Franklin Electric Co., Inc. (FELE): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that powers essential infrastructure, and after two decades analyzing these plays, I can tell you Franklin Electric Co., Inc.'s model is built on durability and smart diversification. Forget abstract strategy; this is about concrete execution, like their $340.8 million in Q2 2025 Water Systems sales feeding a projected $2.09 billion to $2.15 billion in total 2025 revenue. If you want to see exactly how they balance proprietary motor tech, a massive distribution footprint, and strategic M&A-like the recent Barnes de Colombia buy-to keep those critical resources flowing, dive into the nine blocks below.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Key Partnerships

You're looking at the structure that allows Franklin Electric Co., Inc. (FELE) to move its products across the globe, which is critical given their daily output of approximately 20,000 pumps, motors, drives, and controls. These relationships are the backbone of their global reach across 6 continents and 20 countries.

Strategic Acquisitions for Expansion

Franklin Electric Co., Inc. actively uses strategic acquisitions to bolster regional presence and product lines. In 2025 alone, the company completed 2 acquisitions, bringing the total count to 14 acquisitions to date.

• The acquisition of Barnes de Colombia was executed in February 2025, specifically targeting Latin American expansion.
• The acquisition of PumpEng, an Australian manufacturer of submersible pumps for mining, closed in February 2025.
• The incremental sales impact from recent acquisitions contributed to the 8% year-over-year increase in Water Systems net sales for the second quarter of 2025.

Global Network of Independent Distributors and Dealers

The Distribution segment is a major channel partner, evidenced by its second quarter of 2025 net sales reaching $200.0 million, which represented a 5% increase compared to the second quarter of 2024. This network is essential for serving contractors and end-users.

Here's a look at the scale of the segments that rely on this channel structure, based on Q2 2025 results:

Segment	Q2 2025 Net Sales (Millions USD)	Year-over-Year Growth
Water Systems	$340.8	8%
Distribution	$200.0	5%
Energy Systems	$77.5	6%

Original Equipment Manufacturers (OEMs) for Integrated Solutions

Franklin Electric Co., Inc. integrates its components directly into the offerings of other manufacturers. The Distribution segment specifically sells products to original equipment manufacturers (OEMs), alongside wholesale and specialty distributors.

• The company's overall TTM (Trailing Twelve Months) revenue as of September 2025 was $2.11 Billion USD.
• The Energy Systems segment, which provides components like submersible pumps and station hardware for fuel systems, also serves OEMs in energy markets.

Suppliers for Raw Materials

The relationship with suppliers for core inputs like copper, steel, and electronic components is managed with an eye toward risk mitigation. Management explicitly notes raw material costs as a factor in their forward-looking statements, indicating a direct financial impact from these partnerships.

Franklin Electric Co., Inc. maintains a stated commitment to continuous improvement through its Franklin Leadership System to ensure high quality from its supply base.

Engineering Firms for Large-Scale Projects

While specific financial data on contracts with engineering firms for municipal and industrial projects isn't broken out, the company's Water Systems segment directly serves municipal and industrial applications. The segment's Q2 2025 operating income was $61.8 million, showing the financial scale supported by these large project relationships.

The Energy Systems segment also partners indirectly through its offerings to power utility, hydroelectric, rail, and data center infrastructure, all of which involve significant engineering oversight.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Key Activities

The core of Franklin Electric Co., Inc.'s operations centers on the intricate process of designing, making, and moving water and energy system components across the globe. This involves significant capital deployment into physical production assets and process refinement.

Manufacturing and assembly of submersible motors and pumps globally.

Franklin Electric Co., Inc. maintains a global manufacturing footprint, which it is actively expanding in key markets as of late 2025 to improve service efficiency. The Water Systems segment, which focuses heavily on submersible motors and pumps, represented approximately 60% of the company's total revenue in 2024. Recent acquisitions, like PumpEng, bring in manufacturing capabilities that adhere to high standards, as PumpEng products are assembled in ISO 9001/14001 and ATEX-certified facilities in Australia. The operational scale is evident in the segment performance through mid-2025.

Key Segment Sales Performance (Mid-2025):

Metric	Q2 2025 Amount	Q3 2025 Amount
Water Systems Net Sales	$340.8 million	$336.6 million
Water Systems YoY Growth	8%	11%
Distribution Net Sales	$200.0 million	$197.3 million
Distribution YoY Growth	5%	3%

The company's overall focus on operational execution is reflected in its financial guidance, with a reaffirmed full-year 2025 sales expectation between $2.09 billion and $2.15 billion.

