earnings grew meaningfully faster than revenue. We remain focused on driving profitable growth through our investment in innovation, focus on faster growing markets, disciplined pricing, and productivity initiatives, while continuing to enhance our global manufacturing footprint to better serve our customers,” commented Joe Ruzynski, Franklin Electric’s CEO.
“While we continue to closely monitor the global macroeconomic and geopolitical environment, underlying demand and order activity remain healthy. As we move through the year, our focus remains on executing our strategy to deliver volume growth predictably and efficiently. With improving operating margins and a strong balance sheet, we are well positioned to support our customers and drive profitable growth while delivering long term value for our shareholders,” concluded Mr. Ruzynski.
Segment Summaries
Water Systems net sales were
Distribution net sales were
Energy Systems net sales were
2 – Adjusted operating income is a non-GAAP measure. Please refer to our Note Regarding Non-GAAP Financial Measures below for further explanation as well as the final page of this release for a reconciliation of non-GAAP measures to the appropriate GAAP measure.
2026 Guidance
The Company is maintaining its guidance for full year 2026 net sales to be in the range of
Earnings Conference Call
A conference call to review earnings and other developments in the business will commence at 11:00 am ET. The first quarter 2026 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:
https://edge.media-server.com/mmc/p/h2get6o9
For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below.
https://register-conf.media-server.com/register/BIcf2a85f3283f459faa88aeb69269ccab
All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).
A replay of the conference call will be available from Tuesday, April 28, 2026, through 11:00 am ET on Tuesday, May 5, 2026, by visiting the listen-only webcast link above.
Forward Looking Statements
"Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, changes in tariffs or the impact of any such changes on the Company’s financial results, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2025, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.
Note Regarding Non-GAAP Financial Measures
The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that the non-GAAP financial measure Adjusted Diluted EPS and Adjusted Operating Income provide additional meaningful information regarding the company’s performance and financial strength. Non-GAAP financial measures should be viewed in addition to and not as an alternative for the company’s reported results prepared in accordance with GAAP. In addition, not all companies use identical calculations for Adjusted Diluted EPS and Adjusted Operating Income; therefore, Adjusted Diluted EPS and Adjusted Operating Income included in this release may not be comparable to similarly titled measures of other companies. Adjusted Diluted EPS and Adjusted Operating Income are defined and reconciled to what management believes to be the most comparable GAAP measures in a schedule at the end of this release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measure.
About Franklin Electric
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers worldwide in residential, commercial, agricultural, industrial, municipal and fueling applications. Franklin Electric is proud to be recognized in Newsweek’s lists of America’s Most Responsible Companies 2025, Most Trustworthy Companies 2025, and Greenest Companies 2025.
Franklin Electric Contact:
Jennifer Wolfenbarger / Dean Cantrell
Franklin Electric Co., Inc.
InvestorRelations@fele.com
| FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| (Unaudited) | ||||||||
| (In thousands, except per share amounts) | ||||||||
| First Quarter Ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Net sales | $ | 500,437 | $ | 455,247 | ||||
| Cost of sales | 325,468 | 291,344 | ||||||
