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Franklin Electric Co Inc. — Gabelli Funds 36th Annual Pump Valve Water Systems Symposium (company IR deck)
Franklin Electric Co Inc. (FELE) · 27 slides · Filed Oct 28, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All FELE deck slides
Slide 1 — Gabelli Funds 36th Annual Pump,
Gabelli Funds 36th Annual Pump, Valve & Water Systems Symposium Joe Ruzynski | Chief Executive Officer February 2026
Slide 2 — Safe Harbor Statement
Safe Harbor Statement "Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2024, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. 2
Slide 3 — Franklin Electric At a Glance
At Franklin Electric, we protect the world's most critical resources. We are a flow control company with a focus on Water and Energy. We partner with our customers with leading innovation, world class service, and a committed team to keep Moving Forward. We have a deep history in electric motors and drives, own some of the best-known pump brands in the world, and are a leading channel serving the industry's water needs. We lead by serving our customers’ global water and energy needs where most critical. Franklin Electric At a Glance 3
Slide 4 — Investment Highlights1
Investment Highlights1 4 Leading market position in groundwater pumping systems Track record of consistent organic growth across segments Advantageous global footprint to extend leadership and capture revenue in developing markets Strong balance sheet in a net debt-to-EBITDA ~0.3x¹ with opportunity for investment ² History of returning capital to shareholders; Dividends paid CAGR of 12% since 1993 Corporate strategy focused; secular trends supported 1 At 12/31/25 2 Non-GAAP financial metrics referenced in this slide include net debt to EBITDA. A reconciliation to comparable U.S. GAAP measures can be found herein.
Slide 5 — RESIDENTIAL | AGRICULTURAL | COMMERCIAL | INDUSTRIAL | ENERGY
RESIDENTIAL | AGRICULTURAL | COMMERCIAL | INDUSTRIAL | ENERGY OUR VALUE CREATION FRAMEWORK (2027) OUR BUSINESS SEGMENTS GROWTH ACCELERATION RESILIENT MARGINS INVESTMENTS & CAPITAL TALENT CENTRIC Strong revenue with all segments growing Strategy focused on faster growing markets and regions Innovation as a key focus with over 35 new products contributing a projected ~$160M in new revenue by year three Enhancing and expanding our channel in our most important markets Key margin improvement efforts in Distribution and Water treatment showing progress (+210bps and +410bps) Value Acceleration Office kicked off with key cross functional activities to drive YoY productivity Improved strategic pricing focus, offset tariffs Consolidation of key business systems Key acquisitions (Barnes and Pump Eng) to support faster growing markets and geographies Corporate development upgraded as a strategic capability focuses on targeted M&A Returned capital to our shareholders with buybacks Key executive adds and internal talent promotions to strengthen our team Ongoing effort to enhance our cultural alignment focused on collaboration and growth Safety focus showing our employee commitment 56% 31% 13% OUR VALUE CREATION FRAMEWORK Water Systems Distribution Energy Systems 60% 11% 29% $2.131B REVENUE $269.0M OPERATING INCOME 2025 63% 5
Slide 6 — Our Strategic Focus
Our Strategic Focus • To serve critical Water and Energy needs globally and serve locally • To help our customers win through innovation, solutions and service, using our strong channel as a growth multiplier • To elevate the supplier, customer, and employee experience using our end-to-end visibility and data driven solutions • To accelerate our margin profile and working capital to give us the space to invest, grow, and return capital to our shareholders 6
Slide 7 — Durable Growth Drivers & Secular Trends in Our Markets
