Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q2 2025 Earnings Presentation
17 slides from Franklin Electric's earnings presentation, Jul 29, 2025
Slide 1: Q2 2025 Earnings Presentation
Q2 2025 Earnings Presentation 29 July 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: Key Messages
Key Messages • Strong Q2 results in all three segments with both price and volume • Record Sales, Operating Income and Earnings per Share • Healthy Q3 order trends and backlog. A positive 2025 outlook • Strategy execution led to solid growth in a softer markets • Well-positioned in the face of tarif
Slide 4: Our People, Promise, and Commitment
Our People, Promise, and Commitment To our To our For our employees: customers: products: Being a great Leading with Innovating with place to work and service and being quality products Jennifer Wolfenbarger Daniela Williams attracting the an indispensable in the markets we Chief Financial Officer C
Slide 5: Q2 2025 Overview
Q2 2025 Overview SALES $543 M $587M • Financial Performance: − Sales of $587.4M, up 8% YoY +8% YoY − Gross Margin of 36.1%, down slightly − Operating income of $88.1M, up 11% YoY, with operating Q2 2024 Q2 2025 margin of 15.0% OPERATING INCOME − GAAP EPS of $1.31, up 4% YoY $79M $88M • Solid perform
Slide 6: Q2 2025 Performance
Q2 2025 Performance SALES OPERATING INCOME $15M $587M $12M $88M ($1M) $30M ($3M) ($0M) $79M $543M 8% 11% YoY YoY 5% 3% (0%) 14.6% 15% (4%) (0%) 15.0% Q2 2024 Volume/Price Acquisitions FX, net Q2 2025 Q2 2024 Gross Profit SG&A Restructuring Q2 2025 Sales of $587.4M increased 8% YoY Operating Income o
Slide 7: Q2 2025 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 $105M Cash Balance $40M $52M $180M $36M Net Debt $26M 0.6x Net Debt to EBITDA 1.4M Shares repurchased in Q2 totaling $120.3M Q2 2024 Q2 2025 Q2 2024 Q2 2025 1 Non-GAAP financial metrics referenced in this slide include net debt/ca
Slide 9: 2025 Outlook
2025 Outlook HIGHLIGHTS • Maintaining our EPS guidance • Solid underlying demand in core SALES 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 EPS • Maintaining strong balance sheet
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: Market intimacy, Leading Innovation
Market intimacy, Leading Innovation AN ALL-IN-ONE FUEL MONITORING SYSTEM SOLUTION AT THE PRICE OF JUST A CONSOLE Market Need Franklin Electric Solution • A sizable portion of the market • EVO ONE is an all-in-one, right sized relies on outdated technology for fuel management solution(including fuel
Slide 12: Closing Thoughts
Closing Thoughts • Strong Q2, all businesses performing well • We have opportunities to further our transformation • Solid backlog and book to bill • Maintaining our EPS guidance, we expect a strong year • Mitigation strategies in place to offset tariff impacts • Continued confidence in our long-ter
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations 13
Slide 14: 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 15: 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 15
Slide 16: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in Millions 16
Slide 17: Thank You!
Thank You! Jennifer Wolfenbarger CFO InvestorRelations@FELE.com 260-827-5520