Franklin Electric(FELE) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter 2025 net sales were $581.7 million, an increase of 9% compared to $531.4 million in the third quarter of 2024[2] - Operating income for the third quarter 2025 was $85.1 million, reflecting a 16% increase from $73.5 million in the same quarter of 2024, with an operating margin of 14.6%[7] - Adjusted diluted EPS for the third quarter 2025 was $1.30, up $0.13 or 11% compared to the third quarter 2024[2] - Net income for the nine months ended September 30, 2025, was $109,141,000, a decrease of 26% from $147,317,000 in the same period of 2024[24] - Adjusted diluted EPS (non-GAAP) for Q3 2025 was $1.30, an increase of 11% from $1.17 in Q3 2024[29] Segment Performance - Water Systems segment net sales increased by 11% to $336.6 million, driven by recent acquisitions and organic growth[5] - Energy Systems segment net sales rose by 15% to $80.0 million, supported by higher volumes and price realization[8] - Distribution segment net sales increased by 3% to $197.3 million, also driven by higher volumes and price realization[6] - Operating income for the Water segment in Q3 2025 was $60.2 million, representing an operating margin of 17.9%[28] - The Energy segment reported operating income of $25.4 million in Q3 2025, with an operating margin of 31.8%[28] Cash Flow and Assets - Net cash flows from operating activities for the first nine months of 2025 were $134.7 million, down from $151.1 million in the same period of 2024[9] - Cash and cash equivalents at the end of the period on September 30, 2025, were $102,927,000, a decrease from $106,273,000 at the end of the same period in 2024[24] - Total assets as of September 30, 2025, were $1.997 billion, an increase from $1.821 billion at the end of 2024[22] Guidance and Charges - The company expects full year 2025 sales to be in the range of $2.09 billion to $2.15 billion, with EPS guidance of $4.00 to $4.20, excluding the impact of the pension termination[10] - The company incurred a pre-tax settlement charge of $55.3 million related to the termination of its US Pension Plan, impacting EPS by approximately $0.93 per share[7] - The company reported a pension settlement loss of $41,693,000 for the nine months ended September 30, 2025[24] Debt and Investments - The company experienced a net change in debt of $55,721,000 during the nine months ended September 30, 2025, compared to a decrease of $12,477,000 in the same period of 2024[24] - Acquisitions and investments in the nine months ended September 30, 2025, totaled $109,948,000, significantly higher than $1,151,000 in the same period of 2024[24]