Franklin Electric Raises 2026 Sales and Earnings Outlook

The Tip Desk · November 2, 2026 · 2 min read

Third-quarter net sales reached $633.6 million, up 9%, as the pump maker lifted full-year sales guidance to $2.23 billion–$2.30 billion.

Franklin Electric Co., Inc. (FELE) raised its full-year 2026 net sales outlook to a range of $2.23 billion to $2.30 billion and adjusted diluted earnings per share to $4.62 to $4.82 after third-quarter sales growth picked up from the prior quarter.

The global maker of water and energy systems posted consolidated net sales of $633.6 million in the third quarter, up 9% from $581.7 million a year earlier. That pace followed 6% year-over-year growth in the second quarter.

Operating income was $86.5 million, up 2% from $85.1 million in the year-ago quarter, with operating margin of 13.7%. GAAP diluted earnings were $1.35 a share, compared with $0.37 a year earlier, when a $55.3 million pension settlement loss weighed on the prior-year result. Adjusted diluted EPS was $1.50, up 15% from $1.31.

Chief Executive Joe Ruzynski said the team delivered growth through favorable pricing, contributions from recent acquisitions, and healthy customer activity, and pointed to an early contribution from Cat Pumps as integration continued. He said the company experienced margin pressure from higher material and freight costs.

All three reportable segments posted higher sales. Water Systems, the largest unit, generated $352.5 million, up 5%, which the company attributed to acquisitions, favorable foreign exchange, and price realization. Water Systems operating income was $58.9 million, down 2% from $60.2 million a year earlier; adjusted operating income was $60.0 million versus $61.3 million.

Distribution net sales were $226.1 million, up 15%, on higher volumes, acquisitions, and price realization. Distribution operating income was $20.6 million, up 26% from $16.3 million. Energy Systems net sales were $91.7 million, up 15%, on acquisitions, price realization, and volumes. Energy Systems operating income was $23.7 million, including $4.7 million of acquisition-related costs and $3.1 million of acquired-inventory fair-value markup; adjusted operating income was $31.5 million, up 24% from $25.4 million.

By geography, United States and Canada sales were $214.0 million, Latin America $56.1 million, Europe, Middle East and Africa $55.0 million, and Asia Pacific $27.4 million. Acquisitions added $24.8 million to the consolidated total and volume/price added $22.8 million.

Ruzynski said the company continues to see encouraging order trends and strong customer engagement across many businesses, and that it remains focused on disciplined pricing, productivity initiatives, and operational execution. Franklin Electric said it is raising full-year 2026 net sales guidance to $2.23 billion to $2.30 billion and adjusted diluted EPS to $4.62 to $4.82.