Franklin Electric Reports Fourth Quarter 2025 and Full Year 2025 Results
Rhea-AI Summary
Franklin Electric (NYSE:FELE) reported fourth-quarter 2025 net sales of $506.9M and operating income of $51.6M. Full-year 2025 net sales were $2.13B with operating income of $269.0M, GAAP diluted EPS of $3.22 and adjusted diluted EPS of $4.14. The company recorded a $54.9M pre-tax pension settlement charge ($41.5M net of tax). Cash ended at $99.7M. Guidance for 2026: sales $2.17B–$2.24B and adjusted diluted EPS $4.40–$4.60.
Positive
- Consolidated net sales +5% for full year 2025 to $2.13B
- Operating income +10% year-over-year to $269.0M for 2025
- Adjusted diluted EPS $4.14, up 6% versus prior year
- 2026 guidance: sales range $2.17B–$2.24B and adjusted EPS $4.40–$4.60
Negative
- Pension plan termination triggered a $54.9M pre-tax charge (approx. $41.5M after tax)
- Cash balance declined by $120.9M to $99.7M year-end 2025
- GAAP diluted EPS fell to $3.22 from $3.86 in 2024
- Long-term debt increased to $135.2M from $11.6M at year-end 2024
Key Figures
Market Reality Check
Peers on Argus
FELE is down 0.84% while peers show mixed moves: KAI -0.98%, NPO -0.63%, but MWA +0.60%, MIR +5.19%, SMR +0.56%, indicating a stock-specific response rather than a uniform sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 28 | Q3 2025 earnings | Neutral | -3.3% | Strong Q3 growth but GAAP EPS hit by large pension settlement loss. |
| Jul 29 | Q2 2025 earnings | Positive | +2.8% | Q2 sales up 8% and EPS growth with guidance maintained for 2025. |
| Apr 29 | Q1 2025 earnings | Negative | -4.4% | Slight sales decline, lower EPS and softer segment performance in Q1. |
| Feb 18 | Q4 2024 earnings | Positive | +6.0% | Q4 2024 growth and solid margins with 2025 sales and EPS guidance issued. |
| Oct 29 | Q3 2024 earnings | Negative | -6.3% | Q3 2024 sales and EPS decline with full-year guidance reduced. |
Recent earnings releases have produced mixed reactions, with most aligning to the tone of results but one notable negative reaction to otherwise solid Q3 2025 figures affected by a pension settlement charge.
This announcement caps a year where Franklin Electric delivered steady growth: prior quarters in 2025 showed net sales rising from $455.2M in Q1 to $587.4M in Q2 and $581.7M in Q3, with margins generally expanding. A major theme has been the US pension plan termination, which introduced a sizable non‑cash charge and distorted GAAP EPS. Historically, earnings headlines have led to modest average moves around -1.04%, with both strong and weaker quarters eliciting noticeable price swings.
Historical Comparison
Past earnings releases for FELE saw an average move of -1.04%, with reactions varying as results oscillated between strong growth quarters and guidance cuts.
Across Q1–Q3 2025, FELE moved from a slight sales decline and lower EPS in Q1 to stronger growth and margins in Q2 and Q3, while planning and then recording a US pension plan termination that created a large one‑time EPS drag but left underlying adjusted performance and full‑year guidance intact.
Market Pulse Summary
This announcement highlights steady 2025 growth, with Q4 net sales reaching $506.9M and full-year sales of $2.1B, alongside full-year adjusted EPS of $4.14. Results were tempered by a $54.9M pension settlement charge that reduced GAAP EPS to $3.22. Investors may watch how 2026 guidance of $2.17–$2.24B in sales and adjusted EPS of $4.40–$4.60 compares with execution, especially given lower operating cash flow and ongoing macroeconomic uncertainties.
Key Terms
gaap financial
non-gaap financial
adjusted diluted eps financial
operating margin financial
pension settlement financial
forward-looking statements regulatory
safe harbor regulatory
income tax expense financial
AI-generated analysis. Not financial advice.
Fourth Quarter 2025 Highlights
- Consolidated net sales of
$506.9 million , an increase of4% to the prior year - Net sales increased across all three segments;
4% in Water Systems,9% in Energy Systems, and3% in Distribution - Operating income was
$51.6 million , an increase of20% to the prior year, with operating margin of10.2% - GAAP fully diluted earnings per share (EPS) was
$0.87 , an increase of 21 percent
Full Year 2025 Highlights
- Consolidated net sales of
$2.1 billion , an increase of5% to the prior year - Net sales increased across all three segments;
6% in Water Systems,9% in Energy Systems, and2% in Distribution - Operating income was
$269.0 million , an increase of10% to the prior year, with operating margin of12.6% - The company terminated its US Pension Plan for a pre-tax settlement charge of
$54.9 million ($41.5 million net of tax) and a full year EPS impact of approximately$0.91 per share net of tax - GAAP fully diluted earnings per share (EPS) was
$3.22 ; Adjusted fully diluted EPS was$4.14
FORT WAYNE, Ind., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its fourth quarter and full year financial results for fiscal year 2025.
