Q2 2026 Franklin Electric Co Inc Earnings Call Transcript
Key Points
- Franklin Electric Co Inc (FELE) reported a 6% year-over-year increase in consolidated sales for the second quarter of 2026, driven by organic growth and recent acquisitions.
- The company achieved an 18% year-over-year increase in adjusted diluted EPS, setting a new quarterly record.
- Franklin Electric Co Inc (FELE) saw strong growth in its water systems segment, with sales in the US and Canada up 8% compared to the previous year.
- The company successfully closed three deals in the first half of the year, strengthening its position in water treatment in North America and expanding its distribution business.
- Franklin Electric Co Inc (FELE) is ramping up a new factory in Turkey and consolidating facilities in North America, which is expected to boost productivity in 2027.
- The company booked a $4.5 million provision due to a legal settlement in the energy systems segment during the second quarter of 2026.
- There were $400,000 in restructuring costs in the second quarter of 2026, compared to $200,000 in the prior year, related to structural improvement initiatives.
- Franklin Electric Co Inc (FELE) experienced some softer regions in Europe and South America, with ongoing conflict in the Middle East impacting sales in North Africa, Middle East, and Eastern Europe.
- The effective tax rate increased to 25.7% for the quarter, up from 24.9% in the prior year quarter, due to unfavorable discrete events.
- The company is facing uncertainty in global markets, including tariff expenses and geopolitical issues, which could impact future performance.
Good day and welcome to Franklin Electric Reports, second quarter, 2026 sales and earnings conference call.
At this time, all participants are in a listen-only mode.
After the speaker presentation, there will be a question-and-answer session, to ask a question during the session, you will need to press 11 on your telephone.
You will then hear an automated message advising your hand has been raised.
To withdraw your question, please press star 11 again.
Please be advised that today's conference is being recorded.
It is now my pleasure to introduce Dean Cantrell, Director of Investor Relations.
Thank you, Andrew, and welcome everyone to Franklin Electric second quarter 2026 earnings conference call.
Joining me today is Jennifer Wolfenbarger, our Chief Financial Officer, and Joe Rosinski, our Chief Executive Officer.
On today's call, Joe will review our second quarter business highlights, Jennifer will
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