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

Franklin Electric (NASDAQ:FELE) issued its quarterly earnings results on Wednesday. The industrial products company reported $1.50 EPS for the quarter, beating analysts’ consensus estimates of $1.40 by $0.10, FiscalAI reports. The firm had revenue of $633.62 million for the quarter, compared to analysts’ expectations of $617.19 million. Franklin Electric had a return on equity of 15.45% and a net margin of 8.83%. The business’s revenue for the quarter was up 8.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.30 EPS.

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 Stock Performance

Shares of Franklin Electric stock traded down $1.36 on Friday, hitting $95.38. The stock had a trading volume of 347,084 shares, compared to its average volume of 305,362. The stock has a market cap of $4.21 billion, a price-to-earnings ratio of 21.43, a price-to-earnings-growth ratio of 1.68 and a beta of 1.02. The business’s 50 day moving average is $98.42 and its two-hundred day moving average is $100.18. The company has a quick ratio of 1.12, a current ratio of 2.33 and a debt-to-equity ratio of 0.30. Franklin Electric has a twelve month low of $89.54 and a twelve month high of $115.82.

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 given a $0.28 dividend. The ex-dividend date is Thursday, November 5th. This represents a $1.12 annualized dividend and a dividend yield of 1.2%. Franklin Electric’s payout ratio is currently 25.17%.

Analyst Ratings Changes

Several research firms recently commented on FELE. Weiss Ratings lowered shares of Franklin Electric from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday. Wall Street Zen upgraded shares of Franklin Electric from a “hold” rating to a “buy” rating in a report on Sunday, October 25th. DA Davidson reaffirmed a “neutral” rating and set a $105.00 target price on shares of Franklin Electric in a report on Wednesday, September 9th. Finally, Robert W. Baird set a $130.00 target price on Franklin Electric in a research note on Thursday. Three investment analysts have rated the stock with a Hold rating. According to data from MarketBeat, Franklin Electric currently has an average rating of “Hold” and an average price target of $117.50.

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.