In This Article:
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Consolidated Sales: $455.2 million, a year-over-year decrease of 1%.
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Gross Margin: 36%, an improvement of 50 basis points compared to the prior year.
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Operating Income: $44.1 million, down 8% from $47.9 million in the first quarter of 2024.
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Operating Margin: 9.7%, down from 10.4% in the first quarter of 2024.
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Earnings Per Share (EPS): $0.67, compared to $0.70 in the first quarter of 2024.
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Water Systems Sales (US and Canada): Up 2% compared to the first quarter of 2024.
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Energy Systems Sales: $66.8 million, an increase of 8% compared to the first quarter of 2024.
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Distribution Sales: $141.9 million, a decrease of 3% from the first quarter of 2024.
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Cash Balance: $84 million at the end of the first quarter of 2025.
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Net Cash Flows from Operating Activities: Used $19.5 million during the first quarter.
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Dividend: Quarterly cash dividend of $0.265 announced.
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SG&A Expenses: $119.6 million, up from $115.6 million in the first quarter of 2024.
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Effective Tax Rate: 25% for the quarter, compared to 22% in the prior year quarter.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Franklin Electric Co Inc (NASDAQ:FELE) reported strong performance in its energy systems segment, with sales up 8% and operating margins increasing by 250 basis points.
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The company completed two strategic acquisitions in the first quarter, enhancing its product portfolio and expanding its channel reach.
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Despite a challenging macroeconomic environment, Franklin Electric Co Inc (NASDAQ:FELE) maintained a robust backlog and positive order trends, supporting confidence in future performance.
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The company demonstrated resilience and adaptability by effectively managing tariff impacts and maintaining pricing discipline.
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Franklin Electric Co Inc (NASDAQ:FELE) is focused on growth acceleration, resilient margins, strategic investments, and top-tier talent, which are expected to drive long-term value creation.
Negative Points
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Consolidated sales for the first quarter decreased by 1% year-over-year, primarily due to foreign currency translation and lower volumes in certain segments.
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Operating margins were down slightly year-over-year, impacted by one-time SG&A costs related to executive transition and acquisition expenses.
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The distribution segment faced short-term weather-related disruptions, particularly in the US Midwest, affecting field installations.
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The company adjusted the lower end of its EPS guidance due to uncertainties in the market and additional restructuring and growth investments.
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Franklin Electric Co Inc (NASDAQ:FELE) experienced a decrease in operating income by 8% compared to the previous year, primarily due to higher SG&A costs.