Franklin Electric beats Q2 sales estimates, lifts FY outlook

Overview

• U.S. water and energy systems maker's Q2 sales rose 6%, beating analyst expectations

• Adjusted diluted EPS for Q2 rose 18%, beating analyst expectations

• Company raised full-year 2026 revenue and adjusted EPS guidance

Outlook

• Franklin Electric raises 2026 net sales guidance to $2.21 bln-$2.29 bln

• Company lifts 2026 adjusted diluted EPS outlook to $4.50-$4.70

• Company sees continued demand in dewatering, pressure-boosting, and water treatment applications

Result Drivers

• ORGANIC AND INORGANIC GROWTH - Co said Q2 sales growth was balanced between organic initiatives and recent acquisitions

• PRICE REALIZATION AND VOLUME - Co attributed higher segment sales to price increases and higher volumes

• STRONG DEMAND IN KEY APPLICATIONS - Co cited solid demand in dewatering for mining, pressure-boosting, and water treatment in fast-growing regions

Company press release: ID:nGNXgDSM0

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery equipment peer group is "buy"

• Wall Street's median 12-month price target for Franklin Electric Co Inc is $116.50, about 10.5% above its July 27 closing price of $105.43

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)