[{"_1":2,"_3":-5,"_4":-5},"loaderData",{"_5":6,"_7":8},"actionData","errors","root",{"_98":99},"en-item",{"_9":10,"_10":11},"kind","item",{"_12":13,"_14":15,"_16":17,"_18":19,"_20":21,"_22":23,"_24":25,"_26":27,"_28":29,"_30":31,"_32":31,"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":-5,"_48":49,"_50":-5,"_51":-5,"_52":53,"_54":55,"_56":57,"_58":42,"_59":42,"_60":61,"_62":42,"_63":64},"id","d197ob3gm4avyt85d68fzv8h7","revision",2,"title","Franklin Electric披露2026年第三季度及前九个月业绩，并完成Cat Pumps收购","originalTitle","FRANKLIN ELECTRIC CO INC (0000038725) (Filer)","summary","Franklin Electric截至2026年9月30日的第三季度净销售额为6.336亿美元，归属于公司的净利润为6,060万美元，摊薄每股收益为1.35美元；前九个月净销售额为17.569亿美元，归属于公司的净利润为1.607亿美元，摊薄每股收益为3.58美元。","reason","材料提供了Franklin Electric 2026年前九个月的经营现金流、收购支出及业绩数据，并披露Cat Pumps收购价分摊仍属初步估计。","source",{"_12":89,"_90":91,"_9":92,"_93":42,"_94":95,"_96":97},"links",{"_86":87,"_77":88},"publishedAt","2026-10-28T17:11:23.000Z","discoveredAt","2026-10-28T17:30:48.096Z","timelineAt","category","ai-products","tags",[83,84,85],"stockSymbols",[82],"score",72,"selected",true,"channel","news","story",{"_72":73,"_16":74},"x","readingMode","full","author","language","body",{"_64":76,"_77":-5,"_78":79,"_80":81},"outline",[],"relatedStories",[75],"indexable","markdownAvailable","group",{"_65":66,"_45":67,"_68":15,"_69":70,"_71":70},"hasTranslation","bodyLanguage","zh","factId","fqlwu8HeYXAM",{"_72":73,"_16":74},"reportCount","additionalSourceCount",0,"developmentCount","publicId","b2b721b2-58d3-4c0f-a3f8-f306def4d42d","Franklin Electric披露2026年第三季度业绩",{"_72":73,"_16":74},"

美国

证券交易委员会

华盛顿特区 20549

_________

10-Q 表格

_________

☒ 根据《1934 年证券交易法》第 13 或 15(d) 条提交的季度报告

《1934 年证券交易法》

截至 2026 年 9 月 30 日的季度

或

☐ 根据《1934 年证券交易法》第 13 或 15(d) 条提交的过渡报告

《1934 年证券交易法》

过渡期自 _____ 至 _____

$\"logoa08.jpg\"$

委员会档案编号 0-362

FRANKLIN ELECTRIC CO., INC.

（注册人章程中载明的确切名称）


印第安纳州		35-0827455
（注册成立或设立的州或其他司法管辖区）		（美国国税局雇主识别号）

9255 Coverdale Road
印第安纳州韦恩堡，	印第安纳州		46809
（主要行政办公地址）		（邮政编码）

(260) 824-2900

（注册人电话号码，包括区号）

不适用

（自上次报告以来如有变更，列明原名称、原地址和原财政年度）

根据该法案第 12(b) 条注册的证券：

普通股，面值 $0.10

FELE

NASDAQ

全球精选市场

（各类别名称）

（交易代码）

（注册所在的各交易所名称）

请勾选标记，说明注册人是否 (1) 已在此前 12 个月内（或在注册人须提交此类报告的较短期间内）提交《1934 年证券交易法》第 13 或 15(d) 条要求提交的所有报告，以及 (2) 在过去 90 天内一直受此类提交要求约束。


是	☒	否	☐

请勾选标记，说明注册人是否已在此前 12 个月内（或在注册人须提交并发布此类文件的较短期间内）以电子方式提交并发布根据 S-T 条例第 405 条（本章第 232.405 条）要求提交的所有交互式数据文件。


是	☒	否	☐

请勾选标记，说明注册人属于大型加速申报公司、加速申报公司、非加速申报公司、较小申报公司还是新兴成长型公司。有关“大型加速申报公司”“加速申报公司”“较小申报公司”和“新兴成长型公司”的定义，参见《交易法》规则 12b-2。

大型加速申报公司

☒

加速申报公司

☐

非加速申报公司

☐

较小申报公司

☐

新兴成长型公司

☐

如果是新兴成长型公司，请勾选标记，说明注册人是否选择不采用《交易法》第 13(a) 条规定的、遵守任何新订或修订财务会计准则的延长过渡期。 ☐

请勾选标记，说明注册人是否为壳公司（定义见该法案规则 12b-2）。


是	☐	否	☒

列明截至最近可行日期发行人各类别普通股的流通股数。


		截至该日流通
普通股类别及面值		2026 年 10 月 22 日
$0.10		44,170,452 股

FRANKLIN ELECTRIC CO., INC.


		页
第一部分。	财务信息	编号

第1项。	简明合并财务报表（未经审计）	4
	截至第三季度及截至九个月 9月 30日的2026年和2025年简明合并收益表（未经审计）	4
	综合收益/（亏损）简明合并报表，涵盖截至第三季度和截至九个月的期间，截止日期为 9月 30日，2026年和2025年（未经审计）	5
	截至 9 月 30日的2026年及截至2025年12月31日的简明合并资产负债表（未经审计）	6
	截至九个月期间 9月 30日的2026年和2025年简明合并现金流量表（未经审计）	8
	简明合并财务报表附注（未经审计）	10
第2项。	管理层对财务状况和经营成果的讨论与分析	33
第3项。	有关市场风险的定量和定性披露	40
第4项。	控制与程序	40


第二部分。	其他信息

第1项。	法律诉讼	41
第1A项。	风险因素	41
第2项。	未注册股权证券的销售及所得款项用途	41
第5项。	其他信息	41
第6项。	附件	42

签名		43

第一部分 - 财务信息

第1项。简明合并财务报表

FRANKLIN ELECTRIC CO., INC.及合并子公司

简明合并收益表

（未经审计）


	截至第三季度		截至九个月
（单位：千，除每股金额外）	2026年9月30日		2025年9月30日		2026年9月30日		2025年9月30日

净销售额	$	633,615			$	581,714		$	1,756,932	$	1,624,395
销售成本	409,582			373,010			1,127,325		1,039,962
毛利	224,033			208,704			629,607		584,433
销售、一般及管理费用	137,249			123,474			392,349		366,638
重组费用	270			112			4,548		435
法律和解损失（见附注7）	—			—			4,512		—
营业收入	86,514			85,118			228,198		217,360
利息费用	(4,687)			(3,496)			(10,522)		(8,100)
其他收入/（费用），净额	1,231			(165)			2,202		514
外汇费用，净额	(2,266)			(2,673)			(4,388)		(8,514)
养老金结算损失	—			(55,251)			—		(55,251)
所得税前收入	80,792			23,533			215,490		146,009
所得税费用	19,745			6,329			53,647		36,868
净收入	$	61,047			$	17,204		$	161,843	$	109,141
减：归属于非控股权益的净收入	(398)			(466)			(1,122)		(1,301)
归属于Franklin Electric Co., Inc.的净收入	$	60,649			$	16,738		$	160,721	$	107,840
每股收益：
基本	$	1.37			$	0.37		$	3.62	$	2.38
摊薄	$	1.35			$	0.37		$	3.58	$	2.35

参见简明合并财务报表附注。

FRANKLIN ELECTRIC CO., INC.及合并子公司

简明合并综合收益/（亏损）表

（未经审计）


	截至第三季度		截至九个月
（单位：千）	2026年9月30日		2025年9月30日		2026年9月30日		2025年9月30日

净利润	$	61,047			$	17,204		$	161,843	$	109,141
其他综合收益/（亏损），税前：
外币折算调整	2,492			4,555			16,366		43,657
净投资套期收益/（亏损）	(13,409)			—			(13,409)		—
员工福利计划活动	(8)			2,079			(338)		2,902


养老金结算	—			55,251			—		55,251
其他综合收益/（亏损）	(10,925)			61,885			2,619		101,810
与其他综合收益/（亏损）项目相关的所得税收益/（费用）	3,295			(14,068)			3,376		(14,270)
其他综合收益/（亏损），税后净额	(7,630)			47,817			5,995		87,540
综合收益	53,417			65,021			167,838		196,681
减：归属于非控股权益的综合收益	(377)			(443)			(1,012)		(1,405)
归属于 Franklin Electric Co., Inc. 的综合收益	$	53,040			$	64,578		$	166,826	$	195,276

参见简明合并财务报表附注。

FRANKLIN ELECTRIC CO., INC. 及合并子公司

简明合并资产负债表

（未经审计）


（单位：千，股份金额除外）	2026年9月30日		2025年12月31日

资产
流动资产：
现金及现金等价物	$	159,103			$	99,662
应收款项，扣除准备金 $3,420 和 $3,821 后	356,081			247,511
存货：
原材料	213,391			189,380
在制品	33,652			27,750
产成品	378,165			335,851
存货总额	625,208			552,981
其他流动资产	68,452			58,472
流动资产总额	1,208,844			958,626

物业、厂房及设备，按成本计：
土地及建筑物	217,820			179,681
机器设备	372,513			354,833
家具及固定装置	65,205			63,601
其他	77,330			79,172
物业、厂房及设备总额	732,868			677,287
减：累计折旧	(452,993)			(425,123)
物业、厂房及设备净额	279,875			252,164
租赁使用权资产净额	74,730			67,867
递延所得税	7,088			6,582
无形资产净额	424,977			251,692
商誉	602,942			398,127
其他资产	40,275			9,327
资产总额	$	2,638,731			$	1,944,385


	2026年9月30日		2025年12月31日
负债及权益
流动负债：
应付账款	$	215,165			$	174,954
应计费用及其他流动负债	130,894			107,975
流动租赁负债	20,425			20,518
所得税	25,642			8,772
长期债务的流动部分及短期借款	127,181			31,827
流动负债总额	519,307			344,046
长期债务	433,463			135,184
长期租赁负债	53,061			46,481

递延所得税	88,848			39,275
员工福利计划	18,410			22,833
其他长期负债	75,454			29,541

承诺及或有事项（见附注7）

可赎回非控股权益	1,875			1,657

股东权益：
普通股（授权发行65,000股，面值$.10；发行在外44,171股和44,178股）	4,417			4,418
资本公积	408,840			391,496
留存收益	1,184,051			1,084,149
累计其他综合亏损	(151,379)			(157,484)
股东权益总额	1,445,929			1,322,579
非控股权益	2,384			2,789
权益总额	1,448,313			1,325,368
负债及权益总额	$	2,638,731			$	1,944,385

