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1. Company Snapshot

1.a. Company Description

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide.It operates through three segments: Water Systems, Fueling Systems, and Distribution.The Water Systems segment offers submersible motors, pumps, drives, electronic controls, water treatment systems, monitoring devices, and related parts and equipment.


Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks.The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications.This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure.


The Distribution segment sells to and provides presale support and specifications to the installing contractors.It sells products produced by the Water Systems segment.The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives.


Franklin Electric Co., Inc.was founded in 1944 and is headquartered in Fort Wayne, Indiana.

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1.b. Last Insights on FELE

Breaking News: Franklin Electric Co., Inc. reported Q4 earnings of $0.87 per share, falling short of the estimated $0.89 per share. This represents a year-over-year increase from $0.72 per share. The company's Q4 2025 earnings call transcript is also available. Analysts have not provided a clear recommendation based on the recent earnings release. Some analysts have recommended a hold rating for the stock. Further information is needed to determine the stock's potential. The earnings release was announced on February 17, 2026.

1.c. Company Highlights

2. Franklin Electric's Strong 2025 Results and Promising 2026 Outlook

Franklin Electric reported a robust financial performance for 2025, with consolidated sales reaching $2.1 billion, a 5.4% year-over-year increase driven by favorable price, organic volume growth in Energy and Distribution, and the incremental sales impact of recent acquisitions. The company's consolidated gross profit was $755.9 million for the full year 2025, up from $717.3 million in the prior year. Adjusted diluted earnings per share was $4.14, a 6% increase from 2024. The actual EPS for the fourth quarter was not disclosed, but it was noted that the full year 2025 fully diluted earnings per share was $3.22, negatively impacted by the pension settlement charge and restructuring charges.

Publication Date: Feb -18

📋 Highlights
  • Full-Year Revenue & Operating Income Growth:: 2025 sales rose 5.4% to $2.1B; segment operating income increased 9.6%, hitting record highs.
  • Water Treatment Segment Performance:: Achieved $200M in sales with 400 basis point operating margin improvement, driven by innovation and market share gains.
  • Adjusted EPS & Tax Rate:: Adjusted diluted EPS rose 6% to $4.14, while the effective tax rate increased slightly to 23.6% in 2025.
  • 2026 Guidance:: Projects $2.17B–$2.24B sales (+3% growth) and $4.40–$4.60 adjusted EPS (+9% growth), supported by new product pipelines and margin expansion.

Segment Performance

The Water treatment business, a key part of the Water segment, exited 2025 at $200 million in sales with impressive sales growth and a 400 basis point operating margin improvement. The Distribution business grew to over $700 million with a focus on efficient service and bringing new solutions to market. Joe Ruzynski stated that the Water business is expected to grow 3-5% in 2026, with a mix of volume and price, while the Energy business is expected to grow over 3% with a mix of volume and price.

Guidance and Outlook

For 2026, Franklin Electric expects sales to be in the range of $2.17 billion to $2.24 billion, and adjusted EPS to be in the range of $4.40 to $4.60. This represents a midpoint sales growth of just over 3% and a midpoint EPS growth of approximately 9%. The company's guidance suggests continued commercial and operational momentum, with a focus on accelerating innovation and expanding margins.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 4.2%, slightly higher than the company's guidance. With a P/E Ratio of 28.79 and an EV/EBITDA of 16.96, the market appears to be pricing in a certain level of growth. The company's ROIC of 12.43% and ROE of 11.3% suggest a strong ability to generate returns on capital and equity. The Dividend Yield of 1.16% and Free Cash Flow Yield of 4.89% provide a relatively attractive return profile for investors.

Operational Highlights

The company's Value Acceleration Office is expected to drive productivity and efficiency gains, with opportunities to streamline logistics and improve service metrics in the Water treatment and Distribution businesses. Joe Ruzynski mentioned that the office is more than just cost improvement, but also leveraging technology to drive growth. The company's focus on innovation and its new product pipeline, which is expected to more than triple in the next few years, is also expected to drive growth.

3. NewsRoom

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Franklin Electric Co., Inc. (FELE) Q4 2025 Earnings Call Transcript

Feb -17

Source: seekingalpha.com

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Franklin Electric (FELE) Q4 Earnings and Revenues Lag Estimates

Feb -17

Source: zacks.com

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Franklin Electric Co., Inc. $FELE Shares Sold by Principal Financial Group Inc.

