Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q1 2025 Earnings Presentation
18 slides from Franklin Electric's earnings presentation, Apr 29, 2025
Slide 1: Q1 2025 Earnings Presentation
MOVING WATER. MOVING ENERGY. MOVING FORWARD. be a Q1 2025 Earnings Presentation @ Franklin Electric 29 April 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
& Franklin Electric 4 Key Messages Global portfolio and business positioned well despite economic uncertainty Continued our strategy execution Healthy Q1 order trends and a positive 2025 outlook Completed two acquisitions to expand our reach and add great products to our portfolio Strong Energy resu
Slide 4: 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 | anindispensable the markets we talent partner serve pe =) 2025) ine pin 2024 S
Slide 5: Q1 2025 Overview
@ Frantain Electric amin . Y ie at 7 Wace Q1 2025 Overview SALES * Financial Performance: sesoan (2 aes * Sales of $455.2M, down 1% YoY nN * Gross Margin of 36%, up slightly Q1 2024 Q12025 * Operating income of $44.1M, down 8% YoY, with an operating margin of 9.7% OPERATING INCOME * GAAP EPS of $0.6
Slide 6: Q1 2025 Performance
q Q > Franklin Electric 4 Q1 2025 Performance 470 50 s : $47.9 $0.3 E 46 $460 $44.1 ee eC... sé a $455 -$4.1 "$7.3 $42 $450 $40 $445 $38 $36 $435 YoY ss YoY a — 3 — a ($M) Q1 2024 =Volume/Price Acquisitions FX Q1 2025 (gm) 12024 Gross Profit SG&A Restructuring Q1 2025 Sales of $455.2 Million Decline
Slide 7: Q1 2025 Segment Details
@ Frantdin Electric amin — : \. us Vv = Q1 2025 Segment Details Sales Op.Income Op. Margin Comments Water Treatment and Groundwater product categories up compared to the prior year + Gross margin unfavorable due to geographic mix, mix associated with recent acquisitions and unfavorable FX SG&A up du
Slide 8: Balance Sheet and Cash Flow
< Q > Franklin Electric 4 DEBT SUMMARY Balance Sheet and Cash Flow: CASH FLOW [Net Cash, Beginning of Period $914 Free Cash Flow (25.8) Cash paid for acquisitions, net of cash acquired (109.7) Debt assumed from acquisitions (12.6) Dividends paid (13.2) Proceeds from issuance of common stock 14 Repur
Slide 9: 2025 Outlook
(9 Franklin Electric 2025 Outlook SALES $2.09 to $2.15 Billion (up LSD to MSD) EPS $3.95 to $4.25 (up MSD to HSD/LDD) ledigits, MSD = mid-single digits, HSD = high-single digts, LOD =low-double digits Widening our EPS guidance Solid underlying demand in core markets, healthy demand trend Maintaining
Slide 10: 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 11: New Products, Vitality, and Velocity
& Franklin Electric 4 New Products, Vitality, and Velocity ¢ New product launches to increase by 40% with an incremental 3-year revenue of ~$73M ¢ Increasing New Product Velocity by decreasing time to launch by 100 days in 2025 @ Franklin Electric FUELING SYSTEMS Remote Control Solution with OVERSIT
Slide 12: Accelerating Growth Through Strategic Acquisitions
< Q > Franklin Electric 4 Accelerating Growth Through Strategic Acquisitions * People: 400 employees * Facilities: Colombia (foundry and manufacturing), Mexico / Argentina / Brazil (assembly), Guatemala / Panama / Ecuador / Peru / Chile (warehousing) * Key Markets: Construction, Firefighting, Agricu
Slide 13: Closing Thoughts
Closing Thoughts Continually improving our cost position, teams and execution Solid start to the year, especially our Energy Systems business Completed two acquisitions and solid backlog as we enter Q2 Widening our EPS guidance, but expect a strong year Mitigation strategies in place to offset tarif
Slide 14: Non-GAAP Reconciliations
@ Franklin Electric Non-GAAP Reconciliations
Slide 15: 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 16: Reconciliation of Non-GAAP Financial Measure
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Total Debt to Net Debt (Cash) and Net Debt to EBITDA $ in Millions As of December 31, 2024 As of March 31, 2025 Total debt $ 129.4 $ 164.6 Less: cash and cash equivalents (220.5) (84.0) Net (cash) debt $ (91.1) $ 80.6 Three month
Slide 17: Reconciliation of Non-GAAP Financial Measure
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $in Millions Three Months Ended March 31, 2025 2024 2023 2022 2021 Cash flows from operating activities $ (19.5) § (1.4) $ (12.0) $ (61.3) $ 5.4 Cash flows from investing activities $ (116.1)
Slide 18: Thank You!
Thank You! « = as g \ Russ Fleeger, Interim CFO InvestorRelations@FELE.com | 260-827-5520 | dj