Slides
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Q2 2026 Earnings Presentation July 28, 2026
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Safe Harbor Statement "Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, changes in tariffs or the impact of any such changes on the Company’s financial results, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2025, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. 2
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Q2 2026 Key messages • Strong Q2 results in all three segments. • Organic sales growth across end markets. Good pricing discipline and execution. Some mixed global performance. • Disciplined strategy execution led by new products, disciplined execution, and continued channel expansion. • Healthy Q2 order trends and backlog. Balancing price, productivity and tariffs to grow with our customers. • Healthy balance sheet as we closed 3 deals in 1H and continued to return value to our shareholders. • Several Value Acceleration Office delivering results with velocity. • Investor Day – Mark your calendars March 23rd, Nasdaq 3
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Q2 2026 Overview ¹ • Financial Performance: − Sales of $622.9M, up 6% YoY − Gross Margin of 37.0%, up 90bps − SG&A of 21.2%, up 20bps − Adjusted Operating income of $98.5M, up 12% YoY , with adjusted operating margin of 15.8% − GAAP EPS of $1.46, Adjusted EPS of $1.55, up 18% YoY • Solid execution despite macroeconomic challenges. • Volume Growth in Distribution and Energy; flattish in Water. • Disciplined pricing across all segments. SALES ADJUSTED OPERATING INCOME ADJUSTED EPS $587M $623M Q2 2025 Q2 2026 +6% YoY $1.31 $1.55 Q2 2025 Q2 2026 $88M $99M Q2 2025 Q2 2026 +12% YoY +18% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income and Adjusted EPS. A reconciliation to comparable U.S. GAAP measures can be found herein. 4
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RESIDENTIAL | AGRICULTURAL | COMMERCIAL | INDUSTRIAL | ENERGY OUR VALUE CREATION FRAMEWORK (2027) OUR BUSINESS SEGMENTS GROWTH ACCELERATION RESILIENT MARGINS INVESTMENTS & CAPITAL TALENT CENTRIC ✓ Strong revenue with all segments growing ✓ Strategy focused on faster growing markets and regions ✓ Record start to our New Product Revenue for 2026 - $10.5M Q2 ✓ Enhancing and expanding our channel and adding customers in our most important markets – Water Treatment $2.2M Q2 ✓ Value Acceleration Office ramping to 100bps productivity ✓ New Chief Supply Chain officer – enhanced material productivity ✓ Improved strategic pricing focus, offset tariffs ✓ Consolidation of key business systems ✓ Key 2025 acquisitions to support faster growing markets and geographies ✓ Healthy funnel with good strategic M&A options ✓ Corporate development upgraded as a strategic capability focuses on targeted M&A ✓ Consistent dividend growth for 34 years ✓ Key executive adds and internal talent promotions to strengthen our team ✓ Ongoing effort to enhance our cultural alignment focused on collaboration and growth ✓ Safety focus showing our employee commitment 56%31% 13% OUR VALUE CREATION FRAMEWORK Water Systems Distribution Energy Systems 59% 12% 29% $2.212B REVENUE $287.4M ADJ. OP INCOME Q2-26 TTM 63% 5
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$1.55 $1.31 Adjusted Q2 2026 EPS Adjusted Q2 2025 EPS Q2 2026 Adjusted EPS Performance ¹ $1.46 $0.08 $0.01 Q2 2026 Reported EPS Legal Settlement Loss Restructuring Expenses 61 Non-GAAP financial metrics referenced in this slide include Adjusted EPS. A reconciliation to comparable U.S. GAAP measures can be found herein. “The 18% year over year expansion in adjusted diluted EPS was primarily driven by the expansion in our adjusted operating income year over year, as a result of volume growth above market, price discipline and cost management” +18%
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Q2 2026 Performance ¹ 7 $88M $19M ($9M) $99M Q2 2025 Gross Profit SG&A Q2 2026 SALES ADJUSTED OPERATING INCOME Sales of $622.9M increased 6% YoY • Acquisitions in Water and Distribution largest driver of growth • Favorable pricing in all three Segments • Higher volumes in Distribution & Energy Segments Adj. Operating Income of $98.5M increased 12% YoY • Gross profit up on higher price and volume and IEEPA tariff refunds, largely offset by material cost headwinds • Higher SG&A expenses primarily due to acquisition- related costs and FX $587M $14M $15M $6M $623M Q2 2025 Volume/Price Acquisitions FX, net Q2 2026 15.0% 15.8%3%2% 1% 6% YoY 12% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income. A reconciliation to comparable U.S. GAAP measures can be found herein.
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Water Systems Q2 2026 Performance ¹ 8 $62M $10M ($6M) $66M Q2 2025 Gross Profit SG&A Q2 2026 SALES ADJUSTED OPERATING INCOME Sales of $358.5M increased 5% YoY • Favorable pricing on nearly similar volumes • Acquisitions added 2% of growth in Water Treatment and EMEA • Above market growth in US/CAN Resi/Ag groundwater, Water Treatment & Australia mine dewatering Adj. Operating Income of $65.6M increased 6% YoY • Gross profit up on favorable price somewhat offset by higher material costs • Higher SG&A expenses primarily due to acquisition- related costs and FX $341M $4M $7M $6M $359M Q2 2025 Volume/Price Acquisitions FX, net Q2 2026 18.2% 18.3%2%1% 2% 5% YoY 6% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income. A reconciliation to comparable U.S. GAAP measures can be found herein.
