Franklin Electric (NASDAQ:FELE) Posts Earnings Results

Franklin Electric (NASDAQ:FELE) released its 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. Franklin Electric had a return on equity of 15.45% and a net margin of 8.83%. The company had revenue of $633.62 million during the quarter, compared to analysts’ expectations of $617.19 million. During the same period in the prior year, the business posted $1.30 EPS. The business’s 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 Trading Up 0.1%

Franklin Electric stock opened at $96.74 on Friday. The firm’s 50-day moving average is $98.57 and its 200-day moving average is $100.20. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.10 and a current ratio of 2.33. Franklin Electric has a 1 year low of $89.54 and a 1 year high of $115.82. The company has a market cap of $4.28 billion, a P/E ratio of 21.74, a PEG ratio of 1.71 and a beta of 1.03.

Franklin Electric Dividend Announcement

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

Wall Street Analyst Weigh In

FELE has been the topic of a number of research analyst reports. Weiss Ratings downgraded shares of Franklin Electric from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday. Wall Street Zen raised shares of Franklin Electric from a “hold” rating to a “buy” rating in a research report on Sunday, October 25th. DA Davidson reissued a “neutral” rating and issued a $105.00 target price on shares of Franklin Electric in a research report on Wednesday, September 9th. Finally, Robert W. Baird set a $130.00 target price on shares of Franklin Electric in a research note on Thursday. Three equities research analysts have rated the stock with a Hold rating. According to MarketBeat.com, Franklin Electric presently has an average rating of “Hold” and a consensus target price of $117.50.

Franklin Electric Company Profile

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.