Fourth quarter 2025 net sales were
Full year 2025 net sales were
“The fourth quarter marked a solid close to a strong year of growth, expanded margins, and strong overall execution. For the full year, results were supported by effective pricing actions, transformation initiatives, and continued progress on our strategic investments in innovation and targeted acquisitions. We also strengthened our operating capabilities with our efforts to expand and optimize our global manufacturing footprint, positioning Franklin Electric to better serve customers and support future growth,” commented Joe Ruzynski, Franklin Electric’s CEO.
“While macroeconomic conditions remain dynamic, we enter the new year with healthy order trends and a solid balance sheet with the flexibility to fuel our balanced approach to capital allocation. As we look ahead, our focus remains on driving profitable growth, expanding margins, and executing our strategic priorities to deliver long-term value for our shareholders,” concluded Mr. Ruzynski.
Segment Summaries
Water Systems net sales were
Distribution net sales were
Energy Systems net sales were
Cash Flow
The Company ended 2025 with a cash balance of
2026 Guidance
The Company expects its guidance for full year 2026 sales to be in the range of
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 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/twst9mwq
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/BI645ef453263f42b58d068091ae11f46d
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 24, 2026, through 9:00 am ET on Tuesday, March 3, 2026, 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. Adjusted Diluted EPS is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule at the end of this release, except for forward-looking measures of Adjusted Diluted EPS where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measure.
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 recognized in Newsweek’s lists of America’s Most Responsible Companies 2024, Most Trustworthy Companies 2024, and Greenest Companies 2025; Best Places to Work in Indiana 2024; and America’s Climate Leaders 2024 by USA Today.
Franklin Electric Contact:
Jennifer Wolfenbarger / Dean Cantrell
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 Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 506,855 | $ | 485,745 | $ | 2,131,250 | $ | 2,021,341 | |||||||
| Cost of sales | 335,363 | 321,505 | 1,375,325 | 1,304,061 | |||||||||||
| Gross profit | 171,492 | 164,240 | 755,925 | 717,280 | |||||||||||
| Selling, general, and administrative expenses | 119,593 | 117,846 | 486,231 | 470,136 | |||||||||||
| Restructuring expense | 280 | 3,360 | 716 | 3,499 | |||||||||||
| Operating income | 51,619 | 43,034 | 268,978 | 243,645 | |||||||||||
| Interest expense | (2,541 | ) | (1,339 | ) | (10,641 | ) | (6,319 | ) | |||||||
| Other income, net | 71 | 630 | 585 | 1,339 | |||||||||||
| Foreign exchange expense, net | (827 | ) | (1,590 | ) | (9,340 | ) | (6,818 | ) | |||||||
| Pension settlement income (loss) | 319 | - | (54,932 | ) | - | ||||||||||
| Income before income taxes | 48,641 | 40,735 | 194,650 | 231,847 | |||||||||||
| Income tax expense | 9,088 | 6,443 | 45,956 | 50,238 | |||||||||||
| Net income | $ | 39,553 | $ | 34,292 | $ | 148,694 | $ | 181,609 | |||||||
| Less: Net income attributable to noncontrolling interests | (303 | ) | (637 | ) | (1,604 | ) | (1,300 | ) | |||||||
| Net income attributable to Franklin Electric Co., Inc. | $ | 39,250 | $ | 33,655 | $ | 147,090 | $ | 180,309 | |||||||
| Income per share: | |||||||||||||||
| Basic | $ | 0.88 | $ | 0.73 | $ | 3.25 | $ | 3.92 | |||||||
| Diluted | $ | 0.87 | $ | 0.72 | $ | 3.22 | $ | 3.86 | |||||||
| FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| (In thousands) | |||||||
| December 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 99,662 | $ | 220,540 | |||
| Receivables (net) | 247,511 | 226,826 | |||||
| Inventories | 552,981 | 483,875 | |||||
| Other current assets | 58,472 | 32,950 | |||||
| Total current assets | 958,626 | 964,191 | |||||
| Property, plant, and equipment, net | 252,164 | 223,566 | |||||
| Lease right-of-use assets, net | 67,867 | 62,637 | |||||
| Goodwill and other assets | 665,728 | 570,212 | |||||
| Total assets | $ | 1,944,385 | $ | 1,820,606 | |||
| LIABILITIES AND EQUITY | |||||||
| Accounts payable | $ | 174,954 | $ | 157,046 | |||
| Accrued expenses and other current liabilities | 116,747 | 139,989 | |||||
| Current lease liability | 20,518 | 18,878 | |||||
| Current maturities of long-term debt and short-term borrowings | 31,827 | 117,814 | |||||
| Total current liabilities | 344,046 | 433,727 | |||||
| Long-term debt | 135,184 | 11,622 | |||||
