Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q1 2025 Earnings Presentation
25 slides from Franklin Electric's earnings presentation, Apr 29, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement "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, inventor
Slide 3: Our Strategic Focus
Our Strategic Focus At Franklin Electric, we protect the world's most critical resources. Using responsible innovation and sustainable manufacturing, we serve as an indispensable partner to our customers who work alongside us to keep Moving Life Forward . 3
Slide 4: Investment Highlights
Investment Highlights1 Leading market position in groundwater pumping systems Track record of consistent organic growth across segments Advantageous global footprint to extend leadership and capture revenue in developing markets Strong balance sheet in a net debt-to-EBITDA ~0.3x¹ with opportunity fo
Slide 5: Our Value Creation Framework
OUR VALUE CREATION FRAMEWORK OUR VALUE CREATION FRAMEWORK (2027) OUR BUSINESS SEGMENTS 13% GROWTH ACCELERATION RESILIENT MARGINS INVESTMENTS & CAPITAL TALENT CENTRIC 32% $2.021B 55% REVENUE • Serve global water needs • Expand Franklin Operating • Strategic M&A driven by • Build on our “Great Places
Slide 6: Capital Allocation Performance & Priorities
Capital Allocation Performance & Priorities¹ RETURN TO EXECUTE M&A REINVEST IN BUSINESS MANAGE LEVERAGE SHAREHOLDERS • Acquisitions remain a top • Target Organic CAGR above • Target net debt of less than • 33 years of increasing priority market 2.5-3.0X EBITDA dividends • Accretive to EPS in less th
Slide 7: Growth in Dewatering is Strong
Growth in Dewatering is Strong Macro Tailwinds Demonstrated Success We Want More Minetuff® Series Pumps +86% Exposure to OpEx Mining +50% Backlog YoY; 16% New Cust. Sales Underground Expertise; Sustainability & Electrification Outgrowing Open-Pit 6x Critical Minerals ElectricPAK +88% Innovative Modu
Slide 8: Accelerating Growth Through Strategic Acquisitions
Accelerating Growth Through Strategic Acquisitions • Location: Cota, Cundinamarca – Colombia (Bogotá Region) • People: 400 employees • Facilities: Colombia (foundry and manufacturing), Mexico / Argentina / Brazil (assembly), Guatemala / Panama / Ecuador / Peru / Chile (warehousing) • Key Markets: Co
Slide 9: Franklin Electric Segment Overview (Revenue FY 2024)
Franklin Electric Segment Overview (Revenue FY 2024) WATER SYSTEMS DISTRIBUTION ENERGY SYSTEMS $1,184M (55%) $686M (32%) $274M (13%) CONDENSATE & OTHER INDUSTRIAL GROUNDWATER 18% WATER FUELING WELL HARDWARE 49% LARGE 78% DEWATERING 12% CRITICAL ASSET ACCESSORIES WASTEWATER DRILLING WATER TREATMENT G
Slide 10: Global Footprint
Global Presence & Opportunity On a daily basis, the world uses… ~3 Trillion gallons of fresh water gallons of ~1 Billion fuel To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, and controls daily Global Footprint ~6,500 employees ~20 countries 6 continents Source: Franklin
Slide 11: Water Systems
Water Systems Water Transfer/Pumping Systems Water Treatment • Provider of high-quality water treatment systems, including softeners, iron filters, reverse osmosis drinking water systems, and more, for residential, commercial and industrial applications • A leading global provider of complete water
Slide 12: Distribution
Distribution Headwater Companies Companies Acquired The Leading Source in Water Systems Distribution Headwater Companies invests in and operates wholesale Footprint (90 Branches & 400+ OSI Locations) distribution companies serving professional contractors in residential, agricultural and commercial,
Slide 13: Energy Systems
Energy Systems Energy Systems Advantageous Position In Transitioning Market Leader in fuel pumping, containment, and monitoring and control systems Fuel Systems • Advances in petroleum piping and containment systems, electronic leak detection, and overfill protection enable providers to safely keep
Slide 14: Corporate Stewardship
Corporate Stewardship Our Vision Our Goal To be an indispensable partner to our customers To accomplish these objectives in ways that deliver value to our customers and shareholders Commitment to Safety Operational Integrity Promote a culture of continuous health and safety Ensuring proper practices
Slide 15: Financial Performance Summary
Financial Performance Summary 15
Slide 16: Financial Performance Summary
Financial Performance Summary2 Consolidated Sales ($M) $1,662 $2,044 $2,065 $2,021 13% 15% $1,247 NET REVENUE EPS CAGR CAGR FY2020-2024 FY2020-2024 2020 2021 2022 2023 2024 EPS $3.25 $3.97 $4.11 $3.86 16.0% $2.14 ROIC 1 2024 2020 2021 2022 2023 2024 1 ROIC based on after-tax calculation 2 Non-GAAP f
Slide 17: Cash Generation & Returns
Cash Generation & Returns⁴ Net Income ($M) Free Cash Flow ($M)1 $276 $189 $195 $182 $221 $155 $189 $101 $101 $60 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Free Cash Flow Conversion ROIC2 187% 17.2% 16.4% 16.0% 142% 13.8% 122% 12.6% 65% 32% 2020 2021 2022 3 20233 2024 2020 2021 2022 2023 2024
Slide 18: Performance by Segment
Performance by Segment1,2,3 WATER SYSTEMS DISTRIBUTION ENERGY SYSTEMS ⁴ NET SALES NET SALES NET SALES Q1 2025 YoY Q1 2025 YoY Q1 2025 YoY $287.3M flat $141.9M down 3% $66.8M up 8% (1% organic growth) (3% organic decline) (8% organic growth) Full Year 2024 YoY Full Year 2024 YoY Full Year 2024 YoY $1
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations 19 19
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations To supplement Franklin Electric’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United
Slide 21: Reconciliation of Non-GAAP Financial Measure: Net Leverage
Reconciliation of Non-GAAP Financial Measure Total Debt to Net (Cash) Debt and Net Leverage $ In millions 21
Slide 22: Reconciliation of Non-GAAP Financial Measure: ROIC
Reconciliation of Non-GAAP Financial Measure Return on Invested Capital (ROIC) $ In millions Net Operating Income After Tax 2024 2023 2022 2021 2020 Operating income $ 243.6 $ 262.4 $ 257.2 $ 189.2 $ 130.5 Income tax on operating income 56.0 52.5 54.0 37.8 27.9 Net operating income after tax (A) $ 1
Slide 23: Reconciliation of Non-GAAP Financial Measure: Free Cash Flow
Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in millions Year Ended December 31, 2024 2023 2022 2021 2020 Cash flows from operating activities $ 261.4 $ 315.7 $ 101.7 $ 129.8 $ 211.9 Cash flows from investing activities $ (45.6) $ (74.3) $ (43.1) $ (264.8) $ (
Slide 24: Reported Sales Growth to Organic Sales Growth
Reconciliation of Non-GAAP Financial Measure Reported sales growth to organic sales growth Net Sales Organic Growth % Growth as Reported Acquisitions % FX % %* Q1 2025 Consolidated (1) (1) 2 (1) Water - (2) 2 1 Energy 8 - - 8 Distribution (3) - - (3) Q4 YTD 2024 Consolidated (2) (2) 1 (3) Water (2)
Slide 25: Investor Relations Contact
Russ Fleeger, Interim CFO Franklin Electric Co., Inc. InvestorRelations@FELE.com 260-827-5520 25