FORT WAYNE, Ind., May 08, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of Franklin Electric Co., Inc. (NASDAQ: FELE) has elected Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal Corporation, as Chairperson effective as of May 2, 2025 for a term expiring at the 2026 Annual Meeting of Shareholders. Ms. Sherman has been a Director of the Company since 2015. Joe Ruzynski, the Company’s Chief Executive Officer, commented: “I want to congratulate Jennifer on her election as Chairper ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 0-362 FRANKLIN ELECTRIC CO., INC. (Exact name of registrant as specified in its charter) Indiana 35-0827455 (State or oth ...

Financial Data and Key Metrics Changes - Consolidated sales for Q1 2025 were $455.2 million, a year-over-year decrease of 1% [14] - Fully diluted earnings per share were $0.67 for Q1 2025, down from $0.70 in Q1 2024 [14] - Gross profit was $163.9 million, slightly up from $163.6 million in the prior year, with a gross margin of 36%, an improvement of 50 basis points [15] - Operating income was $44.1 million, down 8% from $47.9 million in the prior year, with an operating margin of 9.7% [15][16] Business Line Data and Key Metrics Changes - Water Systems segment sales in the U.S. and Canada were up 2%, with groundwater pumping equipment sales increasing by 6% and water treatment products by 7% [17] - Distribution segment sales decreased by 3% to $141.9 million, primarily due to lower volumes and commodity price declines [19] - Energy Systems segment sales increased by 8% to $66.8 million, with operating income rising to $21.9 million and an operating margin of 32.8% [20][21] Market Data and Key Metrics Changes - Water Systems sales outside the U.S. and Canada decreased by 2%, impacted by a 5% decline due to foreign currency translation [18] - The Energy Systems segment recorded growth across key product lines, supported by robust demand in the U.S. energy sector [11] Company Strategy and Development Direction - The company is focused on faster-growing markets, operational efficiency, and integrating recent acquisitions to enhance customer service [6][7] - Strategic acquisitions in Q1 2025 included PumpEng and Barnsley, aimed at expanding product offerings and market reach [28] - The company is committed to innovation and new product development, with a focus on high-growth verticals [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying business fundamentals despite challenges from tariffs and one-time costs [7][10] - The company is adjusting the lower end of its EPS guidance by $0.10, while maintaining full-year sales expectations [24] - Management noted that the business is largely in region for region, which historically tends to be resilient even during economic softness [29] Other Important Information - The effective tax rate for the quarter was 25%, up from 22% in the prior year, impacting EPS by approximately $0.03 [22] - The company ended Q1 2025 with a cash balance of $84 million and used $19.5 million in net cash flows from operating activities [23] Q&A Session Summary Question: Insights on the energy segment margins - Management indicated that while margins are strong, they do not expect the same growth as in previous quarters but anticipate maintaining strong margins due to smarter solutions and effective cost management [34] Question: Order trends in the water segment - Management believes the order growth is organic and not significantly influenced by tariff pull-forward, with selective inventory positioning to mitigate potential tariff impacts [35][36] Question: M&A priorities in the distribution segment - Management remains open to M&A opportunities in the distribution space but is currently focused on operational efficiencies and serving the market [39][40] Question: Tariff exposure and groundwater business performance - Management stated that the overall percentage of COGS from China is under 10%, and groundwater sales in North America showed strong growth, with residential sales up 11% and agricultural sales up 3% [48][51] Question: Organic book to bill ratio in water - The organic book to bill ratio was above one for the quarter, with backlog up mid to high single digits [57]

Franklin Electric (FELE) came out with quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -8.22%. A quarter ago, it was expected that this water and fuel pumping systems company would post earnings of $0.69 per share when it actually produced earnings of $0.72, delivering a surprise of 4.35%.Over the ...

Franklin Electric (FELE) Q1 2025 Earnings Call April 29, 2025 09:00 AM ET Company Participants Russ D. Fleeger - Interim Chief Financial OfficerJoe Ruzynski - CEO Conference Call Participants Ryan Connors - Senior Managing Director and Research AnalystMatthew Summerville - Equity AnalystWalter Liptak - Industry AnalystMike Halloran - Analyst Operator and welcome to the Franklin Electric Reports First Quarter twenty twenty five Sales and Earnings Conference Call. At this time, all participants are in a liste ...