| Long-term lease liability | 46,481 | 43,304 | |||||
| Deferred income taxes | 39,275 | 10,193 | |||||
| Employee benefit plans | 22,833 | 29,808 | |||||
| Other long-term liabilities | 29,541 | 22,118 | |||||
| Redeemable noncontrolling interest | 1,657 | 1,224 | |||||
| Total equity | 1,325,368 | 1,268,610 | |||||
| Total liabilities and equity | $ | 1,944,385 | $ | 1,820,606 | |||
| FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited) | |||||||
| (In thousands) | |||||||
| December 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | 148,694 | 181,609 | |||||
| Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
| Depreciation and amortization | 62,875 | 56,073 | |||||
| Pension settlement loss, net of tax | 41,454 | - | |||||
| Non-cash lease expense | 22,489 | 21,438 | |||||
| Share-based compensation | 13,196 | 12,061 | |||||
| Other | (445 | ) | (13,327 | ) | |||
| Changes in assets and liabilities: | |||||||
| Receivables | 11,417 | (17,045 | ) | ||||
| Inventory | (26,179 | ) | 10,889 | ||||
| Accounts payable and accrued expenses | (12,772 | ) | 15,285 | ||||
| Operating leases | (22,901 | ) | (21,129 | ) | |||
| Income taxes-U.S. Tax Cuts and Jobs Act | (4,837 | ) | (3,870 | ) | |||
| Other | 5,887 | 19,369 | |||||
| Net cash flows from operating activities | 238,878 | 261,353 | |||||
| Cash flows from investing activities: | |||||||
| Additions to property, plant, and equipment | (45,337 | ) | (41,682 | ) | |||
| Proceeds from sale of property, plant, and equipment | 2,856 | 1,182 | |||||
| Acquisitions and investments | (114,664 | ) | (5,201 | ) | |||
| Other investing activities | 20 | 73 | |||||
| Net cash flows from investing activities | (157,125 | ) | (45,628 | ) | |||
| Cash flows from financing activities: | |||||||
| Net change in debt | 18,694 | 29,235 | |||||
| Payment of debt issuance costs | (974 | ) | - | ||||
| Proceeds from issuance of common stock | 5,321 | 7,204 | |||||
| Purchases of common stock | (165,623 | ) | (61,041 | ) | |||
| Dividends paid | (49,999 | ) | (46,876 | ) | |||
| Deferred payments for acquisitions | (4,725 | ) | (2,591 | ) | |||
| Net cash flows from financing activities | (197,306 | ) | (74,069 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (5,325 | ) | (6,079 | ) | |||
| Net change in cash and cash equivalents | (120,878 | ) | 135,577 | ||||
| Cash and cash equivalents at beginning of period | 220,540 | 84,963 | |||||
| Cash and cash equivalents at end of period | $ | 99,662 | $ | 220,540 | |||
Key Performance Indicators: Net Sales Summary
| Net Sales For the Fourth Quarter | |||||||||||||||||||||||||||
| United States | Latin | Europe, Middle | Asia | Total | |||||||||||||||||||||||
| (in millions) | & Canada | America | East & Africa | Pacific | Water | Energy | Distribution | Other/Elims | Consolidated | ||||||||||||||||||
| Q4 2024 | ( | ) | |||||||||||||||||||||||||
| Q4 2025 | ( | ) | |||||||||||||||||||||||||
| Change | ( | ) | ( | ) | |||||||||||||||||||||||
| % Change | -4 | % | 29 | % | 7 | % | 6 | % | 4 | % | 9 | % | 3 | % | 4 | % | |||||||||||
| Foreign currency translation, net* | ( | ) | |||||||||||||||||||||||||
| % Change | 0 | % | 6 | % | 5 | % | 0 | % | 2 | % | 0 | % | 0 | % | 1 | % | |||||||||||
| Acquisitions | |||||||||||||||||||||||||||
| % Change | 0 | % | 26 | % | 0 | % | 9 | % | 5 | % | 0 | % | 0 | % | 3 | % | |||||||||||
| Volume/Price | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||
| % Change | -4 | % | -4 | % | 2 | % | -3 | % | -3 | % | 8 | % | 3 | % | 6 | % | 0 | % | |||||||||
| Net Sales For the Full Year | |||||||||||||||||||||||||||
| United States | Latin | Europe, Middle | Asia | Total | |||||||||||||||||||||||
| (in millions) | & Canada | America | East & Africa | Pacific | Water | Energy | Distribution | Other/Elims | Consolidated | ||||||||||||||||||
| FY 2024 | ( | ) | |||||||||||||||||||||||||
| FY 2025 | ( | ) | |||||||||||||||||||||||||
| Change | ( | ) | |||||||||||||||||||||||||
| % Change | 3 | % | 20 | % | 3 | % | 8 | % | 6 | % | 9 | % | 2 | % | 5 | % | |||||||||||
| Foreign currency translation, net* | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||
| % Change | 0 | % | -1 | % | 2 | % | -2 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||
| Acquisitions | |||||||||||||||||||||||||||
| % Change | 1 | % | 23 | % | 0 | % | 10 | % | 4 | % | 0 | % | 0 | % | 3 | % | |||||||||||
| Volume/Price | ( | ) | ( | ) | |||||||||||||||||||||||
| % Change | 3 | % | -1 | % | 2 | % | 0 | % | 2 | % | 9 | % | 2 | % | 2 | % | 3 | % | |||||||||
*The Company has presented local currency price increases used to offset currency devaluation in the highly inflationary economies of Argentina and Turkey within the foreign currency translation, net row above.
