Dec 31, 2022

Franklin Electric Q4 2022 Earnings Report

Franklin Electric's Q4 2022 earnings were released, revealing record fourth-quarter sales and operating income, but a slight decrease in GAAP EPS compared to the prior year.

Key Takeaways

Franklin Electric reported record fourth-quarter sales of $489.4 million, a 13% increase year-over-year, and record operating income of $56.2 million, up 19% from the prior year. GAAP EPS was $0.84, a slight decrease of $0.01 compared to the prior year. The company delivered record full-year sales, operating income, and earnings per share.

Sales reached $489.4 million, marking a 13% increase over the prior year and a fourth-quarter record.

All three segments experienced strong sales growth, with Distribution up 27%, Water Systems up 9%, and Fueling Systems up 8%.

Operating income hit a fourth-quarter record of $56.2 million, reflecting a 19% increase compared to the prior year.

GAAP fully diluted earnings per share (EPS) stood at $0.84, a decrease of $0.01 from the prior year.

Total Revenue
$489M
Previous year: $433M
+13.2%
EPS
$0.84
Previous year: $0.86
-2.3%
Operating Margin
11.5%
Gross Profit
$166M
Previous year: $145M
+14.5%
Cash and Equivalents
$45.8M
Previous year: $40.5M
+13.0%
Free Cash Flow
$81.9M
Previous year: $26M
+214.9%
Total Assets
$1.69B
Previous year: $1.58B
+7.6%

Franklin Electric

Franklin Electric

Franklin Electric Revenue by Segment

Franklin Electric Revenue by Geographic Location

Forward Guidance

The Company expects its full year 2023 sales to be in the range of $2.1 billion to $2.2 billion and full year 2023 EPS to be in the range of $4.10 to $4.30.

Positive Outlook

  • Full year 2023 sales to be in the range of $2.1 billion to $2.2 billion
  • Full year 2023 EPS to be in the range of $4.10 to $4.30
  • Well positioned to continue momentum based on robust demand across end markets
  • Diverse customer base
  • Growing global need for clean water and safe, cost-effective fueling solutions

Revenue & Expenses

Visualization of income flow from segment revenue to net income