Franklin Electric (FELE) Q4 2023 earnings summary

Executive summary

• FY23 set records for net sales ($2.1B), operating income ($262.4M), diluted EPS ($4.11) and operating cash flow ($315.7M).

• Q4 net sales fell 3% YoY to $473.0M; operating income was $50.8M and diluted EPS was $0.82.

• Management expects demand to gain momentum during 2024, supported by a resilient global portfolio and financial position.

Financial highlights

• Q4 net sales were $473.0M vs. $489.4M; operating income was $50.8M vs. $56.2M, with a 10.7% operating margin vs. 11.5%.

• Q4 net income attributable to Franklin Electric was $38.5M vs. $39.6M; diluted EPS was $0.82 vs. $0.84.

• FY23 net sales were $2.1B vs. $2.0B; operating income was $262.4M vs. $257.2M, with a 12.7% margin vs. 12.6%.

• FY23 net income attributable to Franklin Electric was $193.3M vs. $187.3M; diluted EPS was $4.11 vs. $3.97.

Outlook and guidance

• FY24 net sales guidance is $2.10B–$2.17B; EPS guidance is $4.22–$4.40.

• Management expects demand to gain momentum as 2024 progresses.