Highlights

  • Third quarter 2026 net sales were $633.6 million, compared with $581.7 million in the third quarter of 2025.
  • Net income attributable to Franklin Electric was $60.6 million, or $1.35 per diluted share, compared with $16.7 million, or $0.37.
  • The company acquired Cat Pumps in September 2026 for total consideration of $351.1 million and agreed in October to buy Challenge Pumps.
  • Cash and cash equivalents were $159,103 thousand and long-term debt was $433,463 thousand at September 30, 2026.

Franklin Electric Co., Inc. (NASDAQ:FELE) shares were trading at USD 97.30 on October 28, 2026, down 0.79%, with a relative volume at time of 5.83. The water and energy systems company completed several acquisitions during 2026, entered a share purchase agreement for Challenge Pumps in October and filed its quarterly report for the period ended September 30, 2026 on October 28.

Franklin Electric is incorporated in Indiana and has its principal executive offices in Fort Wayne, Indiana. The company reports three segments: Water Systems, Energy Systems and Distribution. Water Systems sells groundwater pumping equipment, water treatment products and other surface pumping equipment. Energy Systems includes fuel management systems and grid solutions. The company reports on a calendar fiscal year ending December 31. It had 44,170,452 shares of common stock outstanding at October 22, 2026.

Third Quarter Results

Net sales were $633.6 million in the third quarter of 2026, an increase of 9 percent from $581.7 million in the third quarter of 2025. Net sales for the first nine months were $1,756.9 million, compared with $1,624.4 million. The company said the third quarter increase reflected price and volume increases of 4 percent, recent acquisitions of 4 percent and foreign exchange rates of 1 percent.

Water Systems net sales were $352.5 million, Energy Systems were $91.7 million and Distribution were $226.1 million. Gross profit was $224.0 million, or 35.4 percent of net sales, compared with $208.7 million, or 35.9 percent. SG&A expense was $137.2 million, compared with $123.5 million.

Operating income was $86.5 million, compared with $85.1 million. Water Systems operating income was $58.9 million, compared with $60.2 million, and Energy Systems operating income was $23.7 million, compared with $25.4 million. Distribution operating income was $20.6 million, compared with $16.3 million.

Net income attributable to Franklin Electric was $60.6 million, or $1.35 per diluted share, compared with $16.7 million, or $0.37 per diluted share. For the first nine months, it was $160.7 million, or $3.58 per diluted share, compared with $107.8 million, or $2.35.

Acquisitions, Cash Flow and Capital

In September 2026, the company acquired 100 percent of Cat Pumps Corporation, a Minnesota-based provider of high-pressure, positive displacement pumps, for total consideration of $351.1 million. Cat Pumps is reported within Energy Systems and contributed $7.7 million of net sales and $2.3 million of net loss in the quarter. A contingent consideration liability of $19.5 million could result in a payment in shares of up to $50.0 million if a profitability milestone is achieved.

Acquisitions contributed approximately $24.8 million of incremental net sales in the third quarter.

Net cash provided by operating activities was $139.2 million for the first nine months, compared with $134.7 million. Net cash used in investing activities was $417.9 million, and net cash provided by financing activities was $336.2 million. Long-term debt was $433,463 thousand at September 30, 2026, compared with $135,184 thousand at December 31, 2025. The company had a $350.0 million revolving credit facility maturing May 14, 2030, with $125.0 million drawn and $217.3 million of borrowing capacity.

The company repurchased 50,000 shares in September at an average price of $96.93 per share.

Outlook and Risks

The 10-Q does not provide numerical guidance. In October 2026, the company agreed to acquire Challenge Pumps Holdings Pty Ltd, an Australian underground and mine dewatering company, for AUD 259.0 million (approximately $181.0 million). The acquisition is expected to close in 2026, subject to completion of Challenge Pumps' annual audit and customary closing conditions.

The company said the effect of tariffs and trade policy on its results is uncertain. It believes its capital resources at September 30, 2026 are adequate to meet projected needs for the foreseeable future.