Inferra AI / Company / FELE / Slides
Franklin Electric Co Inc. — FELE Q1 2026 Earnings Release Deckv1 (company IR deck)
Franklin Electric Co Inc. (FELE) · 21 slides · Filed Oct 28, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All FELE deck slides
Slide 1 — Q1 2026
Q1 2026 Earnings Presentation April 28, 2026
Slide 2 — Safe Harbor Statement
Safe Harbor Statement "Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, changes in tariffs or the impact of any such changes on the Company’s financial results, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2025, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. 2
Slide 3 — Q1 2026 Key messages
Q1 2026 Key messages • Strong Q1 results in all three segments with volume growth. • Organic sales growth across end markets. Good pricing discipline and execution. • Disciplined strategy execution led to solid earnings growth in softer markets. • Healthy Q1 order trends and backlog. Well-positioned in the face of tariffs and global uncertainty. • Healthy balance sheet to invest for growth and share buyback. • Several Value Acceleration Office initiatives underway or implemented. 3
Slide 4 — Q1 2026 Overview ¹
Q1 2026 Overview ¹ • Financial Performance: −Sales of $500.4M, up 10% YoY −Gross Margin of 35.0%, down 100bps −SG&A of 24.6%, down 170bps −Adjusted Operating income of $52.0M, up 17% YoY, with adjusted operating margin of 10.4% −GAAP EPS of $0.77, Adjusted EPS of $0.83, up 24% YoY • Solid execution despite macroeconomic challenges. • Higher volume in in all segments. • Disciplined pricing across all segments. SALES ADJUSTED OPERATING INCOME ADJUSTED EPS $455M $500M Q1 2025 Q1 2026 +10% YoY $0.67 $0.83 Q1 2025 Q1 2026 $44M $52M Q1 2025 Q1 2026 +17% YoY +24% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income and Adjusted EPS. A reconciliation to comparable U.S. GAAP measures can be found herein. 4
Slide 5 — RESIDENTIAL | AGRICULTURAL | COMMERCIAL | INDUSTRIAL | ENERGY
RESIDENTIAL | AGRICULTURAL | COMMERCIAL | INDUSTRIAL | ENERGY OUR VALUE CREATION FRAMEWORK (2027) OUR BUSINESS SEGMENTS GROWTH ACCELERATION RESILIENT MARGINS INVESTMENTS & CAPITAL TALENT CENTRIC Strong revenue with all segments growing Strategy focused on faster growing markets and regions Innovation as a key focus with over 35 new products contributing a projected ~$160M in new revenue by year three Enhancing and expanding our channel in our most important markets Key 2025 margin improvement efforts in Distribution and Water treatment showing progress (+210bps and +410bps) Value Acceleration Office ramping to 100bps productivity Improved strategic pricing focus, offset tariffs Consolidation of key business systems Key 2025 acquisitions to support faster growing markets and geographies Healthy funnel with good strategic M&A options Corporate development upgraded as a strategic capability focuses on targeted M&A Consistent dividend growth for 34 years Key executive adds and internal talent promotions to strengthen our team Ongoing effort to enhance our cultural alignment focused on collaboration and growth Safety focus showing our employee commitment 56% 31% 13% OUR VALUE CREATION FRAMEWORK Water Systems Distribution Energy Systems 60% 11% 29% $2.176B REVENUE $277.4M ADJ. OP INCOME Q1-26 TTM 63% 5
Slide 6 — Q1 2026 Adjusted EPS Performance ¹
$0.83 $0.67 Adjusted Q1 2026 EPS Adjusted Q1 2025 EPS Q1 2026 Adjusted EPS Performance ¹ $0.77 $0.06 Q1 2026 Reported EPS Restructuring expenses 6 1 Non-GAAP financial metrics referenced in this slide include Adjusted EPS. A reconciliation to comparable U.S. GAAP measures can be found herein. “The 24% year over year expansion in adjusted diluted EPS was primarily driven by the expansion in our adjusted operating income year over year” +24%
Slide 7 — Q1 2026 Performance ¹
Q1 2026 Performance ¹ 7 $44M $11M ($3M) $52M Q1 2025 Gross Profit SG&A Q1 2026 SALES ADJUSTED OPERATING INCOME Sales of $500.4M increased 10% YoY • Favorable pricing in all three Segments • Higher volumes in all three Segments • Acquisitions in Water and Distribution added 2% of growth Adj. Operating Income of $52.0M increased 17% YoY • Gross profit up on higher sales • Higher SG&A expenses primarily due to acquisition- related costs, but improved leverage by 170bps $455M $27M $9M $10M $500M Q1 2025 Volume/Price Acquisitions FX, net Q1 2026 9.7% 10.4% 2% 6% 2% 10% YoY 17% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income. A reconciliation to comparable U.S. GAAP measures can be found herein.
Slide 8 — Water Systems Q1 2026 Performance ¹
Water Systems Q1 2026 Performance ¹ 8 $43M $8M ($3M) $48M Q1 2025 Gross Profit SG&A Q1 2026 SALES ADJUSTED OPERATING INCOME Sales of $318.0M increased 11% YoY • Favorable pricing and higher volumes • Acquisitions added 3% of growth • Above market growth in Water Treatment & Australia mine dewatering Adj. Operating Income of $48.2M increased 11% YoY • Gross profit up on favorable price and higher volumes • Higher SG&A expenses primarily due to acquisition- related costs and FX, but improved leverage by 90bps $287M $13M $9M $10M $318M Q1 2025 Volume/Price Acquisitions FX, net Q1 2026 15.1% 15.2% 3% 4% 3% 11% YoY 11% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income. A reconciliation to comparable U.S. GAAP measures can be found herein.