Research and development (R&D) for electronic controls and IoT integration.

A key activity involves continuous R&D, which supports the development of advanced system controls. In 2024, Franklin Electric Co., Inc. launched new products such as integrated pressure boosting systems and electronic variable frequency drives that incorporate IoT capabilities. These investments in technology are factored into the 2025 outlook, which includes anticipated strategic investments. For instance, the full-year 2025 GAAP EPS guidance range of $3.95 to $4.25 reflects these growth investments alongside market uncertainty.

Managing a complex, multi-segment global supply chain.

Managing the flow of materials and finished goods across Water Systems, Energy Systems, and Distribution segments globally is a constant activity. Supply chain adjustments and restructuring costs are a near-term focus, contributing to the widened lower end of the 2025 EPS guidance. The company's Q1 2025 results noted headwinds from one-time costs related to acquisition expenses and executive transition, which impact the immediate cost structure of operations. The overall consolidated net sales for Q2 2025 reached $587.4 million, showing the scale of the supply chain activity.

Integrating recent acquisitions like PumpEng for mining sector access.

Strategic mergers and acquisitions are a vital activity for market access and portfolio enhancement. The acquisition of PumpEng Pty Ltd. in February 2025 specifically targeted the mining sector in Australia. PumpEng was a $12.5 million AUD business and brought a team of 50 professionals. Franklin Electric Co., Inc. also moved to acquire Barnes de Colombia S.A. in early 2025 to bolster its Latin American presence. The integration playbook is deployed to enhance the margin profiles of these acquired businesses, as seen by the Q1 2025 CEO comment on deploying this playbook.

Acquisition Activity Snapshot (Early 2025):

Acquired Entity	Acquisition Date	Target Sector/Focus	Known Size/Detail
PumpEng Pty Ltd.	February 2025	Mining Sector Dewatering Pumps (Australia)	$12.5 million AUD business; 50 professionals
Barnes de Colombia S.A.	Early 2025 (Agreement/Close)	Water Systems (Latin America)	Strengthens presence in high-growth Latin American markets

Operating the U.S. professional groundwater distribution network.

The Distribution segment, primarily serving the U.S. professional groundwater market through Headwater Companies, LLC, is a key revenue driver. Headwater Companies itself was built through acquisitions, such as Blake Group Holdings, which had approximately $74 million of consolidated annual sales at the time of its December 31, 2021, acquisition. The segment's operational health is tracked closely:

• Distribution segment operating income in Q2 2025 was $16.1 million.
• Distribution segment operating income in Q3 2025 was $16.3 million.
• The segment saw a 300 basis point improvement in operating income margin in Q2 2025 versus the prior year.

This segment's performance helps offset other market dynamics; for example, strong Energy Systems performance helped offset unfavorable weather impacting the Distribution business in Q1 2025.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Key Resources

You're looking at the hard assets and intangible strengths that Franklin Electric Co., Inc. uses to deliver its value propositions. These aren't just line items; they are the engines behind the reported $581.7 million in consolidated net sales for the third quarter of 2025.

Proprietary motor and pump technology patents

Intellectual property is a core moat here. Franklin Electric Co., Inc. actively develops and defends its technology, which is crucial for maintaining performance advantages in submersible motors and controls.

• Total Documents Applications and Grants: 527.
• Total Patents Families: 163.
• A recent Grant for a self-contained well water system was issued on April 8, 2025.
• The company manufactures approximately 20,000 pumps, motors, drives, and controls every day.

Global manufacturing and foundry capabilities, enhanced in 2025

The physical footprint supports global reach and operational flexibility. The CEO noted progress on the expansion of our global manufacturing footprint in several key markets during the Q3 2025 earnings call, positioning them for better efficiency.

• Manufacturing facilities are located across the United States, Germany, Czech Republic, Italy, Turkey, Mexico, Brazil, Australia, South Africa, China, and Japan.
• The acquisition of PumpEng Pty Ltd in February 2025 expanded capabilities, particularly for submersible pumps in the mining sector.
• The planned acquisition of Barnes de Colombia S.A. in early 2025 further bolstered regional production capacity.

The Distribution segment's physical warehouse and logistics footprint

While specific square footage isn't public, the scale of the Distribution segment is clear from its financial contribution. This segment generated net sales of $197.3 million in the third quarter of 2025, with an operating income of $16.3 million. This network is essential for getting products like those from the Water Systems segment, which saw Q3 2025 sales of $336.6 million, to the end customer.

