FRANKLIN ELECTRIC CO INC
For the period ended Dec 31, 2025. Filed Feb 20, 2026.
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FY2025 · Filed Feb 20, 2026
FELE$97.72+0.8%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Financial Statements and Supplementary Data
CONSOLIDATED STATEMENTS OF INCOME
| (In thousands, except per share amounts) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net sales | $2,131,250 | $2,021,341 | $2,065,133 |
| Cost of sales | 1,375,325 | 1,304,061 | 1,368,125 |
| Gross profit | 755,925 | 717,280 | 697,008 |
| Selling, general, and administrative expenses | 486,231 | 470,136 | 433,476 |
| Restructuring expense | 716 | 3,499 | 1,091 |
| Operating income | 268,978 | 243,645 | 262,441 |
| Interest expense | (10,641) | (6,319) | (11,790) |
| Other income, net | 585 | 1,339 | 3,696 |
| Foreign exchange expense, net | (9,340) | (6,818) | (12,124) |
| Pension settlement loss | (54,932) | — | — |
| Income before income taxes | 194,650 | 231,847 | 242,223 |
| Income tax expense | 45,956 | 50,238 | 47,489 |
| Net income | $148,694 | $181,609 | $194,734 |
| Less: Net income attributable to noncontrolling interests | (1,604) | (1,300) | (1,462) |
| Net income attributable to Franklin Electric Co., Inc. | $147,090 | $180,309 | $193,272 |
| Earnings per share: | |||
| Basic | $3.25 | $3.92 | $4.17 |
| Diluted | $3.22 | $3.86 | $4.11 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| (In thousands) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net income | $148,694 | $181,609 | $194,734 |
| Other comprehensive income/(loss), before tax: | |||
| Foreign currency translation adjustments | 48,894 | (35,879) | 12,026 |
| Employee benefit plan activity: | |||
| Net gain/(loss) arising during period | 7,693 | 1,492 | (4,449) |
| Amortization arising during period | 760 | 2,282 | 2,148 |
| Pension settlement | 54,932 | — | — |
| Other comprehensive income/(loss) | 112,279 | (32,105) | 9,725 |
| Income tax benefit/(expense) related to items of other comprehensive income/(loss) | (15,659) | (938) | 643 |
| Other comprehensive income/(loss), net of tax | 96,620 | (33,043) | 10,368 |
| Comprehensive income | 245,314 | 148,566 | 205,102 |
| Less: Comprehensive income attributable to noncontrolling interests | (1,706) | (1,146) | (1,496) |
| Comprehensive income attributable to Franklin Electric Co., Inc. | $243,608 | $147,420 | $203,606 |
CONSOLIDATED BALANCE SHEETS
| (In thousands, except per share amounts) | 2025 | 2024 |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $99,662 | $220,540 |
| Receivables, less allowances of $3,821 and $3,547, respectively | 247,511 | 226,826 |
| Inventories: | ||
| Raw material | 189,380 | 160,875 |
| Work-in-process | 27,750 | 24,997 |
| Finished goods | 335,851 | 298,003 |
| Total inventories | 552,981 | 483,875 |
| Other current assets | 58,472 | 32,950 |
| Total current assets | 958,626 | 964,191 |
| Property, plant, and equipment, at cost: | ||
| Land and buildings | 179,681 | 161,860 |
| Machinery and equipment | 354,833 | 316,454 |
| Furniture and fixtures | 63,601 | 58,300 |
| Other | 79,172 | 67,004 |
| Property, plant, and equipment, gross | 677,287 | 603,618 |
| Less: Allowance for depreciation | (425,123) | (380,052) |
| Property, plant, and equipment, net | 252,164 | 223,566 |
| Lease right-of-use assets, net | 67,867 | 62,637 |
| Deferred income taxes | 6,582 | 8,210 |
| Intangible assets, net | 251,692 | 212,973 |
| Goodwill | 398,127 | 338,501 |
| Other assets | 9,327 | 10,528 |
| Total assets | $1,944,385 | $1,820,606 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $174,954 | $157,046 |
| Accrued expenses and other current liabilities | 107,975 | 119,771 |
| Current lease liability | 20,518 | 18,878 |
