Franklin Electric Reports Fourth Quarter 2024 and Full Year 2024 Results

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].