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].

Core Insights - Franklin Electric reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, but down from $0.82 per share a year ago, indicating a 12.2% year-over-year decline [1] - The company achieved revenues of $485.75 million for the quarter, surpassing the Zacks Consensus Estimate by 4.46% and showing a year-over-year increase from $472.97 million [2] - The stock has underperformed the market with a 2.6% gain since the beginning of the year compared to the S&P 500's 4% gain [3] Earnings Performance - The earnings surprise for the recent quarter was 4.35%, while the previous quarter saw a negative surprise of -10% [1][2] - Over the last four quarters, Franklin Electric has only surpassed consensus EPS estimates once [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.78 on revenues of $477.5 million, and for the current fiscal year, it is $4.26 on revenues of $2.09 billion [7] - The estimate revisions trend for Franklin Electric is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Manufacturing - Electronics industry, to which Franklin Electric belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - The performance of Franklin Electric's stock may be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Sales Performance - Fourth quarter 2024 net sales were $485.7 million, a 3% increase from $473.0 million in the fourth quarter 2023[2] - Full year 2024 net sales totaled $2.0 billion, a 2% decrease from $2.1 billion in 2023[3] - Total net sales for Q4 2024 were $485.7 million, an increase of 2.7% compared to $473.0 million in Q4 2023[24] - Full year net sales for 2024 were $2,021.3 million, down 2.1% from $2,065.1 million in 2023[24] - Energy Systems segment net sales increased by 5% to $68.8 million in the fourth quarter 2024, with operating income reaching a record $24.7 million[9] - Distribution segment net sales rose by 6% to $157.2 million in the fourth quarter 2024, driven by higher volumes and a recent acquisition[8] - The company experienced a 9% increase in sales in the Asia Pacific region for Q4 2024[24] - Acquisitions contributed $7.1 million to consolidated net sales in 2024, reflecting a 2% increase[24] Operating Income and Margins - Fourth quarter 2024 operating income was $43.0 million, down from $50.8 million in the fourth quarter 2023, with an operating margin of 8.9%[6] - Operating income for Q4 2024 was $43.0 million, with an operating margin of 8.9%, compared to $50.8 million and 10.7% in Q4 2023[26][27] - For the full year 2024, operating income was $243.6 million, with a margin of 12.1%, compared to $262.4 million and 12.7% in 2023[28][29] - Water Systems segment net sales were flat at $279.6 million in the fourth quarter 2024, with operating income decreasing to $35.6 million from $44.1 million in the fourth quarter 2023[6] Earnings Per Share and Net Income - Full year 2024 EPS was $3.86, compared to $4.11 in 2023, reflecting a decline of 6%[3] - Net income for the twelve months ended December 31, 2024, was $181.6 million, a decrease of 6.1% from $194.7 million in 2023[23] Cash Flow and Financial Position - Cash flows from operating activities for 2024 were $261.4 million, down from $315.7 million in 2023[10] - Net cash flows from operating activities decreased to $261.4 million in 2024 from $315.7 million in 2023, reflecting a decline of 17.1%[23] - The company ended 2024 with a cash balance of $220.5 million, an increase of $135.5 million compared to the end of 2023[10] - The company reported a net change in cash and cash equivalents of $135.6 million for the year, increasing from $39.2 million in the previous year[23] Future Outlook - The company expects full year 2025 sales to be in the range of $2.09 billion to $2.15 billion, with EPS projected between $4.05 and $4.25[11] Segment Renaming - The company renamed its Fueling Systems segment to Energy Systems to better reflect its market focus[25]

