Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q2 2026 Earnings Presentation
21 slides from Franklin Electric's earnings presentation, Jul 28, 2026
Slide 1: Q2 2026 Earnings Presentation
Q2 2026 Earnings Presentation July 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: Q2 2026 Key messages
Q2 2026 Key messages • Strong Q2 results in all three segments. • Organic sales growth across end markets. Good pricing discipline and execution. Some mixed global performance. • Disciplined strategy execution led by new products, disciplined execution, and continued channel expansion. • Healthy Q2
Slide 4: Q2 2026 Overview
Q2 2026 Overview ¹ • Financial Performance: SALES − Sales of $622.9M, up 6% YoY $587M $623M − Gross Margin of 37.0%, up 90bps +6% YoY − SG&A of 21.2%, up 20bps − Adjusted Operating income of $98.5M, up 12% YoY, with Q2 2025 Q2 2026 adjusted operating margin of 15.8% ADJUSTED OPERATING INCOME − GAAP
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 $2.212B REVENUE 56% 31% ✓ Strong revenue with all ✓ Value Acceleration ✓ Key 2025 acquisitions to ✓ Key executive adds and segments gr
Slide 6: Q2 2026 Adjusted EPS Performance
Q2 2026 Adjusted EPS Performance ¹ “The 18% year over year expansion in adjusted $0.08 $0.01 $1.55 $1.46 diluted EPS was primarily driven by the expansion in our adjusted operating income $1.31 year over year, as a result of volume growth above market, price discipline and cost management” +18% Q2 2
Slide 7: Q2 2026 Performance
Q2 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $19M $6M $623M $99M $15M $14M $88M ($9M) $587M 6% 12% YoY YoY 2% 3% 1% 15.0% 15.8% Q2 2025 Volume/Price Acquisitions FX, net Q2 2026 Q2 2025 Gross Profit SG&A Q2 2026 Sales of $622.9M increased 6% YoY Adj. Operating Income of $98.5M increased 12%
Slide 8: Water Systems Q2 2026 Performance
Water Systems Q2 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $10M $6M $359M $66M $7M $341M $4M $62M ($6M) 5% 6% YoY YoY 1% 2% 2% 18.2% 18.3% Q2 2025 Volume/Price Acquisitions FX, net Q2 2026 Q2 2025 Gross Profit SG&A Q2 2026 Sales of $358.5M increased 5% YoY Adj. Operating Income of $65.6M in
Slide 9: Distribution Q2 2026 Performance
Distribution Q2 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $6M $8M $0M $221M $20M $14M ($3M) $200M $16M 22% 11% YoY YoY 7% 4% 0% 8.1% 8.9% Q2 2025 Volume/Price Acquisitions FX, net Q2 2026 Q2 2025 Gross Profit SG&A Q2 2026 Sales of $221.1M increased 11% YoY Adj. Operating Income of $19.7M in
Slide 10: Energy Q2 2026 Performance
Energy Q2 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $4M $32M $3M $0M $80M ($1M) $78M ($0M) $29M 3% 11% YoY YoY 4% 0% 0% 37.5% 40.4% Q2 2025 Volume/Price Acquisitions FX, net Q2 2026 Q2 2025 Gross Profit SG&A Q2 2026 Sales of $80.2M increased 3% YoY Adj. Operating Income of $32.4M increased
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow¹ Free Cash Flow Cash Flow From Operations $97M $219M Cash Balance $258M $246M $196M $146M Net Debt 0.4x Net Debt to Adjusted EBITDA $59M $40M $32M 0.0M $14M Shares repurchased in Q2 2025 YTD 2026 YTD 2025 TTM 2026 TTM 2025 YTD 2026 YTD 2025 TTM 2026 TTM 1 Non-GAAP financi
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 $2.21 to $2.29 Billion • 1H26 Acquisitions contrib
Slide 13: Franklin Water Systems
Franklin Water Systems • We are a leading manufacturer of pumps, motors, drives, and accessories that supply, move, and remove End-Market water. • We have a global footprint with 15 manufacturing sites 8% Residential and a growing channel network. Our goal is simple: think 16% Commercial & globally,
Slide 14: Closing Thoughts
Closing Thoughts • Solid start to 2026, all businesses performing well despite market uncertainty • Solid backlog and book to bill and a solid 2H outlook • Confident in sales growth and margin expansion in ‘26 • Mitigation strategies in place to continue to offset tariff and supply chain impacts • C
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations 15
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
Slide 17: Reconciliation of Non-GAAP Financial Measure: Adjusted Operating Income and Margin
Reconciliation of Non-GAAP Financial Measure Adjusted Operating Income and Margin $ in Millions 17
Slide 18: Reconciliation of Non-GAAP Financial Measure: Adjusted Diluted EPS
Reconciliation of Non-GAAP Financial Measure Adjusted Diluted EPS $ 18
Slide 19: Reconciliation of Non-GAAP Financial Measure: Net Debt
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 and pension settlement loss. 19
Slide 20: Reconciliation of Non-GAAP Financial Measure: Free Cash Flow
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 InvestorRelations@FELE.com 260-824-2900 Dean Cantrell, Director IR 21