Consolidated net sales of $581.7 million, an increase of 9% to the prior year
Net sales increased across all three segments; 11% in Water Systems, 15% in Energy Systems, and 3% in Distribution
Operating income was $85.1 million, an increase of 16% to the prior year, with operating margin of 14.6%
The company terminated its US Pension Plan for a pre-tax settlement charge of $55.3 million ($41.7 million net of tax) and an EPS impact of approximately $0.93 per share net of tax
GAAP fully diluted earnings per share (EPS) was $0.37
FORT WAYNE, Ind., Oct. 28, 2025 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its third quarter financial results for fiscal year 2025.
Third quarter 2025 net sales were $581.7 million compared to third quarter 2024 net sales of $531.4 million. Third quarter 2025 operating income was $85.1 million, compared to third quarter 2024 operating income of $73.5 million. Third quarter 2025 diluted EPS was $0.37, compared to third quarter 2024 EPS of $1.17. Third quarter 2025 adjusted diluted EPS was $1.30, up $0.13 or 11 percent, compared to third quarter 2024.
"Our team's consistent execution drove third quarter results in line with our expectations, reflecting solid growth across the business. Operating performance was supported by both higher volumes and effective pricing initiatives. In addition, we continue to make progress on our strategic initiatives, including the expansion of our global manufacturing footprint in several key markets, which positions us well to more efficiently serve our customers and capture new growth opportunities," commented Joe Ruzynski, Franklin Electric's CEO.
"While we continue to watch the macroeconomic environment closely, order activity remains healthy, giving us confidence in our outlook. As we close out the year, we remain focused on executing pricing discipline and cost control, while maintaining a balanced capital allocation approach to drive value for our shareholders," concluded Mr. Ruzynski.
Segment Summaries
Water Systems net sales were $336.6 million in the third quarter, an increase of $34.4 million or 11 percent compared to the third quarter of 2024. Results were driven by the incremental sales impact of recent acquisitions, as well as organic volume and price realization. Water Systems operating income in the third quarter of 2025 was $60.2 million. Third quarter 2024 Water Systems operating income was $52.8 million.
Distribution net sales were $197.3 million, an increase of $6.5 million or 3 percent compared to the third quarter of 2024. Sales increases were driven by higher volumes and price realization. The Distribution segment operating income in the third quarter 2025 was $16.3 million. Third quarter 2024 Distribution operating income was $12.2 million.
Energy Systems net sales were $80.0 million in the third quarter 2025, an increase of $10.3 million or 15 percent compared to the third quarter 2024. Sales increases were driven by higher volumes and price realization. Energy Systems operating income in the third quarter of 2025 was $25.4 million. Third quarter 2024 Energy Systems operating income was $24.1 million.
Cash Flow
Net cash flows from operating activities through the nine months of 2025 were $134.7 million versus $151.1 million in the same period in 2024.
2025 Guidance
The Company is maintaining the midpoint of its guidance for full year 2025 sales to be in the range of $2.09 billion to $2.15 billion and full year 2025 EPS to be in the range of $4.00 to $4.20 without the impact of the pension termination.
Earnings Conference Call
A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The third quarter 2025 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:
https://edge.media-server.com/mmc/p/apav9spr
For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below.
https://register-conf.media-server.com/register/BIf59e8648a1fd4ca6975c13e36b5bb68a
All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).
A replay of the conference call will be available from Tuesday, October 28, 2025, through 9:00 am ET on Tuesday, November 4, 2025, by visiting the listen-only webcast link above.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company's financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company's business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, changes in tariffs or the impact of any such changes on the Company's financial results, the Company's accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company's Securities and Exchange Commission filings, included in Item 1A of Part I of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2024, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company's Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.
Note Regarding Non-GAAP Financial Measures
The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that the non-GAAP financial measure Adjusted Diluted EPS provides additional meaningful information regarding the company's performance and financial strength. Non-GAAP financial measures should be viewed in addition to and not as an alternative for the company's reported results prepared in accordance with GAAP. In addition, not all companies use identical calculations for Adjusted Diluted EPS; therefore, Adjusted Diluted EPS included in this release may not be comparable to similarly titled measures of other companies.
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 America's Climate Leaders 2024 by USA Today.
Franklin Electric Contact:Jennifer WolfenbargerFranklin Electric Co.,
FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Third Quarter Ended
Nine Months Ended
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Net sales
$
581,714
$
531,438
$
1,624,395
$
1,535,596
Cost of sales
373,010
341,775
1,039,962
982,556
Gross profit
208,704
189,663
584,433
553,040
Selling, general, and administrative expenses
123,474
115,998
366,638
352,290
Restructuring expense
112
139
435
139
Operating income
85,118
73,526
217,360
200,611
Interest expense
(3,496
)
(1,556
)
(8,100
)
(4,980
)
Other income (expense), net
(165
)
(181
)
514
709
Foreign exchange income (expense), net
(2,673
)
88
(8,514
)
(5,228
)
Pension settlement loss
(55,251
)
-
(55,251
)
-
Income before income taxes
23,533
71,877
146,009
191,112
Income tax expense
6,329
16,983
36,868
43,795
Net income
$
17,204
$
54,894
$
109,141
$
147,317
Less: Net income attributable to noncontrolling interests
(466
)
(298
)
(1,301
)
(663
)
