Franklin Electric Reports 2% Decrease in Net Sales for Fiscal Year 2024

Franklin Electric Co., Inc. reported a decrease in net sales for the fiscal year 2024, totaling approximately $2.0 billion, down 2% from $2.065 billion in 2023. The decline was attributed primarily to lower volumes and adverse foreign currency translation effects, which were partially offset by incremental sales from recent acquisitions. The company's gross profit increased to $717.3 million, reflecting a gross profit margin of 35.5%, up from 33.8% in the previous year. However, diluted earnings per share fell to $3.86, a decrease of 6% from $4.11 in 2023.

In terms of segment performance, the Water Systems segment, which accounted for about 60% of total revenue, saw a 2% decline in sales, primarily due to weaker demand for large dewatering equipment. The Energy Systems segment experienced an 8% decrease in sales, while the Distribution segment reported a 2% increase, bolstered by contributions from recent acquisitions. The company’s operating income decreased by 7% to $243.6 million, with notable declines in the Distribution segment's operating income, which fell by $10 million.

Strategically, Franklin Electric has been active in expanding its portfolio through acquisitions. In 2024, the company acquired FSHS Incorporated, a water treatment systems distributor, for $4.5 million. Additionally, in February 2025, Franklin Electric announced the acquisition of PumpEng Pty Ltd, a manufacturer of submersible pumps for the mining sector in Australia, and signed a definitive agreement to acquire Barnes de Colombia S.A., a leading manufacturer and distributor of industrial and commercial pumps in Colombia, for an enterprise value of $110 million.

Operationally, Franklin Electric maintained a workforce of approximately 6,300 employees as of December 31, 2024. The company reported a backlog of $140.7 million as of February 5, 2025, down from $160.6 million a year earlier, indicating a decrease in future sales expectations. The company continues to focus on geographic expansion and product innovation, particularly in developing markets, where it has seen compounded annual sales growth of 6% to 9% in recent years.

Looking ahead, Franklin Electric anticipates challenges due to macroeconomic conditions, including fluctuations in commodity prices and foreign currency exchange rates. The company remains committed to leveraging its global platform and competencies in system design to drive growth. Management expressed confidence in the company's ability to navigate these challenges while continuing to invest in product development and strategic acquisitions to enhance its market position.