Durable Growth Drivers & Secular Trends in Our Markets 7 Note: *Growth rates are the expected global CAGR and all forecasts are based on output of an enterprise AI GPT-5 model Higher Growth Lower Growth Key Secular Trends Energy Efficiency Reshoring Connected Pumps Urbanization Water Scarcity Smart Homes Digital Transformation Payment Modernization IoT Energy Efficiency Software Monetization Energy Efficiency Water Scarcity Crop Diversification FELE Markets Commercial & Industrial (Pumps) Residential (Pumps) Municipality & Utility (Pumps) Energy (Marketers & Critical Asset Monitoring) Agriculture (Pumps) 3-yr Growth* 3-5% 4-6% 4-6% (Fueling) 8-10% (Grid) 4-6% 14-15% (Data Center) 5-6% (Mining) Public Funding
Slide 8 — Franklin Electric Market Overview
Franklin Electric Market Overview 8 End-Market ~15% $2.1B Revenue ~44% Residential ~14% Energy Muni. & Util. Commercial & Industrial ~15% Channel ~7% Retail ~9% $2.1B Revenue ~84% Pro-Channel OEM Application ~13% Other* ~11% $2.1B Revenue ~46% Groundwater ~8% Dewatering Water- Treat. Fueling & Grid ~14% ~6% APAC ~11% $2.1B Revenue ~72% North America EMEA Latin Amer. ~10% Geography ~8% Waste- water ~12% Agri. Note: Segmentations are based on management estimates and include intersegment sales 8
Slide 9 — Value Proposition
9 Value Proposition 2025 FY Performance End-Market 48% 28% 16% 8% Residential Commercial & Industrial Agriculture Municipal & Utility Geography 60% 16% 16% 8% U.S. / Canada EMEA Latin America APAC • We provide Essential Water Systems to supply, move, remove & treat water • We will capitalize on Urbanization, Exponential Growth of Computing Power, Increasing Mineral Demand, & Maturing demographics • We provide unique, premium quality products, services & solutions that are designed to help our customers win • Our business sustains healthy margins because customers value our Brands, Quality, & Best-in-Class service • We methodically acquire accretive water businesses & efficiently integrate them $207 $1,256 OI Net Sales Water Systems
Slide 10 — Value Proposition
10 Value Proposition 2025 FY Performance End Market Geography – U.S. 38% 31% 23% 8% West Southeast Northeast Midwest 58% 15% 14% 13% Residential Commercial & Industrial Municipal & Utility Agriculture • We will free up cash and accelerate growth with our On Site Inventory Program, enabling customers to invest in strategic initiatives • We will gain 24/7 visibility with our integrated customer portal, simplifying order placement and payment processing • We provide comprehensive solutions in the water treatment, water management and irrigation verticals through access to industry leading brands at competitive prices, backed by technical expertise • We offer value added services including design, assembly, and onsite support to help our customers win $40 $701 OI Revenue Distribution
Slide 11 — Value Proposition
11 Value Proposition 2025 FY Performance End-Market Geography 77% 8% 11% 4% U.S. / Canada EMEA APAC Latin America • We have a proven track record of delivering exceptional value in fuel handling and electrical grid monitoring • We develop world-class VOC driven innovations for key customers for wide-scale commercialization • Our world-class support helps our customers expand their business and seamlessly serve the end customer • We are committed to protecting 94% 6% Commercial & Industrial Municipal & Utility $99 $299 OI Revenue Energy Systems
Slide 12 — New Products, Vitality, and Velocity
New Products, Vitality, and Velocity 12 • New product launches to increase by 40% • Increasing New Product Velocity decreasing time to launch by 100 days in 2025 Product Globalization w/ New Skid Offering Remote Control Solution with OVERSITE Circuit Breaker Trip Signature Monitor
Slide 13 — Market intimacy, Leading Innovation
Market intimacy, Leading Innovation 13 AN ALL-IN-ONE FUEL MONITORING SYSTEM SOLUTION AT THE PRICE OF JUST A CONSOLE • A sizable portion of the market relies on outdated technology for fuel monitoring • Industry offerings are overbuilt without providing a holistic solution • Customers lack an economical pathway to the latest technology • EVO ONE is an all-in-one, right sized fuel management solution (including console, sensors, probes, and hardware) that lets station owners upgrade or equip a typical site for a similar price as a standalone Automatic Tank Gauge console replacement Market Need Franklin Electric Solution ONE KIT. ONE SYSTEM. ONE SOLUTION. Full featured | Affordable | Easy Upgrade User-Friendly | Simplified Compliance | Remote Access
