Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q3 2026 Earnings Presentation
23 slides from Franklin Electric's earnings presentation, Oct 28, 2026
Slide 1: Q3 2026 Earnings Presentation
Q3 2026 Earnings Presentation October 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, inventor
Slide 3: Q3 2026 Key messages
Q3 2026 Key messages • Strong Q3 performance, led by Distribution and Energy Systems. • Organic sales growth across most end markets. Good pricing discipline and execution. Some mixed global performance. • Disciplined strategy execution led by new products, disciplined execution, and continued chann
Slide 4: Q3 2026 Overview
Q3 2026 Overview ¹ • Financial Performance: SALES $634M − Sales of $633.6M, up 9% YoY $582M − Gross Margin of 35.4%, down 50bps +9% YoY − SG&A of 21.7%, up 50bps − Adjusted Operating income of $95.4M, up 11% YoY, with Q3 2025 Q3 2026 adjusted operating margin of 15.1% ADJUSTED OPERATING INCOME − GAA
Slide 5: Our Value Creation Framework
OUR VALUE CREATION FRAMEWORK OUR VALUE CREATION FRAMEWORK (2027) OUR BUSINESS SEGMENTS 13% GROWTH ACCELERATION RESILIENT MARGINS INVESTMENTS & CAPITAL TALENT CENTRIC $2.264B REVENUE 55% 32% ✓ Strong revenue with all ✓ Value Acceleration ✓ Recent Cat Pumps ✓ Key executive adds and segments growing Of
Slide 6: Q3 2026 Adjusted EPS Performance
Q3 2026 Adjusted EPS Performance ¹ $1.50 $0.07 $0.01 $0.07 “The 15% year over year expansion in $1.35 $1.31 adjusted diluted EPS…is a continued demonstration of our commitment to expand the earnings power of our business and our dedication to delivering durable earnings even in challenging market en
Slide 7: Q3 2026 Performance
Q3 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $18M $25M $4M $634M $95M $23M $86M ($9M) $582M 9% 11% YoY YoY 4% 4% 1% 14.8% 15.1% Q3 2025 Volume/Price Acquisitions FX, net Q3 2026 Q3 2025 Gross Profit SG&A Q3 2026 Sales of $633.6M increased 9% YoY Adj. Operating Income of $95.4M increased 11%
Slide 8: Water Systems Q3 2026 Performance
Water Systems Q3 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $2M $61M $60M $10M $5M $352M ($3M) $337M $2M 5% (2%) YoY YoY 0% 3% 1% 18.2% 17.0% Q3 2025 Volume/Price Acquisitions FX, net Q3 2026 Q3 2025 Gross Profit SG&A Q3 2026 Sales of $352.4M increased 5% YoY Adj. Operating Income of $60.0M
Slide 9: Distribution Q3 2026 Performance
Distribution Q3 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $7M $7M $0M $226M $21M $21M ($3M) $16M $197M 26% 15% YoY YoY 11% 4% 0% 8.3% 9.1% Q3 2025 Volume/Price Acquisitions FX, net Q3 2026 Q3 2025 Gross Profit SG&A Q3 2026 Sales of $226.1M increased 15% YoY Adj. Operating Income of $20.6M i
Slide 10: Energy Q3 2026 Performance
Energy Q3 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $9M $8M $92M ($0M) $32M $4M ($2M) $80M 15% 24% YoY $25M YoY 5% 10% 0% 31.8% 34.4% Q3 2025 Volume/Price Acquisitions FX, net Q3 2026 Q3 2025 Gross Profit SG&A Q3 2026 Sales of $91.7M increased 15% YoY Adj. Operating Income of $31.5M increas
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow¹ Free Cash Flow Cash Flow From Operations $159M Cash Balance $205M $245M $243M $195M $402M Net Debt $135M $139M $107M $106M 1.1x Net Debt to Adjusted EBITDA 4.8M Shares repurchased in Q3 2025 YTD 2026 YTD 2025 TTM 2026 TTM 2025 YTD 2026 YTD 2025 TTM 2026 TTM 1 Non-GAAP fi
Slide 12: 2026 Outlook
2026 Outlook HIGHLIGHTS • Continued top line organic growth despite ongoing soft macroeconomic environment (housing market, interest rates, geopolitical) SALES • Solid underlying demand in core markets, healthy Updated to demand trend, solid backlog $2.23 to $2.30 Billion • 2026 Acquisitions contrib
Slide 13: Franklin Energy Systems
Franklin Energy Systems We Help Our Customers Win • We protect people and the environment through the equipment and monitoring solutions that keep mission-critical operations running. • The Energy Systems segment has expertise and a proven track record of delivering exceptional value; equipment that
Slide 14: Cat Pumps: Leading Provider of High-Pressure Pumps
Cat Pumps Leading Provider of High-Pressure Pumps COMMERCIAL & VEHICLE Franklin Electric Acquires Cat Pumps CLEANING INDUSTRIAL CLEANING Headquarters: Blaine, Minnesota USA • Increases exposure to attractive, high growth end-markets across mission critical applications. • Expands installed base with
Slide 15: Challenge Pumps: Building Out Mineral Extraction Platform
Challenge Pumps Building Out Mineral Extraction Platform TOGETHER Franklin Electric Enters an Agreement WITH to Acquire Challenge Pumps Headquarters: Perth, Australia ➢ Adds to our position in mission-critical mineral extraction & industrial water management ➢ Provides comprehensive water-management
Slide 16: Closing Thoughts
Closing Thoughts • Outperforming expectations in 2026 – all businesses performing well despite market uncertainty • Solid backlog and book to bill as we finish the year • Confident in sales growth and margin expansion in ‘26 • Mitigation strategies in place to continue to offset inflation • Continue
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 17
Slide 18: 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
Slide 19: Reconciliation of Non-GAAP Financial Measure: Adjusted Operating Income and Margin
Reconciliation of Non-GAAP Financial Measure Adjusted Operating Income and Margin $ in Millions Operating Income and Adjusted (in millions) For the Third Quarter 2026 Water Energy Distribution Other/Elims Consolidated GAAP Operating Income / (Loss) $ 58.9 $ 23.7 $ 20.6 $ (16.7) $ 86.5 Restructuring
Slide 20: Reconciliation of Non-GAAP Financial Measure: Adjusted Diluted EPS
Reconciliation of Non-GAAP Financial Measure Adjusted Diluted EPS $ For the Third Quarter 2026 2025 Change Diluted Earnings per Share "EPS" (as reported - US GAAP) $ 1.35 $ 0.37 265% Restructuring $ 0.01 $ - Impact of selling acquired inventory after markup to fair value as part of acquisition accou
Slide 21: Total Debt to Net Debt (Cash) and Net Debt to Adjusted EBITDA
Reconciliation of Non-GAAP Financial Measure Total Debt to Net Debt (Cash) and Net Debt to Adjusted EBITDA $ in Millions 1 Non-GAAP Adjustments include: restructuring expense, legal settlement loss, pension settlement loss, acquisition-related deal costs, and impact of marking up acquired inventory
Slide 22: Operating Cash Flow to Free Cash Flow
Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in Millions 22
Slide 23: Thank You!
Thank You! Jennifer Wolfenbarger CFO InvestorRelations@FELE.com 260-824-2900 Dean Cantrell, Director IR 23