Strong brand equity in water and fuel systems (e.g., Little Giant, FE Petro)

Reputation translates directly into customer trust, especially when moving critical resources like water and fuel. Franklin Electric Co., Inc. is recognized for its commitment to quality and responsibility.

• Recognized in Newsweek's lists of America's Most Responsible Companies and Most Trustworthy Companies for 2024.
• Named one of America's Climate Leaders 2024 by USA Today.
• The company's Energy Systems segment, which includes fueling system components, achieved a record operating margin of 35.9% in Q4 2024.

Financial capacity to execute strategic acquisitions and share buybacks

You need dry powder to make strategic moves. Franklin Electric Co., Inc. has maintained a balanced capital allocation approach, using both debt capacity and operating cash flow to fund growth and return capital.

Financial Metric	Amount/Value	As of Date/Period
Trailing 12-Month Revenue	$2.11B	30-Sep-2025
Net Cash Flows from Operating Activities	$134.7 million	Nine Months 2025
Total Debt	$270,717 thousand	30-Sep-2025
Share Repurchases	$53.1 million	2024
Total Stated Borrowing Capacity	$479.1 million (Credit Agreement + NY Life Agreement)	31-Dec-2024

The company executed the acquisition of PumpEng Pty Ltd in February 2025 and was closing on Barnes de Colombia S.A. in early 2025. Honestly, having $304.1 million in borrowing capacity under the Credit Agreement at year-end 2024 provided a solid base for these moves.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Value Propositions

You're looking at what Franklin Electric Co., Inc. actually delivers to its customers, the core reasons they choose this company over others. It's about the tangible value they put in front of the market.

Reliable, energy-efficient systems for moving critical resources (water, fuel).

Franklin Electric Co., Inc. is positioned as a provider of systems and technologies for moving and protecting the world's most critical resources: water, fuel, and electricity. The company's operating performance in the first half of 2025 shows this value proposition is resonating, with consolidated net sales reaching $587.4 million in the second quarter of 2025 alone. The full-year 2025 sales guidance remains strong, projected between $2.09 billion and $2.15 billion.

Diversified portfolio across Water Systems, Energy Systems, and Distribution.

The diversification itself is a value proposition, showing resilience and broad market reach. For instance, in the second quarter of 2025, Water Systems delivered net sales of $340.8 million, while Distribution brought in $200.0 million, and Energy Systems added $77.5 million. This spread helps stabilize results, as seen when strong Energy Systems sales offset weather impacts on the Distribution business in the first quarter of 2025. Here's a quick look at the Q2 2025 segment performance:

Segment	Q2 2025 Net Sales (Millions USD)	Year-over-Year Sales Growth
Water Systems	$340.8	8%
Distribution	$200.0	5%
Energy Systems	$77.5	6%

The Water Systems segment, which historically contributed about 60% of total revenue in 2024, continues to be a major driver, showing an 8% increase in Q2 2025 sales.

Indispensable partner status through strong service and product availability.

The company emphasizes its competitive position is built on strong brands and leading service. You see this reflected in the operational improvements; for example, the Distribution segment operating income jumped to $16.1 million in Q2 2025 from $9.8 million in Q2 2024, driven by higher volumes. Management noted a commitment to maintaining a healthy backlog and strong channel positioning. The focus on operational discipline helps ensure product availability when customers need it most.

• Strong brands support premium pricing realization.
• Leading service supports customer retention.
• Healthy backlog entering the second half of 2025.

Integrated electronic controls for system monitoring and optimization.

Franklin Electric Co., Inc. designs, manufactures, and distributes systems that include electronic controls. These controls provide system monitoring and optimization capabilities, which is a key differentiator in moving critical resources. The focus on productivity initiatives is evident in the total company operating margin improvement to 15.0% in Q2 2025. Furthermore, the Q3 2025 operating income margin improved by 190 basis points versus the prior year, partly due to effective pricing and cost control, which suggests the value of their integrated, optimized systems is being recognized.

High-quality, durable submersible pumps for harsh environments like mining.

The value proposition includes providing high-quality, durable submersible pumps designed for demanding settings. While specific mining revenue isn't broken out, the overall Water Systems segment performance, which includes these products, shows growth in international markets, with Latin America sales up 26% in Q2 2025. The company's focus on responsible innovation supports the durability claim, which is essential for minimizing downtime in harsh applications.