Feb -09

Source: defenseworld.net

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AZZ (NYSE:AZZ) & Franklin Electric (NASDAQ:FELE) Head to Head Survey

Dec -26

Source: defenseworld.net

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Head to Head Comparison: Murata Manufacturing (OTCMKTS:MRAAY) & Franklin Electric (NASDAQ:FELE)

Dec -22

Source: defenseworld.net

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Assenagon Asset Management S.A. Purchases 93,886 Shares of Franklin Electric Co., Inc. $FELE

Dec -20

Source: defenseworld.net

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Critical Contrast: AZZ (NYSE:AZZ) and Franklin Electric (NASDAQ:FELE)

Dec -10

Source: defenseworld.net

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Head-To-Head Comparison: Plug Power (NASDAQ:PLUG) vs. Franklin Electric (NASDAQ:FELE)

Nov -17

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Water Systems

Expected Growth: 3.5%

Franklin Electric Co.'s Water Systems segment growth of 3.5% is driven by increasing demand for efficient water management solutions, expansion in emerging markets, and strategic acquisitions. Additionally, investments in digital technologies and innovative products, such as submersible pumps and water treatment systems, are contributing to the segment's growth.

Distribution

Expected Growth: 3.8%

Franklin Electric Co., Inc.'s 3.8% distribution growth is driven by increasing demand for water and fueling systems, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, operational efficiency, and strong relationships with original equipment manufacturers (OEMs) contribute to its growth momentum.

Fueling Systems

Expected Growth: 4.2%

Franklin Electric Co.'s Fueling Systems segment growth of 4.2% is driven by increasing demand for fueling infrastructure, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovative products, such as electric and hybrid fueling systems, is contributing to its growth.

7. Detailed Products

Submersible Pumps

Franklin Electric's submersible pumps are designed for efficient and reliable water supply, offering a wide range of flow rates and pressures to meet specific application needs.

Surface Pumps

Franklin Electric's surface pumps provide reliable and efficient pumping solutions for a variety of applications, including irrigation, industrial processes, and municipal water supply.

Motors

Franklin Electric's motors are designed for reliability and efficiency, offering a range of horsepower and voltage options to meet specific application needs.

Drives and Controls

Franklin Electric's drives and controls provide advanced motor control and monitoring capabilities, optimizing pump performance and efficiency.

Monitoring and Control Systems

Franklin Electric's monitoring and control systems provide real-time monitoring and control capabilities, enabling remote monitoring and optimization of pumping systems.

Grid-Tie Inverters

Franklin Electric's grid-tie inverters convert DC power from solar panels to AC power, enabling efficient and reliable renewable energy systems.

8. Franklin Electric Co., Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Franklin Electric Co., Inc. faces moderate threat from substitutes due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

Franklin Electric Co., Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Franklin Electric Co., Inc. has a moderate dependence on its suppliers, which gives them some bargaining power.

Threat Of New Entrants

The threat of new entrants is high in the industry, as new companies can easily enter the market with innovative products and services.

Intensity Of Rivalry

The intensity of rivalry is high in the industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 8.87%
Debt Cost 8.92%
Equity Weight 91.13%
Equity Cost 8.92%
WACC 8.92%
Leverage 9.74%

11. Quality Control: Franklin Electric Co., Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Graco

A-Score: 5.4/10

Value: 2.1

Growth: 5.2

Quality: 8.5

Yield: 2.0

Momentum: 4.5

Volatility: 10.0

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Franklin Electric Co

A-Score: 5.3/10

Value: 3.3

Growth: 6.8

Quality: 6.6

Yield: 2.0

Momentum: 4.0

Volatility: 9.0

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Flowserve

A-Score: 5.1/10

Value: 4.4

Growth: 4.6

Quality: 6.7

Yield: 3.0

Momentum: 7.5

Volatility: 4.7

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Nordson

A-Score: 5.1/10

Value: 2.5

Growth: 5.8

Quality: 7.1

Yield: 2.0

Momentum: 4.0

Volatility: 9.0

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IDEX

A-Score: 4.7/10

Value: 2.9

Growth: 4.9

Quality: 7.0

Yield: 3.0

Momentum: 2.0

Volatility: 8.3

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Kadant

A-Score: 4.0/10

Value: 2.7

Growth: 6.4

Quality: 7.0

Yield: 0.0

Momentum: 1.5

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

95.84$

Current Price

95.84$

Potential

-0.00%

Expected Cash-Flows