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Franklin Electric (FELE) posts 2025 growth and raises 2026 EPS outlook

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8-K

Rhea-AI Filing Summary

Franklin Electric Co., Inc. reported higher sales and margins for the fourth quarter and full year 2025 while absorbing a large pension-related charge. Fourth quarter 2025 net sales were $506.9 million, up from $485.7 million, and operating income rose to $51.6 million from $43.0 million, lifting operating margin to 10.2%.

Fourth quarter diluted EPS increased to $0.87 from $0.72. For full year 2025, net sales reached $2.1 billion versus $2.0 billion, and operating income grew to $269.0 million from $243.6 million, with operating margin improving to 12.6%. GAAP diluted EPS declined to $3.22 from $3.86, mainly reflecting a $54.9 million pre-tax pension plan termination settlement, while adjusted diluted EPS increased to $4.14 from $3.92.

Water Systems, Energy Systems, and Distribution all delivered net sales growth in 2025, with Energy Systems up 9% and Water Systems up 6%. The company ended 2025 with $99.7 million in cash and provided 2026 guidance for sales of $2.17 billion to $2.24 billion and adjusted diluted EPS of $4.40 to $4.60.

Positive

  • None.

Negative

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Insights

Franklin Electric posts steady 2025 growth, absorbs pension charge, and guides to higher 2026 earnings.

Franklin Electric delivered moderate top-line growth and margin expansion in 2025. Net sales rose to $2.1 billion from $2.0 billion, with operating income increasing to $269.0 million. Operating margin improved to 12.6%, helped by pricing, transformation initiatives, and acquisitions.

GAAP diluted EPS fell to $3.22 from $3.86, driven by a US pension plan termination settlement of $54.9 million pre-tax, which reduced full-year EPS by about $0.91 per share. Excluding this and restructuring, adjusted diluted EPS increased to $4.14, up 6%, indicating underlying earnings growth.

All three segments grew 2025 sales, with Water Systems up 6%, Energy Systems up 9%, and Distribution up 2%. Cash declined to $99.7 million as the company spent on acquisitions, share repurchases, and dividends. For 2026, guidance targets sales of $2.17–$2.24 billion and adjusted diluted EPS of $4.40–$4.60, implying another step-up in earnings if achieved.

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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 17, 2026

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 17, 2026, Franklin Electric Co., Inc. issued a press release announcing its earnings for the fourth quarter of 2025. 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
Press release - "Franklin Electric Reports Fourth Quarter 2025 Results"
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 17, 2026
By/s/ Jennifer A. Wolfenbarger
Jennifer A. Wolfenbarger
Vice President, Chief Financial Officer
(Principal Financial and Accounting Officer)




Exhibit 99.1
NEWS RELEASE FOR IMMEDIATE DISTRIBUTION


FRANKLIN ELECTRIC REPORTS FOURTH QUARTER 2025 AND FULL YEAR 2025 RESULTS

Fourth Quarter 2025 Highlights
Consolidated net sales of $506.9 million, an increase of 4% to the prior year
Net sales increased across all three segments; 4% in Water Systems, 9% in Energy Systems, and 3% in Distribution
Operating income was $51.6 million, an increase of 20% to the prior year, with operating margin of 10.2%
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 of 5% to the prior year
Net sales increased across all three segments; 6% in Water Systems, 9% in Energy Systems, and 2% in Distribution
Operating income was $269.0 million, an increase of 10% to the prior year, with operating margin of 12.6%
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, IN – February 17, 2026 – Franklin Electric Co., Inc. today announced its fourth quarter and full year financial results for fiscal year 2025.

Fourth quarter 2025 net sales were $506.9 million compared to fourth quarter 2024 net sales of $485.7 million. Fourth quarter 2025 operating income was $51.6 million, compared to fourth quarter 2024 operating income of $43.0 million. Fourth quarter 2025 diluted EPS was $0.87, compared to fourth quarter 2024 EPS of $0.72.

Full year 2025 net sales were $2.1 billion compared to full year 2024 net sales of $2.0 billion. Full year 2025 operating income was $269.0 million, compared to full year 2024 operating income of $243.6 million. Full year 2025 diluted EPS was $3.22, compared to full year 2024 EPS of $3.86. Full year 2025 adjusted diluted EPS was $4.14, up $0.22 or 6 percent, compared to full year 2024.

