Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q1 2026 Earnings Presentation
21 slides from Franklin Electric's earnings presentation, Apr 28, 2026
Slide 1: Q1 2026 Earnings Presentation
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, inventor
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
Slide 4: Q1 2026 Overview
Q1 2026 Overview ¹ • Financial Performance: SALES $500M − Sales of $500.4M, up 10% YoY $455M − Gross Margin of 35.0%, down 100bps +10% YoY − SG&A of 24.6%, down 170bps − Adjusted Operating income of $52.0M, up 17% YoY, with Q1 2025 Q1 2026 adjusted operating margin of 10.4% ADJUSTED OPERATING INCOME
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 $2.176B 31% REVENUE 56% Strong revenue with all Key 2025 margin Key 2025 acquisitions to Key executive adds and segments growi
Slide 6: Q1 2026 Adjusted EPS Performance
Q1 2026 Adjusted EPS Performance ¹ $0.06 $0.83 $0.77 $0.67 “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% Q1 2026 Restructuring Adjusted Adjusted Reported EPS expenses Q1 2026 EPS Q1 2025 EPS 1 Non
Slide 7: Q1 2026 Performance
Q1 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $11M $10M $500M $9M $52M $27M ($3M) $455M 10% $44M 17% YoY YoY 6% 2% 2% 9.7% 10.4% Q1 2025 Volume/Price Acquisitions FX, net Q1 2026 Q1 2025 Gross Profit SG&A Q1 2026 Sales of $500.4M increased 10% YoY Adj. Operating Income of $52.0M increased 17
Slide 8: Water Systems Q1 2026 Performance
Water Systems Q1 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $10M $318M $8M $9M $48M $13M ($3M) $43M $287M 11% 11% YoY YoY 4% 3% 3% 15.1% 15.2% Q1 2025 Volume/Price Acquisitions FX, net Q1 2026 Q1 2025 Gross Profit SG&A Q1 2026 Sales of $318.0M increased 11% YoY Adj. Operating Income of $48.2
Slide 9: Distribution Q1 2026 Performance
Distribution Q1 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $2M $9M $0M $0M $151M $3M $142M ($1M) $2M 30% 6% YoY YoY 6% 0% 0% 1.6% 2.0% Q1 2025 Volume/Price Acquisitions FX, net Q1 2026 Q1 2025 Gross Profit SG&A Q1 2026 Sales of $150.9M increased 6% YoY Adj. Operating Income of $3.0M increase
Slide 10: Energy Q1 2026 Performance
Energy Q1 2026 Performance ¹ SALES ADJUSTED OPERATING INCOME $0M $24M $2M $5M $0M $0M $72M $67M 7% 11% YoY $22M YoY 7% 0% 0% 32.8% 33.7% Q1 2025 Volume/Price Acquisitions FX, net Q1 2026 Q1 2025 Gross Profit SG&A Q1 2026 Sales of $71.8M increased 7% YoY Adj. Operating Income of $24.2M increased 11%
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow¹ Free Cash Flow Cash Flow From Operations $80M $206M $243M Cash Balance $198M $147M $144M Net Debt 0.5x Net Debt to EBITDA -$26M -$20M 0.12M -$50M -$41M Shares repurchased in Q1 Q1 2025 Q1 2026 2025 TTM 2026 TTM Q1 2025 Q1 2026 2025 TTM 2026 TTM 1 Non-GAAP financial metri
Slide 12: 2026 Outlook
2026 Outlook HIGHLIGHTS • Continued top line growth despite ongoing soft macroeconomic environment (housing market, interest rates) SALES Unchanged • Solid underlying demand in core markets, $2.17 to $2.24 Billion healthy demand trend, solid backlog (up LSD to MSD) • Internal initiatives to expand m
Slide 13: Distribution Segment: Headwater Companies
Distribution Segment: Headwater Companies • We have built a leading channel in our industry bringing together leading End-Market product, services, and technology. Residential 14% • Distribution and support through 84 branches in 38 states with over 650 OSI locations to address market growth trends.
Slide 14: Closing Thoughts
Closing Thoughts • 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 str
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
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 InvestorRelations@FELE.com 260-824-2900 Dean Cantrell, Director IR 21