| Income taxes | 8,772 | 20,218 |
| Current maturities of long-term debt and short-term borrowings | 31,827 | 117,814 |
| Total current liabilities | 344,046 | 433,727 |
| Long-term debt | 135,184 | 11,622 |
| Long-term lease liability | 46,481 | 43,304 |
| Deferred income taxes | 39,275 | 10,193 |
| Employee benefit plans | 22,833 | 29,808 |
| Other long-term liabilities | 29,541 | 22,118 |
| Commitments and contingencies (see Note 7) | ||
| Redeemable noncontrolling interest | 1,657 | 1,224 |
| Shareholders’ equity: | ||
| Common stock (65,000 shares authorized, $0.10 par value) outstanding (44,178 and 45,716, respectively) | 4,418 | 4,571 |
| Additional paid-in capital | 391,496 | 363,956 |
| Retained earnings | 1,084,149 | 1,151,575 |
| Accumulated other comprehensive loss | (157,484) | (254,003) |
| Total shareholders’ equity | 1,322,579 | 1,266,099 |
| Noncontrolling interest | 2,789 | 2,511 |
| Total equity | 1,325,368 | 1,268,610 |
| Total liabilities and equity | $1,944,385 | $1,820,606 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| (In thousands) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income | $148,694 | $181,609 | $194,734 |
| Adjustments to reconcile net income to net cash flows from operating activities: | |||
| Depreciation and amortization | 62,875 | 56,073 | 52,260 |
| Pension settlement loss, net of tax | 41,454 | — | — |
| Non-cash lease expense | 22,489 | 21,438 | 18,852 |
| Share-based compensation | 13,196 | 12,061 | 10,133 |
| Deferred income taxes | (7,644) | (19,648) | (1,609) |
| Gain on disposals of plant and equipment | (2,141) | (497) | (256) |
| Foreign exchange expense, net | 9,340 | 6,818 | 12,124 |
| Changes in assets and liabilities, net of acquisitions: | |||
| Receivables | 11,417 | (17,045) | 19,150 |
| Inventory | (26,179) | 10,889 | 48,176 |
| Accounts payable and accrued expenses | (12,772) | 15,285 | (23,085) |
| Operating leases | (22,901) | (21,129) | (18,874) |
| Income taxes | (5,236) | 15,755 | (1,524) |
| Income taxes-U.S. Tax Cuts and Jobs Act | (4,837) | (3,870) | (2,902) |
| Employee benefit plans | (4,697) | 466 | 1,458 |
| Other, net | 15,820 | 3,148 | 7,073 |
| Net cash flows from operating activities | 238,878 | 261,353 | 315,710 |
| Cash flows from investing activities: | |||
| Additions to property, plant, and equipment | (45,337) | (41,682) | (41,415) |
| Proceeds from sale of property, plant, and equipment | 2,856 | 1,182 | 1,494 |
| Cash paid for acquisitions, net of cash acquired | (114,664) | (5,201) | (34,831) |
| Other, net | 20 | 73 | 463 |
| Net cash flows from investing activities | (157,125) | (45,628) | (74,289) |
| Cash flows from financing activities: | |||
| Proceeds from issuance of debt | 600,208 | 309,747 | 443,217 |
| Repayments of debt | (581,514) | (280,512) | (558,746) |
| Payment of debt issuance costs | (974) | — | — |
| Proceeds from issuance of common stock | 5,321 | 7,204 | 9,193 |
| Purchases of common stock | (165,623) | (61,041) | (43,332) |
| Dividends paid | (49,999) | (46,876) | (41,723) |
| Deferred payments for acquisitions | (4,725) | (2,591) | (802) |
| Net cash flows from financing activities | (197,306) | (74,069) | (192,193) |
| Effect of exchange rate changes on cash and cash equivalents | (5,325) | (6,079) | (10,055) |
| Net change in cash and cash equivalents | (120,878) | 135,577 | 39,173 |
| Cash and cash equivalents at beginning of period | 220,540 | 84,963 | 45,790 |
| Cash and cash equivalents at end of period | $99,662 | $220,540 | $84,963 |
| Cash paid for income taxes, net of refunds | $76,676 | $58,024 | $55,120 |
| Cash paid for interest | $9,847 | $6,423 | $12,115 |
| Non-cash items: | |||
| Additions to property, plant, and equipment, not yet paid | $628 | $1,748 | $2,229 |