参见简明合并财务报表附注。

FRANKLIN ELECTRIC CO., INC. 及合并子公司

简明合并现金流量表

（未经审计）


	截至九个月
（单位：千）	2026年9月30日		2025年9月30日

经营活动产生的现金流：
净利润	$	161,843			$	109,141
将净利润调节为经营活动产生的现金流量净额的调整项：
折旧和摊销	53,112			46,258
养老金结算损失，税后净额	—			41,693
非现金租赁费用	17,197			16,279
股份薪酬	10,935			10,341

递延所得税	(2,589)			(2,294)
处置厂房和设备的收益	(1,628)			(2,032)
外汇（收益）/费用	4,388			8,514
资产和负债变动（扣除收购影响）：
应收款项	(95,089)			(34,660)
存货	(15,578)			(45,036)
应付账款和应计费用	36,053			873
经营租赁	(17,571)			(16,300)
所得税	24,223			(3,938)
所得税——美国《减税与就业法案》	—			(4,837)
员工福利计划	(4,940)			60
与供应商协议相关的付款	(29,300)			—
其他，净额	(1,858)			10,625
经营活动产生的现金流量净额	139,198			134,687
投资活动产生的现金流：
购置不动产、厂房和设备	(34,385)			(29,820)
出售不动产、厂房和设备所得款项	1,561			2,578
收购支付的现金（扣除取得的现金）	(385,157)			(109,948)

其他，净额	39			73
投资活动产生的现金流量净额	(417,942)			(137,117)
融资活动产生的现金流：
发行债务所得款项	685,777			492,895
偿还债务	(291,687)			(437,174)
支付债务发行成本	(155)			(974)
发行普通股所得款项	6,156			3,991
购买普通股	(24,894)			(129,415)
支付股息	(37,287)			(37,184)

收购递延付款	(1,696)			(4,300)
融资活动产生的现金流量净额	336,214			(112,161)
汇率变动对现金及现金等价物的影响	1,971			(3,022)
现金及现金等价物净变动	59,441			(117,613)
期初现金及现金等价物	99,662			220,540
期末现金及现金等价物	$	159,103			$	102,927






非现金项目：
尚未支付的不动产、厂房和设备购置款	$	1,000	$	946
为换取新经营租赁负债而取得的使用权资产	$	20,772	$	19,004
应付被收购实体卖方的款项	$	11,382	$	1,539
应付被收购实体卖方的或有对价	$	19,500	$	—

发行普通股——递延董事会薪酬	$	276	$	8,573

应付非控股权益的应计股息	$	1,199	$	—

参阅简明合并财务报表附注。

FRANKLIN ELECTRIC CO., INC.及合并子公司

简明合并财务报表附注目录

（未经审计）


		页码

附注1。	简明合并财务报表	11
附注2。	会计公告	11
附注3。	收购	12
附注4。	商誉及其他无形资产	16
附注5。	应计费用及其他流动负债	17
附注6。	债务	17
附注7。	承诺和或有事项	18
附注8。	权益变动	20
附注9。	累计其他综合收益/（损失）	22
附注10。	员工福利计划	23
附注11。	所得税	23
附注12。	每股收益	23
附注13。	金融工具	24
附注 14。	公允价值计量	25
附注 15。	分部和地理信息	27

简明合并财务报表附注

1. 简明合并财务报表

随附的截至 December 31, 2025 的简明合并资产负债表摘自经审计的财务报表；截至 September 30, 2026 的未经审计中期简明合并财务报表，以及截至 September 30, 2026 和 September 30, 2025 的第三季度和九个月财务报表，均按照中期财务信息公认会计原则以及 Form 10-Q 的说明和 Regulation S-X 第 10 条编制。根据这些规则和法规，通常包含在按公认会计原则编制的年度财务报表中的某些信息和附注披露已予以简化或省略。管理层认为，已作出所有必要的会计分录和调整（包括正常的经常性调整），以公允列报中期的财务状况和经营业绩。截至 September 30, 2026 的第三季度和九个月经营业绩不一定代表截至 December 31, 2026 的财年预期业绩。有关更多信息，包括 Franklin Electric Co., Inc.（“公司”）的关键会计政策说明，请参阅公司截至 December 31, 2025 的财年 Form 10-K 年度报告所载的合并财务报表及其附注。

2. 会计公告

新会计准则的采用

2025 年 7 月，FASB 发布了 ASU 2025-05，金融工具 — 信用损失（主题 326）：应收账款和合同资产信用损失的计量。ASU 2025-05 提供一项可选的实务简便方法，以简化某些应收款项和合同资产信用损失的计量。ASU 2025-05 适用于 2025 年 12 月 15 日之后开始的中期和年度期间，并允许提前采用。该指引应采用未来适用法。公司已采用未来适用法，自 2026 年中期财务报表起生效；该准则的采用对其财务报表没有重大影响。

已发布但尚未采用的会计准则

2024年11月，FASB发布了ASU 2024-03，利润表——综合收益报告——费用细分披露（子主题 220-40）：利润表费用细分，要求额外披露利润表中所列费用的性质。该准则要求披露利润表费用项目中包含的特定类型费用。该ASU适用于2026年12月15日之后开始的财年，以及2027年12月15日之后开始的中期期间，允许提前采用。相关要求应采用未来适用法，但也允许追溯应用。公司目前正在评估采用该指引对其披露的影响。

2025年9月，FASB发布了ASU 2025-06，无形资产——商誉及其他——内部使用软件（子主题 350-40）：内部使用软件会计处理的针对性改进。ASU 2025-06删除了所有关于软件开发项目阶段的表述，并要求实体在以下两项条件均满足时开始资本化软件成本：(i) 管理层已批准并承诺为软件项目提供资金；(ii) 项目很可能完成，且软件将用于执行预定功能。ASU 2025-06适用于2027年12月15日之后开始的中期和年度期间，允许提前采用。该指引可采用未来适用法、追溯法或经修订的过渡方法。公司目前正在评估该ASU对公司财务报表的影响，预计不会产生重大影响。

2025年12月，FASB发布了ASU 2025-11，中期报告（主题 270）：狭义改进。ASU 2025-11修订了ASC 270现有指引，以明确中期财务报表的适用范围、形式和内容，并改进中期报告要求的组织结构和可用性。修订引入了一项披露原则，要求实体提供自最近一个年度报告期以来发生且可能对实体产生重大影响的事件和变化相关信息。该ASU还将ASC 270及其他主题中的中期披露要求汇编至一个单独位置。ASU 2025-11适用于2027年12月15日之后开始的年度期间内的中期期间，允许提前采用。该指引可采用未来适用法或追溯法。公司目前正在评估该ASU对公司财务报表和披露的影响。

2026年5月，FASB 发布了 ASU 2026-02，环境信用和环境信用义务（主题 818），为环境信用及环境信用义务的确认、计量、列报和披露制定了指引。该准则为生成、购买、获得或持有环境信用的实体，以及须履行可使用此类信用结算的监管合规义务的实体，建立了新的会计框架。ASU 2026-02 适用于 2027年12月15日之后开始的年度期间内的中期期间，允许提前采用。该准则要求采用修订后的追溯法。公司目前正在评估该 ASU 对公司财务报表和披露的影响。

3. 收购

2026

Cat Pumps

2026年9月，公司以总对价 3.511 亿美元，从其股东手中收购了 Cat Pumps Corporation（“Cat Pumps”）100% 的所有权权益。Cat Pumps 是一家总部位于明尼苏达州、领先的高压容积泵供应商。与此次收购相关，公司另行支付了 3,000 万美元，该笔款项作为与收购分开的交易进行会计处理。此次收购带来了互补的高压技术、行业领先的品牌，以及在高可用性应用领域不断增长的商业和工业终端市场中的业务。收购完成后，Cat Pumps 的业绩计入公司的能源系统部门。

收购转让对价包括以下内容：

1) 总额约 3.316 亿美元的预付现金，须根据股份购买协议进行调整；以及

2) 基于业绩的限制性股票单位（“PRSU”），其收购日公允价值确定为 1,950 万美元。

PRSU 的目标总价值为 2,500 万美元。PRSU 的最终结算取决于 Cat Pumps 在 2028年1月1日开始、2028年12月31日结束的计量期间内达到目标毛利门槛金额，支付范围为目标总价值的 0% 至 200%。计量期结束并确定业绩结果后，已赚取的奖励将以公司普通股结算。PRSU 分类为负债奖励，并计入公司简明合并资产负债表中的“其他长期负债”项目。

截至 2026年9月30日，收购资产和承担负债的估值尚未最终确定。除上述作为购买对价一部分的 PRSU 外，公司未发现此次收购涉及任何重大或有资产或或有负债。

因此，公司记录了截至收购日或有对价、收购资产及承担负债公允价值的初步估计。计量期间内完成估值可能导致无形资产、商誉和所得税等项目的入账公允价值金额发生变化。估值工作将在收购日起不超过一年内完成。下表汇总了截至收购日收购资产及承担负债的初步公允价值：



收购资产及承担负债
现金及现金等价物	$	20.7
应收款项	17.8
存货	42.2
其他流动资产	9.3
不动产、厂房及设备	19.9
租赁使用权资产，净额	1.6
无形资产，净额	145.0
商誉	161.3
其他资产	0.6
应付账款、应计费用及其他流动负债	(22.9)
长期租赁负债	(1.6)
递延所得税	(42.2)
其他长期负债	(0.6)
收购资产及承担负债总额	$	351.1

公司将总对价中的 $115.0 million 分配至使用寿命为 12 年的客户关系，并将 $30.0 million 分配至使用寿命不确定的商标。无形资产的公允价值采用收益法确定。由于管理层在确定估计公允价值时使用了重大估计和假设，公司将无形资产的公允价值视为第 3 级计量。

商誉不可用于税务抵扣，其中包括组建完成的员工队伍、潜在的未来技术，以及为公司产品组合带来的整体战略利益，并计入能源业务分部。

自收购日起，被收购业务的经营业绩已纳入公司的合并损益表。Cat Pumps 收购为截至 2026 年 9 月 30 日的三个月贡献了 $7.7 million 的净销售额和 $2.3 million 的净亏损。

下表列示公司截至第三季度及截至九个月期间（截至 2026 年 9 月 30 日和 2025 年 9 月 30 日）的补充合并业绩，未经审计，按假设该收购已于 2025 年 1 月 1 日完成的备考基础编制。


	截至第三季度		截至九个月
（百万）	2026 年 9 月 30 日		2025 年 9 月 30 日	2026 年 9 月 30 日		2025 年 9 月 30 日
净收入	$	656.1		$	610.0		$	1,845.0	$	1,716.2
净利润	$	67.5		$	21.5		$	180.6	$	122.8