Slide 14 — Water Pressure Boosting
Water Pressure Boosting New Released Line Refining Channel Approach Inline SpecPAK Zero Footprint Minimal Noise VR SpecPAK Wide Range Compact Footprint VersaBoost Pro High Performance Minimal Noise One Franklin Solution Boosting | Water Treatment | Condensate Wastewater | Cooling Tower VFDs Prioritizing End Users 1) Understand Needs & Pain Points 2) Generate Pull-through Demand Pulling Sales through Specifiers, Contractors, Distribution Partners End Users Want: Single Source for Water Mgmt. End Users i.e. Hospitality, Senior Living, Multi-Family Market Pain Points Sprawling municipal infrastructure is degrading water pressure in new & existing buildings Mechanical room space is at a premium Property owners need to minimize equipment noise Multi-Family, Hospitality, & Senior Living need easy-to- use, economical pressure boosting Standard Easy-to-Use Interface 14
Slide 15 — Financial Performance
15 Financial Performance Summary
Slide 16 — 15.3%
Financial Performance Summary 16 15.3% ROIC 2025 14% ADJ. EPS2 CAGR FY2020-2025 11% NET REVENUE CAGR FY2020-2025 1 Non-GAAP ROIC based on after-tax calculation 2 Non-GAAP financial metrics referenced in this slide include ROIC and Adjusted EPS. A reconciliation to comparable U.S. GAAP measures can be found herein. Consolidated Sales ($M) Adjusted EPS2 $1,662 $2,044 $2,065 $2,021 $2,131 2021 2022 2023 2024 2025 $3.26 $4.00 $4.13 $3.92 $4.14 2021 2022 2023 2024 2025 1
Slide 17 — Cash Generation & Returns
Cash Generation & Returns 1 17 1 Non-GAAP financial metrics referenced in this slide include adjusted net income, operating cash flow conversion and ROIC. A reconciliation to comparable U.S. GAAP measures can be found herein. 2 Invested in Working Capital in 2021 and 2022 to support strong growth. 3 Non-GAAP ROIC net of cash based on adjusted OI after-tax calculation; 2024 and earlier years shown with this revised methodology. 4 Net Income for 2025 was negatively impacted by the pension settlement charge of $41.5 million net of tax benefit. Adjusted Net Income ($M)4 Operating Cash Flow Conversion 2 Capital Investments ($M) ROIC3 $155 $189 $195 $182 $149 $42 2021 2022 2023 2024 2025 84% 53% 161% 142% 125% 2021 2022 2023 2024 2025 $30 $42 $40 $41 $43 2021 2022 2023 2024 2025 15.5% 17.9% 17.5% 17.1% 15.3% 2021 2022 2023 2024 2025
Slide 18 — Performance by Segment1,2,3
Performance by Segment1,2,3 18 1 Market opportunity based on management estimates ² Organic growth excludes acquisitions for one year and the net impact of foreign currency translation ³ Non-GAAP financial metrics referenced in this slide include organic sales growth. A reconciliation to comparable U.S. GAAP measures can be found herein. WATER SYSTEMS ENERGY SYSTEMS DISTRIBUTION FY 2025 YoY $1,256.4M up 6% (2% organic growth) Operating Income FY 2025 YoY $207.2M up 5% FY 2025 YoY $299.0M up 9% (9% organic growth) Operating Income FY 2025 YoY $99.1M up 6% FY 2025 YoY $700.7M up 2% (2% organic growth) Operating Income FY 2025 YoY $39.8M up 64% NET SALES MARKET OPPORTUNITY >$12.0B MARKET OPPORTUNITY >$4.0B MARKET OPPORTUNITY >$1.3B NET SALES NET SALES Strategic Rationale Driving organic growth through product development and inorganic growth via product line extensions and geographic expansion across segments
Slide 19 — Non-GAAP Reconciliations
19 Non-GAAP Reconciliations 19
Slide 20 — Non-GAAP Reconciliations
