Revenue growth remains seasonally volatile, ranging from a 4.9% decline in 2024Q1 to a 9.9% increase in 2026Q1, while operating margins struggle to consistently exceed the 14% threshold.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.18B | 2.13B | 2.02B | 2.07B | 2.04B | 1.66B | 1.25B | 1.31B | 1.3B | 1.12B | 949.86M | 924.92M | 1.05B | 965.46M | 891.35M | 821.08M | 713.79M | 625.99M | 745.63M | 602.02M | 557.95M | 403.41M | 370.07M | 359.5M | 354.87M | 322.91M | 325.73M | 293.2M | 272.5M | 303.3M | 300.7M |
| Revenue Growth % | 7.98% | 5.44% | -2.12% | 1.05% | 22.98% | 33.23% | -5.12% | 1.27% | 15.4% | 18.43% | 2.7% | -11.73% | 8.53% | 8.32% | 8.56% | 15.03% | 14.03% | -16.05% | 23.85% | 7.9% | 38.31% | 9.01% | 2.94% | 1.3% | 9.9% | -0.87% | 11.1% | 7.6% | -10.15% | 0.86% | 8.79% |
| Cost of Goods Sold | 1.41B | 1.38B | 1.3B | 1.37B | 1.35B | 1.09B | 814.19M | 886.48M | 865.76M | 747.93M | 618.45M | 627.32M | 703.37M | 633.95M | 589.68M | 548.77M | 483.49M | 438.15M | 518.7M | 429.2M | 366.39M | 260.59M | 243.88M | 248.51M | 249.94M | 224.81M | 229.71M | 201.6M | 185.1M | 210.2M | 213.2M |
| COGS % of Revenue | - | 64.53% | 64.51% | 66.25% | 66.17% | 65.33% | 65.27% | 67.43% | 66.69% | 66.49% | 65.11% | 67.82% | 67.13% | 65.66% | 66.16% | 66.84% | 67.74% | 69.99% | 69.57% | 71.29% | 65.67% | 64.6% | 65.9% | 69.13% | 70.43% | 69.62% | 70.52% | 68.76% | 67.93% | 69.3% | 70.9% |
| Gross Profit | 766.99M | 755.92M | 717.28M | 697.01M | 691.43M | 576.09M | 433.14M | 428.1M | 432.37M | 376.98M | 331.41M | 297.61M | 344.41M | 331.51M | 301.66M | 272.31M | 230.3M | 187.84M | 226.93M | 172.82M | 191.56M | 142.82M | 126.19M | 111M | 104.94M | 98.1M | 96.03M | 91.6M | 87.4M | 93.1M | 87.5M |
| Gross Margin % | 35.24% | 35.47% | 35.49% | 33.75% | 33.83% | 34.67% | 34.73% | 32.57% | 33.31% | 33.51% | 34.89% | 32.18% | 32.87% | 34.34% | 33.84% | 33.16% | 32.26% | 30.01% | 30.43% | 28.71% | 34.33% | 35.4% | 34.1% | 30.87% | 29.57% | 30.38% | 29.48% | 31.24% | 32.07% | 30.7% | 29.1% |
| Gross Profit Growth % | - | 5.39% | 2.91% | 0.81% | 20.02% | 33% | 1.18% | -0.99% | 14.69% | 13.75% | 11.36% | -13.59% | 3.89% | 9.9% | 10.78% | 18.24% | 22.61% | -17.22% | 31.31% | -9.78% | 34.12% | 13.18% | 13.69% | 5.78% | 6.96% | 2.16% | 4.83% | 4.81% | -6.12% | 6.4% | 17.92% |
| Operating Expenses | 489.88M | 486.23M | 473.63M | 434.57M | 434.25M | 386.9M | 302.63M | 300.97M | 300.37M | 269.75M | 219.34M | 207.25M | 244.32M | 207.73M | 177.97M | 178.91M | 166.2M | 139.82M | 150.22M | 123.65M | 102.48M | 72.72M | 65.95M | 59.11M | 54.64M | 52.75M | 55.81M | 49.4M | 48.7M | 56.7M | 54.3M |
| OpEx % of Revenue | - | 22.81% | 23.43% | 21.04% | 21.25% | 23.28% | 24.26% | 22.89% | 23.14% | 23.98% | 23.09% | 22.41% | 23.32% | 21.52% | 19.97% | 21.79% | 23.28% | 22.34% | 20.15% | 20.54% | 18.37% | 18.03% | 17.82% | 16.44% | 15.4% | 16.34% | 17.13% | 16.85% | 17.87% | 18.69% | 18.06% |
| Selling, General & Admin | 488.1M | 486.23M | 466.54M | 433.88M | 422.88M | 386.48M | 303.32M | 301.65M | 299.31M | 266.25M | 221.13M | 204.05M | 225.31M | 203.91M | 186.79M | 177.32M | 160.86M | 133.63M | 147.99M | 119.75M | 102.48M | 70.8M | 60.41M | 59.11M | 54.64M | 47.52M | 44.97M | 41.9M | 42M | 49.1M | 45.9M |
