EarningsQ2 2026 Earnings Report
DE:FE4 Q2 2026 EPS Results
Actual EPS€1.38
Consensus EPS€1.29
Beat/MissBeat by +€0.09
One Year Ago EPS€1.17
DE:FE4 Q2 2026 Revenue Results
Actual Revenue€554.20M
Expected Revenue€539.11M
Beat/MissBeat by +€15.09M
YoY Revenue Growth+6.03%
Earnings Announcement Details
QuarterQ2 2026
Date07/28/2026
TimeBefore Open
Conference CallTuesday, July 28, 2026
DE:FE4 Upcoming Earnings
Franklin Electric Co's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:FE4 Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a largely positive operating and financial performance: revenue growth (+6%), record adjusted EPS (+18%), margin expansion (adjusted operating margin +80 bps) and stronger cash generation supported by strategic M&A and product-led growth (>$10M new-product sales in Q2). Offsetting items were manageable one-time charges (legal and restructuring), regional softness in parts of EMEA and South America, material inflation and tariff timing headwinds, and geopolitical uncertainty that management is monitoring. Management raised full-year guidance while conservatively modeling H2 risks, indicating confidence in the company’s growth and productivity trajectory despite external headwinds.Company Guidance
Revenue Growth
Consolidated sales of $622.9 million in Q2 FY2026, up 6% year-over-year (organic growth ~3.5%); company raised full-year sales guidance to $2.21B–$2.29B.
Earnings and EPS Expansion
GAAP diluted EPS $1.46 vs $1.31 prior year (+11%); adjusted diluted EPS a quarterly record of $1.55 vs $1.31 prior year (+18%), with adjusted EPS growth more than triple sales growth.
Adjusted Operating Income and Margin Expansion
Consolidated adjusted operating income of $98.5 million in Q2, up 12% year-over-year; adjusted operating income margin improved to 15.8% from 15.0% (+80 basis points).
Gross Profit and Productivity
Gross profit increased to $230.6 million from $211.8 million; gross margin improved to 37.0% from 36.1% (+90 basis points). SG&A as a percent of sales was 21.2% (20.8% ex-acquisitions), reflecting 20 bps improvement ex-acquisitions.
Segment Outperformance — Distribution and Energy (adjusted)
Distribution sales grew 11% to $221.1 million with operating margin up 80 bps to 8.9%; Energy Systems adjusted operating income rose 11% to $32.4 million and adjusted operating margin expanded to 40.4% (up 290 bps) after excluding a $4.5M legal provision.
Water Systems Momentum and Product Wins
Global Water Systems sales up 5% (U.S. & Canada +8%); strong end-market performance: groundwater pumping (agriculture) +12%, residential including water treatment +11%, mineral extraction +6%; new product launches drove over $10 million of new sales in Q2 and water treatment dealer additions contributed over $2 million.
Improved Cash Generation and Capital Deployment
Net cash provided by operating activities of $58.7 million in the first half vs $32.0 million prior year; cash balance $97.3 million; announced quarterly dividend of $0.28 and a record capital budget to fund growth and productivity projects.
Strategic M&A and Operational Initiatives
Closed three acquisitions in H1 (water treatment and distribution-focused deals) that are tracking ahead of plan, adding roughly 1% to sales; ramping a new factory in Turkey, executing facility consolidations in North America, and appointing a Chief Supply Chain & Transformation Officer to accelerate productivity.
DE:FE4 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed