Franklin Electric Co., Inc. (FELE): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the companies that keep essential resources flowing? What if I told you Franklin Electric Co., Inc. (FELE), a global manufacturer and distributor, stands at the forefront of systems and technologies for moving and protecting the world's water, fuel, and electricity? With a strong presence in residential, commercial, agricultural, industrial, municipal, and energy sectors, how does this Indiana-based company, with a $4.3 billion market cap, continue to drive innovative solutions across the globe?

Franklin Electric Co., Inc. (FELE) History

Franklin Electric Co., Inc.'s Founding Timeline

Year established

The company was established in 1944.

Original location

The company was founded in Bluffton, Indiana.

Founding team members

The founding team consisted of Edward J. Schaefer and Frank W. Wheeler.

Initial capital/funding

The initial capital investment was $15,000.

Franklin Electric Co., Inc.'s Evolution Milestones

Franklin Electric Co., Inc.'s Transformative Moments

Several transformative moments have shaped the company's trajectory:

• The development of the first reliable submersible motor: This innovation was pivotal, setting the stage for the company's leadership in the water well industry.
• Strategic acquisitions: Acquisitions have allowed the company to diversify its product offerings and enter new markets, enhancing its overall growth and stability.
• Focus on innovation and sustainability: The company’s commitment to developing sustainable and efficient water solutions has not only addressed environmental concerns but also opened new market opportunities.
• Global Expansion: Entering and expanding in international markets significantly increased the company's revenue and brand recognition.

To gain more insights into the company's investor profile, check out: Exploring Franklin Electric Co., Inc. (FELE) Investor Profile: Who’s Buying and Why?

These milestones and transformative moments illustrate the company's journey from a small startup to a global leader in the electric motor and water solutions industries.

Franklin Electric Co., Inc. (FELE) Ownership Structure

Franklin Electric operates with a mixed ownership structure, featuring a combination of institutional, insider, and retail investors. Understanding this structure is key to grasping the balance of power and influences within the company.

Franklin Electric's Current Status

Franklin Electric Co., Inc. is a publicly traded company, meaning its shares are available for purchase on the open market, specifically on the NASDAQ under the ticker symbol FELE.

Franklin Electric's Ownership Breakdown

As of Q1 2024, the ownership of Franklin Electric is distributed among various types of shareholders. Here’s a breakdown:

Franklin Electric's Leadership

The leadership team is responsible for setting the strategic direction and overseeing the operations of the company. Here are some of the key figures:

• Chairman and CEO: Gregg C. Sengstack
• Vice President and CFO: Jeffery L. Taylor
• Vice President, General Counsel and Secretary: Deanna M. Workman

These individuals, along with other key executives and the board of directors, play a crucial role in guiding Franklin Electric's strategic initiatives and ensuring its continued success. For more insights into the company's financial performance, you might find this resource helpful: Breaking Down Franklin Electric Co., Inc. (FELE) Financial Health: Key Insights for Investors

Franklin Electric Co., Inc. (FELE) Mission and Values

Franklin Electric aims to deliver essential services and improve the quality of life for people worldwide through its products and services, guided by a commitment to integrity, value, and community.

Franklin Electric's Core Purpose

Official mission statement

Franklin Electric's mission statement is: 'We are committed to being an essential service provider delivering high-quality products and services that improve the quality of life.' This statement reflects the company's dedication to not only providing necessary products but also ensuring those products contribute positively to people's lives. For more details, check Mission Statement, Vision, & Core Values of Franklin Electric Co., Inc. (FELE).

Vision statement

While specific details of Franklin Electric's vision statement can vary in articulation, the overarching themes include:

• Leading in technology and innovation within their sectors.
• Expanding global reach to serve more customers and markets.
• Committing to sustainability and responsible environmental practices.
• Fostering a culture of excellence, safety, and integrity among employees.

Company slogan/tagline

Franklin Electric's tagline, 'Moving Water. Moving Innovation.' encapsulates the company's focus. This concise statement highlights:

• The core business of moving water, essential for various applications.
• A commitment to innovation, suggesting continuous improvement and development of new technologies.

Franklin Electric Co., Inc. (FELE) How It Works

Franklin Electric operates by designing, manufacturing, and distributing systems and components used in the movement of water and fuel.