| SG&A % of Revenue | - | 22.81% | 23.08% | 21.01% | 20.69% | 23.26% | 24.32% | 22.95% | 23.06% | 23.67% | 23.28% | 22.06% | 21.5% | 21.12% | 20.96% | 21.6% | 22.54% | 21.35% | 19.85% | 19.89% | 18.37% | 17.55% | 16.32% | 16.44% | 15.4% | 14.72% | 13.8% | 14.29% | 15.41% | 16.19% | 15.26% |
| Research & Development | 0 | 0 | 21.5M | 17.7M | 16.7M | 17.3M | 21.7M | 20.8M | 22.1M | 20.8M | 21.5M | 18.4M | 19.3M | 16.8M | 9.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.23M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 1.06% | 0.86% | 0.82% | 1.04% | 1.74% | 1.58% | 1.7% | 1.85% | 2.26% | 1.99% | 1.84% | 1.74% | 1.11% | - | - | - | - | - | - | - | - | - | - | 1.62% | - | - | - | - | - |
| Other Operating Expenses | 1.11M | 0 | -14.4M | -17.01M | -5.33M | -16.88M | -22.39M | -21.48M | -21.03M | -17.29M | -23.3M | -15.2M | -289K | -12.98M | 0 | 1.59M | 5.33M | 6.2M | 2.23M | 3.9M | 0 | 1.92M | 5.54M | 0 | 0 | 0 | 10.84M | 7.5M | 6.7M | 7.6M | 8.4M |
| Operating Income | 273.24M | 269.69M | 243.65M | 262.44M | 257.19M | 189.19M | 130.51M | 127.13M | 131.99M | 107.23M | 112.07M | 90.36M | 100.09M | 123.78M | 114.88M | 93.4M | 64M | 48.02M | 76.71M | 49.17M | 89.08M | 70.1M | 60.24M | 51.89M | 50.3M | 45.35M | 40.22M | 42.2M | 37.9M | 36.4M | 33.2M |
| Operating Margin % | 12.55% | 12.65% | 12.05% | 12.71% | 12.58% | 11.38% | 10.46% | 9.67% | 10.17% | 9.53% | 11.8% | 9.77% | 9.55% | 12.82% | 12.89% | 11.38% | 8.97% | 7.67% | 10.29% | 8.17% | 15.97% | 17.38% | 16.28% | 14.43% | 14.17% | 14.04% | 12.35% | 14.39% | 13.91% | 12% | 11.04% |
| Operating Income Growth % | - | 10.69% | -7.16% | 2.04% | 35.94% | 44.96% | 2.66% | -3.68% | 23.1% | -4.32% | 24.02% | -9.72% | -19.14% | 7.75% | 23% | 45.94% | 33.29% | -37.41% | 56% | -44.8% | 27.07% | 16.37% | 16.1% | 3.17% | 10.91% | 12.76% | -4.69% | 11.35% | 4.12% | 9.64% | 34.96% |
| EBITDA | 321.69M | 332.57M | 299.72M | 314.7M | 307.56M | 233.76M | 167M | 164.11M | 170.6M | 145.73M | 147.6M | 125.84M | 137.3M | 155.14M | 143.21M | 118.69M | 88.04M | 73.4M | 100.87M | 69.53M | 107.07M | 85.07M | 75.39M | 65.64M | 63.18M | 58.01M | 51.06M | 49.7M | 44.6M | 44M | 41.6M |
| EBITDA Margin % | 14.78% | 15.6% | 14.83% | 15.24% | 15.05% | 14.07% | 13.39% | 12.48% | 13.14% | 12.96% | 15.54% | 13.61% | 13.1% | 16.07% | 16.07% | 14.46% | 12.33% | 11.73% | 13.53% | 11.55% | 19.19% | 21.09% | 20.37% | 18.26% | 17.8% | 17.96% | 15.67% | 16.95% | 16.37% | 14.51% | 13.83% |
| EBITDA Growth % | 8.49% | 10.96% | -4.76% | 2.32% | 31.57% | 39.98% | 1.76% | -3.8% | 17.06% | -1.27% | 17.3% | -8.35% | -11.5% | 8.33% | 20.66% | 34.82% | 19.94% | -27.24% | 45.07% | -35.06% | 25.85% | 12.85% | 14.85% | 3.9% | 8.91% | 13.61% | 2.73% | 11.43% | 1.36% | 5.77% | 24.18% |
| D&A (Non-Cash Add-back) | 48.44M | 62.88M | 56.07M | 52.26M | 50.37M | 44.57M | 36.49M | 36.98M | 38.6M | 38.51M | 35.53M | 35.48M | 37.21M | 31.36M | 28.34M | 25.3M | 24.04M | 25.39M | 24.16M | 20.36M | 17.99M | 14.97M | 15.14M | 13.75M | 12.88M | 12.66M | 10.84M | 7.5M | 6.7M | 7.6M | 8.4M |
