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Franklin Electric Co. (FELE)
NASDAQ:FELE
Earnings Data
Report Date
May 05, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.76Last Year’s EPS
0.67Same Quarter Last Year
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call presented a predominantly positive operational and financial picture: company-wide revenue and segment operating income reached multi-year highs, cash conversion remained strong (126%), Distribution and Water treatment businesses showed significant margin improvement, and management outlined a clear transformation agenda (Value Acceleration Office) and a sizable new-product pipeline. Key challenges include a GAAP EPS hit from a large pension settlement charge, Energy segment margin pressure due to tariffs and geographic mix, and some regional softness (HVAC in the U.S., Latin America and parts of Asia). Management provided constructive 2026 guidance (midpoint sales growth ~3% and adjusted EPS midpoint ~9%) and emphasized continued margin expansion and product-driven growth. On balance, the positives — record revenue, operating income, margin improvement in core growth areas, strong cash conversion, active capital allocation and a focused transformation program — outweigh the headwinds presented.Company Guidance
Record Revenue and Operating Income
Full year 2025 consolidated sales were $2.1 billion, up 5.4% year-over-year; consolidated operating income was $269.0 million, up 10% from $243.6 million, with operating income margin of 12.6% (up 50 basis points). Q4 sales were $506.9 million, up 4.4%, and Q4 consolidated operating income was $51.6 million, up 20% year-over-year.
Strong Cash Conversion and Balance Sheet Actions
Cash conversion was 126%, marking the third consecutive year >120%. The company generated $239 million in net cash from operating activities in 2025, ended the year with $99.7 million cash and $30 million outstanding on the revolver, completed about $120 million of acquisitions and roughly $160 million in share buybacks (including ~1.8 million shares repurchased during the year).
Adjusted EPS Growth and Guidance
Adjusted diluted EPS was $4.14 in 2025 versus $3.92 in 2024 (+6%). Management guided 2026 adjusted EPS to $4.40–$4.60 (midpoint ~9% growth) and sales to $2.17–$2.24 billion (midpoint ~3% growth).
Product Innovation Pipeline
Added over 35 new products in 2025 with an expectation that these will deliver more than $160 million in revenue by year 3; management expects the new-product pipeline to more than triple in coming years.
Water Treatment and Distribution Margin Improvements
Water treatment sales exited 2025 at $200 million and reported an operating margin improvement of over 400 basis points in 2025. Distribution business grew to over $700 million and improved operating margin by 210 basis points full year; Distribution full-year operating income rose to $39.8 million (up 64% year-over-year).
SG&A and Gross Profit Trends
Full-year gross profit increased to $755.9 million (from $717.3 million); gross margin was stable at 35.5%. SG&A improved 50 basis points year-over-year (130 bps improvement excluding acquisition impact); Q4 SG&A improved ~70 bps year-over-year.
Operational Transformation Initiatives
Launched a Value Acceleration Office leveraging 80-20, AI and process engineering to streamline portfolio, reduce complexity and improve margins; several projects are already running with expected readouts in 2026 and contribution baked into guidance.
Dividend Increase and Shareholder Returns
Declared quarterly cash dividend of $0.28 (5.7% increase), marking the 34th consecutive year of dividend increases; continued meaningful share repurchases (Q4 repurchases ~350,000 shares for $34.3 million).
FELE 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
FELE Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 17, 2026 | $108.94 | $92.98 | -14.65% |
Oct 28, 2025 | $97.96 | $94.74 | -3.29% |
Jul 29, 2025 | $92.62 | $95.17 | +2.75% |
Apr 29, 2025 | $87.65 | $83.82 | -4.37% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Franklin Electric Co. (FELE) report earnings?
Franklin Electric Co. (FELE) is schdueled to report earning on May 05, 2026, Before Open (Confirmed).
What is Franklin Electric Co. (FELE) earnings time?
Franklin Electric Co. (FELE) earnings time is at May 05, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FELE EPS forecast?
FELE EPS forecast for the fiscal quarter 2026 (Q1) is 0.76.