FELE · Franklin Electric Q2 FY2026 earnings call record财报电话会记录

“We finished the quarter with over 6% growth, 3.5% organic, and each segment grew nicely.”

“We are ramping up a new factory in Türkiye and working through some facility consolidations in North America to build an efficient operating structure to better serve customers long term.”

“We've also made some smart consolidations of assets to more efficiently serve our customers and expand capacity in North America.”

“Franklin Electric's consolidated gross profit was $230.6 million for the second quarter of 2026, up from the prior year's gross profit of $211.8 million.”

“The gross profit as a percentage of net sales was 37% in the second quarter of 2026 compared to the second quarter of 2025 gross profit margin of 36.1%, an increase of 90 basis points compared to the prior year.”

“The gross profit margin was favorably impacted in the second quarter of 2026 by price, volume, and tariff refunds, which were largely offset by material inflation and the timing of tariff expense rolling off the balance sheet.”

“The increase in SG&A expense was primarily due to the incremental impact of our acquisitions in the past year.”

“Without the impact of acquisitions, our SG&A as a percentage of net sales was 20.8%, an improvement year-over-year of 20 basis points.”

“Recent acquisitions added roughly 1%, and volume price were negatively impacted by 5%.”

“There were $400,000 in restructuring costs in the second quarter of 2026 in the Water Systems segment.”

“Given our strong performance despite mixed markets year-to-date, we are raising our full-year sales expectation to a range of $2.21 billion-$2.29 billion, and a full-year adjusted diluted EPS to a range of $4.50-$4.70.”

“If you look at that Distribution business and you pull out the acquisition, you can kind of see that North American performance that Jennifer talked about, the 8%-9% for our groundwater business.”