备考业绩中反映的主要调整涉及：(1) 为收购融资所用债务导致利息费用增加；(2) 从2026年剔除390万美元的收购相关成本，这些成本计入销售、一般及行政费用；以及(3) 与购买会计相关的变动，主要涉及所购无形资产、固定资产和存货公允价值的摊销。下文所列未经审计的备考财务信息并不声称代表公司与 Cat Pumps 在所列期间合并后实际会取得的经营业绩，也无意预测合并后的公司在收购完成后可能取得的未来经营业绩。未经审计的备考财务信息未反映因收购而可能实现的成本节约、运营效率提升、长期债务偿还估算、财务协同效应或其他战略利益，也未反映为实现这些利益而产生的任何重组成本。

相关的3,000万美元付款作为经营现金流出入账，与修订现有供应商合同有关。公司将其中2,930万美元资本化为合同资产，计入其他资产，并在七年内作为“销售成本”摊销。剩余的70万美元在截至2026年9月30日的三个月内计入费用，涉及采用收益法确定的终止 Cat Pumps 既有义务的公允价值，并计入“销售、一般及行政费用”。

Maynard's

2026年7月，公司以1,300万美元的购买价格收购了 Maynard's Water Conditioning（“Maynard's”）几乎全部资产；购买价格根据所收购营运资本水平作了调整。 Maynard's 是一家位于密歇根州的零售商店。

截至2026年9月30日，对所收购资产和承担负债的估值尚未最终确定。因此，公司记录了收购日所收购资产和承担负债公允价值的初步估算。在计量期间完成估值，可能导致收购日无形资产和商誉等项目的入账金额发生变化。估值将在收购日起一年内完成。购买价格主要分配至商誉和其他无形资产。商誉不可在税务上抵扣，其中包括已组建员工队伍的价值，以及对公司产品组合带来的整体战略利益，并计入水系统分部。

公司未纳入 Maynard's 收购的各项披露，包括单独列示被收购公司自收购完成以来的经营业绩，以及公司与被收购业务的合并备考财务信息，因为公司认为该项收购不重大。

Wood Brothers Industries

2026年5月，公司以4,990万美元的收购价（扣除取得的现金后）收购了 Piertek, Inc、Piertek III, LLC、Vistar Water Technologies, Inc.（“Wood Brothers Industries”）及其关联公司100%的股权。Wood Brothers Industries 是一家总部位于内布拉斯加州的水处理批发供应商，为美国各地的专业水处理经销商提供服务。

截至2026年9月30日，收购资产和承担负债的估值尚未完成。因此，公司记录了收购日收购资产和承担负债公允价值的初步估计。计量期间内完成估值后，收购日无形资产、商誉和所得税等项目的公允价值入账金额可能发生变化。估值将在收购日起不迟于一年内完成。

下表汇总了收购日收购资产和承担负债的初步公允价值：


（百万）
收购资产和承担负债
现金及现金等价物	$	0.4
应收款项	2.1
存货	6.0
不动产、厂房及设备	0.1
租赁使用权资产	1.5
其他无形资产	27.9
商誉	23.0
应付账款及应计费用	(2.1)
租赁使用权负债	(1.5)
递延所得税负债	(7.1)
收购资产和承担负债总额	$	50.3

公司将总对价中的1,910万美元分配给使用年限为12年的客户关系，将880万美元分配给使用年限为6至9年的商品名称。无形资产的公允价值采用收益法确定。由于管理层在估算公允价值时使用了重大估计和假设，公司将无形资产的公允价值视为第3级计量。

商誉不得用于税务抵扣，其中包括组建完成的员工队伍的价值，以及为公司产品组合带来的整体战略收益，并计入水务系统业务分部。由于 Wood Brothers Industries 的收购结果对公司的简明合并财务报表并不重大，公司未提供该收购的备考财务信息。

Benson Pump

2026年4月，公司以2,170万美元的收购价收购了 Benson Pump Corporation（“Benson Pump”）100%的所有者权益；该价格根据所收购营运资本水平进行了收购价调整。Benson Pump 是一家专业地下水分销商，业务位于阿肯色州。

截至2026年9月30日，收购资产和承担负债的估值尚未最终确定。因此，公司记录了收购日收购资产和承担负债公允价值的初步估计。计量期间完成估值后，收购日无形资产和商誉等项目的公允价值入账金额可能发生变化。估值将在收购日起不超过一年内完成。购买价款主要分配至商誉和其他无形资产。商誉不可用于税前扣除，其中包括已组建员工队伍的价值、潜在未来技术以及对公司产品组合带来的整体战略利益，并计入分销部门。

公司未披露有关收购Benson Pump的若干信息，包括自收购完成以来被收购公司的单独经营业绩，以及公司与被收购业务的合并备考财务信息，因为公司认为该收购不重大。

后续事项

2026年10月，公司签订股份购买协议，拟以2.590亿澳元（约1.810亿美元）收购Challenge Pumps Holdings Pty Ltd（“Challenge Pumps”）100%的所有权权益，价格需根据营运资本及其他交割调整进行调整。预计该收购将于2026年完成，但须待Challenge Pumps年度审计完成并满足惯常交割条件，包括取得所需第三方同意，以及各方陈述与保证持续准确。股份购买协议包含Franklin Electric及其他协议方作出的惯常陈述、保证和契约，以及此类协议惯有的其他条款和条件。Challenge Pumps是一家位于澳大利亚的专业地下及矿山排水公司。公司预计购买价款将主要分配至营运资本、商誉及其他无形资产。

2025

Barnes

2025年3月，公司以总计9,680万美元的前期现金对价（扣除取得的现金后），收购了Barnes de Colombia S.A.（“Barnes”）100%的股权。Barnes是一家领先的工业和商用泵制造商及分销商，总部位于哥伦比亚昆迪纳马卡省科塔。截至2026年3月31日，收购资产和承担负债的估值已最终确定，与此前披露的初步分配相比没有重大变化。

下表汇总了收购日收购资产和承担负债的公允价值：


（百万）
收购资产和承担负债
现金及现金等价物	$	3.4
应收款项	9.6
存货	23.6
其他流动资产	3.9
不动产、厂房及设备	13.5
商誉	43.4
其他无形资产	45.5

其他非流动资产	3.6
债务	(13.8)
应付账款	(8.7)
应计费用及其他流动负债	(2.4)


递延所得税负债	(18.6)
其他非流动负债	(2.8)
收购的总资产和承担的负债	$	100.2

公司将总对价中的 33.4 million 美元分配给使用寿命为 8 年的客户关系，9.3 million 美元分配给使用寿命为 11 年的商品名称，2.8 million 美元分配给使用寿命为 7 年的开发技术。无形资产的公允价值采用收益法确定。由于管理层在确定估计公允价值时使用了重大估计和假设，公司将无形资产的公允价值视为第 3 级计量。

商誉不可用于税务抵扣，其中包括组建完成的员工队伍、潜在的未来技术，以及为公司产品组合带来的整体战略利益，并计入水系统分部。

自收购之日起，被收购业务的经营业绩已纳入公司的合并利润表。2026 年前两个月，Barnes 收购为公司带来了 6.2 million 美元的增量净销售额，而对净利润的影响并不重大。比较期间未包含两个月的

Barnes 收入，因为收购直到 2025 年 3 月才完成。自 2025 年 3 月起，Barnes 的所有净销售额及相关净利润均已纳入公司的合并财务业绩。由于 Barnes 的业绩对公司的简明合并财务报表并不重大，公司未提供该收购的备考财务信息。

PumpEng

2025 年 2 月，公司以 24.0 million 澳元（约合 15.0 million 美元）的购买价格收购了 PumpEng Pty Ltd（“PumpEng”）100% 的所有权权益。PumpEng 总部位于澳大利亚，专门为采矿行业设计、制造和维修潜水泵。

由于公司认为该收购并不重大，因此未纳入 PumpEng 收购的若干披露内容，包括自收购完成以来被收购公司的单独经营业绩，以及公司与被收购业务合并后的备考财务信息。

截至 2026 年 9 月 30 日的第三季度和九个月，交易成本分别为 5.0 million 美元和 5.4 million 美元。截至 2025 年 9 月 30 日的第三季度和九个月，交易成本分别为 0.0 million 美元和 2.0 million 美元。

4. 商誉及其他无形资产

公司无形资产（不包括商誉）的账面金额如下：


（百万）	2026 年 9 月 30 日		2025 年 12 月 31 日
	账面原值		累计摊销		账面原值		累计摊销
需摊销的无形资产：
客户关系	$	462.9			$	(167.4)		$	309.5	$	(149.7)

技术	11.0			(8.3)			10.5		(7.8)
商品名称	69.4			(15.1)			58.6		(11.6)
其他	3.1			(2.5)			3.1		(2.5)
合计	$	546.4			$	(193.3)		$	381.7	$	(171.6)
无需摊销的无形资产：
商品名称	71.9			—			41.6		—
无形资产合计	$	618.3			$	(193.3)		$	423.3	$	(171.6)

截至2026年9月30日的第三季度和截至2025年9月30日的第三季度，无形资产相关摊销费用分别为820万美元和610万美元；截至2026年9月30日和2025年9月30日的九个月期间，分别为2160万美元和1720万美元。

截至2026年9月30日的九个月期间，按应报告分部划分的商誉账面金额变动如下：


（百万美元）
	水系统		能源系统		分销		合并
截至2025年12月31日的余额	$	277.0			$	70.5		$	50.6	$	398.1
收购	29.7			161.3			5.5		196.5
对上年度收购的调整	0.2			—			—		0.2
外币折算	7.5			0.7			—		8.2
截至2026年9月30日的余额	$	314.4			$	232.5		$	56.1	$	603.0

5. 应计费用及其他流动负债

应计费用及其他流动负债包括：


（百万美元）	2026年9月30日		2025年12月31日

薪资、工资及佣金	$	55.9			$	49.2
产品保修成本	8.5			9.1
保险	4.7			3.3
员工福利	18.1			20.7
法律和解损失（见附注7）	4.5		—
其他	39.2			25.7
总计	$	130.9			$	108.0

6. 债务

债务包括以下各项：


（百万美元）	2026年9月30日		2025年12月31日
Prudential协议	$	200.0			$	50.0
New York Life协议	225.0			75.0
信贷协议	125.0			30.0
项目债券	10.1			11.5

外国子公司债务	0.8			0.6

减：未摊销债务发行成本	(0.2)			(0.1)
	$	560.7			$	167.0
减：流动到期债务	(127.2)			(31.8)
长期债务	$	433.5			$	135.2

Prudential协议

公司与PGIM, Inc.及其关联方签订了第四次修订及重述票据购买和私募协议（“Prudential协议”）。2024年5月15日，公司签订第1号修正案，将贷款方提供的融资总额从1.5亿美元提高至2.5亿美元，并将到期日从2024年7月30日改为2027年5月15日。2025年9月26日，公司发行并出售了5000万美元固定利率高级票据，票据于2032年9月26日到期。该高级票据的利率为5.01%，仅付息款项每半年到期一次。票据发行所得款项用于偿还现有浮动利率债务。2026年9月4日，公司发行并出售了1.5亿美元固定利率高级票据。其中7500万美元票据于2031年9月4日到期，利率为5.59%，仅付息款项每季度到期一次。其余7500万美元票据于2033年9月4日到期，利率为5.78%，仅付息款项每季度到期一次。该等票据发行所得款项用于支付收购Cat Pumps Corporation的款项。截至2026年9月30日，Prudential协议项下剩余可借款额度为5000万美元。