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Distribution Q2 2026 Performance ¹ 9 $16M $6M ($3M) $20M Q2 2025 Gross Profit SG&A Q2 2026 SALES ADJUSTED OPERATING INCOME Sales of $221.1M increased 11% YoY • Higher volume growth and strong price realization • Volume growth driven by market share gains and continued momentum on OSI program in a mixed market • Disproportionate growth in water treatment and wastewater continues to diversify the business Adj. Operating Income of $19.7M increased 22% YoY • Gross profit up on volume growth and favorable price realization • Higher SG&A expenses due to acquisition-related costs and administrative costs, but improved leverage by 60bps $200M $14M $8M $0M $221M Q2 2025 Volume/Price Acquisitions FX, net Q2 2026 8.1% 8.9%4%7% 0% 11% YoY 22% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income. A reconciliation to comparable U.S. GAAP measures can be found herein.
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Energy Q2 2026 Performance ¹ 10 $29M $4M ($1M) $32M Q2 2025 Gross Profit SG&A Q2 2026 SALES ADJUSTED OPERATING INCOME Sales of $80.2M increased 3% YoY • Favorable pricing and higher volumes, particularly in EMEA • New product sales initiative ahead of target • Positive YoY order growth and book to bill above 1.0 Adj. Operating Income of $32.4M increased 11% YoY • Gross profit up on IEEPA tariff refunds and favorable price/cost • Slightly higher SG&A expenses due to higher payroll and timing of spend $78M $3M $0M ($0M) $80M Q2 2025 Volume/Price Acquisitions FX, net Q2 2026 37.5% 40.4%0%4% 0% 3% YoY 11% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted Operating Income. A reconciliation to comparable U.S. GAAP measures can be found herein.
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11 Balance Sheet and Cash Flow¹ 1 Non-GAAP financial metrics referenced in this slide include net debt/cash, free cash flow, and net debt to Adjusted EBITDA. A reconciliation to comparable U.S. GAAP measures can be found herein. $97M Cash Balance $146M Net Debt 0.4x Net Debt to Adjusted EBITDA 0.0M Shares repurchased in Q2 $14M $40M $219M $196M 2025 YTD 2026 YTD 2025 TTM 2026 TTM $32M $59M $258M $246M 2025 YTD 2026 YTD 2025 TTM 2026 TTM Cash Flow From OperationsFree Cash Flow
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2026 Outlook 12 • Continued top line organic growth despite ongoing soft macroeconomic environment (housing market, interest rates, geopolitical) • Solid underlying demand in core markets, healthy demand trend, solid backlog • 1H26 Acquisitions contributing LSD sales growth • Internal initiatives to expand margins • Monitoring geopolitical landscape with robust risk mitigation plans in place • Maintaining strong balance sheet and deploying capital with max ROIC mindset • Remain confident in our long-term strategy • Mark your calendars for our 1st Investor Day, March 23, 2027 at Nasdaq, New York City. HIGHLIGHTS SALES Updated to $2.21 to $2.29 Billion (up MSD) Adjusted EPS Updated to $4.50 to $4.70 (up LDD) LSD = low-single digits, MSD = mid-single digits, HSD = high-single digits, LDD = low-double digits
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2025 Results: Revenue $1.3B | OI% ~17% Franklin Water Systems • We are a leading manufacturer of pumps, motors, drives, and accessories that supply, move, and remove water. • We have a global footprint with 15 manufacturing sites and a growing channel network. Our goal is simple: think globally, serve locally. • Our strategy to expand into faster-growing markets is working. We are well positioned to capitalize on urbanization, increased residential builds, rising mineral demand, and the exponential growth of computing power. • We innovate relentlessly, combining deep engineering expertise, world-class labs, and a constant focus on solving tomorrow's challenges. • We have built trusted brands by outperforming in mission-critical and high-growth applications 13 End - Market 48% 28% 16% 8% Residential Commercial & Industrial Agriculture Municipal & Utility Geography 60%16% 16% 8% U.S. / Canada EMEA Latin America APAC
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Closing Thoughts 14 • Solid start to 2026, all businesses performing well despite market uncertainty • Solid backlog and book to bill and a solid 2H outlook • Confident in sales growth and margin expansion in ‘26 • Mitigation strategies in place to continue to offset tariff and supply chain impacts • Continued confidence in our long-term strategy • We are an attractive portfolio with great opportunities to grow 14
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15 Non-GAAP Reconciliations
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Non-GAAP Reconciliations To supplement Franklin Electric’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. Non-GAAP financial measures may enhance an understanding of the company’s operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the company’s reconciliations to corresponding U.S. GAAP financial measures (which are included in the tables accompanying this presentation), may enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. Accordingly, management uses these non-GAAP measures internally in financial planning and to monitor business performance. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP . Franklin Electric strongly encourages investors to review its consolidated financial statements and publicly- filed reports in their entirety and cautions investors that the non-GAAP measures used by the company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non-GAAP financial measures used in this presentation include: adjusted diluted EPS, adjusted operating income and margin, net debt/cash, net debt/cash to EBITDA, and free cash flow. 16
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Reconciliation of Non-GAAP Financial Measure Adjusted Operating Income and Margin $ in Millions 17
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Reconciliation of Non-GAAP Financial Measure Adjusted Diluted EPS $ 18
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Reconciliation of Non-GAAP Financial Measure Total Debt to Net Debt (Cash) and Net Debt to Adjusted EBITDA $ in Millions 191 Non-GAAP Adjustments include: restructuring expense, legal settlement loss and pension settlement loss.
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Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in Millions 20
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Thank You! Jennifer Wolfenbarger CFO Dean Cantrell, Director IR InvestorRelations@FELE.com 260-824-2900 21