Franklin Electric Reports Strong Q2 Results with Higher Sales and Earnings
Franklin Electric (NASDAQ:FELE) reported strong second-quarter results, driven by organic growth, price realization, acquisitions, and margin expansion. Sales rose 6% year over year to $622.9 million, while adjusted diluted EPS reached a record high of $1.55, up 18%. The company raised its full-year sales guidance to between $2.21 billion and $2.29 billion and increased adjusted EPS guidance to $4.50-$4.70. The Distribution segment led growth with an 11% increase in sales, while Global Water Systems and Energy Systems saw gains of 5% and 3%, respectively. Franklin also completed three acquisitions during the quarter, contributing over $10 million in new product sales. CFO Jennifer Wolfenbarger noted that adjusted operating margin expanded by 80 basis points to 15.8%, despite inflationary pressures and restructuring costs. The company is investing in operational improvements, including a new factory in Turkey and facility consolidation in North America, with expected productivity gains starting in 2027.
Tickers: $FELE
Topics: Earnings Guidance Update Margin Expansion Sales Growth