New York Life协议

公司与 New York Life 的关联方 NYL Investors LLC 及各签署票据持有人签订了一项未承诺、无担保的私人票据发行协议（“New York Life 协议”）。2024 年 5 月 15 日，公司签订续约修正案第 1 号，将贷款方提供的可用融资总额从 200.0 百万美元提高至 250.0 百万美元，并将到期日从 2024 年 7 月 30 日改为 2027 年 5 月 15 日。2025 年 9 月 26 日，公司发行并出售了 75.0 百万美元的固定利率优先票据，票据于 2032 年 9 月 26 日到期。这些优先票据的利率为 5.01 percent，利息仅需每半年支付一次。票据发行所得款项用于偿还现有浮动利率债务。2026 年 9 月 4 日，公司发行并出售了 150.0 百万美元的固定利率优先票据。其中 75.0 百万美元的票据于 2031 年 9 月 4 日到期，利率为 5.59 percent，利息仅需每季度支付一次。其余 75.0 百万美元的票据于 2033 年 9 月 4 日到期，利率为 5.78 percent，利息仅需每季度支付一次。这些票据发行所得款项用于支付收购 Cat Pumps Corporation 的费用。截至 2026 年 9 月 30 日，New York Life 协议项下尚有 25.0 百万美元的剩余借款额度。

信贷协议

2025 年 5 月 14 日，公司签订了第五次修订及重述信贷协议（“信贷协议”）。第五次修订及重述信贷协议将公司第四次修订及重述信贷协议（经修订；本期报告中称为“前信贷协议”）的到期日延长至 2030 年 5 月 14 日，同时保持 350.0 百万美元的循环承诺额度不变。信贷协议规定，借款人可根据其中所载条件申请将承诺总额增加最多 175.0 百万美元（总承诺额不得超过 525.0 百万美元）。前信贷协议规定，借款人可申请将循环承诺总额增加最多 125.0 百万美元（总承诺额不得超过 475.0 百万美元）。公司现有及未来所有重要的美国境内子公司均无条件担保借款人在信贷协议项下及与之相关的所有义务。此外，公司无条件担保 Franklin Electric B.V. 在信贷协议项下的所有义务。根据信贷协议，借款人须支付若干费用，包括按承诺总额的 0.10 percent 至 0.25 percent（视公司的杠杆率而定）计收的承诺费，该费用按季度支付。信贷协议包含惯常的肯定性和否定性契约。贷款可采用以下任一利率发放：(i) 以 SOFR 为基础的定期基准利率（美元借款）或 EURIBOR（欧元借款），另加 1.00 percent 至 1.75 percent 的适用利差（视公司的杠杆率而定）；或 (ii) 信贷协议所定义的替代基准利率。

截至2026年9月30日，公司有未偿借款1.25亿美元，加权平均利率为4.9 percent；有770万美元未提取且未偿付的信用证；根据《信贷协议》可用额度为2.173亿美元。截至2025年12月31日，公司有未偿借款3000万美元，加权平均利率为2.9 percent；有640万美元未偿信用证；根据《信贷协议》可用额度为3.136亿美元。

项目债券

2012年12月31日，公司、印第安纳州艾伦县及若干机构投资者签订了《债券购买与贷款协议》。根据该协议，印第安纳州艾伦县发行了一系列项目债券，名称为“应税经济发展债券，2012系列（Franklin Electric Co., Inc.项目）”。据此发行、认证且目前未偿付的项目债券本金总额上限为2500万美元。随后，公司通过发行项目票据借入项目债券所得款项，用于融资新全球公司总部及工程中心的购置、建设、安装和设备配置成本。这些项目票据（“税收增量融资债务”）的年利率为3.6 percent。项目票据的利息和本金余额由公司直接支付给机构投资者，按半年分期付款，始于2013年7月10日，至2033年1月10日结束。项目票据所得款项仅限用于协助融资新全球公司总部及工程中心。2015年5月5日，公司签订《债券购买与贷款协议第1号修正案》。该修正案规定由若干公司子公司提供债务偿还担保，并豁免了与子公司担保相关的若干非财务契约条款。

公司还为若干子公司设有透支信贷额度，期限各不相同。这些透支信贷额度的最高借款总额为2450万美元。截至2026年9月30日，这些信贷额度下有100万美元未偿借款，可用额度为2350万美元。截至2025年12月31日，透支信贷额度为1970万美元，其中有150万美元未偿借款，可用额度为1810万美元。

7. 承诺与或有事项

2011年，公司获悉，法国一家法院正在审查法国加油站内安装的某些地下管道连接件涉嫌存在的问题。这些加油站归法国子公司 Exxon Mobil 的 Esso S.A.F（“Esso”）所有。法国法院（“法院”）下令由指定的相关领域专家审查 103 个加油站，以确定是否存在损害（如有）及其原因。自 2011 年以来，公司一直参与此项调查，其他多方也参与其中，包括设备安装商、为加油站进行设计并提供规格的工程设计公司，以及部分已安装设备的合同制造商。公司认为，其产品并非任何所称损害的原因。公司于 2023 年 2 月提交了对专家最终报告的答复。2026 年第二季度，各方达成初步协议以解决此事。根据拟议的和解协议，公司同意支付 450 万美元，以解决其在诉讼中的部分责任。和解仍待各方最终敲定并获法院批准。公司于第三季度向第三方转入 450 万美元，但在各方最终敲定并获法院批准之前仍保留该资金的所有权。截至 2026 年 9 月 30 日，公司将这 450 万美元计入“其他流动资产”和“应计费用及其他流动负债”，直至和解最终敲定。2026 年 10 月，各方以截至 2026 年 9 月 30 日记录的金额最终敲定了和解。

公司正在为其他在日常经营过程中产生的各类索赔和法律诉讼进行抗辩。管理层基于目前掌握的事实并与律师讨论后认为，这些索赔和法律诉讼可以通过抗辩或解决予以处理，不会对公司的财务状况、经营业绩和净现金流产生重大影响。

截至 2026 年 9 月 30 日，公司有 540 万美元的承诺，主要用于资本支出、采购生产所用原材料及采购制成品。

截至 2026 年 9 月 30 日，公司有一项与收购 Cat Pumps 相关的或有对价负债，估计公允价值为 1,950 万美元；若未来达到盈利能力里程碑，可能以普通股支付，最高达 5,000 万美元。

截至 2026 年 9 月 30 日的九个月内，保修应计额账面金额的变动如下，该金额记录在公司简明合并资产负债表的“应计费用及其他流动负债”项目中：


（百万美元）
截至 2025 年 12 月 31 日的余额	$	9.1
与产品保修相关的应计额	10.2

已付款项的扣减	(10.8)
截至 2026 年 9 月 30 日的余额	$	8.5

8. 权益变动表

下列表格列示了截至 2026 年和 2025 年 9 月 30 日的第三季度及九个月内的权益变动：


（千美元）	普通股		额外实收资本		留存收益					累计其他综合收益／（损失）	非控股权益		权益总额	可赎回非控股权益
截至2026年7月1日的余额	$	4,421			$	404,470		$	1,142,388					$	(143,770)		$	2,112		$	1,409,621	$	1,770
净利润	—			—			60,649					—		287		60,936			111
普通股股息（每股$0.280）	—			—			(12,425)					—		—		(12,425)			—
发行普通股	3			1,090			—					—		—		1,093			—
回购普通股	(7)			—			(6,561)					—		—		(6,568)			—
股份薪酬	—			3,280			—					—		—		3,280			—


货币折算调整	—			—			—					2,513		(15)		2,498			(6)
净投资套期收益/（损失），扣除税项后	—			—			—					(10,116)		—		(10,116)			—
养老金及其他退休后计划，扣除税项后	—			—			—					(6)		—		(6)			—
截至2026年9月30日的余额	$	4,417			$	408,840		$	1,184,051					$	(151,379)		$	2,384		$	1,448,313	$	1,875

（单位：千）	普通股		额外实收资本		留存收益					累计其他综合收益/（损失）	非控股权益		权益总额	可赎回非控股权益
截至2025年7月1日的余额	$	4,448			$	383,428		$	1,088,407					$	(214,407)		$	3,186		$	1,265,062	$	1,511
净利润	—			—			16,738					—		292		17,030			174
普通股股息（每股$0.265）	—			—			(11,835)					—		—		(11,835)			—
发行普通股	2			1,036			—					—		—		1,038			—
回购普通股	(1)			—			(94)					—		—		(95)			—
股份薪酬	2			2,370			—					—		—		2,372			—
向非控股权益派发股息	—			—			—					—		—		—			(28)

货币折算调整	—			—			—					4,578		(10)		4,568			(13)
养老金及其他退休后计划，扣除税项后	—			—			—					43,262		—		43,262			—
截至2025年9月30日的余额	$	4,451			$	386,834		$	1,093,216					$	(166,567)		$	3,468		$	1,321,402	$	1,644


（单位：千）	普通股		额外实收资本		留存收益					累计其他综合收益/（损失）	非控股权益		权益总额	可赎回非控股权益
截至2025年12月31日的余额	$	4,418			$	391,496		$	1,084,149					$	(157,484)		$	2,789		$	1,325,368	$	1,657
净利润	—			—			160,721					—		877		161,598			245
普通股股息（每股$0.840）	—			—			(37,287)					—		—		(37,287)			—
发行普通股	11			6,421			—					—		—		6,432			—
回购普通股	(24)			—			(23,532)					—		—		(23,556)			—
股份薪酬	12			10,923			—					—		—		10,935			—
向非控股权益派发股息	—			—			—					—		(1,199)		(1,199)

货币折算调整	—			—			—					16,476		(83)		16,393			(27)
净投资套期收益/（损失），扣除税项后	—			—			—					(10,116)		—		(10,116)			—
养老金及其他退休后计划，扣除税项后	—			—			—					(255)		—		(255)			—
截至2026年9月30日的余额	$	4,417			$	408,840		$	1,184,051					$	(151,379)		$	2,384		$	1,448,313	$	1,875

（单位：千）	普通股		额外实收资本		留存收益					累计其他综合收益/（损失）	非控股权益		权益总额	可赎回非控股权益
截至2024年12月31日的余额	$	4,571			$	363,956		$	1,151,575					$	(254,003)		$	2,511		$	1,268,610	$	1,224
净利润	—			—			107,840					—		892		108,732			409
普通股股息（每股$0.795）	—			—			(36,194)					—		—		(36,194)			—
发行普通股	16			12,549			—					—		—		12,565			—
回购普通股	(148)			—			(130,005)					—		—		(130,153)			—
股份薪酬	12			10,329			—					—		—		10,341			—
向非控股权益派发股息	—			—			—					—		—		—			(28)

