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Jun 30
Franklin Electric Q2 2025 Earnings Report
Franklin Electric posted record Q2 2025 results across segments, with strong revenue growth and margin expansion.
Key Takeaways
Franklin Electric delivered a robust Q2 2025, with $587.4 million in revenue and operating income of $88.1 million. EPS rose to $1.31. All three business segments reported higher sales, and Energy Systems achieved record margin performance. The company reaffirmed full-year guidance, supported by a healthy backlog and demand outlook.
Revenue rose 8% year-over-year to $587.4 million.
Operating margin improved to 15.0% with $88.1 million in operating income.
Energy Systems achieved 37.5% operating income margin, a record high.
EPS increased to $1.31 from $1.26 in Q2 2024.
Franklin Electric
Franklin Electric
Franklin Electric Revenue by Segment
Franklin Electric Revenue by Geographic Location
Revenue by Segment
Water Systems Revenue
CapyFin.comDistribution Revenue
CapyFin.comEnergy Systems Revenue
CapyFin.comRevenue by Geographic Location
United States & Canada Revenue
CapyFin.comLatin America Revenue
CapyFin.comEurope, Middle East & Africa Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Franklin Electric reaffirmed its FY 2025 guidance of $2.09B–$2.15B in revenue and $3.95–$4.25 in EPS, citing solid order trends and end market strength.
Positive Outlook
- All three segments reported year-over-year sales growth.
- Energy Systems delivered record operating income and margins.
- Strong pricing and productivity gains supported margin expansion.
- Healthy backlog and strong channel positioning entering H2 2025.
- Continued capital returns via dividends and share repurchases.
Challenges Ahead
- Water Systems margin slightly declined YoY to 18.1%.
- Foreign exchange negatively impacted international results.
- Operating cash flow declined to $32M vs. $35M YoY.
- Inventory levels increased to $573.6M, up from $483.9M.
- Free cash flow was negative after accounting for investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income