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Franklin Electric reported second quarter 2026 results with consolidated net sales of $622.9 million, up 6% year-over-year. Net sales increased across all three segments: 5% in Water Systems, 3% in Energy Systems, and 11% in Distribution. Operating income rose 6% to $93.6 million, with an operating margin of 15.0%. GAAP fully diluted earnings per share reached $1.46, an 11% increase, whilst adjusted diluted EPS grew 18% to $1.55. CEO Joe Ruzynski attributed the performance to organic volume growth initiatives, including acquiring new customers and investing in innovation across high-growth applications. The company is managing inflationary pressures in sourced materials and logistics. Based on this strong performance, Franklin Electric increased both revenue and EPS guidance for the year.

Franklin Electric Q2 earnings call highlights. July 28, 2026 Key points. * Strong second-quarter results: Sales rose 6% year over year to $622.9 million, while adjusted diluted EPS increased 18% to a quarterly record of $1.55. Adjusted operating margin expanded 80 basis points to 15.8%, despite inflation and restructuring costs. * Distribution led segment growth: Distribution sales climbed 11%, while Global Water Systems and Energy Systems sales rose 5% and 3%, respectively. Franklin also completed three acquisitions, and newly launched products generated more than $10 million in quarterly sales. * Higher full-year outlook: The company raised 2026 sales guidance to $2.21 billion-$2.29 billion and adjusted EPS guidance to $4.50-$4.70, while cautioning that tariffs, geopolitical conditions and macroeconomic uncertainty remain risks. * Five stocks we like better than Franklin Electric. Franklin Electric NASDAQ: FELE reported higher second-quarter sales and earnings, citing organic growth, price realization, acquisitions and margin expansion efforts across its businesses. The company also raised its full-year sales and adjusted earnings outlook, while noting continued uncertainty in global markets. Second-quarter sales rose 6% year over year to $622.9 million. Organic growth was 3.5%, according to Chief Executive Officer Joe Raczynski, with all three operating segments recording sales growth. Fully diluted earnings per share increased to $1.46 from $1.31 a year earlier, while adjusted diluted EPS reached a quarterly record of $1.55, up 18% from $1.31. "Our second quarter was solid for all segments," Raczynski said, pointing to strong order growth, healthy backlog levels and balanced channel inventory as the company exited the period. Margins expand despite inflation and charges. Chief Financial Officer Jennifer Wolfenbarger said adjusted operating income increased 12% to $98.5 million, excluding a $4.5 million legal settlement provision in the Energy Systems segment and $400,000 of restructuring costs. Adjusted operating margin expanded 80 basis points to 15.8%. Gross margin rose 90 basis points to 37%, helped by pricing, volume and tariff refunds. Those benefits were largely offset by material inflation and the timing of tariff-related expense rolling off the balance sheet, Wolfenbarger said. The company received a portion of its recovery related to IEPA tariffs during the quarter, a benefit Raczynski described as a few million dollars, primarily benefiting the Energy Systems profit and loss statement. Management also said inflation accelerated during the quarter and that some regions in Europe and South America remained softer. Franklin Electric recorded restructuring expenses related primarily to structural-improvement initiatives within global water operations. Raczynski said the company is ramping a new factory in Turkey and consolidating facilities in North America, with the efforts intended to create a more efficient operating structure. The company expects productivity gains from those actions to become more meaningful in 2027. Segment performance led by Distribution. * Global Water Systems: Sales increased 5% year over year, supported by pricing, foreign-currency translation and recent acquisitions. U.S. and Canadian sales rose 8%, including a 12% increase in agricultural groundwater-pumping equipment sales and an 11% increase in residential products, including water-treatment products. Sales of large dewatering equipment into industrial applications declined 12% in the region. Segment adjusted operating income increased 6% to $65.6 million, and adjusted margin improved 10 basis points to 18.3%. * Distribution: Sales climbed 11% to $221.1 million, driven by higher volumes, acquisition-related sales and price realization. Operating