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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 18, 2025

FRANKLIN ELECTRIC CO., INC.
(Exact name of registrant as specified in its charter)
Indiana 0-362 35-0827455
(State of incorporation) (Commission File Number) (IRS employer identification no.)
9255 Coverdale Road
Fort Wayne,Indiana46809
(Address of principal executive offices)(Zip code)

(260) 824-2900
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Common Stock, $0.10 par valueFELENASDAQGlobal Select Market
(Title of each class)(Trading symbol)(Name of each exchange on which registered)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition

On February 18, 2025, Franklin Electric Co., Inc. issued a press release announcing its earnings for the fourth quarter of 2024. A copy of the release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. This Current Report on Form 8-K and the press release attached hereto are being furnished pursuant to Item 2.02 of Form 8-K.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits:
Exhibit NumberDescription
99.1
101Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
104The cover page from this Current Report on Form 8-K, formatted as Inline XBRL



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FRANKLIN ELECTRIC CO., INC.
(Registrant)
Date: February 18, 2025
By/s/ Jeffery L. Taylor
Jeffery L. Taylor
Vice President, Chief Financial Officer
(Principal Financial and Accounting Officer)




Exhibit 99.1
NEWS RELEASE FOR IMMEDIATE DISTRIBUTION


FRANKLIN ELECTRIC REPORTS FOURTH QUARTER 2024 AND FULL YEAR 2024 RESULTS

Fourth Quarter 2024 Highlights
•Consolidated net sales of $485.7 million, an increase of 3% to the prior year
•Energy Systems and Distribution net sales increased 5% and 6%, respectively, while Water Systems net sales were flat
•Operating income was $43.0 million with operating margin of 8.9%
•GAAP fully diluted earnings per share (EPS) was $0.72
Full Year 2024 Highlights
•Consolidated net sales of $2.0 billion, a decrease of 2% to the prior year
•Distribution net sales increased 2%, while Water Systems and Energy Systems net sales decreased 2% and 8%, respectively
•Operating income was $243.6 million with operating margin of 12.1%
•GAAP fully diluted earnings per share (EPS) was $3.86
•Cash flows from operating activities were $261.4 million

Fort Wayne, IN – February 18, 2025 – Franklin Electric Co., Inc. today announced its fourth quarter and full year financial results for fiscal year 2024.

Fourth quarter 2024 net sales were $485.7 million, compared to fourth quarter 2023 net sales of $473.0 million. Fourth quarter 2024 operating income was $43.0 million, compared to fourth quarter 2023 operating income of $50.8 million. Fourth quarter 2024 EPS was $0.72, versus EPS in the fourth quarter 2023 of $0.82.

Full year 2024 net sales were $2.0 billion, compared to full year 2023 net sales of $2.1 billion. Full year 2024 operating income was $243.6 million, compared to full year 2023 operating income of $262.4 million. Full year 2024 EPS was $3.86, versus EPS in the full year 2023 of $4.11.

“The fourth quarter marked a solid finish to a challenging year. Our results were driven by strong performance in our newly renamed Energy Systems segment. While we have worked through the elevated post-COVID backlogs at this time, underlying demand remains healthy, and we continue to execute on productivity initiatives as we align our businesses with the more normalized environment,” commented Joe Ruzynski, Franklin Electric’s CEO.

“Our resiliency is supported by the breadth of our global portfolio, which has proven to be a strategic asset as we closed out a year shaped by macroeconomic pressures. Order trends have improved, and with the support of a very healthy balance sheet, we are well-positioned to capitalize on opportunities in the year ahead. In 2025, our focus turns to driving revenue growth and margin expansion as we accelerate innovation and growth,” concluded Mr. Ruzynski.

Segment Summaries

Water Systems net sales were $279.6 million in the fourth quarter, flat compared to the fourth quarter 2023. Results were driven by higher sales of groundwater products, water treatment products and all other surface products. These sales increases were offset by lower sales of large dewatering pumps,


which had a record fourth quarter last year. Water Systems operating income in the fourth quarter 2024 was $35.6 million. Fourth quarter 2023 Water Systems operating income was $44.1 million.

Distribution net sales were $157.2 million, an increase of $9.2 million or 6 percent compared to the fourth quarter 2023. Sales increases were driven by higher volumes and the incremental impact from a recent acquisition. The Distribution segment operating income in the fourth quarter 2024 was $0.5 million. Fourth quarter 2023 Distribution operating income was $1.0 million.

Energy Systems net sales were $68.8 million in the fourth quarter 2024, an increase of $3.1 million or 5 percent compared to the fourth quarter 2023. Sales increases were driven by higher volumes and price realization. Energy Systems operating income in the fourth quarter 2024 was a record for any fourth quarter at $24.7 million. Fourth quarter 2023 Energy Systems operating income was $19.4 million. The Company has changed the name of the Fueling Systems segment to Energy Systems to reflect its diverse portfolio and growth strategy, as well as to better reflect the markets and customers served by the segment.