货币折算调整	—			—			—					43,553		65		43,618			39
养老金及其他退休后计划，扣除税项后	—			—			—					43,883		—		43,883			—
截至2025年9月30日的余额	$	4,451			$	386,834		$	1,093,216					$	(166,567)		$	3,468		$	1,321,402	$	1,644

9. 累计其他综合收益/（损失）

截至2026年9月30日和2025年9月30日的九个月期间，累计其他综合收益/（损失）按组成部分列示的变动汇总如下：


（单位：百万）	Foreign Currency Translation Adjustments		Pension and Post-Retirement Benefit Plan Adjustments		Total
For the nine months ended September 30, 2026:
Balance as of December 31, 2025	$	(166.2)			$	8.7		$	(157.5)

Other comprehensive income/(loss) before reclassifications	16.5			—			16.5
Net investment hedge gain/(loss), net of tax (1)	(10.1)			—			(10.1)
Amounts reclassified from accumulated other comprehensive income/(loss) (2)/(3)	—			(0.3)			(0.3)

Net other comprehensive income/(loss)	6.4			(0.3)			6.1

Balance as of September 30, 2026	$	(159.8)			$	8.4		$	(151.4)

For the nine months ended September 30, 2025:
Balance as of December 31, 2024	$	(215.0)			$	(39.0)		$	(254.0)

Other comprehensive income/(loss) before reclassifications	43.6			—			43.6
Amounts reclassified from accumulated other comprehensive income/(loss) (2)/(3)	—			2.2			2.2
Pension settlement, net of tax (4)	—			41.7			41.7
Net other comprehensive income/(loss)	43.6			43.9			87.5

Balance as of September 30, 2025	$	(171.4)			$	4.9		$	(166.5)

(1) Net of tax benefit of $3.3 million for the nine months ended September 30, 2026.

(2) This accumulated other comprehensive income/(loss) component is included in the computation of net periodic pension cost (refer to Note 10 for additional details) and is included in the \"Other income/(expense), net\" line of the Company's condensed consolidated statements of income.

(3) Net of tax (benefit)/expense of $(0.1) million and $0.7 million for the nine months ended September 30, 2026 and September 30, 2025, respectively.

(4) Net of tax expense of $13.6 million for the nine months ended September 30, 2025.

Amounts related to noncontrolling interests were not material.

10. EMPLOYEE BENEFIT PLANS

The following table sets forth the aggregated net periodic benefit cost for all pension plans for the third quarters and nine months ended September 30, 2026 and September 30, 2025:


(In millions)	Pension Benefits
	Third Quarter Ended		Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Service cost	$	—			$	0.1		$	0.1	$	0.2
Interest cost	0.3			0.9			0.8		3.8
Expected return on assets	—			(0.6)			(0.1)		(3.8)
Amortization of:
Prior service cost	—			—			—		—
Actuarial loss	—			0.1			—		0.9
Settlement cost	—			—			—		—
Remeasurement of defined benefit pension	—			2.0			—		2.0
Pension settlement loss	—			55.3			—		55.3
Net periodic benefit cost	$	0.3			$	57.8		$	0.8	$	58.4

The following table sets forth the aggregated net periodic benefit cost for the other post-retirement benefit plan for the third quarters and nine months ended September 30, 2026 and September 30, 2025:


(In millions)	Other Benefits
	Third Quarter Ended		Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Service cost	$	—			$	—		$	—	$	—
Interest cost	0.1			0.1			0.2		0.2
Expected return on assets	—			—			—		—
Amortization of:
Prior service cost	—			—			—		—
Actuarial loss	—			—			—		—
Settlement cost	—			—			—		—
Net periodic benefit cost	$	0.1			$	0.1		$	0.2	$	0.2

11. INCOME TAXES

The Company’s effective tax rate for the nine-month period ended September 30, 2026 was 24.9 percent as compared to 25.3 percent for the nine-month period ended September 30, 2025. The effective tax rate differs from the U.S. statutory rate of 21 percent primarily due to U.S. state taxes and foreign earnings taxed at rates different than the U.S. statutory rate partially offset by an object exemption of foreign business profits in the Netherlands and the recognition of the U.S. foreign-derived intangible income (FDII) provisions. For the third quarter of 2026, the Company recorded an effective tax rate of 24.4 percent, compared with 26.9 percent in the third quarter of 2025.

The decrease in the effective tax rate for the third quarter and first nine months of 2026 compared to the comparable periods in the prior year was primarily due to a mix of foreign earnings taxed at rates different than the U.S. statutory rate.

12. EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company's participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders.

Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table sets forth the computation of basic and diluted earnings per share:


	Third Quarter Ended		Nine Months Ended
(In millions, except per share amounts)	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Numerator:
Net income attributable to Franklin Electric Co., Inc.	$	60.6			$	16.7		$	160.7	$	107.8
Less: Earnings allocated to participating securities	0.3			0.1			0.7		0.3
Net income available to common shareholders	$	60.3			$	16.6		$	160.0	$	107.5
Denominator:
Basic weighted average common shares outstanding	44.2			44.5			44.2		45.2
Effect of dilutive securities:
Non-participating employee stock options, performance awards, and deferred shares to non-employee directors	0.4			0.5			0.4		0.5
Diluted weighted average common shares outstanding	44.6			45.0			44.6		45.7
Basic earnings per share	$	1.37			$	0.37		$	3.62	$	2.38
Diluted earnings per share	$	1.35			$	0.37		$	3.58	$	2.35

There were 0.1 million and 0.2 million stock options outstanding for the third quarters and nine months ended September 30, 2026 and September 30, 2025, respectively, that were excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive.

13. FINANCIAL INSTRUMENTS

The Company’s non-employee directors' deferred compensation stock program is subject to variable plan accounting and, accordingly, is adjusted for changes in the Company’s stock price at the end of each reporting period. The Company has entered into share swap transaction agreements (the \"swap\") to mitigate the Company’s exposure to the fluctuations in the Company's stock price. The swap has not been designated as a hedge for accounting purposes and is cancellable with 30 days' written notice by either party. As of September 30, 2026 and December 31, 2025, the swap had a notional value based on 150,000 shares. For the third quarter and nine months ended September 30, 2026, changes in the fair value of the swap resulted in a loss of $1.8 million and $0.4 million, respectively. For the third quarter and nine months ended September 30, 2025, changes in the fair value of the swap resulted in a gain of $0.7 million and a loss $2.2 million, respectively. Gains and losses resulting from the swap were largely offset by gains and losses on the fair value of the deferred compensation stock liability. All gains or losses and expenses related to the swap are recorded in the Company's condensed consolidated statements of income within the “Selling, general, and administrative expenses” line.

The Company is exposed to foreign currency exchange rate risk arising from transactions in the normal course of business including making sales and purchases of raw materials and finished goods in foreign denominated currencies with third party customers and suppliers as well as to wholly owned subsidiaries of the Company. To reduce its exposure to foreign currency exchange rate volatility, the Company enters into various forward currency contracts to offset these fluctuations. The Company uses forward currency contracts only in an attempt to limit underlying exposure from foreign currency exchange rate fluctuations and to minimize earnings volatility associated with foreign currency exchange rate fluctuations and has not elected to use hedge accounting. Decisions on whether to use such derivative instruments are primarily based on the amount of exposure to the currency involved and an assessment of the near-term market value for each currency. As of September 30, 2026 and December 31, 2025, the Company had no foreign currency contracts outstanding. For the third quarter and nine months ended September 30, 2026, changes in the fair value of the forward currency contracts resulted in losses of $0.7 million and $1.2 million, respectively. For the third quarter and nine months ended September 30, 2025, changes in the fair value of the forward currency contracts resulted in gains of $0.1 million and $11.1 million, respectively. These gains and losses are recorded in the Company's condensed consolidated statements of income within the \"Foreign exchange expense, net\" line.

On August 13, 2026, the Company entered into a fixed-for-fixed cross currency swap and designated it as a hedge of our net investment in euro-denominated operations. The hedge remained outstanding as of September 30, 2026.

The Company assesses hedge effectiveness using the spot method. Under this method, changes in the fair value of the cross-currency swap attributable to changes in spot exchange rates are recognized in other comprehensive income (loss) as part of foreign currency translation adjustments. The interest differential between the fixed-rate legs of the cross-currency swap is excluded from the assessment of hedge effectiveness and is accounted for as an excluded component. The Company recognizes changes in the excluded component in earnings in accordance with its accounting policy for net investment hedges. The cross-currency swap matures on June 30, 2033.

The total notional amount of derivative instruments designated as net investment hedges was $631.0 million. The Company records gains and losses, net of tax, on the effective portion of the net investment hedge in other comprehensive income/(loss) as part of foreign currency translation adjustments. As of September 30, 2026, the fair value of the hedging instrument was recorded in other long-term liabilities. For the third quarter and nine months ended September 30, 2026, the Company recognized $10.1 million in other comprehensive income/(loss) related to the effective portion of the hedge. No amounts were reclassified from accumulated other comprehensive income/(loss) into earnings in connection with settlement or disposal during the third quarter and nine months ended September 30, 2026. These amounts will remain in accumulated other comprehensive income/(loss) until the sale or substantially complete liquidation of the hedged net investment.

14. FAIR VALUE MEASUREMENTS

FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, provides guidance for defining, measuring, and disclosing fair value within an established framework and hierarchy. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs and to minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value within the hierarchy are as follows:

Level 1 – Quoted prices for identical assets and liabilities in active markets;

Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

As of September 30, 2026 and December 31, 2025, the assets and liabilities measured at fair value on a recurring basis were as set forth in the table below:


(In millions)	September 30, 2026	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	14.1		$	14.1	$	—	$	—


Marketable securities	4.0		4.0		—	—
Total assets	$	18.1		$	18.1	$	—	$	—

Liabilities:


Contingent payments related to acquisition	19.5		—		—	19.5
Total liabilities	$	19.5		$	—	$	—	$	19.5

(In millions)	December 31, 2025	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	10.2		$	10.2	$	—	$	—


Marketable securities	9.7		9.7		—	—
Total assets	$	19.9		$	19.9	$	—	$	—

Liabilities:



Total liabilities	$	—		$	—	$	—	$	—

The Company’s Level 1 cash equivalents assets are generally comprised of foreign bank guaranteed certificates of deposit and short term deposits. The Company’s Level 1 marketable securities assets are comprised of short-term investment funds. The marketable securities asset is recorded within the \"Other current assets\" line of the condensed consolidated balance sheets. These marketable securities were excess plan assets from the pension settlement disclosed in Note 10 – Employee Benefit Plans included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

The Company's Level 3 category includes contingent consideration related to acquisitions, which valuation inputs are unobservable and significant to the fair value measurement. Projections and estimated probabilities are used to estimate future contingent earn-out payments in shares of common stock, which are discounted back to present value to compute contingent earn-out liabilities. The following table provides a roll-forward of the contingent consideration liability, which is included in \"Other long-term liabilities\" in the consolidated balance sheets as of September 30, 2026:


	Third Quarter Ended
(In millions)	September 30, 2026
Fair value at beginning of period	$	—
Additions	19.5
Change in fair value recognized in earnings	—
Payments	—
Fair value at end of period	$	19.5

Total debt, including current maturities, had carrying amounts of $560.7 million and $167.0 million and estimated fair values of $534.6 million and $160.6 million as of September 30, 2026 and December 31, 2025, respectively. In the absence of quoted prices in active markets, considerable judgment is required in developing estimates of fair value. Estimates are not necessarily indicative of the amounts the Company could realize in a current market transaction. In determining the fair value of its debt, the Company uses estimates based on rates currently available to the Company for debt with similar terms and remaining maturities. Accordingly, the fair value of debt is classified as Level 2 within the valuation hierarchy.

