Jun 30, 2022

Franklin Electric Q2 2022 Earnings Report

Franklin Electric reported record performance driven by double-digit top-line growth and margin improvement.

Key Takeaways

Franklin Electric reported record second quarter results with sales of $551.1 million, a 26% increase compared to the second quarter of 2021. Operating income also reached a record $81.0 million, a 57% increase. GAAP fully diluted earnings per share was $1.26, a new record for any quarter.

Record sales of $551.1 million, a 26% increase compared to Q2 2021.

Strong organic sales growth in all three segments: Water Systems 27%, Fueling Systems 21%, and Distribution 18%.

Operating income was a record at $81.0 million, a 57% increase compared to Q2 2021.

GAAP fully diluted earnings per share (EPS) was $1.26, a new record for any quarter.

Total Revenue
$551M
Previous year: $437M
+26.0%
EPS
$1.26
Previous year: $0.83
+51.8%
Operating Margin
14.7%
Previous year: 11.8%
+24.6%
Gross Profit
$189M
Previous year: $152M
+24.3%
Cash and Equivalents
$33.2M
Previous year: $81.6M
-59.3%
Free Cash Flow
-$11.9M
Previous year: $24.1M
-149.2%
Total Assets
$1.75B
Previous year: $1.51B
+15.9%

Franklin Electric

Franklin Electric

Franklin Electric Revenue by Segment

Franklin Electric Revenue by Geographic Location

Forward Guidance

The company is revising its full-year 2022 guidance, increasing consolidated net sales to between $2.00 billion and $2.15 billion. Furthermore, they are revising and increasing their 2022 full-year earnings per share excluding restructuring to between $4.00 and $4.20.

Positive Outlook

  • Increasing consolidated net sales guidance to between $2.00 billion and $2.15 billion.
  • Increasing full-year earnings per share excluding restructuring to between $4.00 and $4.20.

Challenges Ahead

  • Challenging business environment with inflation persisting.
  • Supply issues continuing in the near-term.

Revenue & Expenses

Visualization of income flow from segment revenue to net income