Franklin Electric(FELE) - 2025 Q1 - Quarterly Results

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].