Franklin Electric (NASDAQ:FELE) Issues Earnings Results, Beats Expectations By $0.11 EPS

Franklin Electric (NASDAQ:FELE) announced its quarterly earnings results on Tuesday. The industrial products company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.44 by $0.11, Briefing.com reports. Franklin Electric had a return on equity of 15.18% and a net margin of 7.06%.The firm had revenue of $622.88 million during the quarter, compared to analyst estimates of $605.92 million. During the same quarter in the previous year, the business earned $1.31 earnings per share. Franklin Electric’s quarterly revenue was up 6.0% on a year-over-year basis. Franklin Electric updated its FY 2026 guidance to 4.500-4.700 EPS.

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

• Full-year guidance was raised: Franklin Electric now expects 2026 sales of $2.21 billion–$2.29 billion and adjusted diluted EPS of $4.50–$4.70, reflecting confidence in demand and execution despite macroeconomic uncertainty.
• Second-quarter sales increased 6% to $622.9 million, while adjusted EPS rose 18% to a quarterly record of $1.55. Adjusted operating income grew 12%, supported by volume, pricing, cost management and improved SG&A productivity.
• All three segments grew: Water Systems sales increased 5%, Distribution rose 11% with an 80-basis-point margin improvement, and Energy Systems sales grew 3%; excluding a $4.5 million legal provision, Energy Systems adjusted operating income increased 11%.
• The company highlighted growth opportunities in water treatment, critical-minerals mining and data-center liquid cooling, while recent acquisitions and new products added meaningful revenue and are reportedly tracking ahead of plan.
• Management cited accelerating inflation, tariff uncertainty, weaker conditions in parts of Europe and South America, and ongoing Middle East geopolitical risks as potential second-half headwinds. A $4.5 million provision for a long-standing European legal matter reduced reported operating income in the quarter.

Franklin Electric Stock Down 1.6%

NASDAQ:FELE traded down $1.71 during midday trading on Thursday, reaching $103.67. The company had a trading volume of 56,342 shares, compared to its average volume of 327,224. The company has a current ratio of 2.41, a quick ratio of 1.14 and a debt-to-equity ratio of 0.10. Franklin Electric has a 12-month low of $89.54 and a 12-month high of $115.82. The firm has a market capitalization of $4.58 billion, a price-to-earnings ratio of 29.88, a PEG ratio of 1.99 and a beta of 1.03. The stock’s fifty day simple moving average is $103.09 and its 200-day simple moving average is $100.17.

Franklin Electric Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th will be paid a dividend of $0.28 per share. The ex-dividend date is Thursday, August 6th. This represents a $1.12 dividend on an annualized basis and a yield of 1.1%. Franklin Electric’s dividend payout ratio is 33.73%.

Insider Buying and Selling

In other news, insider Jonathan M. Grandon sold 8,547 shares of the stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $103.40, for a total value of $883,759.80. Following the completion of the transaction, the insider owned 7,509 shares in the company, valued at $776,430.60. This trade represents a 53.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Delancey W. Davis sold 1,900 shares of the company’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $100.00, for a total transaction of $190,000.00. Following the completion of the sale, the insider directly owned 10,402 shares in the company, valued at $1,040,200. This trade represents a 15.44% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 14,847 shares of company stock valued at $1,506,082. 2.89% of the stock is owned by company insiders.

Institutional Trading of Franklin Electric

Large investors have recently made changes to their positions in the stock. NewEdge Advisors LLC grew its stake in Franklin Electric by 4.8% in the 4th quarter. NewEdge Advisors LLC now owns 6,640 shares of the industrial products company’s stock worth $634,000 after acquiring an additional 302 shares during the period. Corient Private Wealth LLC boosted its stake in Franklin Electric by 7.6% in the 4th quarter. Corient Private Wealth LLC now owns 6,605 shares of the industrial products company’s stock worth $633,000 after buying an additional 466 shares during the last quarter. Jain Global LLC acquired a new position in shares of Franklin Electric during the 4th quarter valued at about $469,000. Panagora Asset Management Inc. purchased a new position in shares of Franklin Electric during the 4th quarter worth about $410,000. Finally, Oxford Asset Management LLP acquired a new stake in shares of Franklin Electric in the second quarter worth approximately $321,000. Institutional investors and hedge funds own 79.98% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on FELE. Weiss Ratings reiterated a “hold (c)” rating on shares of Franklin Electric in a research note on Tuesday, June 9th. DA Davidson upped their target price on Franklin Electric from $100.00 to $105.00 and gave the stock a “neutral” rating in a report on Wednesday. Robert W. Baird increased their target price on Franklin Electric from $118.00 to $124.00 and gave the company a “neutral” rating in a research report on Wednesday. Finally, Wall Street Zen upgraded Franklin Electric from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $114.50.

Franklin Electric Company Profile

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.