Franklin Electric (NASDAQ:FELE) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Franklin Electric (NASDAQ:FELE) released its earnings results on Tuesday. The industrial products company reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.06, FiscalAI reports. The firm had revenue of $500.44 million during the quarter, compared to analyst estimates of $479.21 million. Franklin Electric had a net margin of 6.90% and a return on equity of 14.52%. The business’s revenue was up 9.9% on a year-over-year basis. During the same period last year, the business earned $0.67 earnings per share. Franklin Electric updated its FY 2026 guidance to 4.400-4.600 EPS.

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

• Franklin reported a strong Q1 with sales +10% to $500.4M, a record first-quarter adjusted diluted EPS of $0.83 (+24% YoY), and backlog up ~10%, signaling healthy demand entering Q2.
• The company launched its Value Acceleration Office$15M of productivity in 2026 and targeting >100 bps of annual productivity once fully ramped, while taking $3.9M of restructuring charges in Q1 to realign global water operations.
• Gross profit margin fell 100 basis points to 35% in Q1, driven by higher material costs and a tariff hangover, and the outlook excludes a potential tariff clawback (company has submitted a request and is awaiting a response).
• Management kept full-year guidance unchanged at $2.17B–$2.24B sales and adjusted EPS of $4.40–$4.60, citing increasing confidence but persistent macro/geopolitical uncertainty.
• Segment momentum: Energy Systems delivered a 33.7% operating margin and outsized profit contribution, while Distribution (now >$700M) expanded margins and grew its OSI on-site inventory program to 650 locations.

Franklin Electric Stock Up 0.7%

Shares of FELE traded up $0.71 on Wednesday, hitting $103.76. 41,865 shares of the stock traded hands, compared to its average volume of 349,546. The company has a market capitalization of $4.58 billion, a PE ratio of 32.21, a P/E/G ratio of 1.90 and a beta of 1.07. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.18 and a current ratio of 2.79. The business has a 50 day simple moving average of $96.46 and a 200 day simple moving average of $97.35. Franklin Electric has a one year low of $82.28 and a one year high of $111.53.

Franklin Electric Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Thursday, May 7th will be given a dividend of $0.28 per share. The ex-dividend date of this dividend is Thursday, May 7th. This represents a $1.12 annualized dividend and a dividend yield of 1.1%. Franklin Electric’s dividend payout ratio (DPR) is 34.78%.

Insider Buying and Selling

In related news, CEO Joseph A. Ruzynski bought 500 shares of the business’s stock in a transaction on Thursday, February 19th. The stock was acquired at an average price of $93.34 per share, with a total value of $46,670.00. Following the transaction, the chief executive officer owned 22,722 shares in the company, valued at approximately $2,120,871.48. This trade represents a 2.25% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 2.89% of the company’s stock.

Institutional Investors Weigh In On Franklin Electric

A number of large investors have recently added to or reduced their stakes in FELE. Amundi grew its position in Franklin Electric by 134.8% in the 3rd quarter. Amundi now owns 624,481 shares of the industrial products company’s stock worth $59,424,000 after purchasing an additional 358,517 shares during the period. Qube Research & Technologies Ltd grew its position in Franklin Electric by 70.1% in the 2nd quarter. Qube Research & Technologies Ltd now owns 486,523 shares of the industrial products company’s stock worth $43,661,000 after purchasing an additional 200,545 shares during the period. Citadel Advisors LLC grew its position in Franklin Electric by 107.7% in the 3rd quarter. Citadel Advisors LLC now owns 147,997 shares of the industrial products company’s stock worth $14,089,000 after purchasing an additional 76,746 shares during the period. Healthcare of Ontario Pension Plan Trust Fund grew its position in Franklin Electric by 264.8% in the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 89,177 shares of the industrial products company’s stock worth $8,519,000 after purchasing an additional 64,731 shares during the period. Finally, Jane Street Group LLC grew its position in Franklin Electric by 491.0% in the 1st quarter. Jane Street Group LLC now owns 70,660 shares of the industrial products company’s stock worth $6,634,000 after purchasing an additional 58,705 shares during the period. Institutional investors own 79.98% of the company’s stock.

Wall Street Analysts Forecast Growth

FELE has been the subject of several analyst reports. Wall Street Zen downgraded shares of Franklin Electric from a “buy” rating to a “hold” rating in a research report on Saturday, February 21st. DA Davidson set a $100.00 price target on shares of Franklin Electric in a research report on Thursday, February 19th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Franklin Electric currently has a consensus rating of “Hold” and a consensus price target of $106.00.

Franklin Electric News Roundup

Here are the key news stories impacting Franklin Electric this week:

• Positive Sentiment: Q1 beat — Franklin Electric reported $0.83 EPS vs. $0.77 consensus and revenue of $500.4M vs. ~$479M expected, with revenue up ~9.9% year-over-year. This is the primary bullish catalyst driving investor interest. Franklin Electric (FELE) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Operational metrics — net margin (~6.9%) and ROE (~14.5%) improved versus prior year; management noted sequential/annual revenue growth and provided supporting slide deck. These fundamentals support a higher multiple relative to peers. Franklin Electric Co., Inc. 2026 Q1 – Results – Earnings Call Presentation
• Positive Sentiment: Dividend declared — the company announced a quarterly dividend of $0.28/share (record May 7, pay May 21), which supports income-oriented investors and signals board confidence in cash flow. (Dividend notice published April 27.)
• Neutral Sentiment: FY2026 guidance — management set EPS guidance at $4.40–$4.60 and revenue guidance around $2.2B, broadly in-line with sell?side expectations (consensus ~4.54 EPS). Guidance removes upside surprise risk but doesn’t materially change the thesis. Franklin Electric FELE Q1 2026 Earnings Transcript
• Neutral Sentiment: Investor materials available — full earnings call transcript and slide deck were released, giving investors transparency into segment performance, end-market trends, and margin drivers; useful for model updates but not an immediate catalyst. Franklin Electric Co., Inc. (FELE) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Guidance nuance — while guidance is in-line, the EPS midpoint (~$4.50) is marginally below some analyst estimates (consensus ~4.54); that small shortfall could cap near-term upside if investors expected a raise. Franklin Electric: Q1 Earnings Snapshot

About Franklin Electric

Franklin Electric Co, Inc is a world?leading manufacturer and distributor of systems and components for moving and managing water and fuel. Headquartered in Fort Wayne, Indiana, the company specializes in designing engineered pumping systems and related controls for residential, commercial and industrial applications.

Founded in 1944, Franklin Electric has built its reputation on submersible and surface pumping solutions for water wells, municipal water and wastewater treatment, irrigation and industrial fluid handling.

Recommended Stories

• Five stocks we like better than Franklin Electric