| EBIT | 161.64M | 205.29M | 238.17M | 254.01M | 246.75M | 194.9M | 128.32M | 125.08M | 130.25M | 114.91M | 112.84M | 96.36M | 100.44M | 122.15M | 126.2M | 97.64M | 64.67M | 48.44M | 78.56M | 53.07M | 89.08M | 72.02M | 65.78M | 51.89M | 50.3M | 50.58M | 40.22M | 42.2M | 37.9M | 36.4M | 33.2M |
| Net Interest Income | -8.84M | -10.64M | -6.32M | -11.79M | -11.53M | -5.2M | -4.63M | -8.24M | -9.84M | -10.32M | -8.73M | -10.04M | -10.73M | -10.6M | -10.21M | -10.5M | -9.69M | -9.55M | -10.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 6.53M | 10.64M | 6.32M | 11.79M | 11.53M | 5.2M | 4.63M | 8.24M | 9.84M | 10.32M | 8.73M | 10.04M | 10.73M | 10.6M | 10.21M | 10.5M | 9.69M | 9.55M | 10.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -74.67M | -75.04M | -11.8M | -20.22M | -21.96M | 513K | -6.81M | -10.3M | -11.59M | -2.64M | -7.96M | -4.04M | -10.38M | -12.23M | 1.11M | -6.26M | -9.02M | -9.12M | -9.12M | -5.06M | -1.65M | 647K | -748K | -563K | 179K | -1.96M | -4.31M | 200K | 2.1M | 4.1M | 100K |
| Pretax Income | 198.57M | 194.65M | 231.85M | 242.22M | 235.23M | 189.71M | 123.7M | 116.83M | 120.41M | 104.59M | 104.11M | 86.32M | 89.7M | 111.55M | 115.99M | 87.14M | 54.98M | 38.89M | 67.04M | 44.12M | 87.43M | 71.09M | 59.03M | 51.33M | 50.48M | 43.38M | 35.91M | 42.4M | 40M | 40.5M | 33.3M |
| Pretax Margin % | 9.12% | 9.13% | 11.47% | 11.73% | 11.51% | 11.42% | 9.92% | 8.89% | 9.28% | 9.3% | 10.96% | 9.33% | 8.56% | 11.55% | 13.01% | 10.61% | 7.7% | 6.21% | 8.99% | 7.33% | 15.67% | 17.62% | 15.95% | 14.28% | 14.22% | 13.44% | 11.02% | 14.46% | 14.68% | 13.35% | 11.07% |
| Income Tax | 46.56M | 45.96M | 50.24M | 47.49M | 46.42M | 34.73M | 22.54M | 20.84M | 14.89M | 25.99M | 24.8M | 12.63M | 18.85M | 28.85M | 32.25M | 23.41M | 15.06M | 12.17M | 22.93M | 15.43M | 30.67M | 25.08M | 20.95M | 16.85M | 18.27M | 16.23M | 13.68M | 15.6M | 15.2M | 15M | 11.8M |
| Effective Tax Rate % | 23.45% | 23.61% | 21.67% | 19.61% | 19.73% | 18.31% | 18.22% | 17.83% | 12.37% | 24.85% | 23.82% | 14.63% | 21.01% | 25.86% | 27.8% | 26.87% | 27.39% | 31.29% | 34.2% | 34.98% | 35.08% | 35.28% | 35.49% | 32.82% | 36.2% | 37.42% | 38.1% | 36.79% | 38% | 37.04% | 35.44% |
| Net Income | 150.46M | 147.09M | 180.31M | 193.27M | 187.33M | 153.86M | 100.46M | 95.48M | 105.88M | 78.18M | 78.75M | 72.94M | 69.81M | 81.96M | 82.86M | 63.1M | 38.91M | 25.99M | 44.11M | 28.68M | 57M | 46.01M | 38.08M | 34.48M | 32.2M | 27.15M | 22.23M | 26.8M | 24.8M | 25.5M | 21.5M |
| Net Margin % | 6.91% | 6.9% | 8.92% | 9.36% | 9.17% | 9.26% | 8.05% | 7.26% | 8.16% | 6.95% | 8.29% | 7.89% | 6.66% | 8.49% | 9.3% | 7.68% | 5.45% | 4.15% | 5.92% | 4.76% | 10.22% | 11.4% | 10.29% | 9.59% | 9.07% | 8.41% | 6.82% | 9.14% | 9.1% | 8.41% | 7.15% |
| Net Income Growth % | -15.62% | -18.42% | -6.71% | 3.17% | 21.75% | 53.16% | 5.21% | -9.82% | 35.43% | -0.72% | 7.95% | 4.5% | -14.83% | -1.09% | 31.32% | 62.15% | 49.75% | -41.09% | 53.79% | -49.68% | 23.88% | 20.81% | 10.45% | 7.07% | 18.62% | 22.15% | -17.07% | 8.06% | -2.75% | 18.6% | 38.71% |
