Franklin Electric Posts Record 2025, Guides to 2026 Margin Expansion

Overview

• Full-year 2025 sales rose 5.4% to about $2.1 billion with record segment operating income, and adjusted EPS reached $4.14 versus GAAP EPS of $3.22 after a $41.5 million pension settlement charge ($0.91 per share).
• Management projected 2026 sales of $2.17–$2.24 billion and adjusted EPS of $4.40–$4.60, implying roughly 3% revenue growth and about 9% EPS growth with margin expansion across all segments.
• Cash conversion was 126% for the year, supporting approximately $120 million in acquisitions, about $160 million of share repurchases including roughly 350,000 shares in Q4, and a 5.7% dividend increase.
• The company launched more than 35 products in 2025 that are expected to contribute over $160 million in revenue by year three, and it stood up a Value Acceleration Office using 80/20, AI, and process engineering to drive efficiency.
• Tariff-related costs pressured results, including Energy segment margins in Q4, and management enacted December price increases while expecting pricing and productivity to offset these headwinds in 2026.