Franklin Electric (FELE) investor relations material

Executive summary

• Achieved record consolidated sales and EPS in Q2 2025, with all segments posting organic growth and strong operational execution despite macroeconomic and tariff impacts.

• Net sales increased 8% in Q2 2025 to $587.4M, driven by higher volumes, price realization, and acquisitions, partially offset by negative FX impacts.

• Operating income rose 11% to $88.1M, with a 15% margin; diluted EPS was $1.31, up from $1.26 year-over-year.

• Successfully integrated recent acquisitions, expanded leadership team, and maintained a strong backlog supporting confidence for the remainder of 2025.

• Pricing actions and cost management offset inflationary pressures and acquisition costs, enabling margin protection.

Financial highlights

• Q2 2025 consolidated sales reached $587.4M, up 8% year-over-year; gross profit was $211.8M, with gross margin at 36.1% (down 70 bps year-over-year).

• Operating income increased 11% to $88.1M, with operating margin at 15% (up 40 bps year-over-year).

• Net income attributable to shareholders was $60.6M, up from $59.3M year-over-year.

• Net cash from operating activities was $32.0M for the first six months, down from $35.0M in 2024.

• Significant investing outflows due to acquisitions and capital expenditures.

Outlook and guidance

• Full-year 2025 sales guidance maintained at $2.09B–$2.15B and GAAP EPS range of $3.95–$4.25.

• Q3 expected to include a non-cash EPS impact of ~$1 per share from US pension plan termination, not included in current guidance.

• Backlog and order trends remain strong, supporting confidence in normal seasonality and continued growth into the second half.

• Management expects ongoing impacts from tariffs and global trade policy changes.

• Liquidity and capital resources are considered adequate for foreseeable needs.