--- title: "Franklin Electric | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 500.44 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/284622533.md" datetime: "2026-04-29T18:13:57.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284622533.md) - [en](https://longbridge.com/en/news/284622533.md) - [zh-HK](https://longbridge.com/zh-HK/news/284622533.md) --- # Franklin Electric | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 500.44 M Revenue: As of FY2026 Q1, the actual value is USD 500.44 M, beating the estimate of USD 479.19 M. EPS: As of FY2026 Q1, the actual value is USD 0.77, beating the estimate of USD 0.756. EBIT: As of FY2026 Q1, the actual value is USD 48.09 M. #### Consolidated Financial Performance - **Gross Profit:** Consolidated gross profit was $175.0 million in the first quarter of 2026, an increase from $163.9 million in the first quarter of 2025 . The gross profit margin decreased to 35.0% in Q1 2026 from 36.0% in Q1 2025, primarily due to higher material costs and an unfavorable product and geographic sales mix shift . - **Selling, General, and Administrative (SG&A) Expenses:** SG&A expenses were $123.0 million in Q1 2026, compared to $119.6 million in Q1 2025 . As a percentage of net sales, SG&A decreased to 24.6% in Q1 2026 from 26.3% in Q1 2025 . - **Restructuring Expense:** Restructuring expenses totaled $3.9 million in Q1 2026, primarily within the Water Systems segment, compared to $0.2 million in Q1 2025, mainly due to continued manufacturing and business realignment activities . - **Operating Income:** Consolidated operating income increased by 9% to $48.1 million in Q1 2026 from $44.1 million in Q1 2025 . - **Cash Flows:** - **Operating Activities:** Net cash used by operating activities was - $40.9 million in Q1 2026, compared to - $19.5 million in Q1 2025, primarily due to shifts in working capital . - **Investing Activities:** Net cash used in investing activities was - $9.5 million in Q1 2026, a decrease from - $116.1 million in Q1 2025, mainly due to decreased acquisition activity . - **Financing Activities:** Net cash provided by financing activities was $32.6 million in Q1 2026, contrasting with - $2.6 million used in Q1 2025, primarily due to increased net borrowings under the company’s credit facility . #### Segmented Performance (Q1 2026 vs. Q1 2025) ##### Water Systems Segment - **Net Sales:** Total sales were $318.0 million, an 11% increase from $287.3 million . External sales were $277.7 million in 2026 vs $246.5 million in 2025 . Intersegment sales were $40.3 million in 2026 vs $40.8 million in 2025 . U.S. and Canada sales increased by 7%, while sales outside the U.S. and Canada increased by 17% . - **Operating Income:** Operating income was $44.4 million, an increase of $1.0 million . The operating income margin decreased to 14.0% from 15.1% . - **Capital Expenditures:** Capital expenditures were $5.1 million in 2026 vs $3.2 million in 2025 . - **Segment Assets:** Segment assets were $1,249.2 million in 2026 vs $1,228.5 million in 2025 . ##### Energy Systems Segment - **Net Sales:** Total sales were $71.8 million, a 7% increase from $66.8 million, primarily due to higher volumes and price realization . External sales were $71.8 million in 2026 vs $66.8 million in 2025, with no intersegment sales reported . U.S. and Canada sales increased by 3%, and sales outside the U.S. and Canada increased by 29% . - **Operating Income:** Operating income was $24.2 million, an increase of $2.3 million . The operating income margin improved to 33.7% from 32.8% . - **Capital Expenditures:** Capital expenditures were $0.2 million in 2026 vs $0.8 million in 2025 . - **Segment Assets:** Segment assets were $265.8 million in 2026 vs $255.6 million in 2025 . ##### Distribution Segment - **Net Sales:** Total sales were $150.9 million, a 6% increase from $141.9 million, primarily due to higher volumes and price realization . External sales were $150.9 million in 2026 vs $141.9 million in 2025, with no intersegment sales reported . - **Operating Income:** Operating income was $3.0 million, an increase of $0.9 million . The operating income margin improved to 2.0% from 1.5% . - **Capital Expenditures:** Capital expenditures were $3.7 million in 2026 vs $1.7 million in 2025 . - **Segment Assets:** Segment assets were $407.7 million in 2026 vs $383.6 million in 2025 . #### Strategic Initiatives and Outlook The company’s capital resources and liquidity position are considered adequate for foreseeable needs, with ongoing requirements expected to be funded from cash on hand, operations, and existing credit agreements . Franklin Electric Co., Inc. continues to evaluate the impacts of tariffs and global trade policies on its business . As of April 2026, the company acquired Benson Pump Corporation, a groundwater distributor in Arkansas . ### Related Stocks - [FELE.US](https://longbridge.com/en/quote/FELE.US.md) ## Related News & Research - [Franklin Electric Non-GAAP EPS of $1.55 beats by $0.12, revenue of $622.9M beats by $16.97M](https://longbridge.com/en/news/294063780.md) - [Franklin Electric Posts Q2 2026 Earnings Presentation Materials](https://longbridge.com/en/news/294112134.md) - [Franklin Electric (NASDAQ:FELE) Issues FY 2026 Earnings Guidance](https://longbridge.com/en/news/294065666.md) - [FELE: Q2 2026 delivered strong sales and EPS growth, with raised guidance and robust segment performance](https://longbridge.com/en/news/294063470.md) - [Franklin Electric beats Q2 sales estimates, lifts FY outlook](https://longbridge.com/en/news/294063723.md)