| Net Income (Continuing) | 151.65M | 148.69M | 181.61M | 194.73M | 188.81M | 154.97M | 101.16M | 96M | 105.52M | 78.59M | 79.31M | 73.69M | 70.85M | 82.7M | 0 | 63.72M | 39.92M | 26.72M | 44.66M | 28.68M | 56.76M | 45.8M | 38.37M | 34.48M | 32.2M | 27.15M | 22.23M | 26.8M | 24.8M | 25.5M | 21.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 236K | 213K | -285K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.91M | 1.66M | 3.73M | 3.57M | 2.9M | 2.14M | 2.12M | 2.12M | 1.96M | 1.96M | 1.64M | 1.76M | 2.14M | 2.51M | 7.84M | 5.41M | 9.35M | 9.43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.33 | 3.25 | 3.86 | 4.11 | 3.97 | 3.25 | 2.14 | 2.03 | 2.25 | 1.65 | 1.65 | 1.50 | 1.41 | 1.68 | 1.73 | 1.33 | 0.83 | 0.56 | 0.95 | 0.61 | 1.22 | 0.99 | 0.83 | 0.76 | 0.71 | 0.60 | 0.49 | 0.57 | 0.50 | 0.50 | 0.40 |
| EPS Growth % | -13.35% | -15.8% | -6.08% | 3.53% | 22.15% | 51.87% | 5.42% | -9.78% | 36.36% | 0% | 10% | 6.38% | -16.07% | -2.89% | 30.08% | 60.24% | 48.21% | -41.05% | 55.74% | -50% | 23.23% | 19.28% | 9.21% | 7.04% | 18.33% | 22.45% | -14.04% | 14% | 0% | 25% | 37.93% |
| EPS (Basic) | - | 3.25 | 3.92 | 4.17 | 4.03 | 3.30 | 2.16 | 2.04 | 2.27 | 1.67 | 1.67 | 1.52 | 1.43 | 1.70 | 1.76 | 1.36 | 0.84 | 0.56 | 0.96 | 0.62 | 1.25 | 1.03 | 0.87 | 0.80 | 0.75 | 0.62 | 0.51 | 0.61 | 0.54 | 0.54 | 0.43 |
| Diluted Shares Outstanding | 45.24M | 45.24M | 46.5M | 46.9M | 47M | 47M | 46.7M | 46.8M | 47.06M | 47M | 47.15M | 47.99M | 48.82M | 48.21M | 47.8M | 47.62M | 47.03M | 46.58M | 46.47M | 47.02M | 46.72M | 46.47M | 46.16M | 45.22M | 45.52M | 45.44M | 45.48M | 46.61M | 49.35M | 50.87M | 53.42M |
| Basic Shares Outstanding | 45.24M | 45.24M | 45.9M | 46.2M | 46.3M | 46.4M | 46.2M | 46.4M | 46.6M | 46.81M | 46.2M | 47.1M | 48.37M | 48.07M | 47.08M | 46.57M | 46.35M | 46.15M | 45.93M | 46.26M | 45.6M | 44.45M | 44.03M | 43.24M | 43.23M | 43.53M | 43.58M | 44.02M | 45.93M | 47.11M | 50.15M |
| Dividend Payout Ratio | - | 33.99% | 26% | 21.59% | 19.75% | 21.71% | 29.54% | 28.98% | 21.36% | 25.95% | 24.3% | 25.95% | 24.96% | 18.66% | 16.67% | 20.43% | 31.7% | 45.76% | 25.77% | 37.77% | 17.25% | 18.36% | 17.9% | 17.24% | 17.09% | 18.87% | 21.08% | 15.67% | 15.32% | 13.33% | 13.49% |
Cyclical demand and margin dilution
According to the provided quarterly income statements, Franklin Electric's revenue growth has fluctuated significantly, ranging from a 4.9% decline in 2024Q1 to a 9.9% increase in 2026Q1, reflecting the inherent seasonality of its water systems and agricultural-linked demand cycles across the North American market.
The inconsistent top-line performance suggests that the company remains highly sensitive to external macroeconomic factors, particularly rural residential construction and agricultural investment. Investors should monitor whether the recent return to positive growth in early 2026 represents a durable recovery or merely a temporary rebound from the contractionary periods observed throughout 2024.
As reported in financial statements, the company's gross margin has hovered between 33.8% and 36.8% over the last ten quarters, indicating that the ongoing expansion of the lower-margin Headwater distribution network may be creating a structural ceiling on overall profitability for the manufacturing segments.
