Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q4 2025 Earnings Presentation
21 slides from Franklin Electric's earnings presentation, Feb 17, 2026
Slide 1: Q4/FY 2025 Earnings Presentation
Q4/FY 2025 Earnings Presentation February 17, 2026
Slide 2: Q4 and 2025 Key messages
Q4 and 2025 Key messages • Strong Q4 & FY results in all three segments • Sales growth across end markets. Good pricing discipline and execution. • Disciplined strategy execution led to solid growth in softer markets. • Healthy Q4 order trends and backlog. A positive 2026 outlook. • Another year of
Slide 3: 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 $2.131B 31% REVENUE 56% Strong revenue with all Key margin improvement Key acquisitions (Barnes Key executive adds and segment
Slide 4: FY 2025 Adjusted EPS Performance
FY 2025 Adjusted EPS Performance ¹ $0.91 $0.01 $4.14 • FY EPS Performance: $3.92 − Sales of $2,131M, up 5% YoY − Gross Margin of 35.9%, flat $3.22 8% − Operating income of $268.9M, up 10% YoY, with 11% YoY operating margin of 12.6% YoY +6% − Interest Expense up $4.3M or 68% YOY − Tax Rate 23.6%, up
Slide 5: Q4 2025 Performance
Q4 2025 Performance SALES OPERATING INCOME $3M $52M $7M $5M $507M ($2M) $15M 4% $43M 20% $486M $1M YoY YoY 0% 3% 1% 8.9% 17% (4%) 7% 10.2% Q4 2024 Volume/Price Acquisitions FX, net Q4 2025 Q4 2024 Gross Profit SG&A Restructuring Q4 2025 Sales of $506.9M increased 4% YoY Operating Income of $51.6M in
Slide 6: FY 2025 Performance
FY 2025 Performance SALES OPERATING INCOME $39M $52M $2,131M ($3M) $3M $269M $60M ($16M) 5% 10% YoY $244M YoY $2,021M 3% 3% (0%) 12.1% 16% (7%) 1% 12.6% FY 2024 Volume/Price Acquisitions FX, net FY 2025 FY 2024 Gross Profit SG&A Restructuring FY 2025 Sales of $2,131.3M increased 5% YoY Operating Inc
Slide 7: Q4 2025 Segment Details
Q4 2025 Segment Details Sales Op. Income Op. Margin Comments WATER SYSTEMS • Record revenue with growth of 4% $291.6M $41.8M 14.3% • Gross margin up (up 4%) (up 17%) (up 160 bps) • SG&A up due to acquisition-related expenses & intangible amortization ENERGY SYSTEMS $74.7M $22.6M 30.3% • Sales growth
Slide 8: Water Systems FY 2025 Performance
Water Systems FY 2025 Performance SALES OPERATING INCOME $52M $1,256M $24M ($3M) $2M $207M $23M $198M $1,184M 6% ($17M) 5% YoY YoY 2% 4% (0%) 16.7% 12% (8%) 1% 16.5% FY 2024 Volume/Price Acquisitions FX, net FY 2025 FY 2024 Gross Profit SG&A Restructuring FY 2025 Sales of $1,256.4M increased 6% YoY
Slide 9: Energy FY 2025 Performance
Energy FY 2025 Performance SALES OPERATING INCOME $25M $0M $0M $299M $6M $0M $99M $94M ($1M) 9% 6% $274M YoY YoY 9% 0% (0%) 34.2% 7% (1%) 0% 33.1% FY 2024 Volume/Price Acquisitions FX, net FY 2025 FY 2024 Gross Profit SG&A Restructuring FY 2025 Sales of $299.0M increased 9% YoY Operating Income of $
Slide 10: Distribution FY 2025 Performance
Distribution FY 2025 Performance SALES OPERATING INCOME $5M $0M $40M $10M $15M $0M $0M $701M $686M 64% 2% $24M YoY YoY 2% 0% (0%) 3.5% 42% 21% 1% 5.7% FY 2024 Volume/Price Acquisitions FX, net FY 2025 FY 2024 Gross Profit SG&A Restructuring FY 2025 Sales of $700.7M increased 2% YoY Operating Income
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow¹ Free Cash Flow Cash Flow From Operations $100M $221M $261M Cash Balance $196M $239M $67M Net Debt $151M $135M $98M 0.3x $89M Net Debt to EBITDA 0.35M Shares repurchased in Q4 Q4 2024 Q4 2025 FY 2024 FY 2025 Q4 2024 Q4 2025 FY 2024 FY 2025 1 Non-GAAP financial metrics ref
Slide 12: 2026 Outlook
2026 Outlook HIGHLIGHTS • Top line growth despite ongoing soft macroeconomic environment (housing SALES market, interest rates) • Solid underlying demand in core markets, $2.17 to $2.24 Billion healthy demand trend, solid backlog (up LSD to MSD) • Expanding margins • Tariff management and mitigation
Slide 13: Attractive Investment Opportunity
Attractive Investment Opportunity End-Market • Great businesses in attractive markets ~15% Muni. & Util. ~44% • Leading innovation and service to drive ~14% Residential above market growth Energy $2.1B • Resilient margins with key ~12% Agri. Revenue transformation driving sustainable ~15% Expansion
Slide 14: Closing Thoughts
Closing Thoughts • Strong 2025, all businesses performing well despite challenging markets • Value Acceleration Office will bring productivity and efficiency • Solid backlog and book to bill • Another year of growth and margin expansion in ‘26, we expect a strong year • Mitigation strategies in plac
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations 15
Slide 16: 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 17: Reconciliation of Adjusted EPS Non-GAAP Financial Measure
Reconciliation of Adjusted EPS Non-GAAP Financial Measure For the Fourth Quarter For the Full Year of 2025 2024 Change 2025 2024 Change Diluted Earnings per Share "EPS" $ 0.87 $ 0.72 21% $ 3.22 $ 3.86 -17% Pension Settlement $ (0.01) $ - $ 0.91 $ - Restructuring $ 0.01 $ 0.06 $ 0.01 $ 0.06 Adjusted
Slide 18: 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 December 31, 2025 Total debt $ 167 Less: cash and cash equivalents $ (100) Net (cash) debt $ 67 Twelve months ended Year ended December 31, 2025 December 31, 2024 Net income $ 149 $
Slide 19: 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 Q4 YTD Q1 Q2 Q3 Q4 YTD Cash flows from operating activities $ (19.5) $ 51.5 $ 102.7 $ 84.7 $ 238.9 $ (1.4) $ 36.4 $ 116.1 $ 110.3 $ 261.4 Cash flows from investing activities $ (116.1)
Slide 20: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Cash Conversion $ in Millions For the Full Year of 2025 2024 Net Cash Flows from Operating Activities $ 238.9 $ 261.4 Net Income $ 148.7 $ 181.6 Pension Settlement, net of tax $ 41.5 $ - Restructuring, net of tax $ 0.5 $ 2.6 Net Income for Cash Conversion
Slide 21: Thank You!
Thank You! Jennifer Wolfenbarger CFO InvestorRelations@FELE.com 260-827-5520 Dean Cantrell, Director IR 21