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Franklin Electric Reports First Quarter 2025 Results
Источник: Nasdaq GlobeNewswire / 29 апр 2025 08:00:06 America/New_York
First Quarter 2025 Highlights
- Consolidated net sales of $455.2 million, a decrease of 1% to the prior year
- Energy Systems net sales increased 8% while Water Systems net sales were up less than 1% and Distribution net sales declined 3%
- Operating income was $44.1 million with operating margin of 9.7%
- GAAP fully diluted earnings per share (EPS) was $0.67
FORT WAYNE, Ind., April 29, 2025 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its first quarter financial results for fiscal year 2025.
First quarter 2025 net sales were $455.2 million, compared to first quarter 2024 net sales of $460.9 million. First quarter 2025 operating income was $44.1 million, compared to first quarter 2024 operating income of $47.9 million. First quarter 2025 EPS was $0.67, versus EPS in the first quarter 2024 of $0.70.
“Our underlying businesses performed largely as expected in the first quarter. Order trends remain positive, supporting a robust backlog as we enter the second quarter. Furthermore, strong performance in our Energy Systems segment helped offset unfavorable weather impacting our Distribution business, underscoring the value of our diversified global portfolio. One-time expenses associated with our executive transition and recent acquisitions presented earnings headwinds during the quarter, but our operating strength was clear,” commented Joe Ruzynski, Franklin Electric’s CEO.
“During the quarter, we continued to invest in growth by completing two acquisitions, in line with our value creation framework. We look forward to deploying our integration playbook and enhancing the margin profiles of these great businesses. Despite uncertainty in the macroeconomic environment and potential tariffs, we are confident in Franklin Electric’s competitive position with strong brands, leading service, and a healthy operating footprint as we continue to execute our strategic priorities,” concluded Mr. Ruzynski.
Segment Summaries
Water Systems net sales were $287.3 million in the first quarter, an increase of $0.7 million or less than 1 percent compared to the first quarter of 2024. Results were driven by the incremental sales impact of recent acquisitions and higher sales of groundwater products, water treatment products and large dewatering pumps. These sales increases were partially offset by the negative impact of foreign currency translation and lower sales of all other surface products. Water Systems operating income in the first quarter of 2025 was $43.4 million. First quarter 2024 Water Systems operating income was $47.1 million.
Distribution net sales were $141.9 million, a decrease of $5.1 million or 3 percent compared to the first quarter 2024. Sales decreases were driven by lower volumes and continued negative pricing. The Distribution segment operating income in the first quarter 2025 was $2.1 million. First quarter 2024 Distribution operating income was $1.8 million.
Energy Systems net sales were $66.8 million in the first quarter 2025, an increase of $4.7 million or 8 percent compared to the first quarter 2024. Sales increases were driven by higher volumes and price realization. Energy Systems operating income in the first quarter of 2025 was $21.9 million. First quarter 2024 Energy Systems operating income was $18.8 million.
Cash Flow
Net cash flows used in operating activities for the first quarter of 2025 were $19.5 million versus $1.4 million in the same period in 2024.
2025 Guidance
The Company is maintaining its guidance for full year 2025 sales to be in the range of $2.09 billion to $2.15 billion and reducing the low end of its earnings guidance and now expects full year 2025 EPS to be in the range of $3.95 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 first 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/yzximy3p
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/BI5cb1cdcef9da4de38184396c5211b443
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, April 29, 2025, through 9:00 am ET on Tuesday, May 6, 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.
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:
Russ Fleeger
Franklin Electric Co., Inc.
