Franklin Electric Releases Third Quarter Results for 2024
Third Quarter 2024 Highlights
Consolidated net sales of $531.4 million, a decrease of 1% compared to last year.
Water Systems and Distribution net sales rose by 2% and 1%, respectively, while Fueling Systems experienced a decrease of 10%.
Operating income stood at $73.5 million, achieving an operating margin of 13.8%.
GAAP fully diluted earnings per share (EPS) was $1.17.
Franklin Electric Co., Inc. shared its financial performance for the third quarter of fiscal year 2024, revealing consolidated net sales of $531.4 million, down from $538.4 million during the same period last year. Operating income was reported at $73.5 million, a decline from the $78.1 million recorded in Q3 2023, while EPS was slightly lower at $1.17 compared to $1.23 in the previous year.
"Our third quarter results were softer than anticipated, primarily due to ongoing macroeconomic pressures including lower home sales and unfavorable weather conditions. However, demand across our key market sectors remains robust, indicating a normalization following a period of exceptional sales growth," stated CEO Joe Ruzynski.
He continued, "As we approach the year's end, we forecast an expected decrease in order activity aligning with typical seasonal trends. Yet, after engaging closely with our devoted team globally, I feel invigorated by Franklin Electric’s prospects. Our diverse capabilities, strategic presence, and adaptable financial position empower us to pursue growth and enhance productivity in the upcoming years."
Segment Performance Overview
Water Systems reported net sales of $302.2 million, achieving a record for the third quarter, marking a $6.4 million increase or 2% over last year. This growth was mainly fueled by increased demand for groundwater and water treatment products, although offset slightly by decreased sales in large dewatering pumps, which had an exceptionally strong performance in the previous year. Operating income in this segment reached $52.8 million, slightly up from $52.7 million in Q3 2023.
Distribution followed suit with net sales of $190.8 million, rising by $1.6 million or 1% from the third quarter of 2023, largely due to contributions from recent acquisitions. Furthermore, the operating income for Distribution surged to $12.2 million, compared to $10.7 million in the same period the prior year.
Fueling Systems saw net sales decline to $69.7 million, down by $8.0 million or 10% from Q3 2023, attributed to reduced volumes. Operating income for this segment slipped to $24.1 million compared to $25.8 million recorded last year.
Revised Guidance for 2024
In light of current trends, Franklin Electric has revised its full-year sales outlook for 2024 to approximately $2.00 billion and adjusted its EPS guidance to a range of $3.75 to $3.85. This adjustment takes into account performance metrics observed in the first nine months, as well as projections for Q4.
Upcoming Earnings Conference Call
The company will hold a conference call at 9:00 am ET to discuss these results in detail. Investors can join the call through a live webcast that will allow for audio participation.
Interested participants can find the registration link and further details provided by Franklin Electric in their corporate communications.
About Franklin Electric
Franklin Electric stands out as a premier global player in the development and distribution of systems and components for the efficient movement of water and energy. The company prides itself on technical excellence in its service offerings across various sectors including residential, commercial, agricultural, industrial, municipal, and fueling markets. Franklin Electric is recognized in several prestigious listings, including Newsweek's America's Most Responsible Companies for 2023 and USA Today's Climate Leaders for the same year.
Contact Information:
Jeffery L. Taylor
Franklin Electric Co., Inc.
InvestorRelations@fele.com
Frequently Asked Questions
What were Franklin Electric's consolidated net sales for Q3 2024?
Franklin Electric reported consolidated net sales of $531.4 million for Q3 2024.
How did the operating income change from Q3 2023 to Q3 2024?
The operating income decreased from $78.1 million in Q3 2023 to $73.5 million in Q3 2024.
What major factors contributed to the decline in Fueling Systems sales?
The decline in Fueling Systems sales by 10% was largely due to lower volumes.
What is the updated sales guidance for Franklin Electric for the full year of 2024?
Franklin Electric has reduced its sales guidance to approximately $2.00 billion for the full year of 2024.
How can investors contact Franklin Electric for more information?
Investors can reach out via email at InvestorRelations@fele.com for more information.