income rose $3.6 million to $19.7 million, and operating margin improved 80 basis points to 8.9%. * Energy Systems: Sales increased 3% to $80.2 million. International sales rose 12%, primarily in Europe and Africa, while sales in the U.S. and Canada increased 1%. Adjusted operating income, excluding the legal settlement provision, increased 11% to $32.4 million. Adjusted margin expanded 290 basis points to 40.4%, aided by pricing, volume growth and IEPA tariff refunds. Outside the U.S. and Canada, Water Systems sales increased 1%. Foreign exchange added 5% to sales and acquisitions added about 1%, while volume and pricing were negatively affected by 5%. Management said sales rose in Asia-Pacific excluding currency and acquisitions, while Latin America and EMEA declined. Water Systems volumes in North Africa, the Middle East and Eastern Europe were affected by the ongoing conflict in the Middle East. Acquisitions, water treatment and growth markets. Raczynski said Franklin Electric completed three acquisitions in the first half, all of which are tracking ahead of plan. The transactions included Geoquip, a U.K.-based systems business serving groundwater and residential markets; Wood Bros., a water-treatment business extending the company's reach in the central U.S.; and Benson, a distributor with exposure to agricultural, utility and municipal infrastructure markets. Discover more Cryptocurrency News Company Earnings Wood Bros. has annual revenue in the mid-$20 million to low-$30 million range, while Benson is a mid-$20 million revenue business, Raczynski said. The company expects the deals to expand its channels, customer access and ability to distribute additional Franklin Electric products. Newly launched products generated more than $10 million in sales during the second quarter, according to Raczynski. New water-treatment dealers contributed more than $2 million in revenue. Wolfenbarger added that water-treatment organic volume growth exceeded 5% during the quarter, despite what she described as a muted residential market. The company also highlighted critical-minerals and data-center infrastructure as longer-term growth areas. Raczynski said Franklin Electric views critical minerals as a multibillion-dollar addressable market and expects it to grow at a high-single-digit compound annual rate. The company's exposure is concentrated on mine dewatering and maintenance rather than mine capital cycles, he said. Regarding data centers, Raczynski said Franklin Electric has won business involving municipal hookups and flushing applications, and is pursuing opportunities to supply cooling distribution unit manufacturers. He said the company expects to provide more specificity in the second half of the year. Outlook and capital position. Franklin Electric raised its 2026 sales outlook to $2.21 billion to $2.29 billion and increased its adjusted diluted EPS guidance to $4.50 to $4.70. Wolfenbarger said the outlook reflects strong performance and underlying demand, while incorporating uncertainty tied to macroeconomic conditions, geopolitical developments and tariffs. The company ended the quarter with $97.3 million in cash and $107 million outstanding under its revolving credit agreement. Net cash from operating activities totaled $58.7 million for the first half, compared with $32 million in the prior-year period, driven in part by improved inventory usage. Franklin Electric also declared a quarterly cash dividend of $0.28 per share, payable Aug. 20 to shareholders of record Aug. 6. The company plans to hold its first Investor Day on March 23, 2027, in New York, where it expects to discuss strategy, refreshed midterm guidance and long-term value creation plans. About Franklin Electric (NASDAQ:FELE). 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. 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Franklin Electric declares quarterly dividend of $0.28 per share. FORT WAYNE, Ind., July 27, 2026 (GLOBE NEWSWIRE) - Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that its Board of Directors declared a quarterly cash dividend of $0.28 per share payable August 20, 2026, to shareholders of record on August 6, 2026. 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. "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, 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. | CONTACT: | Jennifer Wolfenbarger / Dean Cantrell | | / | Franklin Electric Co., Inc. | | / | 260.824.2900 | Legal Disclaimer: EIN Presswire provides this news content "as is" without warranty of any kind. Africa Finance Today do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.