15. SEGMENT AND GEOGRAPHIC INFORMATION

The Company’s business consists of the Water Systems, Distribution, and Energy Systems reportable segments, based on the principal end market served. The Company includes unallocated corporate expenses and intercompany eliminations that are not part of a reportable segment in its reconciliations to consolidated results.

The accounting policies of the operating segments are the same as those described in Note 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Revenue is recognized based on the invoice price at the point in time when the customer obtains control of the product, which is typically upon shipment to the customer. The Water Systems and Energy Systems segments include manufacturing operations and supply certain components and finished goods, both between segments and to the Distribution segment. The Company reports these product transfers between Water Systems and Energy Systems as inventory transfers as a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Company reports intersegment transfers from Water Systems to Distribution as intersegment revenue at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water Systems and Distribution segments.

The Company's chief operating decision maker is its Chief Executive Officer. Performance is evaluated based on the sales and operating income of the segments. Operating income and margin are used to evaluate income generated from segment assets in deciding whether to reinvest profits into each segment or other parts of the entity. Operating income is also used to monitor budget versus actual results for purposes of determining portions of management compensation and for benchmarking against similar measures used by peers and competitors. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented as corporate expenses are not allocated to segments. Interest expense, other income/(expense), net, foreign exchange income/(expense), net, and income tax expense are also not allocated to each segment.

The following tables summarize reportable business segment information with a reconciliation to the condensed consolidated results for the periods presented:


Third Quarter Ended September 30, 2026	Water Systems		Distribution		Energy Systems		Total
(In millions)

External sales	$	315.8			$	226.1			$	91.7	$	633.6
Intersegment sales	36.7			—			—			36.7
	$	352.5			$	226.1			$	91.7	$	670.3

Elimination of intersegment sales							$	(36.7)
Total consolidated sales							$	633.6

Cost of sales	$	233.3			$	164.3			$	49.7
Selling, general and administrative expenses	60.0			41.2			18.3
Restructuring expense	0.3			—			—
Legal settlement loss (see Note 7)	—			—			—
Segment operating income	$	58.9			$	20.6			$	23.7	$	103.2

Reconciliation of segment operating income to income before income taxes
Deferred intersegment loss							$	1.1
Corporate general and administrative expenses							(17.7)
Interest expense							(4.7)
Other income/(expense), net							1.2
Foreign exchange expense, net							(2.3)

Consolidated income before income taxes							$	80.8


Third Quarter Ended September 30, 2025	Water Systems		Distribution		Energy Systems		Total
(In millions)

External sales	$	304.4			$	197.3			$	80.0	$	581.7
Intersegment sales	32.2			—			—			32.2
	$	336.6			$	197.3			$	80.0	$	613.9

Elimination of intersegment sales							$	(32.2)
Total consolidated sales							$	581.7

Cost of sales	$	220.1			$	142.6			$	43.5
Selling, general and administrative expenses	56.2			38.4			11.1
Restructuring expense	0.1			—			—

Segment operating income	$	60.2			$	16.3			$	25.4	$	101.9

Reconciliation of segment operating income to income before income taxes
Deferred intersegment loss							$	1.1
Corporate general and administrative expenses							(17.8)
Interest expense							(3.5)
Other income/(expense), net							(0.2)
Foreign exchange expense, net							(2.7)
Pension settlement loss							(55.3)
Consolidated income before income taxes							$	23.5


Nine Months Ended September 30, 2026	Water Systems		Distribution		Energy Systems		Total
(In millions)

External sales	$	915.2			$	598.1			$	243.6	$	1,756.9
Intersegment sales	113.9			—			—			113.9
	$	1,029.1			$	598.1			$	243.6	$	1,870.8

Elimination of intersegment sales							$	(113.9)
Total consolidated sales							$	1,756.9

Cost of sales	$	678.3			$	435.8			$	123.9
Selling, general and administrative expenses	177.7			119.1			39.5
Restructuring expense	4.5			—			—
Legal settlement loss (see Note 7)	—			—			4.5
Segment operating income	$	168.6			$	43.2			$	75.7	$	287.5

Reconciliation of segment operating income to income before income taxes
Deferred intersegment profit							$	(3.2)
Corporate general and administrative expenses							(56.1)
Interest expense							(10.5)
Other income/(expense), net							2.2
Foreign exchange expense, net							(4.4)

Consolidated income before income taxes							$	215.5


Nine Months Ended September 30, 2025	Water Systems		Distribution		Energy Systems		Total
(In millions)

External sales	$	861.0			$	539.1			$	224.3	$	1,624.4
Intersegment sales	103.7			—			—			103.7
	$	964.7			$	539.1			$	224.3	$	1,728.1

Elimination of intersegment sales							$	(103.7)
Total consolidated sales							$	1,624.4

Cost of sales	$	634.2			$	391.4			$	116.1
Selling, general and administrative expenses	164.8			112.9			31.8
Restructuring expense	0.2			0.2			—

Segment operating income	$	165.5			$	34.6			$	76.4	$	276.5

Reconciliation of segment operating income to income before income taxes
Deferred intersegment profit							$	(2.0)
Corporate general and administrative expenses							(57.1)
Interest expense							(8.1)
Other income/(expense), net							0.5
Foreign exchange expense, net							(8.5)
Pension settlement loss							(55.3)
Consolidated income before income taxes							$	146.0


	Third Quarter Ended		Nine Months Ended
(In millions)	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Depreciation and amortization
Water Systems	$	13.4			$	11.9		$	38.5	$	33.7
Distribution	2.6			2.3			7.5		7.0
Energy Systems	2.4			1.1			4.6		3.2
Total segment depreciation and amortization	$	18.4			$	15.3		$	50.6	$	43.9
Corporate	0.8			0.8			2.5		2.4
Total depreciation and amortization	$	19.2			$	16.1		$	53.1	$	46.3

Capital Expenditures
Water Systems	$	12.8			$	12.4		$	20.2	$	22.3
Distribution	6.7			1.5			8.6		4.6
Energy Systems	3.0			0.5			4.4		1.6
Total segment capital expenditure	$	22.5			$	14.4		$	33.2	$	28.5
Corporate	1.1			0.4			1.2		1.3
Total capital expenditures	$	23.6			$	14.8		$	34.4	$	29.8

Assets
Water Systems	$	1,458.5			$	1,244.3
Distribution	443.0			385.1
Energy Systems	654.7			273.1
Total segment assets	$	2,556.2			$	1,902.5
Corporate	82.5			94.9
Total assets	$	2,638.7			$	1,997.4

Cash and property, plant and equipment are the major asset groups in “Corporate” of total assets.

The following table disaggregates the Company's net sales from contracts with customers by segment:


	Third Quarter Ended		Nine Months Ended
(In millions)	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
	Net sales
Water Systems
External sales
United States & Canada	$	177.3			$	168.4		$	507.4	$	476.4
Latin America	56.1			55.4			158.6		147.7
Europe, Middle East & Africa	55.0			57.5			167.1		164.7
Asia Pacific	27.4			23.1			82.1		72.2
Intersegment sales
United States & Canada	36.7			32.2			113.9		103.7
Total sales	352.5			336.6			1,029.1		964.7
Distribution
External sales
United States & Canada	226.1			197.3			598.1		539.1
Intersegment sales	—			—			—		—
Total sales	226.1			197.3			598.1		539.1
Energy Systems
External sales
United States & Canada	70.9			61.4			185.0		173.7
All other	20.8			18.6			58.6		50.6
Intersegment sales	—			—			—		—
Total sales	91.7			80.0			243.6		224.3

Intersegment Eliminations/Other	(36.7)			(32.2)			(113.9)		(103.7)
Consolidated	$	633.6			$	581.7		$	1,756.9	$	1,624.4

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2025 for management’s discussion and analysis of its financial condition and results of operations. The following is management’s discussion and analysis of the Company's financial condition and results of operations for the third quarter and nine months ended September 30, 2026 and 2025.

In April of 2026, the Company acquired Benson Pump Corporation (“Benson Pump”). Benson Pump is a professional groundwater distributor in Arkansas and operates within the Distribution segment. In May of 2026, the Company acquired Wood Brothers Industries. Wood Brothers Industries is a water treatment wholesale supplier in Nebraska and operates as a subsidiary of Water Systems. In July of 2026, the Company acquired Maynard's Water Conditioning (“Maynard's”). Maynard's is a water treatment retail store in Michigan and operates within the Water Systems segment. In September of 2026, the Company acquired Cat Pumps Corporation (\"Cat Pumps\"). Cat Pumps is a leading provider of high-pressure, positive displacement pumps based in Minnesota and operates within the Energy segment. Acquisitions contributed approximately $24.8 million of incremental net sales in the third quarter of 2026. Refer to Note 3 in Item 1 of this Quarterly Report on Form 10-Q for additional information on the Cat Pumps, Maynard's, Benson Pump, and Wood Brothers Industries acquisitions.

The impact that the imposition of tariffs and changes to global trade policies will have on the Company's consolidated results of operations is uncertain. The Company expects tariffs on goods imported into the U.S. from Canada, Mexico, and China, and other countries upon which tariffs may be imposed, to continue to be met with retaliatory tariffs from those countries which would impact the Company's consolidated results of operations. The extent and duration of tariffs and the resulting impact on macroeconomic conditions and on the Company's business are uncertain and may depend on various factors, including negotiations between the U.S. and affected countries, retaliation imposed by other countries, tariff exemptions, negative sentiment toward U.S. companies and products, and availability of lower cost inputs that may be sourced domestically. The Company will continue to evaluate the nature and extent of the impact to its business and consolidated results of operations.

Third Quarter 2026 vs. 2025

OVERVIEW

Net sales in the third quarter and first nine months of 2026 increased 9 percent and 8 percent respectively, as compared to the prior-year periods. The sales increases were due to the incremental sales impact from volume and price realization, recent acquisitions, and the favorable impact of foreign currency translation. The Company's consolidated gross profit was $224.0 million and $629.6 million, respectively, for the third quarter and first nine months of 2026, increases of 7 percent and 8 percent, respectively, from the prior-year periods. Diluted earnings per share was $1.35 and $3.58, respectively, for the third quarter and first nine months of 2026, increases of $0.98 and $1.23, respectively, from the prior-year periods.

