Franklin Electric(FELE) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter 2025 net sales were $506.9 million, an increase of 4% compared to $485.7 million in the fourth quarter of 2024[2] - Full year 2025 net sales reached $2.1 billion, a 5% increase from $2.0 billion in 2024[3] - Fourth quarter 2025 operating income was $51.6 million, up 20% from $43.0 million in the same quarter of 2024[2] - Full year 2025 operating income was $269.0 million, a 10% increase compared to $243.6 million in 2024[3] - Total net sales for FY 2025 reached $2,131.3 million, reflecting a 5% increase from $2,021.3 million in FY 2024[25] - Operating income for the full year of 2025 was $268.9 million, with an operating margin of 12.6%, compared to $243.6 million and 12.1% in 2024[26] Earnings Per Share - GAAP diluted EPS for the fourth quarter 2025 was $0.87, a 21% increase from $0.72 in the fourth quarter of 2024[2] - Full year 2025 adjusted diluted EPS was $4.14, up $0.22 or 6% compared to $3.92 in 2024[3] - Diluted earnings per share (EPS) for Q4 2025 was $0.87, a 21% increase from $0.72 in Q4 2024[26] - Adjusted diluted EPS for FY 2025 was $4.14, a 6% increase from $3.92 in FY 2024[26] Cash Flow and Balance - Cash balance at the end of 2025 was $99.7 million, a decrease of $120.9 million from the end of 2024[10] - Net cash flows from operating activities for 2025 were $238.9 million, down from $261.4 million in 2024[10] - Cash and cash equivalents at the end of the period were $99.7 million, down from $220.5 million at the end of 2024[24] Other Significant Events - The company terminated its US Pension Plan, resulting in a pre-tax settlement charge of $54.9 million, impacting EPS by approximately $0.91 per share net of tax[6] - Net income for the twelve months ended December 31, 2025, was $148.7 million, a decrease of 18% from $181.6 million in 2024[24] - The company made acquisitions and investments totaling $114.7 million in FY 2025, a substantial increase from $5.2 million in FY 2024[24] - The company reported a significant increase in net sales in Europe, Middle East & Africa by 29% year-over-year for Q4 2025[25] - The company experienced a foreign currency translation impact of $5.2 million on net sales for Q4 2025[25] Future Guidance - The company expects full year 2026 sales guidance to be between $2.17 billion and $2.24 billion[11]