“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 $291.6 million in the fourth quarter, an increase of $12.0 million or 4 percent compared to the fourth quarter of 2024. Results were driven by the incremental sales impact of recent acquisitions, price realization and favorable foreign exchange, partially offset with lower volumes. Water Systems operating income in the fourth quarter of 2025 was $41.8 million. Fourth quarter 2024 Water Systems operating income was $35.6 million.

Distribution net sales were $161.6 million, an increase of $4.4 million or 3 percent compared to the fourth quarter of 2024. Sales increases were driven by higher volumes and price realization. The Distribution segment operating income in the fourth quarter 2025 was $5.3 million. Fourth quarter 2024 Distribution operating income was $0.5 million.

Energy Systems net sales were $74.7 million in the fourth quarter 2025, an increase of $5.9 million or 9 percent compared to the fourth quarter 2024. Sales increases were driven by higher volumes and price realization. Energy Systems operating income in the fourth quarter of 2025 was $22.6 million. Fourth quarter 2024 Energy Systems operating income was $24.7 million.

Cash Flow

The Company ended 2025 with a cash balance of $99.7 million, a decrease of $120.9 million compared to the end of 2024. Net cash flows from operating activities for 2025 were $238.9 million versus $261.4 million in the same period in 2024.

2026 Guidance

The Company expects its guidance for full year 2026 sales to be in the range of $2.17 billion to $2.24 billion and full year 2026 Adjusted Diluted EPS to be in the range of $4.40 to $4.60.

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 EndedTwelve Months Ended
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Net sales$506,855 $485,745 $2,131,250 $2,021,341 
Cost of sales335,363 321,505 1,375,325 1,304,061 
Gross profit171,492 164,240 755,925 717,280 
Selling, general, and administrative expenses119,593 117,846 486,231 470,136 
Restructuring expense280 3,360 716 3,499 
Operating income51,619 43,034 268,978 243,645 
Interest expense(2,541)(1,339)(10,641)(6,319)
Other income, net71 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 taxes48,641 40,735 194,650 231,847 
Income tax expense9,088 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 
Earnings 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, 2025December 31, 2024
ASSETS
Cash and cash equivalents$99,662 $220,540 
Receivables (net)247,511 226,826 
Inventories552,981 483,875 
Other current assets58,472 32,950 
Total current assets958,626 964,191 
Property, plant, and equipment, net252,164 223,566 
Lease right-of-use assets, net67,867 62,637 
Goodwill and other assets665,728 570,212 
Total assets$1,944,385 $1,820,606 
LIABILITIES AND EQUITY
Accounts payable$174,954 $157,046 
Accrued expenses and other current liabilities116,747 139,989 
Current lease liability20,518 18,878 
Current maturities of long-term debt and short-term borrowings31,827 117,814 
Total current liabilities344,046 433,727 
Long-term debt135,184 11,622 
Long-term lease liability46,481 43,304 
Deferred income taxes39,275 10,193 
Employee benefit plans22,833 29,808 
Other long-term liabilities29,541 22,118 
Redeemable noncontrolling interest1,657 1,224 
Total equity1,325,368 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)
Twelve Months Ended
(In thousands)
December 31, 2025December 31, 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 amortization62,875 56,073 
Pension settlement loss, net of tax41,454 — 
Non-cash lease expense22,489 21,438 
Share-based compensation13,196 12,061 
Other(445)(13,327)
Changes in assets and liabilities:
Receivables11,417 (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)
Other5,887 19,369 
Net cash flows from operating activities238,878 261,353 
Cash flows from investing activities:
Additions to property, plant, and equipment(45,337)(41,682)
Proceeds from sale of property, plant, and equipment2,856 1,182 
Acquisitions and investments(114,664)(5,201)
Other investing activities20 73 
Net cash flows from investing activities(157,125)(45,628)
Cash flows from financing activities:
Net change in debt18,694 29,235 
Payment of debt issuance costs(974)— 
Proceeds from issuance of common stock5,321 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 period220,540 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
(in millions)United States & CanadaLatin AmericaEurope, Middle East & AfricaAsia PacificTotal WaterEnergyDistributionOther/ElimsConsolidated
Q4 2024$158.5 $44.3 $49.7 $27.1 $279.6 $68.8 $157.2 $(19.9)$485.7 
Q4 2025$152.5 $57.0 $53.4 $28.7 $291.6 $74.7 $161.6 $(21.0)$506.9 
Change$(6.0)$12.7 $3.7 $1.6 $12.0 $5.9 $4.4 $(1.1)$21.2 
% Change(4)%29 %%%%%%%
Foreign currency translation, net*$0.1 $2.6 $2.5 $(0.1)$5.1 $0.1 $— $5.2 
% Change— %%%— %%— %— %%
Acquisitions$0.7 $11.7 $— $2.5 $14.9 $— $— $14.9 
% Change— %26 %— %%%— %— %%
Volume/Price$(6.8)$(1.6)$1.2 $(0.8)$(8.0)$5.8 $4.4 $(1.1)$1.1 
% Change(4)%(4)%%(3)%(3)%%%%— %

