Revenue: As of FY2026 Q2, the actual value is USD 622.88 M, beating the estimate of USD 605.93 M.

EPS: As of FY2026 Q2, the actual value is USD 1.46, beating the estimate of USD 1.43.

EBIT: As of FY2026 Q2, the actual value is USD 92.45 M.

Consolidated Financial Performance (Second Quarter 2026 vs. Second Quarter 2025)

Net Sales

Consolidated net sales were $622.9 million, an increase of 6% from $587.4 million in the prior year period.

Gross Profit

Gross profit for the second quarter of 2026 was $230.6 million, up from $211.8 million in the second quarter of 2025.

Operating Income and Margin

Operating income was $93.6 million, an increase of 6% from $88.1 million in the prior year period. The operating margin was 15.0% for both periods.

Operating Costs

Selling, general, and administrative expenses increased to $132.1 million in Q2 2026 from $123.5 million in Q2 2025. Restructuring expense was $0.4 million in Q2 2026, compared to $0.2 million in Q2 2025. A legal settlement loss of $4.5 million was recorded in Q2 2026, with no comparable expense in Q2 2025.

Other Income and Expenses

Interest expense was - $3.5 million in Q2 2026, compared to - $2.8 million in Q2 2025. Other income (expense), net was $1.3 million in Q2 2026, compared to - $0.2 million in Q2 2025. Foreign exchange expense, net was - $2.5 million in Q2 2026, an improvement from - $4.5 million in Q2 2025.

Net Income

Net income was $66.1 million in Q2 2026, up from $60.6 million in Q2 2025. Net income attributable to Franklin Electric Co., Inc. was $65.7 million in Q2 2026, compared to $60.1 million in Q2 2025.

Segment Performance (Second Quarter 2026 vs. Second Quarter 2025)

Water Systems

Net sales were $358.5 million, an increase of 5% ($17.7 million) compared to the prior year. Operating income was $65.2 million, a 6% increase over $61.8 million in the prior year. Adjusted operating income was $65.6 million, up 6% from $61.9 million in the prior year. Operating margin was 18.2% in Q2 2026, up from 18.1% in Q2 2025.

Energy Systems

Net sales were $80.2 million, an increase of 3% ($2.7 million) compared to the prior year. Operating income was $27.9 million, a decrease from $29.1 million in the prior year, impacted by a $4.5 million legal settlement expense in Q2 2026. Adjusted operating income was $32.4 million, an 11% increase over $29.1 million in the prior year. Operating margin was 34.8% in Q2 2026, down from 37.5% in Q2 2025.

Distribution

Net sales were $221.1 million, an increase of 11% ($21.1 million) compared to the prior year. Operating income was $19.7 million, a 22% increase over $16.1 million in the prior year. Operating margin was 8.9% in Q2 2026, up from 8.1% in Q2 2025.

Cash Flow (Six Months Ended June 30, 2026 vs. June 30, 2025)

Operating Activities

Net cash flows from operating activities were $58.7 million, an increase from $32.0 million in the prior year period. Key adjustments included depreciation and amortization of $33.9 million in 2026 versus $30.2 million in 2025, and changes in receivables of - $98.8 million in 2026 versus - $61.5 million in 2025.

Investing Activities

Net cash flows from investing activities were - $90.9 million, an improvement from - $127.3 million in the prior year period. Additions to property, plant, and equipment were - $20.4 million in 2026 versus - $18.4 million in 2025. Acquisitions and investments were - $71.9 million in 2026 versus - $109.7 million in 2025.

Financing Activities

Net cash flows from financing activities were $36.1 million, compared to - $22.1 million in the prior year period. Net change in debt was $75.9 million in 2026 versus $134.9 million in 2025. Purchases of common stock were - $18.3 million in 2026 versus - $129.3 million in 2025. Dividends paid were - $24.9 million in 2026 versus - $25.3 million in 2025.

Cash and Cash Equivalents

Cash and cash equivalents at the end of the period were $97.3 million, compared to $104.6 million in the prior year period.

Outlook / Guidance

Franklin Electric Co., Inc. is raising its guidance for the full year 2026. The company now expects full year net sales to be in the range of $2.21 billion to $2.29 billion. Additionally, full year 2026 Adjusted Diluted EPS is projected to be in the range of $4.50 to $4.70.