Abstract

Franklin Electric Co., Inc. will report its fiscal fourth quarter 2025 results on February 17, 2026 Pre-Market; this preview compiles consensus expectations for revenue, margins, and EPS, reviews the latest reported quarter, and outlines key segment drivers and investor watch items into the print.

Market Forecast

Consensus for Franklin Electric Co., Inc.’s fiscal fourth quarter 2025 points to revenue of $516.17 million, up 10.01% year over year, with EPS of $0.884, up 33.57% year over year, and EBIT of $56.21 million, up 27.89% year over year. Forecast margin details were not provided in the collected data; the earnings power for the quarter is expected to be supported by operating leverage implied in the EBIT and EPS growth outpacing revenue.

Based on the latest reported mix, Water Systems remains the largest contributor and is expected to anchor the topline in the upcoming quarter; the segment delivered $336.60 million in the last reported period and constituted 57.86% of consolidated revenue. The Fueling Systems (reported as Energy Systems) business is viewed as the most promising incremental contributor given its distinct product set; it posted $80.00 million in the last reported period, while year-over-year growth by segment was not disclosed in the dataset used here.

Last Quarter Review

Franklin Electric Co., Inc.’s most recent reported quarter (fiscal third quarter 2025) delivered revenue of $581.71 million (+9.46% year over year), a gross profit margin of 35.88%, GAAP net income attributable to shareholders of $16.74 million (net profit margin 2.88% and down 72.17% quarter on quarter), and adjusted EPS of $1.30 (+11.11% year over year).

A key financial highlight was the top-line outperformance versus consensus: revenue exceeded estimates by $18.46 million, while EPS of $1.30 came in slightly above the $1.296 expectation. In terms of business composition, Water Systems contributed $336.60 million, Distribution contributed $197.30 million, Fueling Systems (Energy Systems) contributed $80.00 million, and consolidations/other were -$32.20 million.

Current Quarter Outlook (with major analytical insights)

Water Systems: Core revenue anchor with the heaviest influence on consolidated outcomes

Within the last reported mix, Water Systems represented 57.86% of revenue at $336.60 million, making it the dominant driver of consolidated results. With consensus calling for fiscal fourth quarter 2025 revenue of $516.17 million versus $581.71 million in the third quarter, expectations embed a sequential moderation that will naturally be most visible in the largest segment. The degree to which Water Systems sustains volume and price through seasonally slower months will influence whether the company can translate the expected double-digit year-over-year revenue growth into the forecast 27.89% EBIT growth and 33.57% EPS growth.

Investors will likely watch how the margin profile within Water Systems interacts with the consolidated margin outcome, especially in light of the prior quarter’s 35.88% gross margin and 2.88% net profit margin. Although we lack a direct gross margin forecast from the dataset, the relationship between Water Systems’ mix and consolidated profitability remains pivotal given its scale. A result near or above the $0.884 EPS estimate, alongside the $516.17 million revenue baseline, would indicate that operating efficiency and cost absorption in Water Systems are tracking to plan for the quarter.

The last quarter’s positive revenue surprise of $18.46 million demonstrates the company’s capacity to outperform top-line expectations when demand and shipments align favorably. For the upcoming print, any deviation in Water Systems—either from orders converting earlier than anticipated or slippage into subsequent periods—would disproportionately sway consolidated revenue. In this context, segment-level performance that approximates the prior mix, even with seasonal sequential moderation, would still support the consensus year-over-year growth contemplated in forecasts.

Fueling Systems (Energy Systems): Smaller base with visible incremental leverage potential

Fueling Systems, reported as Energy Systems in the dataset, contributed $80.00 million in the last reported quarter and accounted for 13.75% of consolidated revenue. While this is notably smaller than Water Systems, a pickup here can have an outsized effect on the company’s earnings cadence because incremental changes from a smaller base can translate into more visible percentage growth. The current quarter estimates imply that overall operating leverage is expected to lift earnings faster than revenue; if Fueling Systems holds or improves on last quarter’s run-rate, it can support that implied leverage.

Given the consolidated forecast of 27.89% EBIT growth and 33.57% EPS growth year over year on 10.01% revenue growth, investors will be evaluating whether the earnings delta is driven by mix, cost control, or both. Without explicit margin-by-segment data in the dataset, the cleanest way to infer performance will be through consolidated EPS versus revenue, and whether commentary on segment execution aligns with that spread. A stable or improving Fueling Systems contribution relative to the $80.00 million baseline would be consistent with estimates that contemplate more than proportional growth in EBIT and EPS.

In prior quarters, segment balance has been important in smoothing consolidated results. For this quarter, a steady Fueling Systems performance can help bridge typical fourth-quarter seasonal patterns observed at the total company level. While year-over-year growth by segment is not available from the data pulled here, the consistency of this business’s contribution can still support confidence in the $0.884 EPS expectation.

