Franklin Electric Co., Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a net sales increase of 9% to $581.7 million for the third quarter, compared to $531.4 million in the same period last year. For the nine months ended September 30, 2025, net sales reached $1.624 billion, up 6% from $1.536 billion in 2024. The company's gross profit for the third quarter was $208.7 million, a 10% increase from $189.7 million in the prior year, while gross profit for the nine months was $584.4 million, reflecting a 6% rise from $553 million.
Despite the revenue growth, Franklin Electric's net income for the third quarter fell to $17.2 million, or $0.37 per diluted share, down from $54.9 million, or $1.17 per diluted share, in the same quarter of 2024. The decline in profitability was significantly impacted by a pension settlement loss of $55.3 million recorded in the third quarter, which was related to actuarial losses previously recorded in accumulated other comprehensive loss. For the nine-month period, net income was $109.1 million, down from $147.3 million in the previous year.
Strategically, Franklin Electric made two significant acquisitions in 2025: Barnes de Colombia S.A., a Colombian manufacturer of industrial and commercial pumps, and PumpEng Pty Ltd, an Australian company specializing in submersible pumps for the mining sector. These acquisitions contributed approximately $37.2 million in incremental net sales during the first nine months of 2025. The company also reported a restructuring expense of $0.1 million in the third quarter, consistent with ongoing manufacturing realignment activities.
Operationally, Franklin Electric's Water Systems segment saw a 11% increase in net sales for the third quarter, driven by strong performance in large dewatering equipment and water treatment products. The Energy Systems segment also experienced a 15% sales increase, primarily due to price realization and favorable volumes. The Distribution segment's sales rose by 3% in the third quarter, attributed to higher volumes and price increases. The company reported a total employee headcount of 4,500 as of September 30, 2025, reflecting a slight increase from the previous year.
Looking ahead, Franklin Electric anticipates continued growth driven by its recent acquisitions and ongoing demand for its products. However, the company remains cautious about potential impacts from tariffs and global trade policies, which could affect its operations and financial results. The company expects to leverage its strong liquidity position, with $277.3 million available under its credit facilities, to support its strategic initiatives and operational needs in the coming quarters.
About FRANKLIN ELECTRIC CO INC
Franklin Electric Co., Inc. designs, manufactures, and distributes water and fuel pumping systems worldwide. Its core segments include Water Systems, Energy Systems, and Distribution, serving residential, agricultural, municipal, industrial, and energy markets. The company offers submersible motors, pumps, controls, and water treatment products, leveraging innovation, quality, and global reach to provide reliable energy and water solutions to diverse customers.
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