Net Sales For the Full Year
(in millions)United States & CanadaLatin AmericaEurope, Middle East & AfricaAsia PacificTotal WaterEnergyDistributionOther/ElimsConsolidated
FY 2024$708.5 $170.9 $211.4 $93.2 $1,184.0 $273.7 $685.5 $(121.9)$2,021.3 
FY 2025$732.7 $204.7 $218.1 $100.9 $1,256.4 $299.0 $700.7 $(124.8)$2,131.3 
Change$24.2 $33.8 $6.7 $7.7 $72.4 $25.3 $15.2 $(2.9)$110.0 
% Change%20 %%%%%%%
Foreign currency translation, net*$(1.5)$(2.4)$3.2 $(1.8)$(2.5)$— $— $(2.5)
% Change— %(1)%%(2)%— %— %— %— %
Acquisitions$4.2 $38.6 $— $9.3 $52.1 $— $— $52.1 
% Change%23 %— %10 %%— %— %%
Volume/Price$21.5 $(2.4)$3.5 $0.2 $22.8 $25.3 $15.2 $(2.9)$60.4 
% Change%(1)%%— %%%%%%
*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
WaterEnergyDistributionOther/ElimsConsolidated
Operating Income/(Loss)$41.8 $22.6 $5.3 $(18.1)$51.6 
% Operating Income To Net Sales14.3 %30.3 %3.3 %10.2 %
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 Full Year of 2025
WaterEnergyDistributionOther/ElimsConsolidated
Operating Income/(Loss)$207.2 $99.1 $39.8 $(77.2)$268.9 
% Operating Income To Net Sales16.5 %33.1 %5.7 %12.6 %
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 %

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 $3.86 (17)%
Pension Settlement$(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

How did Franklin Electric (FELE) perform in the fourth quarter of 2025?

Franklin Electric’s fourth quarter 2025 net sales were $506.9 million, up from $485.7 million in 2024. Operating income rose to $51.6 million and diluted EPS increased to $0.87 from $0.72, reflecting stronger profitability and higher margins.

What were Franklin Electric (FELE) full-year 2025 sales and earnings?

For 2025, Franklin Electric reported $2.1 billion in net sales versus $2.0 billion in 2024. Operating income increased to $269.0 million, while GAAP diluted EPS declined to $3.22. Adjusted diluted EPS, excluding pension and restructuring items, rose to $4.14 from $3.92.

How did Franklin Electric’s (FELE) business segments perform in 2025?

In 2025, Franklin Electric achieved net sales growth in all segments. Water Systems sales reached $1,256.4 million, up 6%. Energy Systems sales were $299.0 million, up 9%, while Distribution delivered $700.7 million, up 2%. Each segment contributed to overall revenue expansion.

What impact did the pension plan termination have on Franklin Electric (FELE) 2025 results?

Franklin Electric terminated its US Pension Plan, recording a pre-tax settlement charge of $54.9 million, or about $41.5 million net of tax. This reduced full-year EPS by approximately $0.91 per share, driving GAAP EPS down even as adjusted EPS increased.

What guidance did Franklin Electric (FELE) provide for 2026?

For full year 2026, Franklin Electric expects net sales between $2.17 billion and $2.24 billion. The company also projects adjusted diluted EPS in the range of $4.40 to $4.60, reflecting anticipated further earnings growth if its strategic initiatives progress as planned.

How did Franklin Electric’s (FELE) margins change in 2025?

Franklin Electric’s operating margin improved in 2025. Consolidated operating margin rose to 12.6% from 12.1% in 2024. In the fourth quarter, operating margin increased to 10.2% from 8.9%, supported by pricing actions, acquisitions, and transformation efforts across its segments.

What was Franklin Electric’s (FELE) cash flow and cash position at the end of 2025?

Net cash flows from operating activities were $238.9 million in 2025, down from $261.4 million in 2024. After investing and financing activities, including acquisitions and share repurchases, Franklin Electric ended 2025 with $99.7 million in cash and cash equivalents.

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