InvestorRelations@fele.comFRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) First Quarter Ended March 31, 2025 March 31, 2024 Net sales $ 455,247 $ 460,900 Cost of sales 291,344 297,320 Gross profit 163,903 163,580 Selling, general, and administrative expenses 119,643 115,644 Restructuring expense 159 - Operating income 44,101 47,936 Interest expense (1,799 ) (1,448 ) Other income, net 843 706 Foreign exchange expense, net (1,293 ) (4,880 ) Income before income taxes 41,852 42,314 Income tax expense 10,478 9,222 Net income $ 31,374 $ 33,092 Less: Net income attributable to noncontrolling interests (412 ) (133 ) Net income attributable to Franklin Electric Co., Inc. $ 30,962 $ 32,959 Earnings per share: Basic $ 0.67 $ 0.71 Diluted $ 0.67 $ 0.70 FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) March 31, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 83,994 $ 220,540 Receivables (net) 271,688 226,826 Inventories 560,338 483,875 Other current assets 40,627 32,950 Total current assets 956,647 964,191 Property, plant, and equipment, net 236,732 223,566 Lease right-of-use assets, net 60,294 62,637 Goodwill and other assets 675,199 570,212 Total assets $ 1,928,872 $ 1,820,606 LIABILITIES AND EQUITY Accounts payable $ 190,295 $ 157,046 Accrued expenses and other current liabilities 125,316 139,989 Current lease liability 18,688 18,878 Current maturities of long-term debt and short-term borrowings 149,730 117,814 Total current liabilities 484,029 433,727 Long-term debt 14,858 11,622 Long-term lease liability 41,382 43,304 Deferred income taxes 32,718 10,193 Employee benefit plans 30,046 29,808 Other long-term liabilities 24,544 22,118 Redeemable noncontrolling interest 1,373 1,224 Total equity 1,299,922 1,268,610 Total liabilities and equity $ 1,928,872 $ 1,820,606 FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended (In thousands) March 31, 2025 March 31, 2024 Cash flows from operating activities: Net income $ 31,374 $ 33,092 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 14,433 13,792 Non-cash lease expense 5,241 5,194 Share-based compensation 4,962 4,042 Other 1,080 4,036 Changes in assets and liabilities: Receivables (29,376 ) (43,365 ) Inventory (43,669 ) (28,105 ) Accounts payable and accrued expenses (3,744 ) 8,576 Operating leases (5,091 ) (5,305 ) Other 5,322 6,681 Net cash flows from operating activities (19,468 ) (1,362 ) Cash flows from investing activities: Additions to property, plant, and equipment (6,836 ) (9,184 ) Proceeds from sale of property, plant, and equipment 397 102 Acquisitions and investments (109,687 ) (1,151 ) Other investing activities 9 17 Net cash flows from investing activities (116,117 ) (10,216 ) Cash flows from financing activities: Net change in debt 20,366 11,397 Proceeds from issuance of common stock 1,438 4,050 Purchases of common stock (6,902 ) (9,047 ) Dividends paid (13,160 ) (12,395 ) Deferred payments for acquisitions (4,300 ) (348 ) Net cash flows from financing activities (2,558 ) (6,343 ) Effect of exchange rate changes on cash and cash equivalents 1,597 (1,728 ) Net change in cash and cash equivalents (136,546 ) (19,649 ) Cash and cash equivalents at beginning of period 220,540 84,963 Cash and cash equivalents at end of period $ 83,994 $ 65,314 Key Performance Indicators: Net Sales Summary
Net Sales United States Latin Europe, Middle Asia Total (in millions) & Canada America East & Africa Pacific Water Energy Distribution Other/Elims Consolidated Q1 2024 $172.7 $41.3 $52.3 $20.3 $286.6 $62.1 $147.0 ($34.8 ) $460.9 Q1 2025 $175.7 $39.5 $51.5 $20.6 $287.3 $66.8 $141.9 ($40.8 ) $455.2 Change $3.0 ($1.8 ) ($0.8 ) $0.3 $0.7 $4.7 ($5.1 ) ($6.0 ) ($5.7 ) % Change 2 % -4 % -2 % 1 % 0 % 8 % -3 % -1 % Foreign currency translation, net * ($1.3 ) ($3.6 ) ($1.2 ) ($1.0 ) ($7.1 ) ($0.2 ) $0.0 ($7.3 ) % Change -1 % -9 % -2 % -5 % -2 % 0 % 0 % -2 % Acquisitions $1.2 $3.1 $0.0 $1.4 $5.7 $0.0 $0.0 $5.7 % Change 1 % 8 % 0 % 7 % 2 % 0 % 0 % 1 % Volume/Price $3.1 ($1.3 ) $0.4 ($0.1 ) $2.1 $4.9 ($5.1 ) ($6.0 ) ($4.1 ) % Change 2 % -3 % 1 % 0 % 1 % 8 % -3 % -17 % -1 % *The Company has presented local currency price increases used to offset currency devaluation in the Argentina and Turkey highly inflationary economies within the foreign currency translation, net row above.
Key Performance Indicators: Operating Income and Margin Summary
Operating Income and Margins (in millions) For the First Quarter 2025 Water Energy Distribution Other/Elims Consolidated Operating Income / (Loss) $ 43.4 $ 21.9 $ 2.1 $ (23.3 ) $ 44.1 % Operating Income To Net Sales 15.1 % 32.8 % 1.5 % 9.7 % Operating Income and Margins (in millions) For the First Quarter 2024 Water Energy Distribution Other/Elims Consolidated Operating Income / (Loss) $ 47.1 $ 18.8 $ 1.8 $ (19.8 ) $ 47.9 % Operating Income To Net Sales 16.4 % 30.3 % 1.2 % 10.4 % 
