Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q4 2024 Earnings Presentation
20 slides from Franklin Electric's earnings presentation, Feb 18, 2025
Slide 1: Q4 2024 Earnings Presentation
l ING FORWARD. Q4 2024 Earnings Presentation @ Franklin Electric February 2025
Slide 2: Safe Harbor Statement
} Franklin Electric 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, prof
Slide 3: Key Messages
< Q > Franklin Electric 4 Key Messages Global portfolio proving resilient despite macroeconomic uncertainty * Transitioned the name of Fueling Systems segment to Energy Systems Healthy Q4 order trends and a positive 2025 outlook Strategy execution: * Addressing water needs where most critical * Serv
Slide 4: Our People, Promise, and Commitment
To our employees: Being a great place to work and attracting the best talent tI AMERICA'S MOST RESPONSIBLE ‘COMPANIES 2024 Our People, Promise, and Commitment To our customers: Leading with service and being an indispensable partner tI most TRUSTWORTHY | COMPANIES: IN AMERICA 2024 For our products:
Slide 5: Q4 2024 Overview
& Franklin Electric 4 Q4 2024 Overview SALES ¢ Financial Performance: * Sales of $485.7M, up 3% YoY oy | * Operating income of $43.0M, down 15% YoY, with operating 4.2023 42024 margin of 8.9% GAAP EPS of $0.72, down 12% YoY * Solid performance despite macroeconomic challenges Bo $43.0M ¢ Strong oper
Slide 6: Q4 and FY 2024 Performance Overview
q Q > Franklin Electric 4 Q4 and FY 2024 Performance Overview Sales Operating Income Overview Flat sales, favorable acquisition, challenged FX $279.6M Q4 (flat) $35.6M Q4 (down 19%) Solid growth outside of dewatering business for the full year $1.18B FY (-2%) $197.9M FY (up 1%) Income down in Q4, up
Slide 7: Q4 2024 FELE Performance
q Q > Franklin Electric 4 Q4 2024 FELE Performance $80 $4.2 #50 sso Bi $50 $500 $13.1 7A $485.7 $43.0 5: —— E -$9.0 | eee 8 $473.0 "37.5 a5 "$3.0 $450 30 $400 7 Up 3% Down 15% $350 YoY $20 YoY $300 $10 $20 =~ — $0 ($m) Q42023 =Volume/Price Acquisitions FX Q4 2024 ($m) Q4 2023 Gross profit SG&A Restr
Slide 8: Q4 2024 Segment Details
q Q > Franklin Electric 4 Q4 2024 Segment Details Sales Op.Income Op. Margin Comments Sales of large dewatering equipment down from record 2023 levels + Allother product categories up compared to the prior year + Gross margin unfavorable due to geographic mix and unfavorable FX * Cost structure acti
Slide 9: Balance Sheet and Cash Flow
@ Frantdin Electric = aa : = vy = Balance Sheet and Cash Flow {in Millions USD) Twelve Months Ended Dec. 31, 2024 2023 [Net debt, beginning of period $ (15.5)] [Net income $ 1816 $ 194.7] Free cash flow 220.9 Acquisitions (7.8) Depreciation and amortization 56.1 52.3 Dividends paid (46.9) Share-base
Slide 10: 2025 Outlook
(9 Franklin Electric LSD = Low-single digits, MSD =mid-single digs, HSD = high-singledigits, LOO =low-double cats 2025 Outlook SALES $2.09 to $2.15 Billion (up LSD to MSD) EPS $4.05 to $4.25 (up MSD to HSD/LDD) Solid underlying demand in core markets Maintaining strong margins Managing through on-go
Slide 11: Value Creation Framework and Business Segments
At Franklin (NASDAQ: FELE), 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™. R VALUE CREATION FRAMEWORK UR BUSINESS SEGMENTS Franklin E
Slide 12: Capital Allocation Performance & Priorities
< Q > Franklin Electric 4 Capital Allocation Performance & Priorities RETURN TO EXECUTE M&A REINVEST IN BUSINESS MANAGE LEVERAGE SHAREHOLDERS « Acquisitions remain atop * Target Organic CAGR above * Target net debt of less than * 33 years of increasing priority market 2.5-3.0X EBITDA dividends « Acc
Slide 13: Sustainability & Electrification
(9 Franklin Electric Sustainability & Electrification 6x Critical Minerals Urbanization & Aging Infrastructure Construction & Sewer Bypass Strong Growth End Markets: 24% OpEx Mining, Municipal, Commercial & Industrial Minetuff® Series Pumps +86% +50% Backlog YoY; 16% New Cust. Sales ElectricPAK™ +88
Slide 14: Moving Water. Moving Energy. Moving Forward.
q Q > Franklin Electric 4 Moving Water. Moving Energy. Moving Forward. At Franklin, responsible innovation and sustainable manufacturing combine with an unwavering commitment to service to move and protect the world's most critical resources. We will: * Continue to attract the best talent and make F
Slide 15: Non-GAAP Reconciliations
@ Franklin Electric Non-GAAP Reconciliations
Slide 16: Non-GAAP Reconciliations
} Franklin Electric 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 princ
Slide 17: Total Debt to Net (Cash) Debt and Net Leverage
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Total Debt to Net (Cash) Debt and Net Leverage Total debt Less: cash and cash equivalents Net (cash) debt Net income Depreciation and amortization Income tax expense Interest expense EBITDA Net leverage $ in Millions As of Decemb
Slide 18: Return on Invested Capital (ROIC)
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Return on Invested Capital (ROIC) $ in Millions Net Operating Income After Tax Operating income Income tax on operating income Net operating income after tax (A) Total Invested Capital Current maturities of long-term debt and sho
Slide 19: Operating Cash Flow to Free Cash Flow
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in Millions Year Ended December 31, 2024 2023 Cash flows from operating activities $ 261.4 $ 315.7 Cash flows from investing activities Ss. (45.6) $ (74.3) Cash flows from financing activit
Slide 20: Thank You!
Thank You! | e ‘ om \ Jeffery L. Taylor, VP, CFO | InvestorRelations@FELE.com 260-827-5520 | dj