RESULTS OF OPERATIONS

Net Sales

Net sales in the third quarter and first nine months of 2026 were $633.6 million and $1,756.9 million, respectively, and increased 9 percent and 8 percent, respectively, as compared to the prior-year periods. The sales increase for the third quarter was primarily due to incremental sales impact from price and volume increases of 4 percent, recent acquisitions of 4 percent, and the positive impact of foreign exchange rates of 1 percent. The sales increase for the first nine months was primarily due to higher sales volumes and price realization of 4 percent, incremental sales impact from recent acquisitions of 3 percent, and positive impact of foreign exchange rates of 1 percent.


	Net Sales
(In millions)	Q3 2026		Q3 2025		2026 v 2025
Water Systems	$	352.5			$	336.6		$	15.9
Energy Systems	91.7			80.0			11.7
Distribution	226.1			197.3			28.8
Eliminations/Other	(36.7)			(32.2)			(4.5)
Consolidated	$	633.6			$	581.7		$	51.9



	Net Sales
(In millions)	YTD September 30, 2026		YTD September 30, 2025		2026 v 2025
Water Systems	$	1,029.1			$	964.7		$	64.4
Energy Systems	243.6			224.3			19.3
Distribution	598.1			539.1			59.0
Eliminations/Other	(113.9)			(103.7)			(10.2)
Consolidated	$	1,756.9			$	1,624.4		$	132.5

Net Sales-Water Systems

Water Systems net sales were $352.5 million in the third quarter of 2026, an increase of $15.9 million or 5 percent compared to the third quarter of 2025 net sales of $336.6 million. The sales increase for the third quarter was due to incremental sales impact from recent acquisitions and the sales impact of price realization and foreign exchange rates. Water Systems net sales were $1,029.1 million for the first nine months of 2026, an increase of $64.4 million or 7 percent compared to the first nine months of 2025 net sales of $964.7 million. The sales increase for the first nine months was primarily due to incremental sales impact from recent acquisitions and the sales impact of price realization and foreign exchange rates.

Water Systems net sales in the U.S. and Canada increased 7 percent in the third quarter and 7 percent in the first nine months of 2026, as compared to the prior-year periods. In the third quarter of 2026, sales of groundwater pumping equipment increased 8 percent, sales of water treatment products increased 21 percent and sales of all other surface pumping equipment increased 9 percent. These sales increases were partially offset by lower sales of large dewatering equipment of 17 percent compared to 2025. In the first nine months of 2026, sales of groundwater pumping equipment increased 8 percent, sales of water treatment products increased 14 percent and sales of all other surface pumping equipment increased 10 percent. These sales increases were partially offset by lower sales of large dewatering equipment of 12 percent compared to 2025. Water Systems net sales in markets outside the U.S. and Canada increased 2 percent in the third quarter and 6 percent in the first nine months of 2026, as compared to the prior-year periods. The sales growth in the third quarter and the first nine months of 2026 was due to incremental sales impact from recent acquisitions of 1 percent and 3 percent, respectively. Sales increased 4 percent in the third quarter and 5 percent in the first nine months of 2026 due to the favorable impact from foreign exchange rates, as compared to prior-year periods. Excluding the impact of foreign currency translation and acquisitions, in both the third quarter and first nine months of 2026, the sales growth in the Asia Pacific regions was more than offset by sales declines in the Latin America and European regions.

Net Sales-Energy Systems

Energy Systems net sales were $91.7 million in the third quarter of 2026, an increase of $11.7 million or 15 percent compared to the third quarter of 2025 net sales of $80.0 million. Energy Systems net sales were $243.6 million for the first nine months of 2026, an increase of $19.3 million or 9 percent compared to the first nine months of 2025 net sales of $224.3 million. The net sales increase was due to higher sales volumes and price realization and recent acquisitions.

Energy Systems net sales in the U.S. and Canada increased 15 percent in the third quarter and 7 percent in the first nine months of 2026, as compared to the prior-year periods. Energy Systems sales increased due to acquisitions and higher sales of fuel management systems and grid solutions. Outside the U.S. and Canada, Energy Systems sales increased 12 percent in the third quarter and 16 percent in the first nine months of 2026, as compared to the prior-year periods, due to acquisitions and sales growth in the European and Asian regions.

Net Sales-Distribution

Distribution net sales were $226.1 million in the third quarter of 2026, an increase of $28.8 million or 15 percent compared to the third quarter of 2025 net sales of $197.3 million. Distribution net sales were $598.1 million for the first nine months of 2026, an increase of $59.0 million or 11 percent compared to the first nine months of 2025 net sales of $539.1 million. The net sales increase was due to higher sales volumes and price realization and the incremental sales impact from recent acquisitions.

Gross Profit and Expenses Ratios


	Three Months Ended September 30
(In millions)	2026		% of Net Sales		2025		% of Net Sales
Gross Profit	$	224.0			35.4	%		$	208.7			35.9	%
Selling, General and Administrative Expense	137.2			21.7	%		123.5			21.2	%


	Nine Months Ended September 30
(In millions)	2026		% of Net Sales		2025		% of Net Sales
Gross Profit	$	629.6			35.8	%		$	584.4			36.0	%
Selling, General and Administrative Expense	392.3			22.3	%		366.6			22.6	%

Gross Profit

The gross profit margin ratio was 35.4 percent and 35.8 percent in the third quarter and first nine months of 2026, respectively, and 35.9 percent and 36.0 percent in the third quarter and first nine months of 2025, respectively. The gross profit margin was unfavorably impacted in the third quarter by inflationary costs partially offset by tariff refunds while the first nine months of 2026 was impacted by an unfavorable product and geographic sales mix shift partially offset by tariff refunds.

Selling, General, and Administrative (\"SG&A\")

SG&A expenses were $137.2 million in the third quarter and $392.3 million in the first nine months of 2026 compared to $123.5 million in the third quarter and $366.6 million in the first nine months of 2025. SG&A expenses increased in the third quarter and first nine months of 2026 from the incremental expense impact of recent acquisitions. The SG&A expenses ratio (SG&A as a percentage of net sales) was 21.7 percent and 22.3 percent in the third quarter and first nine months of 2026, respectively, and 21.2 percent and 22.6 percent in the third quarter and first nine months of 2025, respectively.

Restructuring Expenses

There were $0.3 million and $4.5 million in restructuring expenses in the third quarter and first nine months of 2026, compared to $0.1 million and $0.4 million restructuring expenses in the third quarter and first nine months of 2025. Restructuring expenses were primarily due to continued manufacturing realignment activities.

Operating Income

Operating income in the third quarter and first nine months of 2026 was $86.5 million and $228.2 million, respectively, increases of 2 percent and 5 percent, respectively, as compared to the prior-year periods.


	Operating income (loss)
(In millions)	Q3 2026		Q3 2025		2026 v 2025
Water Systems	$	58.9			$	60.2		$	(1.3)
Energy Systems	23.7			25.4			(1.7)
Distribution	20.6			16.3			4.3
Eliminations/Other	(16.7)			(16.8)			0.1
Consolidated	$	86.5			$	85.1		$	1.4


	Operating income (loss)
(In millions)	YTD September 30, 2026		YTD September 30, 2025		2026 v 2025
Water Systems	$	168.6			$	165.5		$	3.1
Energy Systems	75.7			76.4			(0.7)
Distribution	43.2			34.6			8.6
Eliminations/Other	(59.3)			(59.1)			(0.2)
Consolidated	$	228.2			$	217.4		$	10.8

Operating Income-Water Systems

Water Systems operating income in the third quarter and first nine months of 2026 was $58.9 million and $168.6 million, respectively, a decrease of $1.3 million and an increase $3.1 million, respectively, as compared to the prior-year periods. The third quarter operating income margin was 16.7 percent, a decrease of 120 basis points from 17.9 percent in the third quarter of 2025. The first nine months of 2026 operating income margin was 16.4 percent, a decrease of 80 basis points from 17.2 percent in the first nine months of 2025. The decrease in operating income in the third quarter was primarily due to an unfavorable product and geographic sales mix shift as well as acquisition-related transaction expenses. The increase in operating income for the first nine months was primarily due to higher sales and tariff refunds partially offset by higher material costs.

Operating Income-Energy Systems

Energy Systems operating income in the third quarter and first nine months of 2026 was $23.7 million and $75.7 million, respectively, a decrease of $1.7 million and $0.7 million, respectively, as compared to the prior-year periods. The third quarter operating income margin was 25.8 percent, a decrease of 600 basis points from 31.8 percent in the third quarter of 2025. The first nine months of 2026 operating income margin was 31.1 percent, a decrease of 300 basis points from 34.1 percent in the first nine months of 2025. The decrease in margin was primarily due to acquisition-related transaction expenses and amortization of purchase accounting adjustments from the fair value of inventory acquired.

Operating Income-Distribution

Distribution operating income in the third quarter and first nine months of 2026 was $20.6 million and $43.2 million, respectively, increases of $4.3 million and $8.6 million, respectively, as compared to the prior-year periods. The third quarter operating income margin was 9.1 percent, an increase of 80 basis points from 8.3 percent in the third quarter of 2025. The first nine months of 2026 operating income margin was 7.2 percent, an increase of 80 basis points from 6.4 percent in the first nine months of 2025. Operating income and operating income margins increased primarily due to higher sales and cost structure actions implemented in 2025.

Operating Income-Eliminations/Other

Operating income-Eliminations/Other in the third quarter and first nine months of 2026 was $(16.7) million and $(59.3) million, respectively, an increase of $0.1 million and a decrease of $0.2 million, respectively, as compared to the prior-year periods. Operating income-Eliminations/Other is composed primarily of intersegment sales and profit eliminations and unallocated general and administrative expenses. The intersegment profit elimination in the third quarter of 2026 compared to the prior-year period of 2025 had no impact. For the first nine months of 2026 compared to the prior-year period of 2025 the intersegment profit elimination impact was an unfavorable $1.2 million. The intersegment elimination of operating income effectively defers the operating income on sales from Water Systems to Distribution in the consolidated financial results until such time as the transferred product is sold from the Distribution segment to its end third party customer. General and administrative expenses decreased by $0.1 million and $1.0 million, respectively, compared to the previous year’s periods.

Interest Expense

Interest expense was $(4.7) million and $(10.5) million in the third quarter and first nine months of 2026, respectively, and $(3.5) million and $(8.1) million in the third quarter and first nine months of 2025, respectively. The increases in the third quarter and first nine months of 2026 were primarily driven by a higher average amount of outstanding debt.

Other income/(expense), net

Other income / (expense), net was a net gain of $1.2 million and a net gain of $2.2 million in the third quarter and first nine months of 2026, respectively, and a net loss of $(0.2) million and a net gain of $0.5 million in the third quarter and first nine months of 2025, respectively.