Finance: draft 13-week cash view by Friday.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Customer Relationships

You're looking at how Franklin Electric Co., Inc. keeps its customers engaged and loyal, which is key when you're selling critical infrastructure components. It's a mix of direct, high-touch service for pros and building long-term confidence through financial consistency.

Dedicated technical support and training for professional installers and dealers.

Franklin Electric Co., Inc. backs its technical leadership with direct channels for its professional customers. For the U.S. Pro Channel, you can reach them at 800-269-0063 for order status or account questions, and the Canada Pro Channel uses 877-337-2650. Furthermore, they actively engage their distribution network through sales incentives; for example, the 2025 EVO™ Series Distributor Sales Incentive Program applied to orders placed between January 1, 2025, and December 31, 2025, showing a direct financial tie-in with sales personnel. Incentive award checks were mailed approximately three weeks after the Check Request form was received, provided the product had shipped.

Long-term, strategic partnerships with large industrial and municipal clients.

Franklin Electric Co., Inc. serves customers across industrial and municipal applications globally. The company's overall Q3 2025 consolidated sales reached $581.7 million, an increase of 9% year-over-year, reflecting broad market acceptance. The company's CEO noted that its 'wide portfolio and strong customer intimacy provide important earnings durability across evolving market conditions.'

High-touch, personal service model within the Distribution segment.

The Distribution segment, which relies heavily on this direct relationship model, showed strong operating leverage in the third quarter of 2025. Distribution segment operating income hit $16.3 million in Q3 2025, representing a significant year-over-year increase of 34% from the prior year's $12.2 million. This segment generated net sales of $197.3 million in Q3 2025. For comparison, Q2 2025 Distribution net sales were $200.0 million, up 5% over Q2 2024, driven by higher volumes, suggesting consistent, personal engagement translates to sales growth.

Self-service and automated support for product documentation and parts ordering.

While the focus is on direct support, the company maintains digital resources. The customer-facing web presence directs users to options like 'Track Your Order,' 'Get Certified,' and 'DESIGN. Get a Quote,' indicating automated or self-service pathways exist for routine interactions, complementing the direct phone support.

Building trust through continuous dividend payments for 33 consecutive years.

Financial reliability is a core relationship builder for shareholders, which indirectly supports the entire business ecosystem. Franklin Electric Co., Inc. declared a quarterly cash dividend of $0.265 per share in January 2025, payable in February 2025, which represented a 6% increase from the prior dividend. This specific action marked the 33rd consecutive year that Franklin Electric Co., Inc. increased its dividend. As of late 2025, the annual dividend stood at $1.06 per share, translating to a dividend yield of 1.11%.

Here is a quick look at the recent Distribution segment performance, which is a key indicator of channel relationship health:

Metric	Q3 2025 Value	Q3 2024 Value	Year-over-Year Change
Net Sales (Millions USD)	$197.3	$190.8	3% increase
Operating Income (Millions USD)	$16.3	$12.2	34% increase
Operating Income Margin	8.3%	6.4% (Implied)	190 basis points improvement

The company's commitment to its value creation framework is evident in its financial discipline, which underpins customer confidence.

• The company maintained full-year 2025 sales guidance in the range of $2.09 billion to $2.15 billion as of the Q3 2025 report.
• Adjusted fully diluted earnings per share for Q3 2025 was $1.30, up 11% versus Q3 2024.
• Net cash flows from operating activities through the first nine months of 2025 were $134.7 million.
• Franklin Electric Co., Inc. was recognized in Newsweek's list of Greenest Companies 2025.

Finance: draft the 13-week cash view by Friday.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Channels

You're looking at how Franklin Electric Co., Inc. (FELE) gets its products-pumps, motors, drives, and controls for water and fuel systems-to its diverse customer base, which spans residential, commercial, agricultural, industrial, and municipal end markets. The channel strategy relies heavily on a dedicated distribution arm, supplemented by direct sales and a global network of partners.

FELE's own Distribution segment is a core channel, serving the U.S. professional groundwater market and delivering products and services directly to contractors. This segment posted record sales in the second quarter of 2025. For instance, second quarter 2025 Distribution net sales reached $200.0 million, marking a 5 percent increase compared to the second quarter of 2024. By the third quarter of 2025, Distribution net sales were $197.3 million, showing a 3 percent year-over-year increase. The operating margin for this segment saw significant improvement, moving from 5.1 percent in Q2 2024 to 8.1 percent in Q2 2025.