Core Insights - Franklin Electric Co., Inc. reported its fourth quarter and full year financial results for fiscal year 2024, highlighting a solid finish despite challenges faced throughout the year [1][4]. Financial Performance - Fourth quarter 2024 net sales were $485.7 million, a 3% increase from $473.0 million in the fourth quarter of 2023 [2][9]. - Operating income for the fourth quarter 2024 was $43.0 million, down from $50.8 million in the same quarter of 2023 [2][9]. - Full year 2024 net sales totaled $2.0 billion, a decrease of 2% compared to $2.1 billion in 2023 [3][9]. - Full year 2024 operating income was $243.6 million, down from $262.4 million in 2023 [3][9]. - Fourth quarter 2024 EPS was $0.72, compared to $0.82 in the fourth quarter of 2023 [2][9]. - Full year 2024 EPS was $3.86, down from $4.11 in 2023 [3][9]. Segment Performance - Water Systems segment net sales were $279.6 million in the fourth quarter, flat compared to the same period in 2023, with operating income decreasing from $44.1 million to $35.6 million [6][25]. - Distribution segment net sales increased by $9.2 million or 6% to $157.2 million, with operating income declining from $1.0 million to $0.5 million [7][25]. - Energy Systems segment net sales rose by $3.1 million or 5% to $68.8 million, achieving a record operating income of $24.7 million, up from $19.4 million in the previous year [8][25]. Cash Flow and Balance Sheet - The company ended 2024 with a cash balance of $220.5 million, an increase of $135.5 million compared to the end of 2023 [9][21]. - Net cash flows from operating activities for 2024 were $261.4 million, down from $315.7 million in 2023 [9][10]. Future Outlook - For full year 2025, the company expects sales to be in the range of $2.09 billion to $2.15 billion and EPS to be between $4.05 and $4.25 [11]. Strategic Commentary - The CEO noted that the company is well-positioned to capitalize on opportunities in 2025, focusing on revenue growth and margin expansion while continuing to execute productivity initiatives [4][5].

Core Insights - Franklin Electric Co., Inc. has signed a definitive agreement to acquire Barnes de Colombia S.A., enhancing its growth and diversification strategy in Latin America [1][3] - The acquisition is expected to close around March 1, 2025, pending customary closing conditions including Colombian antitrust clearance [4] Company Overview - Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy, serving various sectors including residential, commercial, agricultural, industrial, municipal, and fueling applications [6] - The company has been recognized in multiple lists for its responsible business practices and environmental leadership [6] Acquisition Details - Barnes de Colombia is a leading manufacturer and distributor of industrial and commercial pumps, with operations in Colombia and other Latin American countries [2][3] - The acquisition will enhance Franklin Electric's product portfolio and market presence in key Latin American regions, leveraging Barnes de Colombia's distribution network and customer relationships [3][4] - Barnes de Colombia operates under the WDM brand in certain countries, and has manufacturing facilities in Colombia and assembly facilities in Mexico, Brazil, and Argentina [2] Strategic Goals - The acquisition aligns with Franklin Electric's strategic goals of diversifying its product line and enhancing supply chain resilience [3] - The integration of Barnes de Colombia's approximately 400 team members and manufacturing capabilities is expected to materially enhance Franklin Electric's operational footprint [4]

Core Viewpoint - The market anticipates a year-over-year decline in Franklin Electric's earnings due to lower revenues, with a focus on how actual results will compare to these estimates [1][3]. Earnings Expectations - Franklin Electric is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year decrease of 15.9% [3]. - Revenue projections stand at $465 million, which is a decline of 1.7% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.89% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.45% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, but it is more reliable for positive readings [6][7]. - Stocks with a positive Earnings ESP and a strong Zacks Rank have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Franklin Electric was expected to post earnings of $1.30 per share but only achieved $1.17, resulting in a surprise of -10% [12]. - The company has not beaten consensus EPS estimates in any of the last four quarters [13]. Conclusion - Franklin Electric does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [16].

Group 1 - Franklin Electric Co., Inc. will release its fourth quarter and fiscal year 2024 earnings on February 18, 2025, at 8:00 am ET [1] - A conference call to discuss the earnings and business developments will start at 9:00 am ET on the same day, available via a live webcast [1] - Participants interested in the Q&A portion of the call must register in advance to receive dial-in information and a PIN [3] Group 2 - A replay of the conference call will be accessible from February 18, 2025, through February 25, 2025 [4] - Franklin Electric is recognized as a global leader in the production and marketing of systems and components for the movement of water and energy, serving various sectors including residential, commercial, agricultural, and industrial [5] - The company has been acknowledged 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 [5]

FORT WAYNE, Ind., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that its Board of Directors declared a quarterly cash dividend of $0.265 per share payable February 20, 2025, to shareholders of record on February 6, 2025. This represents a 6 percent increase from the prior quarterly dividend. This dividend will mark the 33rd consecutive year that Franklin Electric has increased its dividend, demonstrating its commitment to returning cash to shareholders and conf ...