Franklin Electric: Will Its Focus on Energy Systems Pay Off? 

Franklin Electric delivered a mixed performance for the fourth quarter and full year of 2024 against a backdrop of challenging macroeconomic conditions. The company reported a modest year-over-year increase of 3% in consolidated sales for the fourth quarter, driven primarily by growth in the Distribution and newly renamed Energy Systems segments, while sales in the Water Systems segment were flat. Despite achieving higher volumes across segments, the company faced diverse challenges that impacted its overall performance. Operating margins fell to 9% from the previous year’s 10.7% due to factors including more significant restructuring charges, unfavorable geographic and product mix in Water Systems, and foreign exchange headwinds. Although performance in U.S. sales and operational efficiency within the Energy Systems segment led to improved margins, these gains were not enough to offset declines in other areas.