Key Performance Indicators: Operating Income and Margin Summary
| Operating Income and Margins | |||||||||||||||
| (in millions) | For the Fourth Quarter 2025 | ||||||||||||||
| Water | Energy | Distribution | Other/Elims | Consolidated | |||||||||||
| Operating Income / (Loss) | $ | 41.8 | $ | 22.6 | $ | 5.3 | $ | (18.1 | ) | $ | 51.6 | ||||
| % Operating Income To Net Sales | 14.3 | % | 30.3 | % | 3.3 | % | 10.2 | % | |||||||
| Operating Income and Margins | |||||||||||||||
| (in millions) | For the Fourth Quarter 2024 | ||||||||||||||
| Water | Energy | Distribution | Other/Elims | Consolidated | |||||||||||
| Operating Income / (Loss) | $ | 35.6 | $ | 24.7 | $ | 0.5 | $ | (17.8 | ) | $ | 43.0 | ||||
| % Operating Income To Net Sales | 12.7 | % | 35.9 | % | 0.3 | % | 8.9 | % | |||||||
| Operating Income and Margins | |||||||||||||||
| (in millions) | For the Full Year of 2025 | ||||||||||||||
| Water | Energy | Distribution | Other/Elims | Consolidated | |||||||||||
| Operating Income / (Loss) | $ | 207.2 | $ | 99.1 | $ | 39.8 | $ | (77.2 | ) | $ | 268.9 | ||||
| % Operating Income To Net Sales | 16.5 | % | 33.1 | % | 5.7 | % | 12.6 | % | |||||||
| Operating Income and Margins | |||||||||||||||
| (in millions) | For the Full Year of 2024 | ||||||||||||||
| Water | Energy | Distribution | Other/Elims | Consolidated | |||||||||||
| Operating Income / (Loss) | $ | 197.9 | $ | 93.6 | $ | 24.3 | $ | (72.2 | ) | $ | 243.6 | ||||
| % Operating Income To Net Sales | 16.7 | % | 34.2 | % | 3.5 | % | 12.1 | % | |||||||
Reconciliation of Non-GAAP Financial Measure: Adjusted Diluted EPS
| For the Fourth Quarter | For the Full Year of | ||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||
| Diluted Earnings per Share "EPS" (as reported - US GAAP) | $ | 0.87 | $ | 0.72 | 21 | % | $ | 3.22 | $ | 3.86 | -17 | % | |||||
| Pension Settlement Loss | $ | (0.01 | ) | $ | - | $ | 0.91 | $ | - | ||||||||
| Restructuring | $ | 0.01 | $ | 0.06 | $ | 0.01 | $ | 0.06 | |||||||||
| Adjusted Diluted EPS (non-GAAP) | $ | 0.87 | $ | 0.78 | 12 | % | $ | 4.14 | $ | 3.92 | 6 | % | |||||
FAQ
What were Franklin Electric's (FELE) fourth-quarter 2025 results?
How did the pension termination affect Franklin Electric's (FELE) 2025 results?
What is Franklin Electric's (FELE) guidance for full-year 2026?
How did Franklin Electric's (FELE) cash and debt positions change in 2025?
Which Franklin Electric (FELE) segments drove 2025 fourth-quarter growth?
What was Franklin Electric's (FELE) full-year 2025 profitability and EPS performance?