Slide 9 — Distribution Q1 2026 Performance ¹
Distribution Q1 2026 Performance ¹ 9 $2M $2M ($1M) $3M Q1 2025 Gross Profit SG&A Q1 2026 SALES ADJUSTED OPERATING INCOME Sales of $150.9M increased 6% YoY • Higher mix of volume growth than price realization • Volume growth from OSI program & other initiatives in relatively stable market with a favorable outlook • Expanding reach into wastewater and water treatment Adj. Operating Income of $3.0M increased 30% YoY • Gross profit up on volume growth, partially offset by year over year cost variances • Higher SG&A expenses due to merit increase, but improved leverage by 100bps $142M $9M $0M $0M $151M Q1 2025 Volume/Price Acquisitions FX, net Q1 2026 1.6% 2.0% 0% 6% 0% 6% YoY 30% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income. A reconciliation to comparable U.S. GAAP measures can be found herein.
Slide 10 — Energy Q1 2026 Performance ¹
Energy Q1 2026 Performance ¹ 10 $22M $2M $0M $24M Q1 2025 Gross Profit SG&A Q1 2026 SALES ADJUSTED OPERATING INCOME Sales of $71.8M increased 7% YoY • Higher volumes and favorable pricing • International growth in India • Healthy backlog, orders and book to bill Adj. Operating Income of $24.2M increased 11% YoY • Gross profit up on higher sales volume and favorable price/cost and operational efficiency • Slightly lower SG&A expenses from cost management, and improved leverage by 140bps $67M $5M $0M $0M $72M Q1 2025 Volume/Price Acquisitions FX, net Q1 2026 32.8% 33.7% 0% 7% 0% 7% YoY 11% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income. A reconciliation to comparable U.S. GAAP measures can be found herein.
Slide 11 — Balance Sheet and Cash Flow¹
11 Balance Sheet and Cash Flow¹ 1 Non-GAAP financial metrics referenced in this slide include net debt/cash, free cash flow, and net debt to EBITDA. A reconciliation to comparable U.S. GAAP measures can be found herein. $80M Cash Balance $144M Net Debt 0.5x Net Debt to EBITDA 0.12M Shares repurchased in Q1 -$26M -$50M $206M $147M Q1 2025 Q1 2026 2025 TTM 2026 TTM -$20M -$41M $243M $198M Q1 2025 Q1 2026 2025 TTM 2026 TTM Cash Flow From Operations Free Cash Flow
Slide 12 — 2026 Outlook
2026 Outlook 12 • Continued top line growth despite ongoing soft macroeconomic environment (housing market, interest rates) • Solid underlying demand in core markets, healthy demand trend, solid backlog • Internal initiatives to expand margins • Monitoring geopolitical landscape with robust risk mitigation plans in place • Tariff refund not forecasted, submitted request • Maintaining strong balance sheet and deploying capital with max ROIC mindset • Remain confident in our long-term strategy HIGHLIGHTS SALES Unchanged $2.17 to $2.24 Billion (up LSD to MSD) Adjusted EPS Unchanged $4.40 to $4.60 (up MSD to LDD) LSD = low-single digits, MSD = mid-single digits, HSD = high-single digits, LDD = low-double digits
Slide 13 — Distribution Segment: Headwater Companies
2025 Results: Revenue $701M | GP% 27.1% Distribution Segment: Headwater Companies • We have built a leading channel in our industry bringing together leading product, services, and technology. • Distribution and support through 84 branches in 38 states with over 650 OSI locations to address market growth trends. • This gives us a unique advantage—we can align product design, system distribution, and support under one umbrella. • We provide comprehensive solutions in the groundwater, water treatment, water management and irrigation verticals through access to industry leading brands at competitive prices, backed by technical expertise End-Market 58% 13% 15% 14% Residential Agriculture Commercial & Industrial Municipal & Utility 13
Slide 14 — Closing Thoughts
Closing Thoughts 14 • Solid start to 2026, all businesses performing well despite market uncertainty • Solid backlog and book to bill • Confident in sales growth and margin expansion in ‘26 • Mitigation strategies in place to continue to offset tariff impacts • Continued confidence in our long-term strategy • We are an attractive portfolio with great opportunities to grow 14
Slide 15 — Non-GAAP Reconciliations
15 Non-GAAP Reconciliations
Slide 16 — Non-GAAP Reconciliations
Non-GAAP Reconciliations To supplement Franklin Electric’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. Non-GAAP financial measures may enhance an understanding of the company’s operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the company’s reconciliations to corresponding U.S. GAAP financial measures (which are included in the tables accompanying this presentation), may enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. Accordingly, management uses these non-GAAP measures internally in financial planning and to monitor business performance. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP. Franklin Electric strongly encourages investors to review its consolidated financial statements and publicly- filed reports in their entirety and cautions investors that the non-GAAP measures used by the company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non-GAAP financial measures used in this presentation include: adjusted diluted EPS, adjusted operating income and margin, net debt/cash, net debt/cash to EBITDA, and free cash flow. 16
Slide 17 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Adjusted Operating Income and Margin $ in Millions 17
Slide 18 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Adjusted Diluted EPS $ 18
Slide 19 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Total Debt to Net Debt (Cash) and Net Debt to EBITDA $ in Millions 19
Slide 20 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in Millions 20
Slide 21 — Thank You!
Thank You! Jennifer Wolfenbarger CFO Dean Cantrell, Director IR [email protected] 260-824-2900 21