Foreign Exchange income/(expense), net

Foreign currency-based transactions produced an expense of $(2.3) million and $(4.4) million in the third quarter and first nine months of 2026, respectively, and an expense of $(2.7) million and $(8.5) million in the third quarter and first nine months of 2025, respectively. The results in the third quarters and first nine months of 2026 and 2025 are primarily due to transaction losses associated with the Argentine Peso and Turkish Lira relative to the U.S. dollar. The Company reports the results of its subsidiaries in Argentina and Turkey using highly inflationary accounting, which requires the functional currency of the entity be changed to the reporting currency of its parent.

Income Taxes

The provision for income taxes in the third quarter and first nine months of 2026 was $19.7 million and $ 53.6 million, respectively, and $6.3 million and $36.9 million in the third quarter and first nine months of 2025, respectively. The effective tax rate for the third quarter and first nine months of 2026 was 24.4 percent and 24.9 percent respectively, and 26.9 percent and 25.3 percent for the third quarter and the first nine months of 2025, respectively. The decrease in the effective tax rate was

primarily due to a mix of foreign earnings taxed at rates different than the U.S. statutory rate.

Net Income

Net income in the third quarter and first nine months of 2026 was $61.0 million and $161.8 million, respectively, and $17.2 million and $109.1 million in the third quarter and first nine months of 2025, respectively. Net income attributable to Franklin Electric Co., Inc. in the third quarter and first nine months of 2026 was $60.6 million and $160.7 million, respectively, or $1.35 and $3.58 per diluted share. Net income attributable to Franklin Electric Co., Inc. in the third quarter and first nine months of 2025 was $16.7 million and $107.8 million, respectively, or $0.37 and $2.35 per diluted share.

CAPITAL RESOURCES AND LIQUIDITY

Sources of Liquidity

The Company's primary sources of liquidity are cash on hand, cash flows from operations, revolving credit agreements, and long-term debt funds available. The Company believes its capital resources and liquidity position at September 30, 2026 is adequate to meet projected needs for the foreseeable future. The Company expects that ongoing requirements for operations, capital expenditures, pension obligations, dividends, share repurchases, and debt service will be adequately funded from cash on hand, operations, and existing credit agreements.

As of September 30, 2026, the Company had a $350.0 million revolving credit facility. The facility is scheduled to mature on May 14, 2030. As of September 30, 2026, the Company had $217.3 million borrowing capacity under its credit agreement as $7.7 million of commercial and standby letters of credit were outstanding and undrawn and $125.0 million revolver borrowings were drawn or outstanding.

The Company maintains the Fourth Amended and Restated Note Purchase and Private Shelf Agreement (the \"Prudential Agreement\") with PGIM, Inc. and its affiliates, with a remaining borrowing capacity of $50.0 million as of September 30, 2026. The maturity date of the agreement is May 15, 2027.

In addition, the Company maintains an uncommitted and unsecured private shelf agreement with NYL Investors LLC, an affiliate of New York Life, and each of the undersigned holders of Notes (the \"New York Life Agreement\") with a remaining borrowing capacity on the New York Life Agreement of $25.0 million as of September 30, 2026. The maturity date of the agreement is May 15, 2027.

The Company also has other long-term debt borrowings outstanding as of September 30, 2026. See Note 6 - Debt included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, for additional information regarding these obligations and future maturities as well as Note 6 - Debt of this current quarterly report for changes to these agreements since December 31, 2025.

The Company has a firm, non‑cancellable purchase commitment with a vendor for copper with an aggregate remaining obligation of approximately $1.9 million, expected to be fulfilled within the next year.

At September 30, 2026, the Company had $102.0 million of cash and cash equivalents held in foreign jurisdictions, which is intended to be used to fund foreign operations. There is currently no need or intent to repatriate the majority of these funds in order to meet domestic funding obligations or scheduled cash distributions.

Cash Flows

The following table summarizes significant sources and uses of cash and cash equivalents for the first nine months of 2026 and 2025.


(In millions)	2026		2025
Net cash flows from operating activities	$	139.2			$	134.7
Net cash flows from investing activities	(417.9)			(137.1)
Net cash flows from financing activities	336.2			(112.2)
Impact of exchange rates on cash and cash equivalents	2.0			(3.0)
Change in cash and cash equivalents	$	59.5			$	(117.6)

Cash Flows from Operating Activities

2026 vs. 2025

Net cash provided by operating activities was $139.2 million for the nine months ended September 30, 2026 compared to $134.7 million provided by operating activities for the nine months ended September 30, 2025. The change in operating cash flow was primarily attributable to operational results offset by a payment related to a supplier agreement.

Cash Flows from Investing Activities

2026 vs. 2025

Net cash used in investing activities was $417.9 million for the nine months ended September 30, 2026 compared to $137.1 million used in investing activities for the nine months ended September 30, 2025. The change in investing cash flow was primarily attributable to increased acquisition activity in the first nine months of 2026 compared to the prior year.

Cash Flows from Financing Activities

2026 vs. 2025

Net cash provided by financing activities was $336.2 million for the nine months ended September 30, 2026 compared to $112.2 million used in financing activities for the nine months ended September 30, 2025. The change in financing cash flow was primarily due to higher net borrowings and decreased repurchases of common stock in the first nine months of 2026 compared to the prior year.

FACTORS THAT MAY AFFECT FUTURE RESULTS

This quarterly report on Form 10-Q contains certain forward-looking information, such as statements about the Company’s financial goals, acquisition strategies, financial expectations including anticipated revenue or expense levels, business prospects, market positioning, product development, manufacturing realignment, capital expenditures, tax benefits and expenses, and the effect of contingencies or changes in accounting policies. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” While the Company believes that the assumptions underlying such forward-looking statements are reasonable based on present conditions, forward-looking statements made by the Company involve risks and uncertainties and are not guarantees of future performance. Actual results may differ materially from those forward-looking statements as a result of various factors, including regional or general economic and currency conditions, various conditions specific to the Company’s business and industry, new housing starts, weather conditions, epidemics and pandemics, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs and availability, 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, and other risks, all as described in the Company's Securities and Exchange Commission filings, included in Part I, Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in Exhibit 99.1 thereto. Any forward-looking statements included in this Form 10-Q are based upon information presently available. The Company does not assume any obligation to update any forward-looking information, except as required by law.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

During the current quarter, the Company initiated a net investment hedge to partially offset foreign currency exposure associated with its net investment in euro-denominated operations. The hedge remained outstanding as of September 30, 2026. The effective portion of changes in the hedge is recorded in other comprehensive income/(loss) as part of foreign currency translation adjustments. See Note 13 for additional information.

There have been no other significant changes in the Company's exposure to market risk during the third quarter ended September 30, 2026. For additional information, refer to Part II, Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report (the \"Evaluation Date\"), the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and the Company's Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Exchange Act Rules 13a-15. Based upon that evaluation, the Company's Chief Executive Officer and the Company's Chief Financial Officer concluded that, as of the Evaluation Date, the Company's disclosure controls and procedures were effective.

There have been no changes in the Company's internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15 under the Exchange Act during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect the Company's internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is defending various claims and legal actions which have arisen in the ordinary course of business. For a description of the Company's material legal proceedings, refer to Note 7 - Commitments and Contingencies, in the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, \"Notes to Condensed Consolidated Financial Statements (Unaudited),\" of this Quarterly Report on Form 10-Q, which is incorporated into this Item 1 by reference. In the opinion of management, based on current knowledge of the facts and after discussion with counsel, other claims and legal actions can be defended or resolved without a material effect on the Company’s financial position, results of operations, and net cash flows.

ITEM 1A. RISK FACTORS

There have been no material changes to the Company's risk factors as set forth in the annual report on Form 10-K for the fiscal year ended December 31, 2025. Additional risks and uncertainties, not presently known to the Company or currently deemed immaterial, could negatively impact the Company’s results of operations or financial condition in the future.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In April 2007, the Company's Board of Directors approved a plan to increase the number of shares remaining for repurchase from 628,692 to 2,300,000 shares. There is no expiration date for this plan. On August 3, 2015, the Company's Board of Directors approved a plan to increase the number of shares remaining for repurchase by an additional 3,000,000 shares. The authorization was in addition to the 535,107 shares that remained available for repurchase as of July 31, 2015. In February 2023, the Company’s Board of Directors approved a plan to increase the number of shares remaining for repurchase by an additional 1,000,000 shares. The authorization was in addition to the 215,872 shares that remained available for repurchase as of February 16, 2023. In October 2024, the Company’s Board of Directors approved a plan to increase the number of shares remaining for repurchase by an additional 1,000,000 shares. In June 2025, the Company's Board of Directors approved a plan to increase the number of shares remaining for repurchase by an additional 1,200,000 shares. The authorization was in addition to the 1,126,635 shares that remained available for repurchase as of June 9, 2025. The Company repurchased 50,000 shares for approximately $4.8 million under the plan during the third quarter of 2026. The maximum number of shares that may still be purchased under this plan as of September 30, 2026 is 606,635.


Period	Total Number of Shares Repurchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Maximum Number of Shares that may yet to be Repurchased
July 1 - July 31	—		$	—		—	656,635
August 1 - August 31	—		$	—		—	656,635
September 1 - September 30	50,000		$	96.93		50,000	606,635
Total	50,000		$	96.93		50,000	606,635

ITEM 5. OTHER INFORMATION

None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended September 30, 2026.

ITEM 6. EXHIBITS


Number	Description


3.1		Amended and Restated Articles of Incorporation of Franklin Electric Co., Inc. (incorporated by reference to Exhibit 3.1 of the Company's Form 8-K filed on May 7, 2019)
3.2		Amended and Restated Bylaws of Franklin Electric Co., Inc., as amended January 27, 2020 (incorporated by reference to Exhibit 3.1 of the Company's Form 8-K filed on January 30, 2020)
31.1		Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101		The following financial information from Franklin Electric Co., Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, formatted in Inline eXtensible Business Reporting Language (Inline XBRL): (i) Condensed Consolidated Statements of Income for the third quarters and nine months ended September 30, 2026 and 2025 (ii) Condensed Consolidated Statements of Comprehensive Income/(Loss) for the third quarters and nine months ended September 30, 2026 and 2025, (iii) Condensed Consolidated Balance Sheets as of September 30, 2026, and December 31, 2025, (iv) Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2026 and 2025, and (v) Notes to Condensed Consolidated Financial Statements (filed herewith)
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*Management Contract, Compensatory Plan or Arrangement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		FRANKLIN ELECTRIC CO., INC.
		Registrant

Date: October 28, 2026	By	/s/ Joseph A. Ruzynski
		Joseph A. Ruzynski, Chief Executive Officer
		(Principal Executive Officer)

Date: October 28, 2026	By	/s/ Jennifer A. Wolfenbarger
		Jennifer A. Wolfenbarger, Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

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