Financial Performance - First quarter 2025 net sales were $455.2 million, a decrease of 1% compared to $460.9 million in the first quarter 2024[2]. - Operating income for the first quarter 2025 was $44.1 million, down from $47.9 million in the same period last year, resulting in an operating margin of 9.7%[2][8]. - Earnings per share (EPS) for the first quarter 2025 was $0.67, compared to $0.70 in the first quarter 2024[2][8]. - The company reported a net income of $31.374 million for the first quarter 2025, compared to $33.092 million in the first quarter 2024[18]. - Q1 2025 consolidated net sales reached $455.2 million, a decrease of 1% compared to Q1 2024's $460.9 million[23]. - Operating income for Q1 2025 was $44.1 million, with an operating margin of 9.7%, compared to $47.9 million and 10.4% in Q1 2024[24][25]. Segment Performance - Water Systems net sales were $287.3 million, an increase of less than 1% year-over-year, while Distribution net sales decreased by 3% to $141.9 million[5][6]. - Energy Systems net sales increased by 8% to $66.8 million, with operating income rising to $21.9 million from $18.8 million in the prior year[7][8]. - Water segment operating income was $2.1 million in Q1 2025, representing 15.1% of net sales, down from 16.4% in Q1 2024[24][25]. - Energy segment operating income increased to $43.4 million in Q1 2025, with a margin of 32.8%, compared to 30.3% in Q1 2024[24][25]. - Distribution segment reported an operating loss of $21.9 million in Q1 2025, while the previous year showed a loss of $19.8 million[24][25]. Acquisitions and Guidance - The company completed two acquisitions during the quarter, aiming to enhance margin profiles and align with its value creation framework[4]. - Full year 2025 sales guidance is maintained at $2.09 billion to $2.15 billion, with EPS guidance adjusted to a range of $3.95 to $4.25[10]. - Acquisitions contributed $5.7 million to net sales in Q1 2025, reflecting a 1% increase from the previous year[23]. Cash Flow and Financial Position - Net cash flows used in operating activities for the first quarter were $19.5 million, compared to $1.4 million in the same period in 2024[9]. - Cash and cash equivalents at the end of the period were $83.994 million, down from $220.540 million at the beginning of the period[22]. Market Challenges and Future Outlook - Foreign currency translation negatively impacted consolidated net sales by $7.3 million, a 2% decrease[23]. - Volume and price changes contributed positively to net sales by $2.1 million in Q1 2025, with a 1% increase[23]. - The company anticipates continued challenges in the distribution segment, with ongoing strategies to mitigate losses[24]. - Future outlook includes potential market expansion and new product development initiatives to drive growth[24].

First Quarter 2025 Highlights FORT WAYNE, Ind., April 29, 2025 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its first quarter financial results for fiscal year 2025. First quarter 2025 net sales were $455.2 million, compared to first quarter 2024 net sales of $460.9 million. First quarter 2025 operating income was $44.1 million, compared to first quarter 2024 operating income of $47.9 million. First quarter 2025 EPS was $0.67, versus EPS in the first quarter 2024 of $0.70. "Our underlying ...

About Franklin Electric Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek's lists of America's Most Responsible Companies and Most Trustworthy Companies for 2024 and Americ ...

Group 1 - Franklin Electric Co., Inc. will release its first quarter 2025 earnings on April 29, 2025, at 8:00 am ET, followed by a conference call at 9:00 am ET [1] - The earnings call will be accessible via a live webcast, available in a listen-only mode [1] - A replay of the conference call will be available from April 29, 2025, through May 6, 2025 [3] Group 2 - Franklin Electric is recognized as a global leader in the production and marketing of systems and components for the movement of water and energy [4] - The company serves various sectors including residential, commercial, agricultural, industrial, municipal, and fueling applications [4] - Franklin Electric has been named in Newsweek's lists of America's Most Responsible Companies and Most Trustworthy Companies for 2024, as well as America's Climate Leaders 2024 by USA Today [4]

Financial Performance - Net sales for 2024 were $2.0 billion, a decrease of 2% compared to 2023, primarily due to lower volumes and negative foreign currency translation impacts[87]. - Consolidated gross profit increased to $717.3 million in 2024, up $20.3 million from the prior year, resulting in a gross profit margin of 35.5%[86][95]. - Diluted earnings per share for 2024 were $3.86, a decrease of $0.25 or 6% from the prior year[86]. - Net income for 2024 was $181.6 million, down from $194.7 million in 2023, with net income attributable to Franklin Electric Co., Inc. at $180.3 million[108]. - Cash flows from operating activities were $261.4 million in 2024, a decrease from $315.7 million in 2023, primarily due to changes in working capital[114]. Sales Performance by Segment - Water Systems net sales decreased by 2% in 2024, with a significant 41% decline in sales of large dewatering equipment[89][90]. - Energy Systems net sales decreased by 8% in 2024, with a 3% decline in the U.S. and Canada and an 18% decline outside these regions[92]. - Distribution segment net sales increased by 2% in 2024, primarily due to a recent acquisition that contributed 3% to net sales[93]. Expenses and Obligations - SG&A expenses rose to $470.1 million in 2024, up from $433.5 million in 2023, with an SG&A ratio of 23.3%[96]. - The Company has total contractual obligations of $229.8 million, with $129.5 million in debt and $73.5 million in operating leases[118]. - Future pension and post-retirement benefit obligations are estimated at approximately $7.3 million for 2025, excluding a non-current liability of $24.1 million related to pension plans[119]. Tax and Interest - The Company recorded unrecognized tax benefits of approximately $1.3 million, with potential penalties and interest liabilities of $0.1 million[120]. - Interest payments on debt obligations are projected based on interest rates effective at the end of 2024, with potential future variations[118]. - A hypothetical 100 basis points increase in interest rates would have increased interest expense by $0.3 million during 2024[137]. Future Plans and Acquisitions - The company plans to acquire PumpEng for AUD 24.0 million (approximately $15 million) and has signed an agreement to acquire Barnes for an enterprise value of $110.0 million[116]. Risk Management - The Company mitigates foreign currency exchange rate risk through local production facilities and limited use of foreign currency denominated debt[136]. - The Company estimates that a 10% adverse movement in raw metal commodity prices would result in less than a 1% decrease in gross margin as a percentage of net sales[138]. - The weighted-average discount rate for domestic pension plans increased from 4.90% to 5.48% year-over-year, affecting liabilities[131]. - The expected long-term rate of return on plan assets decreased from 6.20% to 5.75% for 2025, impacting net periodic cost[133]. - The Company had $41.4 million in borrowings under its revolving credit agreement at year-end 2024[137].