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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $633.60 mln | $610.61 mln (5 Analysts) |
Q3 EPS | $1.35 | ||
Q3 Operating income | $86.50 mln |
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
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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.)