Franklin Electric Co (FE4) Q3 2026 Earnings Report
DE:FE4 Q3 2026 EPS Results
- Actual EPS
- EUR 1.34
- Consensus EPS
- EUR 1.27
- Beat/Miss
- Beat by +EUR 0.07
- One Year Ago EPS
- EUR 1.16
DE:FE4 Q3 2026 Revenue Results
- Actual Revenue
- EUR 565.72M
- Expected Revenue
- EUR 551.06M
- Beat/Miss
- Beat by +EUR 14.67M
- YoY Revenue Growth
- +8.92%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
DE:FE4 Upcoming Earnings
Franklin Electric Co's next earnings date is estimated for February 16, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:FE4 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. The company reported 9% consolidated sales growth, record Distribution results, 15% adjusted EPS growth, 24% adjusted Energy Systems operating income growth, strong cash generation, raised full-year guidance, and multiple strategic growth initiatives. These strengths outweighed the stated gross-margin pressure, regional softness, inflation, acquisition-related costs, and Water Systems profitability decline.
Company Guidance
The company raised full year sales expectations to a range of $2.23 billion to $2.3 billion and full year adjusted diluted EPS to a range of $4.62 to $4.82, excluding the purchase of Challenge Pumps; Q4 water is expected to show mid to high single digit on the top line, with some additional pressure from operational moves and inflation, while the moves are expected to be wrapped up for the most part in 2026 and read out a nice productivity going into 2027. Cat Pumps is expected to be accretive to adjusted EPS in 2027, with more than $100 million in revenue and EBITDA margins above 35%; Challenge Pumps has revenue of about $52 million, with more than 55% of revenue over the last 3 years generated from recurring parts and service activity.
- Consolidated Revenue GrowthThird-quarter 2026 consolidated sales were $633.6 million, up 9% year over year, primarily driven by organic price and volume growth, incremental sales from recent acquisitions, and favorable foreign currency translation.
- Adjusted Earnings and Operating Income ExpansionAdjusted diluted EPS reached a new third-quarter record of $1.50, up 15% from $1.31 in the prior-year quarter. Adjusted operating income was $95.4 million, up $9.2 million or 11%, while adjusted operating income margin improved 30 basis points to 15.1%.
- Strong Distribution Segment PerformanceDistribution sales reached a new quarterly record of $226.1 million, up 15% from $197.3 million. Operating income reached a new third-quarter record of $20.6 million, up $4.3 million, and operating margin improved 80 basis points to 9.1%. Growth was supported by higher volumes, market-share gains, acquisition-related sales, price realization, cross-pollination, pull-through, and on-site inventory initiatives. On-site inventory grew about 30% in the quarter.
- Energy Systems Adjusted GrowthEnergy Systems sales were $91.7 million, up $11.7 million or 15% year over year, driven by Cat Pumps acquisition-related sales, higher organic volumes, and strong price realization. Adjusted operating income increased $6.1 million or 24% to $31.5 million, and adjusted operating margin rose 260 basis points to 34.4%.
- Water Systems Revenue GrowthGlobal Water Systems sales increased 5% year over year, driven by additional volume from recent acquisitions, strong price, and favorable currency exchange. U.S. and Canada sales increased 7%, including residential products and water treatment growth of 13% and agricultural groundwater pumping equipment growth of 9%. Water business top-line growth was just north of 7% year to date.
- Mineral Extraction MomentumSales of products into mineral extraction applications outside the U.S. and Canada increased 71% in the quarter. Management said the mineral extraction business is a growth lever supported by electrification trends and the global need for metals and critical minerals.
- New Product and Channel ExpansionNew products generated over $28 million in sales year to date. Recently deployed OSI containers contributed $32 million of sales in the quarter, while the company also reported strong dealer additions in water treatment and increased share with current customers.
- Challenge Pumps AcquisitionFranklin Electric announced a definitive agreement to acquire Challenge Pumps, a Perth, Australia-based provider of underground mine dewatering solutions. The business generates about $52 million of revenue, with more than 55% of revenue over the last three years coming from recurring parts and service activity. Management described the acquisition as a strategic fit with Water Systems and said it is nicely accretive to the base water portfolio.
- Cat Pumps Acquisition ProfileCat Pumps generated more than $100 million in revenue with EBITDA margins above 35%. Management expects the acquisition to be accretive to adjusted EPS in 2027 and identified opportunities for sales synergies, global channel expansion, supply-chain sourcing, and additional margin improvement.
- Healthy Cash Flow and Balance SheetThe company ended the quarter with $159.1 million of cash and $125 million outstanding under its revolving credit agreement. Net cash flow from operating activities was $139.2 million for the first nine months of 2026, compared with $134.7 million in the prior-year period.
- Shareholder ReturnsThe company declared a quarterly cash dividend of $0.28 and repurchased 50,000 shares for approximately $4.8 million during the quarter. Approximately 600,000 shares remained authorized for repurchase at quarter end.
- Raised Full-Year GuidanceThe company raised full-year 2026 sales guidance to $2.23 billion to $2.3 billion and adjusted diluted EPS guidance to $4.62 to $4.82. The revised guidance does not include the announced Challenge Pumps acquisition.
- Productivity and Footprint OptimizationThe company consolidated its Pioneer production line into Oklahoma, moved a Mexico site to a larger campus, consolidated smaller peripheral distribution sites, and completed water-treatment moves toward regional assembly, production, and testing. Management expects these efforts and other consolidation and value-chain repositioning initiatives to provide productivity benefits in 2027.
- Energy Segment Strategic PositionThe Energy Systems business is expected to finish the year with over $350 million in sales and was described as a market leader in technology, customer intimacy, and returns. The segment continues to expand solutions for fueling, convenience, energy data infrastructure, and diversified industrial markets, including remote monitoring, site management, uptime, and condition-based maintenance applications.
- Data Center Initiative ProgressThe company reported progress in its data center initiative, including wins in flushing and condensation management and power quality. The business remains a sub-$50 million operation, while management expects nice growth over the midterm.
- Positive 2027 Base-Business OutlookManagement said it feels good about the base business entering 2027, expects the base business to be solid and strong, and cited faster-growing markets, new products, channel expansion, and customer additions as sources of support.
- Capital Allocation Remains FlexibleManagement said growth remains the top investment priority through internal and acquisition growth, while the company intends to maintain consistent dividends and continue evaluating share repurchases each quarter. The company plans to digest its two sizable acquisitions over the next six months.
DE:FE4 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 16, 2027 | 2026 (Q4) | 0.76- | 0.78 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 1.271.34 | 1.16 | 15.38% (+0.18) | |
| Jul 28, 2026 | 2026 (Q2) | 1.291.38 | 1.17 | 18.32% (+0.21) | |
| Apr 28, 2026 | 2026 (Q1) | 0.670.74 | 0.6 | 23.88% (+0.14) | |
| Feb 17, 2026 | 2025 (Q4) | 0.780.78 | 0.64 | 20.83% (+0.13) | |
| Oct 28, 2025 | 2025 (Q3) | 1.171.16 | 1.04 | 11.11% (+0.12) | |
| Jul 29, 2025 | 2025 (Q2) | 1.151.17 | 1.12 | 3.97% (+0.04) | |
| Apr 29, 2025 | 2025 (Q1) | 0.650.60 | 0.62 | -4.29% (-0.03) | |
| Feb 18, 2025 | 2024 (Q4) | 0.590.64 | 0.73 | -12.20% (-0.09) | |
| Oct 29, 2024 | 2024 (Q3) | 1.111.04 | 1.1 | -4.88% (-0.05) |
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