Here's a quick look at the recent financial performance of the Distribution segment:

Metric	Q2 2025	Q2 2024	Q3 2025	Q3 2024
Net Sales (Millions USD)	$200.0 million	$190.5 million (Implied)	$197.3 million	$191.55 million (Implied)
Operating Income (Millions USD)	$16.1 million	$9.8 million	$16.3 million	$12.2 million
Operating Margin (%)	10.05% (Implied)	5.1%	8.26% (Implied)	6.37% (Implied)

The implied Q2 2024 sales are calculated as $200.0M / 1.05. The implied Q3 2024 sales are calculated as $197.3M / 1.03. The implied margins are calculated from the reported figures.

For reaching large industrial and municipal end-users, Franklin Electric Co., Inc. employs a direct sales force. This approach helps manage complex, large-scale projects where technical consultation is key. The company's overall manufacturing footprint supports this, with facilities located in the United States, Germany, Czech Republic, Italy, Turkey, Mexico, Brazil, Australia, South Africa, China, and Japan.

The reliance on independent, authorized global distributors and dealers is fundamental to reaching the broader customer base, including contractors and gas stations globally. This network is bolstered by strategic moves, such as the formation of Headwater Companies, LLC in 2017, which grew through the acquisition of three distributors. While the prompt mentions specific regional stocking locations, the confirmed data points to a broad global manufacturing and distribution presence rather than a specific count for Colombia.

Regarding digital access, while specific revenue figures for e-commerce platforms for parts and select products aren't detailed in the latest reports, the company's overall focus on innovation and serving customers across various channels suggests a digital component is in place to support aftermarket sales and parts distribution.

The channels Franklin Electric Co., Inc. uses include:

• Direct-to-Contractor Sales via the Distribution segment in the U.S..
• A global network of independent distributors and dealers.
• A direct sales force targeting large industrial and municipal users.
• Support from global manufacturing hubs in at least 11 countries.

The company's daily output of approximately 20,000 pumps, motors, drives, and controls must flow through this multi-faceted channel structure to meet global demand. Finance: draft 13-week cash view by Friday.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Customer Segments

You're looking at the core markets Franklin Electric Co., Inc. (FELE) serves as of late 2025, based on their reported segment performance through the third quarter of fiscal year 2025. The company organizes its customer base across three main operational segments: Water Systems, Energy Systems, and Distribution, which map directly to the end-user groups you listed.

The Water Systems segment is a major revenue driver, serving residential, commercial, agricultural, and municipal needs. This segment saw strong growth in the first half of 2025. For instance, Water Systems net sales were $287.3 million in the first quarter of 2025, representing an increase of 8% year-over-year in the second quarter and an 11% increase in the third quarter of 2025. To give you context on scale, this segment accounted for about 60 percent of company revenue in 2024.

The Distribution segment is the channel focus, directly serving professional groundwater contractors and well drillers. This segment delivered record sales in the second quarter of 2025. Third quarter 2025 net sales for Distribution reached $197.3 million, a 3% increase from the third quarter of 2024. The operating margin for this segment improved sharply to 8.3% in Q3 2025, up from 6.4% in the prior year's third quarter.

The Energy Systems segment addresses fueling station owners and environmental remediation companies, among others. This segment posted record operating income and margin in Q2 2025. In the third quarter of 2025, Energy Systems sales were $80 million, following a 6% increase in the second quarter.

Franklin Electric Co., Inc. is maintaining its full-year 2025 sales guidance in the range of $2.09 billion to $2.15 billion, indicating confidence in sustained demand across these varied customer sets for the remainder of the year.

Here's a look at the segment performance that reflects the activity across your specified customer groups for the third quarter of 2025:

Customer Focus Area (Mapped Segment)	Q3 2025 Net Sales (Millions USD)	Year-over-Year Sales Growth (Q3 2025)	Q3 2025 Operating Income (Millions USD)
Professional Contractors/Well Drillers (Distribution)	$197.3	3%	$16.3
Residential/Ag/Industrial/Municipal (Water Systems)	Not explicitly stated for Q3 2025 alone	11%	$61.8 (Q2 2025)
Fueling/Remediation (Energy Systems)	$80.0	Not explicitly stated for Q3 2025 alone	Not explicitly stated for Q3 2025 alone

The company's broad reach into these end markets is a key element of its stability. You can see the diversity in the growth rates reported for the second quarter of 2025:

• Water Systems net sales increased 8%.
• Energy Systems net sales increased 6%.
• Distribution net sales increased 5%.

