Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q3 2025 Earnings Presentation
19 slides from Franklin Electric's earnings presentation, Oct 28, 2025
Slide 1: Q3 2025 Earnings Presentation
Q3 2025 Earnings Presentation October 28, 2025
Slide 2: Key Messages
Key Messages • Strong Q3 results in all three segments with both price and volume • Sales growth across end markets • Healthy Q3 order trends and backlog. A positive 2025 outlook • Disciplined strategy execution led to solid growth in a softer markets • Investing for growth while maintaining strong
Slide 3: Our People, Promise, and Commitment
Our People, Promise, and Commitment To our employees: To our customers: For our products: Being a great place Leading with Innovating with to work and service and being quality products in attracting the best an indispensable the markets we talent partner serve 2025 2024 2025 2024 Most America’s Ame
Slide 4: Q3 2025 Overview
Q3 2025 Overview ¹ SALES $582M • Financial Performance: $531M − Sales of $581.7M, up 9% YoY +9% YoY − Gross Margin of 35.9%, up slightly Q3 2024 Q3 2025 − Operating income of $85.1M, up 16% YoY, with operating margin of 14.6% OPERATING INCOME $85M − GAAP EPS of $0.37, Adjusted EPS of $1.30, up 11% Y
Slide 5: Q3 2025 Adjusted EPS
Q3 2025 Adjusted EPS ¹ $0.93 $1.30 $1.17 8% 11% YoY YoY +11% $0.37 Q3 2025 Reported EPS Pension Settlement Loss Adjusted Q3 EPS Q3 2024 EPS 1 Non-GAAP financial metrics referenced in this slide include Adjusted EPS, net debt/cash, free cash flow, and net debt to EBITDA. A reconciliation to comparabl
Slide 6: Q3 2025 Performance
Q3 2025 Performance SALES OPERATING INCOME $19M $16M $1M $582M $0M $85M ($8M) $33M $74M 9% 16% YoY YoY $531M 6% 3% (0%) 13.8% 10% (6%) (0%) 14.6% Q3 2024 Volume/Price Acquisitions FX, net Q3 2025 Q3 2024 Gross Profit SG&A Restructuring Q3 2025 Sales of $581.7M increased 9% YoY Operating Income of $8
Slide 7: Segment Details
Q2 2025 Segment Details Sales Op. Income Op. Margin Comments WATER SYSTEMS • Record revenue with Water Treatment up MSD, Dewatering sales up >20% $340.8M $61.8M 18.1% • Gross margin down mainly due to one-time purchase accounting from recent (up 8%) (down 1%) (down 160 bps) acquisitions and sales mi
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow¹ Free Cash Flow Cash Flow From Operations $103M $123M $151M Cash Balance $135M $107M $101M Net Debt 0.4x Net Debt to EBITDA 0.0M No Shares repurchased in Q3 Q3 2024 Q3 2025 Q3 2024 Q3 2025 1 Non-GAAP financial metrics referenced in this slide include net debt/cash, free c
Slide 9: 2025 Outlook
2025 Outlook HIGHLIGHTS • Maintaining the midpoint of our EPS guidance, narrowing our range SALES • Solid underlying demand in core markets, healthy demand trend, solid backlog $2.09 to $2.15 Billion (up LSD to MSD) • Maintaining strong margins • Tariff management and mitigation protecting margins E
Slide 10: 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 REVENUE 55% • Serve global water needs • Expand Franklin Operating • Strategic M&A driven by • Build on our “Great Places
Slide 11: Water Pressure Boosting
Water Pressure Boosting Market Pain Points New Released Line Refining Channel Approach Sprawling municipal Standard Easy-to-Use Interface Prioritizing End Users 1) Understand Needs & Pain Points infrastructure is degrading 2) Generate Pull-through Demand water pressure in new & VR SpecPAK existing b
Slide 12: Izmir Factory Expansion
Izmir Factory Expansion Investment: • $10M Investment to support Water & Energy businesses regional growth • New factory will support Water, refurbished legacy factory to support Energy Capacity: • ~130k sqft new manufacturing space • Serve our growing business in East Europe and the Middle East Go-
Slide 13: Closing Thoughts
Closing Thoughts • Strong Q3, all businesses performing well both volume and Price • We have opportunities to further our transformation • Solid backlog and book to bill • Maintaining our EPS guidance, tightening range, we expect a strong year • Mitigation strategies in place to offset tariff impact
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations 14
Slide 15: 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 16: Reconciliation of Adjusted EPS Non-GAAP Financial Measure
Reconciliation of Adjusted EPS Non-GAAP Financial Measure For the Third Quarter 2025 2024 Change Diluted Earnings per Share "EPS" (as reported - US GAAP) $ 0.37 $ 1.17 -68% Pension Settlement Loss $ 0.93 $ - Adjusted Diluted EPS (non-GAAP) $ 1.30 $ 1.17 11% 16
Slide 17: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Total Debt to Net Debt (Cash) and Net Debt to EBITDA $ in Millions As of September 30, 2025 Total debt $ 204 Less: cash and cash equivalents $ (103) Net (cash) debt $ 101 Nine months ended Year ended Nine months ended Twelve months ended September 30, 202
Slide 18: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in Millions 2025 2024 Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD Cash flows from operating activities $ (19.5) $ 51.5 $ 102.7 $ 134.7 $ (1.4) $ 36.4 $ 116.1 $ 151.1 Cash flows from investing activities $ (116.1) $ (11.2) $ (9.8) $ (
Slide 19: Thank You!
Thank You! Jennifer Wolfenbarger CFO InvestorRelations@FELE.com 260-827-5520 19