---
title: "Franklin Electric | 8-K: FY2025 Q4 Revenue Misses Estimate at USD 506.86 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/276126804.md"
datetime: "2026-02-17T13:02:58.000Z"
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# Franklin Electric | 8-K: FY2025 Q4 Revenue Misses Estimate at USD 506.86 M

Revenue: As of FY2025 Q4, the actual value is USD 506.86 M, missing the estimate of USD 516.25 M.

EPS: As of FY2025 Q4, the actual value is USD 0.87, beating the estimate of USD 0.8675.

EBIT: As of FY2025 Q4, the actual value is USD 54.16 M.

#### Fourth Quarter 2025 Financial Highlights

-   **Consolidated Net Sales**: Consolidated net sales reached $506.9 million, an increase of 4% compared to the prior year’s fourth quarter.
-   **Segment Revenue**:
    -   Water Systems net sales were $291.6 million, up $12.0 million from Q4 2024, an increase of 4%.
    -   Energy Systems net sales were $74.7 million, up $5.9 million, an increase of 9%.
    -   Distribution net sales were $161.6 million, up $4.4 million, an increase of 3%.
-   **Operating Income**: Operating income was $51.6 million, marking a 20% increase from the prior year, with an operating margin of 10.2%.
    -   Water Systems operating income was $41.8 million in Q4 2025, compared to $35.6 million in Q4 2024. Its operating income to net sales percentage was 14.3%.
    -   Energy Systems operating income was $22.6 million in Q4 2025, compared to $24.7 million in Q4 2024. Its operating income to net sales percentage was 30.3%.
    -   Distribution operating income was $5.3 million in Q4 2025, compared to $0.5 million in Q4 2024. Its operating income to net sales percentage was 3.3%.
-   **Gross Profit**: Gross profit for Q4 2025 was $171.492 million, up from $164.240 million in Q4 2024.
-   **Cost of Sales**: Cost of sales was $335.363 million in Q4 2025, compared to $321.505 million in Q4 2024.
-   **Selling, General, and Administrative Expenses**: These expenses amounted to $119.593 million in Q4 2025, compared to $117.846 million in Q4 2024.
-   **Restructuring Expense**: Restructuring expense was $280 thousand in Q4 2025, significantly lower than $3.360 million in Q4 2024.
-   **Interest Expense**: Interest expense was - $2.541 million in Q4 2025, compared to - $1.339 million in Q4 2024.
-   **Other Income, Net**: Other income, net was $71 thousand in Q4 2025, compared to $630 thousand in Q4 2024.
-   **Foreign Exchange Expense, Net**: Foreign exchange expense, net was - $827 thousand in Q4 2025, compared to - $1.590 million in Q4 2024.
-   **Pension Settlement Income (Loss)**: Pension settlement income was $319 thousand in Q4 2025.
-   **Income Before Income Taxes**: Income before income taxes was $48.641 million in Q4 2025, up from $40.735 million in Q4 2024.
-   **Income Tax Expense**: Income tax expense was $9.088 million in Q4 2025, compared to $6.443 million in Q4 2024.
-   **Net Income**: Net income was $39.553 million in Q4 2025, compared to $34.292 million in Q4 2024.
-   **Net Income Attributable to Franklin Electric Co., Inc.**: This was $39.250 million in Q4 2025, compared to $33.655 million in Q4 2024.

#### Full Year 2025 Financial Highlights

-   **Consolidated Net Sales**: Consolidated net sales for the full year reached $2.1 billion, an increase of 5% compared to the prior year.
-   **Segment Revenue**:
    -   Water Systems net sales were $1,256.4 million, up $72.4 million from FY 2024, an increase of 6%.
    -   Energy Systems net sales were $299.0 million, up $25.3 million, an increase of 9%.
    -   Distribution net sales were $700.7 million, up $15.2 million, an increase of 2%.
-   **Operating Income**: Operating income was $269.0 million, representing a 10% increase from the prior year, with an operating margin of 12.6%.
    -   Water Systems operating income was $207.2 million in FY 2025, compared to $197.9 million in FY 2024. Its operating income to net sales percentage was 16.5%.
    -   Energy Systems operating income was $99.1 million in FY 2025, compared to $93.6 million in FY 2024. Its operating income to net sales percentage was 33.1%.
    -   Distribution operating income was $39.8 million in FY 2025, compared to $24.3 million in FY 2024. Its operating income to net sales percentage was 5.7%.
-   **Gross Profit**: Gross profit for FY 2025 was $755.925 million, up from $717.280 million in FY 2024.
-   **Cost of Sales**: Cost of sales was $1,375.325 million in FY 2025, compared to $1,304.061 million in FY 2024.
-   **Selling, General, and Administrative Expenses**: These expenses amounted to $486.231 million in FY 2025, compared to $470.136 million in FY 2024.
-   **Restructuring Expense**: Restructuring expense was $716 thousand in FY 2025, compared to $3.499 million in FY 2024.
-   **Interest Expense**: Interest expense was - $10.641 million in FY 2025, compared to - $6.319 million in FY 2024.
-   **Other Income, Net**: Other income, net was $585 thousand in FY 2025, compared to $1.339 million in FY 2024.
-   **Foreign Exchange Expense, Net**: Foreign exchange expense, net was - $9.340 million in FY 2025, compared to - $6.818 million in FY 2024.
-   **Pension Settlement Income (Loss)**: The company incurred a pension settlement loss of - $54.932 million in FY 2025, which includes a pre-tax settlement charge of $54.9 million for terminating its US Pension Plan, or $41.5 million net of tax.
-   **Income Before Income Taxes**: Income before income taxes was $194.650 million in FY 2025, down from $231.847 million in FY 2024.
-   **Income Tax Expense**: Income tax expense was $45.956 million in FY 2025, compared to $50.238 million in FY 2024.
-   **Net Income**: Net income was $148.694 million in FY 2025, compared to $181.609 million in FY 2024.
-   **Net Income Attributable to Franklin Electric Co., Inc.**: This was $147.090 million in FY 2025, compared to $180.309 million in FY 2024.

#### Cash Flow

-   **Cash Balance**: 富兰克林电子 ended 2025 with a cash balance of $99.7 million, a decrease of $120.9 million compared to $220.5 million at the end of 2024.
-   **Net Cash Flows from Operating Activities**: Net cash flows from operating activities for 2025 were $238.9 million, compared to $261.4 million in 2024.
-   **Net Cash Flows from Investing Activities**: Net cash flows from investing activities were - $157.125 million in 2025, compared to - $45.628 million in 2024.
    -   This included additions to property, plant, and equipment of - $45.337 million and acquisitions and investments of - $114.664 million in 2025.
-   **Net Cash Flows from Financing Activities**: Net cash flows from financing activities were - $197.306 million in 2025, compared to - $74.069 million in 2024.
    -   This included purchases of common stock amounting to - $165.623 million and dividends paid of - $49.999 million in 2025.

#### Outlook / Guidance

Franklin Electric Co., Inc. expects its full-year 2026 sales to be in the range of $2.17 billion to $2.24 billion. The company also anticipates full-year 2026 Adjusted Diluted EPS to be between $4.40 and $4.60. Management notes that macroeconomic conditions remain dynamic but the company enters the new year with healthy order trends and a solid balance sheet.

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