The company explicitly serves customers in the following application areas:

• Residential applications.
• Commercial applications.
• Agricultural applications.
• Industrial applications.
• Municipal applications.
• Fueling applications.

Finance: draft 13-week cash view by Friday.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that keep Franklin Electric Co., Inc. running, the costs that directly impact the bottom line. Honestly, for a manufacturer like this, the cost structure is dominated by what it takes to build the pumps and controls.

Cost of Goods Sold (COGS), the largest component, is heavily influenced by raw material prices. For the second quarter of 2025, the consolidated sales were $587.4 million, and the gross profit was $211.8 million. This means the Cost of Goods Sold for Q2 2025 was approximately $375.6 million ($587.4 million minus $211.8 million). The company noted that operating margins improved due to effective pricing and productivity initiatives, which helps offset the pressure from commodity costs.

Selling, General, and Administrative (SG&A) expenses are the next major bucket. For the second quarter of 2025, SG&A expenses were reported at $123.5 million. This figure represented a 120 basis point improvement as a percentage of sales year-over-year, showing cost discipline, though the absolute dollar amount was up from $120.6 million in Q2 2024. The increase in SG&A was primarily due to the additional expense impact of 2025 acquisitions, including various deal-related costs.

Franklin Electric Co., Inc. maintains a significant R&D investment focus, which is critical for its long-term competitive edge. Management detailed advancements in innovation, including the launch of three new pressure boosting products-VR SpecPAK, in-line SpecPAK, and VersaBoost Pro-during Q3 2025. While a specific R&D dollar amount for electronic controls and smart systems isn't always broken out separately, this investment is baked into the operating expenses to support future product pipelines.

You must account for acquisition-related integration costs, which were a factor in early 2025 earnings headwinds. In the first quarter of 2025, one-time costs related to executive transition and recent acquisitions created an estimated $0.07 EPS drag. These deal-related costs are temporary but significant enough to move reported earnings figures in the quarter they occur.

The commitment to growth is visible in Capital Expenditures (CapEx) for expanding and modernizing global manufacturing facilities. The company is actively executing on its global manufacturing footprint expansion, including the opening of a new factory in Izmir, Turkey, in Q3 2025. For context on the scale of these investments, the net capital expenditures for the full year 2024 were $40.5 million.

Here's a quick look at the key cost components based on the Q2 2025 performance:

Cost Component	Amount (Q2 2025)	Context/Driver
Cost of Goods Sold (COGS)	$375.6 million	Largest component, driven by raw material prices
Selling, General, and Administrative (SG&A)	$123.5 million	Includes acquisition-related expenses
Gross Profit	$211.8 million	Indicates cost control effectiveness
Net Sales	$587.4 million	Revenue base for cost calculation

The cost structure reflects a balance between managing variable production costs and absorbing fixed/semi-fixed operating costs, which include strategic spending:

• Cost of Goods Sold is variable, tied to sales volume and commodity prices.
• SG&A includes fixed overhead plus variable components like sales commissions.
• Acquisition-related SG&A costs were a specific headwind in Q1 and Q2 2025.
• Capital expenditures are ongoing for facility modernization and global capacity.
• R&D spending supports future product lines like electronic controls.

Finance: draft 13-week cash view by Friday.

Franklin Electric Co., Inc. (FELE) - Canvas Business Model: Revenue Streams

Revenue streams for Franklin Electric Co., Inc. are clearly segmented across its core operational areas, supplemented by recurring aftermarket business.

For the second quarter of fiscal year 2025, the company reported consolidated net sales of $587.4 million, with specific contributions detailed below:

Revenue Stream Segment	Q2 2025 Net Sales Amount
Water Systems products sales	$340.8 million
Distribution segment products sales	$200.0 million
Energy Systems segment sales	$77.5 million

The full-year 2025 net sales guidance remains projected between $2.09 billion and $2.15 billion. As of September 30, 2025, the trailing twelve-month revenue stood at $2.11B.

A significant component of the revenue base is derived from ongoing customer support and parts replacement across all business lines. You should note that the replacement business component is substantial:

• Aftermarket parts, service, and repair revenue across all segments represents a business where 70 plus percent is replacement-driven.

The Water Systems segment saw its Q2 2025 sales increase by 8% year-over-year, while the Distribution segment delivered record sales of $200.0 million, up 5% compared to Q2 2024. The Energy Systems segment recorded sales of $77.5 million in Q2 2025, marking a 6% increase over the prior year's second quarter.