Franklin Electric (FELE) Q2 2026 earnings summary

Executive summary

• Achieved 6% year-over-year sales growth in Q2 2026, with all segments contributing and organic growth supported by disciplined pricing, acquisitions, and new product launches.

• Adjusted operating income rose 12% and adjusted EPS increased 18% year-over-year, setting a new quarterly record.

• Closed three acquisitions in water and distribution businesses, expanding reach in North America and Europe and contributing to incremental sales.

• Maintained a healthy balance sheet, improved cash flow, and continued shareholder value return through dividends.

• Announced inaugural Investor Day for March 2027 to share strategy and long-term vision.

Financial highlights

• Q2 2026 consolidated sales reached $622.9 million, up 6% year-over-year, with gross profit margin improving to 37% (up 90 bps YoY).

• Adjusted operating income was $98.5 million, up 12% year-over-year; adjusted operating margin rose to 15.8%.

• Adjusted diluted EPS was $1.55, up 18% from $1.31 in Q2 2025; GAAP EPS was $1.46, up 11%.

• Net income for Q2 2026 was $66.1 million, up from $60.6 million in Q2 2025.

• Free cash flow for the trailing twelve months was $219 million; cash from operations for the first six months was $58.7 million.

Outlook and guidance

• Raised full-year 2026 sales guidance to $2.21–$2.29 billion and adjusted diluted EPS to $4.50–$4.70.

• Guidance reflects continued strong performance but incorporates uncertainty from macroeconomic and geopolitical factors.

• Expect productivity gains from facility consolidations, new factory ramp-ups, and internal initiatives into 2027.

• Acquisitions expected to contribute low-single-digit sales growth.