Franklin Electric Q3 sales top expectations on Cat Pumps acquisition

Overview

• U.S. water and energy systems maker's Q3 sales rose 9%, beating analyst expectations

• Adjusted diluted EPS for Q3 rose 15% year-over-year

• Company cites revenue growth from pricing, acquisitions, and customer activity; margin pressured by higher costs

Outlook

• Franklin Electric raises 2026 net sales guidance to $2.23 bln-$2.30 bln

• Company lifts 2026 adjusted diluted EPS outlook to $4.62-$4.82

Result Drivers

• PRICING ACTIONS - Co said favorable pricing contributed to Q3 revenue growth

• RECENT ACQUISITIONS - Co said recent acquisitions, including Cat Pumps, helped drive sales increases across segments

• CUSTOMER ACTIVITY - Co said healthy customer activity across much of the portfolio supported sales growth

• HIGHER COSTS - Co said margin pressure resulted from higher material and freight costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Franklin Electric Co., Inc. is $122.00, about 24.4% above its October 27 closing price of $98.07

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• Oct 27 - Zurn Elkay Water Solutions Q3 sales rise on product category growth

• Oct 27 - Pentair Q3 sales beat estimates on water solutions growth; reaffirms profit guidance

• Oct 27 - Water solutions firm Xylem Q3 revenue misses on projects timing, cautious spending

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)