| Gross profit | 174,969 | 163,903 | ||||||
| Selling, general, and administrative expenses | 123,012 | 119,643 | ||||||
| Restructuring expense | 3,872 | 159 | ||||||
| Operating income | 48,085 | 44,101 | ||||||
| Interest expense | (2,311 | ) | (1,799 | ) | ||||
| Other income (expense), net | (374 | ) | 843 | |||||
| Foreign exchange income (expense), net | 375 | (1,293 | ) | |||||
| Income before income taxes | 45,775 | 41,852 | ||||||
| Income tax expense | 11,080 | 10,478 | ||||||
| Net income | $ | 34,695 | $ | 31,374 | ||||
| Less: Net income attributable to noncontrolling interests | (365 | ) | (412 | ) | ||||
| Net income attributable to Franklin Electric Co., Inc. | $ | 34,330 | $ | 30,962 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 0.77 | $ | 0.67 | ||||
| Diluted | $ | 0.77 | $ | 0.67 | ||||
| FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (Unaudited) | |||||
| (In thousands) | |||||
| March 31, 2026 | December 31, 2025 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 80,400 | $ | 99,662 | |
| Receivables (net) | 297,859 | 247,511 | |||
| Inventories | 583,208 | 552,981 | |||
| Other current assets | 53,818 | 58,472 | |||
| Total current assets | 1,015,285 | 958,626 | |||
| Property, plant, and equipment, net | 252,074 | 252,164 | |||
| Lease right-of-use assets, net | 67,351 | 67,867 | |||
| Goodwill and other assets | 661,855 | 665,728 | |||
| Total assets | $ | 1,996,565 | $ | 1,944,385 | |
| LIABILITIES AND EQUITY | |||||
| Accounts payable | $ | 174,095 | $ | 174,954 | |
| Accrued expenses and other current liabilities | 95,552 | 116,747 | |||
| Current lease liability | 20,319 | 20,518 | |||
| Current maturities of long-term debt and short-term borrowings | 89,779 | 31,827 | |||
| Total current liabilities | 379,745 | 344,046 | |||
| Long-term debt | 134,406 | 135,184 | |||
| Long-term lease liability | 46,018 | 46,481 | |||
| Deferred income taxes | 40,798 | 39,275 | |||
| Employee benefit plans | 22,507 | 22,833 | |||
| Other long-term liabilities | 28,513 | 29,541 | |||
| Redeemable noncontrolling interest | 1,908 | 1,657 | |||
| Total equity | 1,342,670 | 1,325,368 | |||
| Total liabilities and equity | $ | 1,996,565 | $ | 1,944,385 | |
| FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited) | |||||||
| Three Months Ended | |||||||
| (In thousands) | |||||||
| March 31, 2026 | March 31, 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 34,695 | $ | 31,374 | |||
| Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
| Depreciation and amortization | 16,527 | 14,433 | |||||
| Non-cash lease expense | 5,574 | 5,241 | |||||
| Share-based compensation | 3,615 | 4,962 | |||||
| Other | (991 | ) | 1,080 | ||||
| Changes in assets and liabilities: | |||||||
| Receivables | (49,578 | ) | (29,376 | ) | |||
| Inventory | (28,896 | ) | (43,669 | ) | |||
| Accounts payable and accrued expenses | (18,250 | ) | (3,744 | ) | |||
| Operating leases | (5,723 | ) | (5,091 | ) | |||
| Other | 2,152 | 5,322 | |||||
| Net cash flows from operating activities | (40,875 | ) | (19,468 | ) | |||
| Cash flows from investing activities: | |||||||
| Additions to property, plant, and equipment | (9,479 | ) | (6,836 | ) | |||
| Proceeds from sale of property, plant, and equipment | 351 | 397 | |||||
| Acquisitions and investments | (430 | ) | (109,687 | ) | |||
| Other investing activities | 20 | 9 | |||||
| Net cash flows from investing activities | (9,538 | ) | (116,117 | ) | |||
| Cash flows from financing activities: | |||||||
| Net change in debt | 57,235 | 20,366 | |||||
| Proceeds from issuance of common stock | 2,700 | 1,438 | |||||
| Purchases of common stock | (13,186 | ) | (6,902 | ) | |||
| Dividends paid | (12,446 | ) | (13,160 | ) | |||
| Deferred payments for acquisitions | (1,696 | ) | (4,300 | ) | |||
| Net cash flows from financing activities | 32,607 | (2,558 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (1,456 | ) | 1,597 | ||||