Non-GAAP Reconciliations To supplement Franklin Electric’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. Non-GAAP financial measures may enhance an understanding of the company’s operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the company’s reconciliations to corresponding U.S. GAAP financial measures (which are included in the tables accompanying this presentation), may enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. Accordingly, management uses these non- GAAP measures internally in financial planning and to monitor business performance. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP. Franklin Electric strongly encourages investors to review its consolidated financial statements and publicly-filed reports in their entirety and cautions investors that the non-GAAP measures used by the company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non- GAAP financial measures used in this presentation include net debt/cash, net leverage (defined as net debt divided by EBITDA), return on invested capital, free cash flow and conversion, and organic sales growth. 20
Slide 21 — Reconciliation of Adjusted EPS Non-GAAP Financial Measure
Reconciliation of Adjusted EPS Non-GAAP Financial Measure 21 2025 2024 Change 2025 2024 Change Diluted Earnings per Share "EPS" 0.87 $ 0.72 $ 21% 3.22 $ 3.86 $ -17% Pension Settlement (0.01) $ - $ 0.91 $ - $ Restructuring 0.01 $ 0.06 $ 0.01 $ 0.06 $ Adjusted Diluted EPS (non-GAAP) 0.87 $ 0.78 $ 12% 4.14 $ 3.92 $ 6% For the Fourth Quarter For the Full Year of
Slide 22 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Total Debt to Net Debt (Cash) and Net Debt to EBITDA $ in Millions 22 As of December 31, 2025 Total debt 167 $ Less: cash and cash equivalents (100) $ Net (cash) debt 67 $ Twelve months ended December 31, 2025 Year ended December 31, 2024 Net income 149 $ 182 $ Depreciation and amortization 63 $ 56 $ Income tax expense 46 $ 50 $ Interest expense 11 $ 6 $ EBITDA 268 $ 294 $ Net debt to EBITDA as of December 31, 2025 0.3
Slide 23 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in Millions 23 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Cash flows from operating activities (19.5) $ 51.5 $ 102.7 $ 84.7 $ 238.9 $ (1.4) $ 36.4 $ 116.1 $ 110.3 $ 261.4 $ Cash flows from investing activities (116.1) $ (11.2) $ (9.8) $ (136.1) $ (157.1) $ (10.2) $ (10.0) $ (9.1) $ (16.3) $ (45.6) $ Cash flows from financing activities (2.6) $ (19.5) $ (90.1) $ (87.7) $ (197.3) $ (6.3) $ (32.4) $ (61.3) $ 25.9 $ (74.1) $ - $ - $ Cash flows from operating activities (19.5) $ 51.5 $ 102.7 $ 84.7 $ 238.9 $ (1.4) $ 36.4 $ 116.1 $ 110.3 $ 261.4 $ Capital expenditures (6.8) $ (11.6) $ (11.4) $ (22.3) $ (45.3) $ (9.2) $ (10.2) $ (9.5) $ (12.8) $ (41.7) $ Proceeds from sale of property, plant and equipment 0.4 $ 0.3 $ 1.9 $ 0.7 $ 2.9 $ 0.1 $ 0.3 $ 0.3 $ 0.5 $ 1.2 $ Free cash flow (25.9) $ 40.2 $ 93.2 $ 63.1 $ 196.5 $ (10.5) $ 26.5 $ 106.9 $ 98.0 $ 220.9 $ 2025 2024
Slide 24 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Operating Cash Flow Conversion $ in Millions 24
Slide 25 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Return on Invested Capital (ROIC) $ In millions 25 Net Operating Income After Tax 2025 2024 2023 2022 2021 2020 Operating income 269.0 $ 243.6 $ 262.4 $ 257.2 $ 189.2 $ Restructuring 0.7 $ 3.5 $ 1.1 $ 2.2 $ 0.6 $ Operating income before retructuring 269.7 $ 247.1 $ 263.5 $ 259.4 $ 189.8 $ Tax rate as reported 23.6% 21.7% 19.6% 19.7% 18.3% Income tax on operating income 63.7 53.5 51.7 51.2 34.7 Net operating income after tax (A) 206.0 $ 193.6 $ 211.8 $ 208.2 $ 155.1 $ Total Invested Capital Current maturities of long-term debt and short-term borrowings 31.8 $ 117.8 $ 12.4 $ 126.8 $ 98.0 $ 2.6 $ Long-term debt 135.2 11.6 88.1 89.3 90.5 92.0 Total equity 1,325.6 1,266.1 1,206.7 1,070.1 948.7 847.8 Total invested capital 1,492.6 1,395.5 1,307.2 1,286.2 1,137.2 942.4 Average invested capital 1,444.1 1,351.4 1,296.7 1,211.7 1,039.8 Less: Cash and cash equivalents (99.7) (220.5) (85.0) (45.8) (40.5) Total invested capital, net of cash and cash equivalents (B) 1,344.4 $ 1,130.9 $ 1,211.7 $ 1,165.9 $ 999.3 $ Return on invested capital (A / B) 15.3% 17.1% 17.5% 17.9% 15.5%
Slide 26 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Reported sales growth to organic sales growth 26
Slide 27 — Thank You!
Thank You! Jennifer Wolfenbarger, CFO Dean Cantrell, Director of IR [email protected] 260-827-5520 27