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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

Franklin Electric Co., Inc.'s recent performance was positively driven by its Q3 earnings beat, with quarterly earnings of $1.3 per share, surpassing the Zacks Consensus Estimate of $1.27 per share. The company's industrial products segment showed strength. Additionally, Blair William & Co. IL acquired a new stake in the company, valued at approximately $218,000. The company's solid performance in the Manufacturing - Electronics industry, which has seen strength across major end markets, has been notable.

1.c. Company Highlights

2. Franklin Electric's Q3 2025 Earnings: Strong Performance and Growth

Franklin Electric delivered a strong financial performance in Q3 2025, with consolidated sales reaching $581.7 million, a 9% increase year-over-year. The company's gross profit was $208.7 million, up from $189.7 million in the prior year, while operating margins expanded by 80 basis points. Adjusted fully diluted earnings per share (EPS) was $1.30, beating analyst estimates of $1.29. The actual EPS came in at $0.37, but this was largely due to a one-time charge related to the termination of the U.S. pension plan, which had an estimated EPS impact of approximately $0.93 per share.

Publication Date: Oct -30

📋 Highlights
  • Consolidated Sales Growth:: Reached $582 million, up 9% YoY, driven by organic growth, acquisitions, and pricing actions.
  • Margin Expansion:: Gross margins increased 20 bps, operating margins expanded 80 bps due to cost control and volume leverage.
  • Segment Performance:: Water Systems rose 11% YoY, Energy Systems surged 15% YoY, with strong demand in U.S., Europe, and India.
  • Adjusted EPS Growth:: Adjusted EPS reached $1.30 vs. $1.17 YoY, despite $0.93 EPS hit from U.S. pension plan termination.
  • Backlog & Future Growth:: Energy Systems backlog grew YoY; Turkey factory expansion to begin production in Q1 2026, aiming for 2026 accretion.

Segment Performance

The Water Systems segment saw an 11% year-over-year increase in sales, driven by price, volume, and acquisitions. The Energy Systems segment also performed well, with sales up nearly 15% year-over-year, driven by strong growth in the U.S., Europe, and India. According to Joe Ruzynski, "our ability to deliver both price and volume growth this quarter reinforces the strength of our competitive position and demonstrates that our pricing initiatives are holding up well in the market."

Outlook and Valuation

Looking ahead to 2026, Franklin Electric expects market conditions to remain relatively similar to 2025, with a subdued market in the U.S. and Canada, but anticipates volume growth driven by new products and channel partner relationships. Analysts estimate revenue growth of 5.4% next year. With a current P/E Ratio of 30.77 and EV/EBITDA of 22.74, the market appears to be pricing in a certain level of growth and profitability. The company's ROIC of 11.87% and ROE of 10.98% suggest a strong ability to generate returns on capital and equity.

Growth Initiatives

Franklin Electric is focused on driving growth through innovation, strategic investments, and top-tier talent. The company is investing in its water treatment business and expanding its network in the water pressure boosting line, which has a total addressable market in the high hundreds of millions of dollars. With a strong channel to serve the market and a growing market opportunity, the company is well-positioned to capture share.

3. NewsRoom

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

Nov -17

Source: defenseworld.net

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Aviva PLC Has $485,000 Stock Position in Franklin Electric Co., Inc. $FELE

Nov -14

Source: defenseworld.net

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Franklin Electric Co., Inc. (FELE) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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Franklin Electric (FELE) Q3 Earnings and Revenues Top Estimates

Oct -28

Source: zacks.com

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FELE vs. SBGSY: Which Stock Is the Better Value Option?

Oct -27

Source: zacks.com

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4 Manufacturing Electronics Stocks to Consider on Promising Industry Trends

Oct -24

Source: zacks.com

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Head to Head Analysis: Schneider Electric (OTCMKTS:SBGSY) versus Franklin Electric (NASDAQ:FELE)

Oct -22

Source: defenseworld.net

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Blair William & Co. IL Makes New $218,000 Investment in Franklin Electric Co., Inc. $FELE

Oct -19

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: 5.3/10

Value: 2.2

Growth: 5.2

Quality: 8.5

Yield: 2.0

Momentum: 4.0

Volatility: 10.0

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Franklin Electric Co

A-Score: 5.1/10

Value: 3.0

Growth: 6.8

Quality: 6.6

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

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IDEX

A-Score: 4.8/10

Value: 3.1

Growth: 4.9

Quality: 7.9

Yield: 3.0

Momentum: 2.0

Volatility: 8.0

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Nordson

A-Score: 4.7/10

Value: 2.4

Growth: 5.0

Quality: 6.8

Yield: 2.0

Momentum: 3.0

Volatility: 8.7

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Flowserve

A-Score: 4.7/10

Value: 4.7

Growth: 4.6

Quality: 7.4

Yield: 3.0

Momentum: 4.0

Volatility: 4.3

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Kadant

A-Score: 4.2/10

Value: 2.4

Growth: 6.4

Quality: 7.0

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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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

94.12$

Current Price

94.12$

Potential

-0.00%

Expected Cash-Flows