| Net change in cash and cash equivalents | (19,262 | ) | (136,546 | ) | |||
| Cash and cash equivalents at beginning of period | 99,662 | 220,540 | |||||
| Cash and cash equivalents at end of period | $ | 80,400 | $ | 83,994 | |||
Key Performance Indicators: Net Sales Summary
| Net Sales for the First Quarter | |||||||||||||||||||||||||||
| United States | Latin | Europe, Middle | Asia | Total | |||||||||||||||||||||||
| (in millions) | & Canada | America | East & Africa | Pacific | Water | Energy | Distribution | Other/Elims | Consolidated | ||||||||||||||||||
| Q1 2025 | $ | 175.7 | $ | 39.5 | $ | 51.5 | $ | 20.6 | $ | 287.3 | $ | 66.8 | $ | 141.9 | ($ | 40.8 | ) | $ | 455.2 | ||||||||
| Q1 2026 | $ | 187.2 | $ | 49.9 | $ | 55.8 | $ | 25.1 | $ | 318.0 | $ | 71.8 | $ | 150.9 | ($ | 40.3 | ) | $ | 500.4 | ||||||||
| Change | $ | 11.5 | $ | 10.4 | $ | 4.3 | $ | 4.5 | $ | 30.7 | $ | 5.0 | $ | 9.0 | $ | 0.5 | $ | 45.2 | |||||||||
| % Change | 7 | % | 26 | % | 8 | % | 22 | % | 11 | % | 7 | % | 6 | % | 10 | % | |||||||||||
| Foreign currency translation, net * | $ | 1.0 | $ | 3.2 | $ | 4.2 | $ | 1.2 | $ | 9.6 | $ | 0.1 | $ | 0.0 | $ | 9.7 | |||||||||||
| % Change | 1 | % | 8 | % | 8 | % | 6 | % | 3 | % | 0 | % | 0 | % | 2 | % | |||||||||||
| Acquisitions | $ | 0.3 | $ | 6.2 | $ | 1.1 | $ | 0.9 | $ | 8.5 | $ | 0.0 | $ | 0.3 | $ | 8.8 | |||||||||||
| % Change | 0 | % | 16 | % | 2 | % | 4 | % | 3 | % | 0 | % | 0 | % | 2 | % | |||||||||||
| Volume/Price | $ | 10.2 | $ | 1.0 | ($ | 1.0 | ) | $ | 2.4 | $ | 12.6 | $ | 4.9 | $ | 8.7 | $ | 0.5 | $ | 26.7 | ||||||||
| % Change | 6 | % | 3 | % | -2 | % | 12 | % | 4 | % | 7 | % | 6 | % | 1 | % | 6 | % | |||||||||
| *The Company has presented local currency price increases used to offset currency devaluation in the highly inflationary economies of Agentina and Turkey within the foreign currency translation, net row above. | |||||||||||||||||||||||||||
Key Performance Indicators: Operating Income and Margin Summary
| Operating Income and Margins | ||||||||||||||||
| (in millions) | For the First Quarter 2026 | |||||||||||||||
| Water | Energy | Distribution | Other/Elims | Consolidated | ||||||||||||
| Operating Income / (Loss) | $ | 44.4 | $ | 24.2 | $ | 3.0 | $ | (23.5 | ) | $ | 48.1 | |||||
| % Operating Income To Net Sales | 14.0 | % | 33.7 | % | 2.0 | % | 9.6 | % | ||||||||
| Operating Income and Margins | ||||||||||||||||
| (in millions) | For the First Quarter 2025 | |||||||||||||||
| Water | Energy | Distribution | Other/Elims | Consolidated | ||||||||||||
| Operating Income / (Loss) | $ | 43.4 | $ | 21.9 | $ | 2.1 | $ | (23.3 | ) | $ | 44.1 | |||||
| % Operating Income To Net Sales | 15.1 | % | 32.8 | % | 1.5 | % | 9.7 | % | ||||||||
Reconciliation of Non-GAAP Financial Measure: Adjusted Diluted EPS
| For the First Quarter | ||||||||
| 2026 | 2025 | Change | ||||||
| Diluted Earnings per Share "EPS" (as reported - US GAAP) | $ | 0.77 | $ | 0.67 | 15 | % | ||
| Restructuring | $ | 0.06 | $ | - | ||||
| Adjusted Diluted EPS (non-GAAP) | $ | 0.83 | $ | 0.67 | 24 | % | ||
Reconciliation of Non-GAAP Financial Measure: Adjusted Operating Income
| (in millions) | For the First Quarter 2026 | |||||||||||
| Water | Energy | Distribution | Other/Elims | Consolidated | ||||||||
| GAAP Operating Income / (Loss) | $ | 44.4 | $ | 24.2 | $ | 3.0 | $ | (23.5 | ) | $ | 48.1 | |
| Restructuring, gross of tax | $ | 3.9 | $ | - | $ | - | $ | - | $ | 3.9 | ||
| Non-GAAP Adjusted Operating Income / (Loss) | $ | 48.3 | $ | 24.2 | $ | 3.0 | $ | (23.5 | ) | $ | 52.0 | |
| (in millions) | For the First Quarter 2025 | |||||||||||
| Water | Energy | Distribution | Other/Elims | Consolidated | ||||||||
| GAAP Operating Income / (Loss) | $ | 43.4 | $ | 21.9 | $ | 2.1 | $ | (23.3 | ) | $ | 44.1 | |
| Restructuring, gross of tax | $ | - | $ | - | $ | 0.2 | $ | - | $ | 0.2 | ||
| Non-GAAP Adjusted Operating Income / (Loss) | $ | 43.4 | $ | 21.9 | $ | 2.3 | $ | (23.3 | ) | $ | 44.3 | |
