Franklin Electric (FELE) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales rose 3% year-over-year to $485.7M, with strong Energy Systems performance and improved order trends despite macroeconomic challenges.

• Full-year 2024 net sales declined 2% to $2.0B, but international growth and restructuring efforts supported resilience.

• Transitioned Fueling Systems segment to Energy Systems, expanding into faster-growing verticals and reflecting evolving product mix.

• Strategy execution included accretive M&A, channel strength, and addressing critical water needs.

• Order volumes improved in the second half, supporting optimism for 2025.

Financial highlights

• Q4 2024 sales were $485.7M, up 3% year-over-year; operating income was $43.0M (8.9% margin), down 15% year-over-year.

• Q4 EPS was $0.72, down from $0.82 in Q4 2023, but at the high end of guidance.

• Q4 gross profit was $164.2M (33.8% margin), flat year-over-year.

• SG&A expenses rose due to higher compensation and acquisition impacts.

• Free cash flow for 2024 was $220.9M, with a conversion rate of 122%.

Outlook and guidance

• 2025 sales expected between $2.09–$2.15B, including recent acquisitions.

• 2025 GAAP EPS guidance is $4.05–$4.25.

• Organic sales growth projected at 1–4%, with EPS growth of 3–7% excluding acquisitions.

• FX expected to be a $15–$20M headwind in 2025.

• Focus for 2025 is on revenue growth, margin expansion, and innovation.