FRANKLIN ELECTRIC CO INCFELE
FRANKLIN ELECTRIC CO INC Segments Disclosure
SEGMENT AND GEOGRAPHIC INFORMATION
The Company’s business consists of the Water Systems, Distribution, and Energy Systems reportable segments, based on the principal end market served. The Company changed the name of the Fueling Systems segment to Energy Systems to reflect its diverse portfolio and growth strategy, as well as to better reflect the markets and customers served by the segment. The Company includes unallocated corporate expenses and intercompany eliminations that are not part of a reportable segment in its reconciliations to consolidated results.
The Water Systems segment designs, manufactures and sells motors, pumps, electronic controls, water treatment systems and related parts and equipment primarily for use in submersible water or other fluid system applications. The Energy Systems segment designs, manufactures and sells pumps, electronic controls and related parts and equipment primarily for use in submersible fueling system applications. The Energy Systems segment integrates and sells motors and electronic controls produced by the Water Systems segment. The Company reports these product transfers between Water Systems and Energy Systems as inventory transfers since a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Distribution segment sells to and provides presale support and specifications to the installing contractors. The Distribution segment sells products produced by the Water Systems segment. The Company reports intersegment transfers from Water Systems to Distribution as intersegment sales at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water Systems and Distribution segments.
The accounting policies of the Company’s reportable segments are the same as those described in Note 1 - Summary of Significant Accounting Policies. The Company's chief operating decision maker is its Chief Executive Officer. Performance is evaluated based on the sales and operating income of the segments. Operating income and margin are used to evaluate income generated from segment assets in deciding whether to reinvest profits into each segment or other parts of the entity. Operating income is also used to monitor budget versus actual results, for purposes of determining portions of management compensation and for benchmarking against similar measures used by peers and competitors. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented as corporate expenses are not allocated to segments. Interest expense, other income (expense), net, foreign exchange expense and income tax expense are also not allocated to each segment.
Financial information by reportable business segment is included in the following summary:
| 2025 | Water Systems | Distribution | Energy Systems | Total | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| External sales | $ | 1,131.6 | $ | 700.7 | $ | 299.0 | $ | 2,131.3 | |||||||||||||||
| Intersegment sales | 124.8 | — | — | 124.8 | |||||||||||||||||||
| $ | 1,256.4 | $ | 700.7 | $ | 299.0 | $ | 2,256.1 | ||||||||||||||||
| Elimination of intersegment sales | $ | (124.8) | |||||||||||||||||||||
| Total consolidated sales | $ | 2,131.3 | |||||||||||||||||||||
| Cost of sales | $ | 830.1 | $ | 511.2 | $ | 156.6 | |||||||||||||||||
| Selling, general and administrative expenses | 218.7 | 149.4 | 43.3 | ||||||||||||||||||||
| Restructuring expense | 0.4 | 0.3 | — | ||||||||||||||||||||
| Segment operating income | $ | 207.2 | $ | 39.8 | $ | 99.1 | $ | 346.1 | |||||||||||||||
| Reconciliation of segment operating income to income before income taxes | |||||||||||||||||||||||
| Deferred intersegment loss | $ | (2.4) | |||||||||||||||||||||
| Corporate general and administrative expenses | (74.8) | ||||||||||||||||||||||
| Interest expense | (10.6) | ||||||||||||||||||||||
| Other income, net | 0.6 | ||||||||||||||||||||||
| Foreign exchange expense | (9.3) | ||||||||||||||||||||||
| Pension settlement loss | (54.9) | ||||||||||||||||||||||
| Consolidated income before income taxes | $ | 194.7 | |||||||||||||||||||||
| 2024 | Water Systems | Distribution | Energy Systems | Total | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| External sales | $ | 1,062.1 | $ | 685.5 | $ | 273.7 | $ | 2,021.3 | |||||||||||||||
| Intersegment sales | 121.9 | — | — | 121.9 | |||||||||||||||||||
| $ | 1,184.0 | $ | 685.5 | $ | 273.7 | $ | 2,143.2 | ||||||||||||||||
| Elimination of intersegment sales | $ | (121.9) | |||||||||||||||||||||
| Total consolidated sales | $ | 2,021.3 | |||||||||||||||||||||
| Cost of sales | $ | 782.0 | $ | 505.9 | $ | 137.6 | |||||||||||||||||
| Selling, general and administrative expenses | 201.7 | 154.6 | 42.1 | ||||||||||||||||||||
| Restructuring expense | 2.4 | 0.7 | 0.4 | ||||||||||||||||||||
