Franklin Electric (NASDAQ:FELE) Announces Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Franklin Electric (NASDAQ:FELE) released its quarterly earnings data on Tuesday. The industrial products company reported $0.87 earnings per share for the quarter, missing the consensus estimate of $0.89 by ($0.02), FiscalAI reports. Franklin Electric had a return on equity of 14.52% and a net margin of 6.90%.The business had revenue of $506.86 million for the quarter, compared to analyst estimates of $516.25 million. During the same quarter last year, the company earned $0.72 EPS. Franklin Electric’s revenue was up 4.4% compared to the same quarter last year. 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 Price Performance

Shares of FELE opened at $90.88 on Thursday. The firm has a market capitalization of $4.05 billion, a price-to-earnings ratio of 28.22, a price-to-earnings-growth ratio of 1.70 and a beta of 1.08. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.12 and a current ratio of 2.79. Franklin Electric has a one year low of $78.87 and a one year high of $111.53. The stock’s fifty day moving average is $100.24 and its 200-day moving average is $97.05.

Franklin Electric Increases Dividend

The firm also recently declared 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 is a positive change from Franklin Electric’s previous quarterly dividend of $0.27. This represents a $1.12 annualized dividend and a dividend yield of 1.2%. Franklin Electric’s dividend payout ratio (DPR) is currently 36.48%.

Analysts Set New Price Targets

A number of analysts have recently weighed in on FELE shares. Robert W. Baird set a $112.00 price target on Franklin Electric in a research report on Wednesday, October 29th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Franklin Electric in a research report on Monday, December 29th. DA Davidson reissued a “neutral” rating and set a $90.00 price target on shares of Franklin Electric in a report on Wednesday. Finally, Wall Street Zen raised shares of Franklin Electric from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $101.00.

Institutional Trading of Franklin Electric

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Morgan Stanley lifted its stake in shares of Franklin Electric by 0.5% in the 4th quarter. Morgan Stanley now owns 1,790,205 shares of the industrial products company’s stock worth $171,019,000 after acquiring an additional 8,356 shares during the period. Dimensional Fund Advisors LP raised its holdings in Franklin Electric by 2.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 973,419 shares of the industrial products company’s stock worth $92,997,000 after purchasing an additional 24,027 shares in the last quarter. Amundi raised its holdings in Franklin Electric by 12.7% during the fourth quarter. Amundi now owns 703,992 shares of the industrial products company’s stock worth $67,243,000 after purchasing an additional 79,511 shares in the last quarter. Invesco Ltd. lifted its position in Franklin Electric by 9.2% in the second quarter. Invesco Ltd. now owns 607,040 shares of the industrial products company’s stock worth $54,476,000 after purchasing an additional 50,895 shares during the period. Finally, Qube Research & Technologies Ltd boosted its stake in Franklin Electric by 70.1% during the 2nd quarter. Qube Research & Technologies Ltd now owns 486,523 shares of the industrial products company’s stock valued at $43,661,000 after purchasing an additional 200,545 shares in the last quarter. 79.98% of the stock is currently owned by institutional investors.

About Franklin Electric

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.