Franklin Electric Reports 8% Revenue Growth in Q2 2025, Driven by Acquisitions

Franklin Electric Co., Inc. reported a solid financial performance for the second quarter and first half of 2025, with net sales reaching $587.4 million and $1.042 billion, respectively. This marks an 8% increase in the second quarter and a 4% increase for the first six months compared to the same periods in 2024. The growth was attributed to higher sales volumes, effective price realization, and contributions from recent acquisitions, despite facing challenges from foreign currency translation. The company's gross profit for the second quarter was $211.8 million, reflecting a 6% increase year-over-year, while the gross profit margin slightly decreased to 36.1% from 36.8% in the prior year.

In terms of profitability, Franklin Electric's operating income rose to $88.1 million in the second quarter, an 11% increase from $79.1 million in the same quarter of 2024. For the first half of 2025, operating income was $132.2 million, up from $127.1 million in the previous year. The company reported net income of $60.6 million for the second quarter, compared to $59.3 million in the same period last year, resulting in diluted earnings per share of $1.31, up from $1.26. However, net income for the first half of 2025 decreased slightly to $91.9 million from $92.4 million in 2024.

Strategically, Franklin Electric made significant acquisitions in early 2025, including Barnes de Colombia S.A. and PumpEng Pty Ltd, which contributed approximately $21 million in incremental net sales during the first six months. The company is currently finalizing the valuation of these acquisitions, which are expected to enhance its product portfolio and market presence. The acquisitions align with Franklin Electric's strategy to expand its footprint in the industrial and commercial pump markets.

Operationally, the company reported a total employee headcount of 2,500 as of June 30, 2025, reflecting a slight increase from the previous year. The Water Systems segment generated $340.8 million in sales during the second quarter, a notable increase from $315.6 million in 2024, driven by strong demand for large dewatering equipment and water treatment products. The Energy Systems segment also saw a 6% increase in sales, while the Distribution segment reported a 5% rise, indicating broad-based growth across its business lines.

Looking ahead, Franklin Electric anticipates continued growth driven by its strategic acquisitions and operational efficiencies. However, the company remains cautious about potential impacts from global trade policies and tariffs, which could affect its consolidated results. The management is focused on navigating these challenges while leveraging its strong market position to drive future performance.