The persistent gap between peak margins and recent troughs suggests that the product mix shift toward distribution is not yet fully offset by manufacturing efficiencies. This trend warrants further investigation into whether the company can maintain its historical pricing power as the distribution segment continues to represent a larger portion of the consolidated revenue base.
Based on the reported figures, operating income has shown significant volatility, peaking at $88.1M in 2025Q2 before retreating to $48.1M in 2026Q1, which suggests that the company struggles to maintain consistent operating leverage during periods of fluctuating top-line demand and rising overhead costs.
The lack of a clear, linear relationship between gross profit expansion and operating income growth implies that fixed costs are not scaling efficiently. This may indicate that the company is absorbing higher administrative or logistical expenses associated with its acquisition-heavy growth strategy, potentially limiting bottom-line expansion during slower quarters.
Analysis of the income statement reveals that net income has experienced sharp quarterly swings, such as the drop to $16.7M in 2025Q3, which appears largely disconnected from revenue trends and suggests that non-operating items or tax anomalies may be distorting the quality of reported earnings.
The significant variance in net income relative to operating income suggests that investors should look past the headline EPS figures to understand the core operational health. The presence of stock-based compensation, while relatively modest, further complicates the assessment of true cash-generative capability on a quarterly basis.
Data from the last ten quarters indicates that the company's operating margin has struggled to sustain levels above 14%, raising concerns that the current business model may be inherently susceptible to margin compression if input costs for steel and copper rise unexpectedly.
Short-term observers might argue that the reliance on a lower-margin distribution model creates a permanent drag on profitability that cannot be easily mitigated by manufacturing excellence. If the company fails to pass through commodity price increases effectively, the current valuation may appear optimistic given the potential for continued margin erosion.
Quick answers to the most common questions about buying FELE stock.
For fiscal year 2025, Franklin Electric Co., Inc. (FELE) reported total revenue of $2.13B. This represents a 608.8% increase compared to $300.7M in 1996.
Franklin Electric Co., Inc. (FELE) is profitable, generating $147.1M in net income for the fiscal year ending 2025 with a net profit margin of 6.9%.
Franklin Electric Co., Inc. (FELE) reported an operating income of $269.7M, resulting in an operating profit margin of 12.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Franklin Electric Co., Inc. (FELE) generated $755.9M in gross profit for the year, representing a gross profit margin of 35.5%. This demonstrates the company's core pricing power and production efficiency.