Cash Flow

The Company ended 2024 with a cash balance of $220.5 million, an increase of $135.5 million compared to the end of 2023. Net cash flows from operating activities for 2024 were $261.4 million versus $315.7 million in the same period in 2023. Cash flow in 2023 benefitted from actions the Company took to improve working capital including inventory reductions as its supply chain resiliency and lead times improved during the year.

2024 Guidance

The Company expects its full year 2025 sales including the impact of its recently announced acquisitions to be in the range of $2.09 billion to $2.15 billion and full year 2025 EPS to be in the range of $4.05 to $4.25.

Earnings Conference Call

A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The fourth quarter 2024 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/9jnstij5

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.vevent.com/register/BI4b232e4ceea6435ba8f046e92e18e563

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, February 18, 2025, through 9:00 am ET on Tuesday, February 25, 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, 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, 2023, 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.

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:

Jeffery L. Taylor
Franklin Electric Co., Inc.
InvestorRelations@fele.com


FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Fourth Quarter EndedFiscal Year End
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Net sales$485,745 $472,970 $2,021,341 $2,065,133 
Cost of sales321,505 312,961 1,304,061 1,368,125 
Gross profit164,240 160,009 717,280 697,008 
Selling, general, and administrative expenses117,846 108,825 470,136 433,476 
Restructuring expense3,360 356 3,499 1,091 
Operating income43,034 50,828 243,645 262,441 
Interest expense(1,339)(1,481)(6,319)(11,790)
Other income, net630 1,831 1,339 3,696 
Foreign exchange expense, net(1,590)(4,026)(6,818)(12,124)
Income before income taxes40,735 47,152 231,847 242,223 
Income tax expense6,443 8,322 50,238 47,489 
Net income$34,292 $38,830 $181,609 $194,734 
Less: Net income attributable to noncontrolling interests(637)(281)(1,300)(1,462)
Net income attributable to Franklin Electric Co., Inc.$33,655 $38,549 $180,309 $193,272 
Earnings per share:
Basic$0.73 $0.83 $3.92 $4.17 
Diluted$0.72 $0.82 $3.86 $4.11 



FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
December 31, 2024December 31, 2023
ASSETS
Cash and cash equivalents$220,540 $84,963 
Receivables (net)226,826 222,418 
Inventories483,875 508,696 
Other current assets32,950 37,718 
Total current assets964,191 853,795 
Property, plant, and equipment, net223,566 229,739 
Lease right-of-use assets, net62,637 57,014 
Goodwill and other assets570,212 587,574 
Total assets$1,820,606 $1,728,122 
LIABILITIES AND EQUITY
Accounts payable$157,046 $152,419 
Accrued expenses and other current liabilities139,989 104,949 
Current lease liability18,878 17,316 
Current maturities of long-term debt and short-term borrowings117,814 12,355 
Total current liabilities433,727 287,039 
Long-term debt11,622 88,056 
Long-term lease liability43,304 38,549 
Income taxes payable non-current— 4,837 
Deferred income taxes10,193 29,461 
Employee benefit plans29,808 35,973 
Other long-term liabilities22,118 33,914 
Redeemable noncontrolling interest1,224 1,145 
Total equity1,268,610 1,209,148 
Total liabilities and equity$1,820,606 $1,728,122 



FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twelve Months Ended
(In thousands)
December 31, 2024December 31, 2023
Cash flows from operating activities:
Net income$181,609 $194,734 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization56,073 52,260 
Non-cash lease expense21,438 18,852 
Share-based compensation12,061 10,133 
Other(13,327)10,259 
Changes in assets and liabilities:
Receivables(17,045)19,150 
Inventory10,889 48,176 
Accounts payable and accrued expenses15,285 (23,085)
Operating leases(21,129)(18,874)
Income taxes-U.S. Tax Cuts and Jobs Act(3,870)(2,902)
Other19,369 7,007 
Net cash flows from operating activities261,353 315,710 
Cash flows from investing activities:
Additions to property, plant, and equipment(41,682)(41,415)
Proceeds from sale of property, plant, and equipment1,182 1,494 
Acquisitions and investments(5,201)(34,831)
Other investing activities73 463 
Net cash flows from investing activities(45,628)(74,289)
Cash flows from financing activities:
Net change in debt29,235 (115,529)
Proceeds from issuance of common stock7,204 9,193 
Purchases of common stock(61,041)(43,332)
Dividends paid(46,876)(41,723)
Deferred payments for acquisitions(2,591)(802)
Net cash flows from financing activities(74,069)(192,193)
Effect of exchange rate changes on cash and cash equivalents(6,079)(10,055)
Net change in cash and cash equivalents135,577 39,173 
Cash and cash equivalents at beginning of period84,963 45,790 
Cash and cash equivalents at end of period$220,540 $84,963 






