FRANKLIN ELECTRIC CO INCFELE

FRANKLIN ELECTRIC CO INC Earnings Per Share Disclosure

10-KFiled Feb 20, 20262 min read
EARNINGS PER SHARE
The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders.

Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table sets forth the computation of basic and diluted earnings per share:
(In millions, except per share amounts)202520242023
Numerator:   
Net income attributable to Franklin Electric Co., Inc.$147.1 $180.3 $193.3 
Less: Earnings allocated to participating securities0.6 0.7 0.7 
Net income available to common shareholders$146.5 $179.6 $192.6 
Denominator:
Basic weighted average common shares outstanding45.0 45.9 46.2 
Effect of dilutive securities:
Non-participating employee stock options, performance awards, and deferred shares to non-employee directors0.5 0.6 0.7 
Diluted weighted average common shares outstanding45.5 46.5 46.9 
Basic earnings per share$3.25 $3.92 $4.17 
Diluted earnings per share$3.22 $3.86 $4.11 
There were 0.2 million, 0.1 million, and 0.1 million stock options outstanding as of 2025, 2024, and 2023, respectively, that were excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 23, 2024
2022Feb 22, 2023
2021Feb 25, 2022
2020Feb 24, 2021
2019Feb 25, 2020
2018Feb 28, 2019
2017Feb 27, 2018
2016Mar 1, 2017

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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