Franklin Electric (NASDAQ:FELE) Announces Earnings Results

Posted by Tyrone Williams on Feb 18th, 2026

Franklin Electric (NASDAQ:FELE – Get Free Report) issued its earnings results on Tuesday. The industrial products company reported $0.87 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.89 by ($0.02), FiscalAI reports. Franklin Electric had a return on equity of 14.24% and a net margin of 6.71%.The firm had revenue of $506.86 million during the quarter, compared to analyst estimates of $516.25 million. During the same period in the previous year, the company earned $0.72 EPS. Franklin Electric’s revenue for the quarter was up 4.4% on a year-over-year basis. Franklin Electric updated its FY 2026 guidance to 4.400-4.600 EPS.

Here are the key takeaways from Franklin Electric’s conference call:

Strong 2025 financials — full-year sales rose 5.4% and segment operating income climbed 9.6%, cash conversion was 126%, and the company completed ~$120M of acquisitions and ~$160M of share repurchases.
GAAP EPS hit — diluted EPS fell to $3.22 from $3.86 due to a $41.5M pension settlement ( ~$0.91/share ); on an adjusted basis EPS increased to $4.14 (+6%).
Operational momentum and product pipeline — water treatment reached $200M in sales with ~400 bps margin improvement, distribution grew to >$700M with +210 bps margin, the company added 35+ new products expected to generate >$160M by year three, and launched a Value Acceleration Office using 80/20 and AI to drive further margin gains.
Energy segment margin pressure — Q4 energy margins fell (down ~560 bps) due to unfavorable geographic mix and tariffs, although full-year energy operating income rose and management expects modest margin recovery with further price realization in 2026.
2026 outlook — management guided 2026 sales of $2.17B–$2.24B and adjusted EPS $4.40–$4.60 (midpoint ≈3% sales growth, ≈9% EPS growth) and expects margin expansion and continued M&A and investment activity.

Franklin Electric Stock Down 14.7%

Shares of Franklin Electric stock opened at $92.98 on Wednesday. The stock’s 50-day moving average is $100.33 and its 200 day moving average is $97.10. Franklin Electric has a one year low of $78.87 and a one year high of $111.53. The firm has a market cap of $4.14 billion, a price-to-earnings ratio of 30.29, a PEG ratio of 1.93 and a beta of 1.08. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.54 and a quick ratio of 1.12.

Franklin Electric Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Thursday, February 5th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Thursday, February 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 1.2%. This is a positive change from Franklin Electric’s previous quarterly dividend of $0.27. Franklin Electric’s dividend payout ratio (DPR) is presently 36.48%.

Key Headlines Impacting Franklin Electric

Here are the key news stories impacting Franklin Electric this week:

Positive Sentiment: Management set FY‑2026 guidance of $4.40–$4.60 EPS and sales of about $2.17B–$2.24B and emphasized margin expansion via its “value acceleration” program — a message that supports longer‑term margin improvement. Franklin Electric outlines $2.17B–$2.24B sales guidance for 2026 with margin expansion focus through value acceleration
Positive Sentiment: On a year‑over‑year basis Q4 operating results improved: EPS rose to $0.87 from $0.72 a year earlier and revenue increased ~4.4% — evidence of underlying organic growth. Franklin Electric Co Inc (FELE) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and …
Neutral Sentiment: The company released its Q4 slide deck and earnings presentation materials (useful for digging into segment trends and margin bridge). Franklin Electric Releases Q4 2025 Earnings Presentation Materials
Neutral Sentiment: Full earnings‑call transcripts are available for review — useful to assess management commentary on end‑market demand and timing of margin gains. Franklin Electric Co., Inc. (FELE) Q4 2025 Earnings Call Transcript
Negative Sentiment: Q4 revenue missed estimates: reported $506.9M vs. consensus ~$516.3M — the top‑line shortfall is a primary driver of investor concern. Franklin Electric (FELE) Q4 Earnings and Revenues Lag Estimates
Negative Sentiment: Reported EPS of $0.87 missed the consensus $0.89 by $0.02 and several headlines characterized the outlook as “weak,” prompting selling pressure despite the guidance range. Franklin Electric shares tumble on revenue miss, weak guidance

Institutional Trading of Franklin Electric

Several large investors have recently modified their holdings of the stock. Quarry LP bought a new position in Franklin Electric during the third quarter worth $28,000. Aster Capital Management DIFC Ltd acquired a new position in shares of Franklin Electric during the fourth quarter valued at about $35,000. EverSource Wealth Advisors LLC boosted its position in shares of Franklin Electric by 31.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 425 shares of the industrial products company’s stock worth $38,000 after purchasing an additional 101 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of Franklin Electric in the 4th quarter valued at about $48,000. Finally, Osaic Holdings Inc. grew its stake in shares of Franklin Electric by 24.3% in the 2nd quarter. Osaic Holdings Inc. now owns 608 shares of the industrial products company’s stock valued at $55,000 after buying an additional 119 shares during the period. Institutional investors and hedge funds own 79.98% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts recently commented on FELE shares. Wall Street Zen upgraded shares of Franklin Electric from a “hold” rating to a “buy” rating in a research report on Saturday, December 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Franklin Electric in a research note on Monday, December 29th. Finally, Robert W. Baird set a $112.00 price objective on shares of Franklin Electric in a research note on Wednesday, October 29th. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $112.00.

Check Out Our Latest Research Report on Franklin Electric

Franklin Electric Company Profile

(Get Free Report)

Franklin Electric Co, Inc is a world‐leading manufacturer and distributor of systems and components for moving and managing water and fuel. Headquartered in Fort Wayne, Indiana, the company specializes in designing engineered pumping systems and related controls for residential, commercial and industrial applications.

Founded in 1944, Franklin Electric has built its reputation on submersible and surface pumping solutions for water wells, municipal water and wastewater treatment, irrigation and industrial fluid handling.