Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems in the United States, Canada, ...
Franklin Electric Co., Inc. (NASDAQ: FELE) is a leading global provider of water and fuel pumping systems, headquartered in Fort Wayne, Indiana. Founded in 1944 by E.J. Schaefer and T.W. Kehoe in Bluffton, Indiana, the company was named after Benjamin Franklin and has grown from a small motor manufacturer into ...Franklin Electric Co., Inc. (NASDAQ: FELE) is a leading global provider of water and fuel pumping systems, headquartered in Fort Wayne, Indiana. Founded in 1944 by E.J. Schaefer and T.W. Kehoe in Bluffton, Indiana, the company was named after Benjamin Franklin and has grown from a small motor manufacturer into a multinational corporation with approximately 6,500 employees worldwide.
The company operates through three primary segments: Water Systems, Energy Systems, and Distribution. The Water Systems segment designs and manufactures motors, pumps, water treatment systems, monitoring devices, and electronic controls for groundwater, water transfer, and wastewater applications, serving residential, agricultural, municipal, and industrial markets. The Energy Systems segment produces pumps, motors, pipes, and electronic controls for fuel handling and other energy applications, including power reliability solutions for utilities and data centers. The Distribution segment provides presale support and specifications to installing contractors, selling through wholesale and retail distributors.
Franklin Electric is known for its innovative products, such as submersible motors and intelligent electronic monitoring devices. The company emphasizes sustainability and efficiency, with a focus on protecting critical resources. Financially, FELE has a market capitalization of approximately $4.84 billion, with revenue per share of $49.80 and a net profit margin of 7.1%. The company maintains a strong balance sheet with a current ratio of 2.4 and low debt-to-equity ratio of 0.22.
Leadership is guided by CEO Joseph A. Ruzynski, who joined in July 2024. The company is committed to corporate social responsibility, employing over 6,400 people and impacting communities globally. With a history spanning over 80 years, Franklin Electric continues to expand its global footprint, serving customers in North America, Latin America, Europe, Middle East, Africa, and Asia Pacific.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.1B
+5.4%
+24.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$147.1M
-18.4%
+91.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+35.5%
-0.0%
+5.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+12.8%
+5.9%
+42.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+6.9%
-22.6%
+53.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$193.5M
-11.9%
+276.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.1%
-16.4%
+241.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
17.7%
+16.9%
+1.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.79x
+25.3%
-10.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good day, and welcome to the Franklin Electric Reports Second Quarter 2026 Sales and Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. It is now my pleasure to introduce Dean Cantrell, Director of Investor Relations.
Dean Cantrell : Thank you, Andrew, and welcome, everyone, to Franklin Electric's Second Quarter 2026 Earnings Conference Call. Joining me today is Jennifer Wolfenberger, our Chief Financial Officer; and Joe Rozanski, our Chief Executive Officer. On today's call, Joe will review our second quarter business highlights. Jennifer will provide additional details on our financial performance, and then Joe will make some additional comments highlighting our Water Systems segment. We will then take your questions. A replay link of the webcast will be archived for 7 days, and a transcript and audio version of this call will be available on our website tomorrow. Before we begin, let me remind you that as we conduct this call, we will be making forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, many of which could cause actual results to differ materially from such forward-looking statements. A discussion of these factors may be found in the company's annual report on Form 10-K and today's earnings release. During this call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the appendix of our earnings presentation. All forward-looking statements made during this call are based on information currently available, and except as required by law, the company assumes no obligation to update any forward-looking statements. Earlier today, we published a slide deck to accompany our prepared remarks. The slides can be found in the Investor Relations section of our corporate website at www.franklinelectric.com. With that, I will now turn the call over to Joe.
Joseph Ruzynski : Thank you, Dean. Good morning, everyone. Thank you for joining today's call. I'm pleased to share Franklin's results today and show you a company that is on a journey of growth and transformation. Let's move to Slide 3. Our second quarter was solid for all segments. We continued our work to expand margins and increase our investment in our strategic plan. Our revenue from new products recently launched is at a record pace and we expect this to continue throughout the year. As we exited the quarter, we saw strong order growth and a healthy backlog, along with a balanced inventory position in our channel. Our balance sheet remains strong. We closed 2 deals in our water business in the first half, strengthening our position in water treatment in North America and our Water Systems business in Europe. We also closed a deal in our distribution business, which extended our ability to bring our leading customer service …