Distribution: Volume pass-through and working-capital efficiency remain under the microscope

The Distribution business contributed $197.30 million in the last reported quarter and represented 33.92% of consolidated revenue. For the approaching report, this channel’s throughput will be closely watched as it connects product availability, shipment timing, and sell-through. Even without explicit forecasted gross margin detail, investors often infer earnings quality from the interplay between Distribution volumes and consolidated margins, given Distribution’s role in moving product to end customers and partners.

Consensus figures imply that Franklin Electric Co., Inc. is expected to deliver $516.17 million in revenue, representing growth of 10.01% year over year despite sequential seasonality relative to the $581.71 million in the third quarter. The Distribution line’s ability to efficiently handle order flow and manage inventory levels will be a key determinant in staying close to this revenue baseline. On the cost side, any commentary that suggests tighter expense control or improved logistics would be consistent with the outlook for EBIT and EPS outpacing revenue on a year-over-year basis.

An important corroborating signal on capital allocation came on January 26, 2026, when the company announced a quarterly cash dividend of $0.28 per share. While not a predictor of quarterly earnings, the step-up in the dividend underscores management’s view of cash flow durability and can frame investor expectations for balanced growth and returns. In the context of Distribution, a disciplined approach to working capital aligns with the company’s ability to sustain both investment and shareholder returns.

What will likely move the stock this quarter: revenue/EPS deltas versus consensus and margin progression versus Q3

With Street numbers implying a $516.17 million revenue print and $0.884 EPS, stock reaction will hinge on surprise versus these reference points and on the quality of earnings. Last quarter’s result included a sizable beat on revenue and a marginal upside on EPS; a repeat performance would support the shares, while shortfalls in either figure or narrowed gross margin versus the 35.88% prior quarter level could pressure sentiment. Because EPS growth is forecast to outpace revenue growth meaningfully year over year, investors will dissect whether operating expenses and cost of goods align with that narrative.

The net profit margin in the last reported quarter was 2.88%, influenced by GAAP items that resulted in GAAP net income of $16.74 million despite adjusted EPS of $1.30. For the coming quarter, clarity around the relationship between GAAP profitability, adjusted EPS, and any non-recurring items will shape perceptions of quality. A profile where adjusted EPS tracks near the $0.884 consensus while management indicates normalized expenses would be consistent with the forecasted year-over-year earnings acceleration.

Finally, segment mix will be a secondary but material factor. Should Water Systems maintain its predominant role near the last quarter’s 57.86% of sales, total revenue should align better with the $516.17 million expectation. Incremental strength in Fueling Systems (Energy Systems) relative to the $80.00 million baseline would be a positive indicator for operating leverage, while steady Distribution throughput near $197.30 million would signal balanced execution. Any deviation from these anchors will likely be reflected quickly in post-report price action.

Analyst Opinions

Based on the collected items within the January 1, 2026 to February 10, 2026 window, institutional views lean neutral. Oppenheimer maintained a Hold rating on Franklin Electric Co., Inc., indicating a wait-and-see stance into the fiscal fourth quarter 2025 results. While no aggregated bullish versus bearish spread emerged from the collected sample set, the Hold reiteration implies that, from this vantage point, the upcoming report needs to validate the consensus pattern of revenue growth alongside faster earnings growth.

This neutral posture is consistent with the balance in current expectations: the market looks for $516.17 million in revenue (+10.01% year over year) and $0.884 in EPS (+33.57% year over year). The spread between revenue and EPS growth suggests that operating efficiency and expense discipline are expected to do considerable lifting; a Hold rating into such a setup typically reflects analysts’ preference to see the company deliver before revisiting a more constructive stance. The slight revenue and EPS beats in the third quarter provide a supportive track record, but the recent GAAP net profit margin of 2.88% and quarter-on-quarter volatility in GAAP net income remind observers that the quality and sustainability of margin expansion will be scrutinized.

In practical terms, analysts with neutral views typically concentrate on two validation points during the call: evidence that Water Systems can sustain its revenue leadership near the $336.60 million last quarter anchor without undue margin trade-off, and indications that Fueling Systems’ $80.00 million baseline can either hold or improve to support operating leverage. Commentary around the Distribution line’s order flow and inventory levels will also inform whether the $516.17 million revenue consensus is appropriately calibrated. Should Franklin Electric Co., Inc. meet or exceed these benchmarks while guiding to healthy execution, neutral stances could shift; conversely, any miss versus the $0.884 EPS or an unfavorable margin narrative would likely keep views anchored at Hold.

Overall, the neutral consensus mapped from the available opinion underscores a balanced setup: expectations are constructive on growth metrics, but confirmation on margins and the translation of revenue into earnings will be decisive for sentiment. In that context, the dividend increase to $0.28 per share announced on January 26, 2026 provides a useful backdrop on capital return consistency, complementing the core question of whether the earnings cadence in fiscal fourth quarter 2025 can match the top-line trajectory that the market now anticipates.