Third Quarter 2026 Highlights

• Consolidated net sales of $633.6 million, an increase of 9% to the prior year
• Net sales increased across all three segments: 5% in Water Systems, 15% in Energy Systems, and 15% in Distribution
• Operating income was $86.5 million, an increase of 2% to the prior year, with operating margin of 13.7%; Adjusted operating income² was $95.4 million
• GAAP fully diluted earnings per share (EPS) was $1.35, an increase of 265%; Adjusted diluted EPS¹ was $1.50, an increase of 15%

FORT WAYNE, Ind., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its third quarter financial results for fiscal year 2026.

Third quarter 2026 net sales were $633.6 million compared to third quarter 2025 net sales of $581.7 million. Third quarter 2026 operating income was $86.5 million, compared to third quarter 2025 operating income of $85.1 million. Third quarter 2026 diluted EPS was $1.35, compared to third quarter 2025 EPS of $0.37. Third quarter adjusted diluted EPS¹ was $1.50, compared to 2025 third quarter adjusted diluted EPS¹ of $1.31.

^{1 – Adjusted diluted EPS is a non-GAAP measure. Please refer to our Note Regarding Non-GAAP Financial Measures below for further explanation as well as the final page of this release for a reconciliation of non-GAAP measures to the appropriate GAAP measure.}

“Our team delivered strong third quarter revenue growth through a combination of favorable pricing, contributions from recent acquisitions, and healthy customer activity across much of the portfolio. We were pleased with the early contribution from Cat Pumps as our teams remain focused on executing our integration playbook while serving customers at a high level,” commented Joe Ruzynski, Franklin Electric’s CEO.

“Although we experienced margin pressure from higher material and freight costs, we continue to see encouraging order trends and strong customer engagement across many of our businesses. We remain focused on disciplined pricing, productivity initiatives, and operational execution throughout our global manufacturing and distribution network. With a diversified portfolio, strong balance sheet, and multiple opportunities to drive growth, we believe Franklin Electric is well positioned to continue creating long-term value for shareholders.”

Segment Summaries

Water Systems net sales were $352.5 million in the third quarter, an increase of $15.9 million or 5 percent compared to the third quarter of 2025. The incremental sales were driven by the sales impact of recent acquisitions, favorable foreign exchange, and price realization. Water Systems operating income in the third quarter of 2026 was $58.9 million, a decrease of 2 percent over third quarter 2025 operating income of $60.2 million. Water Systems had $0.3 million of restructuring expenses and $0.8 million in acquisition-related costs and impact of selling acquired inventory after markup to fair value as part of acquisition accounting in the third quarter with adjusted operating income² of $60.0 million, a decrease of 2 percent over the third quarter of 2025 adjusted operating income² of $61.3 million.

Distribution net sales were $226.1 million, an increase of $28.8 million or 15 percent compared to the third quarter of 2025. Sales increases were driven by higher volumes, the incremental sales impact of recent acquisitions, and price realization. The Distribution segment operating income in the third quarter 2026 was $20.6 million, an increase of 26 percent over third quarter 2025 operating income of $16.3 million.

Energy Systems net sales were $91.7 million in the third quarter 2026, an increase of $11.7 million or 15 percent compared to the third quarter 2025. Sales increases were driven by the sales impact of recent acquisitions, higher price realization and volumes. Energy Systems operating income in the third quarter of 2026 was $23.7 million compared to the third quarter of 2025 operating income of $25.4 million. Energy Systems operating income in the third quarter of 2026 included $4.7 million acquisition-related costs and $3.1 million impact of marking up acquired inventory to fair value as part of acquisition accounting compared to $0.0 million in the third quarter of 2025. Energy Systems adjusted operating income² was $31.5 million, an increase of 24 percent over the third quarter of 2025 adjusted operating income² of $25.4 million.

^{2 – Adjusted operating income is a non-GAAP measure. Please refer to our Note Regarding Non-GAAP Financial Measures below for further explanation as well as the final page of this release for a reconciliation of non-GAAP measures to the appropriate GAAP measure.}

2026 Guidance

The Company is raising its guidance for full year 2026 net sales to be in the range of $2.23 billion to $2.30 billion and full year 2026 Adjusted Diluted EPS to be in the range of $4.62 to $4.82.

Earnings Conference Call

A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The third quarter 2026 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:

https://edge.media-server.com/mmc/p/2cri4qog

For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below.

https://register-conf.media-server.com/register/BI65124cd28e0e48ae8f14b2d2dacabc1c

All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

A replay of the conference call will be available from Wednesday, October 28, 2026, through 9:00 am ET on Wednesday, November 4, 2026, by visiting the listen-only webcast link above.

Forward Looking Statements

"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, changes in tariffs or the impact of any such changes on the Company’s financial results, 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.

Note Regarding Non-GAAP Financial Measures

The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that the non-GAAP financial measure Adjusted Diluted EPS and Adjusted Operating Income provide additional meaningful information regarding the company’s performance and financial strength. Non-GAAP financial measures should be viewed in addition to and not as an alternative for the company’s reported results prepared in accordance with GAAP. In addition, not all companies use identical calculations for Adjusted Diluted EPS and Adjusted Operating Income; therefore, Adjusted Diluted EPS and Adjusted Operating Income included in this release may not be comparable to similarly titled measures of other companies. Adjusted Diluted EPS and Adjusted Operating Income are defined and reconciled to what management believes to be the most comparable GAAP measures in a schedule at the end of this release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measure.

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. 

Franklin Electric Contact:
Jennifer Wolfenbarger / Dean Cantrell
Franklin Electric Co., Inc.
InvestorRelations@fele.com

Key Performance Indicators:Net Sales Summary

Key Performance Indicators: Operating Income and Margin Summary

Reconciliation of Non-GAAP Financial Measure: Adjusted Diluted EPS

Reconciliation of Non-GAAP Financial Measure: Adjusted Operating Income