Overview

* Franklin Electric ( FELE ) fiscal Q2 net sales rise 8%, beating analyst expectations

* Operating income for fiscal Q2 grows 11%

* Company maintains full-year 2025 sales guidance

Outlook

* Company maintains full-year 2025 sales guidance of $2.09 bln to $2.15 bln

* Franklin Electric ( FELE ) expects full-year 2025 EPS of $3.95 to $4.25

* Company to terminate US Pension Plan in Q3, impacting EPS by $1.00

* Franklin Electric ( FELE ) cites healthy backlog and positive order trends for 2025

Result Drivers

* ACQUISITIONS AND VOLUME - Water Systems segment growth driven by acquisitions and volume increases, partially offset by foreign currency impact

* PRICE REALIZATION - Energy Systems segment sales boosted by price realization and higher volumes

* PRODUCTIVITY INITIATIVES - Improved operating margins attributed to effective pricing and productivity strategies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $587.40 $566.70

mln mln (5

Analysts

)

Q2 EPS $1.31

Q2 $88.10

Operatin mln

g income

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 ( FELE ) is $105.00, about 11.1% above its July 28 closing price of $93.39

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

(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.)