| Lease right-of-use assets obtained in exchange for new operating lease liabilities | $26,889 | $30,796 | $25,899 |
| Payable to sellers of acquired entities | $2,180 | $1,750 | $7,027 |
| Issuance of common stock - deferred Board of Director compensation | 9,055 | — | — |
| Non-cash investment to acquire property in lieu of cash payment for products provided | $— | $— | $419 |
| Accrued dividends payable to noncontrolling interests | $— | $961 | $821 |
CONSOLIDATED STATEMENTS OF EQUITY
| Total Shareholders’ Equity | |||||||
|---|---|---|---|---|---|---|---|
| (In thousands) | Common SharesOutstanding | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | NoncontrollingInterest | Redeemable Noncontrolling Interest |
| Balance as of year-end 2022 | 46,193 | $4,619 | $325,426 | $969,261 | $(231,448) | $2,276 | $620 |
| Net Income | — | — | — | 193,272 | — | 935 | 527 |
| Currency translation adjustment | — | — | — | — | 11,992 | 36 | (2) |
| Pension and other post retirement plans, net of tax benefit $643 | — | — | — | — | (1,658) | — | — |
| Dividends on common stock ($0.90/share) | — | — | — | (41,723) | — | — | — |
| Dividend to noncontrolling interest | — | — | — | — | — | (821) | — |
| Common stock issued | 216 | 22 | 9,171 | — | — | — | — |
| Share-based compensation | 131 | 13 | 10,120 | — | — | — | — |
| Common stock repurchased | (473) | (47) | — | (42,298) | — | — | — |
| Balance as of year-end 2023 | 46,067 | $4,607 | $344,717 | $1,078,512 | $(221,114) | $2,426 | $1,145 |
| Net Income | — | — | — | 180,309 | — | 1,193 | 107 |
| Currency translation adjustment | — | — | — | — | (35,725) | (147) | (7) |
| Pension and other post retirement plans, net of tax expense $938 | — | — | — | — | 2,836 | — | — |
| Dividends on common stock ($1.00/share) | — | — | — | (46,020) | — | — | — |
| Dividend to noncontrolling interest | — | — | — | — | — | (961) | (21) |
| Common stock issued | 153 | 15 | 7,189 | — | — | — | — |
| Share-based compensation | 119 | 11 | 12,050 | — | — | — | — |
| Common stock repurchased | (623) | (62) | — | (61,226) | — | — | — |
| Balance as of year-end 2024 | 45,716 | $4,571 | $363,956 | $1,151,575 | $(254,003) | $2,511 | $1,224 |
| Net Income | — | — | — | 147,090 | — | 1,176 | 428 |
| Currency translation adjustment | — | — | — | — | 48,792 | 69 | 33 |
| Pension and other post retirement plans, net of tax expense $15,659 | — | — | — | — | 47,727 | — | — |
| Dividends on common stock ($1.06/share) | — | — | — | (48,042) | — | — | — |
| Dividend to noncontrolling interest | — | — | — | — | — | (967) | (28) |
| Common stock issued | 197 | 20 | 14,356 | — | — | — | — |
| Share-based compensation | 110 | 12 | 13,184 | — | — | — | — |
| Common stock repurchased | (1,845) | (185) | — | (166,474) | — | — | — |
| Balance as of year-end 2025 | 44,178 | $4,418 | $391,496 | $1,084,149 | $(157,484) | $2,789 | $1,657 |
INDEX TO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
| Page Number | ||
|---|---|---|
| Note 1. | Summary of Significant Accounting Policies | 29 |
| Note 2. | Accounting Pronouncements | 33 |
| Note 3. | Acquisitions | 34 |
| Note 4. | Goodwill and Other Intangible Assets | 36 |
| Note 5. | Accrued Expense and Other Current Liabilities | 36 |
| Note 6. | Debt | 37 |
| Note 7. | Commitments and Contingencies | 39 |
| Note 8. | Shareholders' Equity | 40 |
| Note 9. | Accumulated Other Comprehensive Income/(Loss) | 43 |
| Note 10. | Employee Benefit Plans | 43 |
| Note 11. | Income Taxes | 48 |
| Note 12. | Earnings per Share | 52 |
| Note 13. | Financial Instruments | 52 |
| Note 14. | Fair Value Measurements | 53 |
| Note 15. | Segment and Geographic Information | 54 |
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