Franklin Electric Co., Inc. has recently released its 10-K report, providing a detailed insight into the company's financial performance and operations for the fiscal year ended December 31, 2024. The company, headquartered in Fort Wayne, Indiana, is primarily involved in the design, manufacturing, and distribution of water and fuel pumping systems globally, operating through Water Systems, Fueling Systems, and Distribution segments.
In 2024, Franklin Electric reported net sales of $2.0 billion, representing a 2% decrease compared to the prior year. The decrease was attributed to lower volumes and the negative impact of foreign currency translation, partially offset by incremental sales from recent acquisitions. The Water Systems segment, accounting for a significant portion of the company's sales, experienced a 2% decrease in net sales, primarily due to lower volumes and adverse foreign exchange rates. Conversely, the Distribution segment saw a 2% increase in net sales, driven by the incremental sales impact from a recent acquisition.
The company's consolidated gross profit for 2024 was $717.3 million, representing a 35.5% gross profit margin, an increase from the prior year. However, diluted earnings per share for 2024 were reported at $3.86, reflecting a 6% decrease from the prior year.
Operating income decreased by 7% in 2024 compared to the prior year, with Water Systems and Energy Systems experiencing marginal increases in operating income, while Distribution segment's operating income declined. The company attributed this decrease to the negative impact of sales from wet weather, commodity pricing declines, and increased SG&A costs.
In terms of liquidity, the company maintained a $350.0 million revolving credit facility as of December 31, 2024, with $304.1 million in borrowing capacity. Cash flows from operating activities for 2024 were reported at $261.4 million, a decrease from the prior year, primarily due to changes in working capital and lower earnings.
Looking ahead, Franklin Electric Co., Inc. has signed a definitive agreement to acquire Barnes for an enterprise value of $110.0 million, subject to customary closing conditions, including Colombian antitrust clearance. The company believes its capital resources and liquidity position are adequate to meet projected needs for the foreseeable future.
The market has reacted to these announcements by moving the company's shares -1.7% to a price of $104.24. For more information, read the company's full 10-K submission here.