Key Performance Indicators: Net Sales Summary

Net Sales For the Fourth Quarter
(in millions)United States & CanadaLatin AmericaEurope, Middle East & AfricaAsia PacificTotal WaterEnergy**DistributionOther/ElimsConsolidated
Q4 2023$161.2 $46.6 $45.5 $26.3 $279.6 $65.7 $148.0 $(20.3)$473.0 
Q4 2024$158.5 $44.3 $49.7 $27.1 $279.6 $68.8 $157.2 $(19.9)$485.7 
Change$(2.7)$(2.3)$4.2 $0.8 $— $3.1 $9.2 $0.4 $12.7 
% Change(2)%(5)%9 %3 %— %5 %6 %3 %
Foreign currency translation, net*$(0.4)$(5.5)$(0.8)$(0.8)$(7.5)$— $— $(7.5)
% Change— %(12)%(2)%(3)%(3)%— %— %(2)%
Acquisitions$3.1 $— $— $— $3.1 $— $4.0 $7.1 
% Change2 %— %— %— %1 %— %3 %2 %
Volume/Price$(5.4)$3.2 $5.0 $1.6 $4.4 $3.1 $5.2 $0.4 $13.1 
% Change(3)%7 %11 %6 %2 %5 %4 %(2)%3 %

Net Sales For the Full Year
(in millions)United States & CanadaLatin AmericaEurope, Middle East & AfricaAsia PacificTotal WaterEnergy**DistributionOther/ElimsConsolidated
FY 2023
$744.4 $174.2 $198.3 $86.8 $1,203.7 $296.5 $673.3 $(108.4)$2,065.1 
FY 2024
$708.5 $170.9 $211.4 $93.2 $1,184.0 $273.7 $685.5 $(121.9)$2,021.3 
Change$(35.9)$(3.3)$13.1 $6.4 $(19.7)$(22.8)$12.2 $(13.5)$(43.8)
% Change(5)%(2)%7 %7 %(2)%(8)%2 %(2)%
Foreign currency translation$(0.9)$(9.7)$(6.3)$(2.4)$(19.3)$— $— $(19.3)
% Change— %(6)%(3)%(3)%(2)%— %— %(1)%
Acquisitions$17.6 $— $— $— $17.6 $— $17.1 $34.7 
% Change2 %— %— %— %1 %— %3 %2 %
Volume/Price$(52.6)$6.4 $19.4 $8.8 $(18.0)$(22.8)$(4.9)$(13.5)$(59.2)
% Change(7)%4 %10 %10 %(1)%(8)%(1)%12 %(3)%
*The Company has presented local currency price increases used to offset currency devaluation in the Argentina and Turkey hyperinflationary economies within the foreign currency translation, net row above.
** Recognizing the Company’s diverse portfolio and growth strategy, it renamed its Fueling Systems segment to Energy Systems to better reflect the markets and customers served by this business.






Key Performance Indicators: Operating Income and Margin Summary

Operating Income and Margins
(in millions)
For the Fourth Quarter 2024
WaterEnergyDistributionOther/ElimsConsolidated
Operating Income/(Loss)$35.6 $24.7 $0.5 $(17.8)$43.0 
% Operating Income To Net Sales12.7 %35.9 %0.3 %8.9 %
Operating Income and Margins
(in millions)
For the Fourth Quarter 2023
WaterEnergyDistributionOther/ElimsConsolidated
Operating Income/(Loss)$44.1 $19.4 $1.0 $(13.7)$50.8 
% Operating Income To Net Sales15.8 %29.5 %0.7 %10.7 %
Operating Income and Margins
(in millions)
For the Full Year of 2024
WaterEnergyDistributionOther/ElimsConsolidated
Operating Income/(Loss)$197.9 $93.6 $24.3 $(72.2)$243.6 
% Operating Income To Net Sales16.7 %34.2 %3.5 %12.1 %
Operating Income and Margins
(in millions)
For the Full Year of 2023
WaterEnergyDistributionOther/ElimsConsolidated
Operating Income/(Loss)$196.6 $92.7 $34.3 $(61.2)$262.4 
% Operating Income To Net Sales16.3 %31.3 %5.1 %12.7 %

v3.25.0.1
Cover
Feb. 18, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 18, 2025
Entity Registrant Name FRANKLIN ELECTRIC CO., INC.
Entity Incorporation, State or Country Code IN
Entity File Number 0-362
Entity Tax Identification Number 35-0827455
Entity Address, Address Line One 9255 Coverdale Road
Entity Address, City or Town Fort Wayne,
Entity Address, State or Province IN
Entity Address, Postal Zip Code 46809
City Area Code 260
Local Phone Number 824-2900
Entity Information, Former Legal or Registered Name Not Applicable
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.10 par value
Trading Symbol FELE
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000038725
Amendment Flag false
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