| Segment operating income | $ | 197.9 | $ | 24.3 | $ | 93.6 | $ | 315.8 | |||||||||||||||
| Reconciliation of segment operating income to income before income taxes | |||||||||||||||||||||||
| Deferred intersegment loss | $ | (0.5) | |||||||||||||||||||||
| Corporate general and administrative expenses | (71.7) | ||||||||||||||||||||||
| Interest expense | (6.3) | ||||||||||||||||||||||
| Other income, net | 1.3 | ||||||||||||||||||||||
| Foreign exchange expense | (6.8) | ||||||||||||||||||||||
| Consolidated income before income taxes | $ | 231.8 | |||||||||||||||||||||
| 2023 | Water Systems | Distribution | Energy Systems | Consolidated | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| External sales | $ | 1,095.3 | $ | 673.3 | $ | 296.5 | $ | 2,065.1 | |||||||||||||||
| Intersegment sales | 108.4 | — | — | 108.4 | |||||||||||||||||||
| $ | 1,203.7 | $ | 673.3 | $ | 296.5 | $ | 2,173.5 | ||||||||||||||||
| Elimination of intersegment sales | $ | (108.4) | |||||||||||||||||||||
| Total consolidated sales | $ | 2,065.1 | |||||||||||||||||||||
| Cost of sales | $ | 819.3 | 497.4 | $ | 162.0 | ||||||||||||||||||
| Selling, general and administrative expenses | 187.3 | 141.6 | 41.2 | ||||||||||||||||||||
| Restructuring expense | 0.5 | — | 0.6 | ||||||||||||||||||||
| Segment operating income | $ | 196.6 | $ | 34.3 | $ | 92.7 | $ | 323.6 | |||||||||||||||
| Reconciliation of segment operating income to income before income taxes | |||||||||||||||||||||||
| Deferred intersegment profit | $ | 2.2 | |||||||||||||||||||||
| Corporate general and administrative expenses | (63.4) | ||||||||||||||||||||||
| Interest expense | (11.8) | ||||||||||||||||||||||
| Other income, net | 3.7 | ||||||||||||||||||||||
| Foreign exchange expense | (12.1) | ||||||||||||||||||||||
| Consolidated income before income taxes | $ | 242.2 | |||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Depreciation and amortization | |||||||||||||||||
| Water Systems | $ | 45.8 | $ | 39.0 | $ | 36.9 | |||||||||||
| Distribution | 9.3 | 9.6 | 7.6 | ||||||||||||||
| Energy Systems | 4.3 | 4.3 | 4.2 | ||||||||||||||
| Total segment depreciation and amortization | $ | 59.4 | $ | 52.9 | $ | 48.7 | |||||||||||
| Corporate | 3.5 | 3.2 | 3.6 | ||||||||||||||
| Total depreciation and amortization | $ | 62.9 | $ | 56.1 | $ | 52.3 | |||||||||||
| Capital Expenditures | |||||||||||||||||
| Water Systems | $ | 32.7 | $ | 27.8 | $ | 28.6 | |||||||||||
| Distribution | 6.2 | 9.3 | 9.3 | ||||||||||||||
| Energy Systems | 2.6 | 2.3 | 3.0 | ||||||||||||||
| Total segment capital expenditure | $ | 41.5 | $ | 39.4 | $ | 40.9 | |||||||||||
| Corporate | 3.5 | 1.8 | 2.3 | ||||||||||||||
| Total capital expenditure | $ | 45.0 | $ | 41.2 | $ | 43.2 | |||||||||||
| Assets | |||||||||||||||||
| Water Systems | $ | 1,235.0 | $ | 998.8 | $ | 1,044.4 | |||||||||||
| Distribution | 367.2 | 358.9 | 365.6 | ||||||||||||||
| Energy Systems | 259.5 | 250.4 | 256.4 | ||||||||||||||
| Total segment assets | $ | 1,861.7 | $ | 1,608.1 | $ | 1,666.4 | |||||||||||
| Corporate | 82.7 | 212.5 | 61.7 | ||||||||||||||
| Total assets | $ | 1,944.4 | $ | 1,820.6 | $ | 1,728.1 | |||||||||||
Cash and property, plant and equipment are the major asset groups in “Corporate” of total assets for the years ended December 31, 2025 and December 31, 2024.
Financial information by geographic region is as follows:
| Net sales | Long-lived assets | ||||||||||||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||
| United States | $ | 1,446.5 | $ | 1,400.4 | $ | 1,441.6 | $ | 610.3 | $ | 626.6 | $ | 625.3 | |||||||||||||||||||||||
| Foreign | 684.8 | 620.9 | 623.5 | 368.9 | 221.6 | 240.3 | |||||||||||||||||||||||||||||
| Consolidated | $ | 2,131.3 | $ | 2,021.3 | $ | 2,065.1 | $ | 979.2 | $ | 848.2 | $ | 865.6 | |||||||||||||||||||||||
Net sales are attributed to geographic regions based upon the ship to location of the customer. Long-lived assets are attributed to geographic regions based upon the country of domicile.
The Company offers a large array of products and systems to multiple markets and customers. Product sales information is tracked regionally and products are categorized differently between regions based on local needs and reporting requirements. However, net sales by segment are representative of the Company’s sales by major product category. The Company sells its products through various distribution channels including wholesale and retail distributors, specialty distributors, industrial and petroleum equipment distributors, as well as major oil and utility companies and original equipment manufacturers.
No single customer accounted for more than 10 percent of the Company’s net sales in 2025, 2024, or 2023. No single customer accounted for more than 10 percent of the Company’s gross accounts receivable in 2025 or 2024.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.