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FELE · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Franklin Electric Co Inc (FELE) stock moving?
Franklin Electric's Q3 2026 report on Oct 28 beat consensus on adjusted EPS ($1.50 vs $1.41) and sales ($633.6M vs $610.6M), and management raised FY2026 guidance to $4.62-$4.82 adjusted EPS and $2.230B-$2.300B sales. The same day it agreed to buy Challenge Pumps for about $181M in cash plus up to $14M contingent, a deal expected to be accretive to 2027 Adjusted EPS. DA Davidson upgraded the stock to Buy with a $135 target on Nov 2. Margins face pressure from higher material and freight costs. Price action is mixed: the stock traded as low as 93.24 on Oct 28 on the heaviest volume in the window (658,766 shares) despite the beat, then recovered to a 103.27 intraday high on Nov 4 after the upgrade. It fell to 94.17 on Nov 6 on elevated volume (452,291 shares on Nov 5) with no matching news item in the provided data, and closed at 97.72 on Nov 10 on lower volume (248,246 shares). The fundamental news flow is positive, but the price has given back much of the post-upgrade gain.
News behind the analysis
- Franklin Electric Reports Third Quarter 2026 Financial ResultsQ3 net sales rose 9% to $633.6M and GAAP diluted EPS was $1.35, while adjusted diluted EPS rose 15% to $1.50. Management cited margin pressure from higher material and freight costs.
- Franklin Electric Q3 Adj. EPS $1.50 Beats $1.41 Estimate, Sales $633.615M Beat $610.606M EstimateAdjusted EPS and revenue both came in above consensus estimates for the third quarter.
- Franklin Electric Raises FY2026 Adj EPS Guidance from $4.50-$4.70 to $4.62-$4.82 vs $4.66 Est; Raises FY2026 Sales Guidance from $2.210B-$2.290B to $2.230B-$2.300B vs $2.276B EstFull-year adjusted EPS guidance was raised to $4.62-$4.82 and sales guidance to $2.230B-$2.300B, both above prior ranges.
- Franklin Electric to Acquire Challenge Pumps for Up to $195 MillionFranklin Electric agreed to buy Challenge Pumps, an underground mine dewatering business, for about $181M cash plus up to $14M contingent. The target had roughly $52M of FY2026 revenue and about $18M of EBITDA, and the deal is expected to be accretive to 2027 Adjusted EPS.
- Franklin Electric Q3 2026 Earnings Call TranscriptThe transcript of the Q3 2026 call, where management highlighted pricing gains, acquisition contributions, and encouraging order trends.
- Franklin Electric Announces Participation in Upcoming Investor ConferenceThe CEO and CFO will present at the Northcoast Research Fall Management Forum in November.
- DA Davidson Upgrades Franklin Electric to Buy from NeutralDA Davidson upgraded Franklin Electric from Neutral to Buy and set a $135 price target.
About Franklin Electric Co Inc
Franklin Electric is a manufacturer based in Fort Wayne, Indiana, that makes pumps, motors, drives and controls for moving water and automotive fuel, and it also runs a groundwater equipment distribution business. Founded in 1944, it introduced the first fully submersible electric motor in 1950 and is still known for submersible well pumps. It expects 2026 sales of roughly $2.2–2.3 billion.
How it makes money
It reports three segments. Water Systems is the largest, at roughly half of sales. It sells residential, agricultural, municipal and industrial pumps and dewatering equipment. Distribution brings in roughly a third of sales by selling groundwater and water-treatment products to contractors in the US through its Headwater companies. Energy Systems, about a tenth of sales, makes fuel-pumping, vapor-recovery and monitoring equipment for gas stations. Sales are usually weakest in the first quarter because of seasonal demand.
What usually moves FELE
- US residential and agricultural well-drilling activity
- Weather and seasonal water demand (droughts, flooding)
- Raw material and freight costs affecting margins
- Acquisitions (e.g., the pending Challenge Pumps dewatering deal)
- Fuel station equipment spending and regulation