Franklin Electric's Product/Service Portfolio

Franklin Electric's Operational Framework

Franklin Electric drives value creation through the following operational processes:

• Engineering and Manufacturing: The company focuses on designing and manufacturing high-quality, reliable products.
• Global Distribution Network: Franklin Electric utilizes a widespread distribution network to reach customers across various geographic locations.
• Customer Support: Providing technical support and service to ensure customer satisfaction and long-term relationships.
• Acquisitions: Expanding its product offerings and market reach through strategic acquisitions.

To learn more about the company's financial standing, read this article: Breaking Down Franklin Electric Co., Inc. (FELE) Financial Health: Key Insights for Investors

Franklin Electric's Strategic Advantages

Franklin Electric maintains its competitive edge through:

• Brand Reputation: A long-standing reputation for quality and reliability in the water and fuel pumping industries.
• Technological Innovation: Continuous investment in research and development to introduce innovative products and solutions.
• Market Diversification: Serving a broad range of end markets reduces dependence on any single industry.
• Global Presence: A global footprint provides access to diverse markets and reduces geographic risk.

Franklin Electric Co., Inc. (FELE) How It Makes Money

Franklin Electric Co., Inc. primarily generates revenue by designing, manufacturing, and distributing water and fuel pumping systems, along with related parts and services.

Franklin Electric's Revenue Breakdown

Franklin Electric operates through three main segments:

• Water Systems
• Fueling Systems
• Distribution

Here’s a look at how those segments contribute to the overall revenue based on the 2024 fiscal year:

Franklin Electric's Business Economics

The business economics of Franklin Electric are influenced by several factors:

• Pricing Strategies: Franklin Electric employs a tiered pricing approach, differentiating products based on features, performance, and application. Premium pricing is applied to advanced, high-efficiency products, while competitive pricing targets value-conscious customers. Volume discounts and long-term contracts are also utilized to secure large orders and recurring revenue.
• Economic Fundamentals: The demand for Franklin Electric's products is closely tied to construction activity, agricultural irrigation, and municipal water infrastructure projects. Economic growth in developing regions drives demand for water and fuel pumping solutions. Fluctuations in commodity prices, particularly those of metals and plastics, impact production costs and pricing strategies.
• Cost Structure: The company focuses on optimizing its supply chain and manufacturing processes to maintain competitive pricing. Investments in research and development support the introduction of innovative, high-margin products.
• Market Position: Franklin Electric benefits from a strong brand reputation, extensive distribution network, and established relationships with key customers. The company's focus on quality, reliability, and customer service contributes to customer loyalty and repeat business.

Franklin Electric's Financial Performance

Key aspects of Franklin Electric's financial performance include:

• In fiscal year 2024, Franklin Electric reported net sales of $1.99 billion, reflecting a 3.4% increase compared to $1.92 billion in 2023. This growth was primarily driven by increased volumes in the Water Systems segment.
• The gross profit margin for 2024 was 34.7%, compared to 34.6% in 2023.
• Net income for 2024 was $179.8 million, or $3.74 per diluted share, compared to $172.5 million, or $3.57 per diluted share, in 2023.
• The company's financial stability is also reflected in its dividend policy. In November 2024, the Board of Directors declared a quarterly cash dividend of $0.2175 per share on its common stock, payable on December 14, 2024, to shareholders of record on November 27, 2024.
• Cash Flow: In 2024, cash flow from operating activities was $237.8 million, while capital expenditures totaled $48.4 million.

To gain more insight into the investors and ownership structure of Franklin Electric, you might find this resource helpful: Exploring Franklin Electric Co., Inc. (FELE) Investor Profile: Who’s Buying and Why?

Franklin Electric Co., Inc. (FELE) Market Position & Future Outlook

Franklin Electric is strategically positioned for continued growth, leveraging its diverse product portfolio and global presence. The company's focus on innovation and expansion into new markets supports a positive future outlook. To learn more, explore the Mission Statement, Vision, & Core Values of Franklin Electric Co., Inc. (FELE).

Competitive Landscape

Opportunities & Challenges

Industry Position

Franklin Electric holds a strong position within the water and fuel pumping systems industry. Key aspects of its standing include:

• Global Presence: Operates in key markets worldwide, allowing it to serve a diverse customer base.
• Product Diversification: Offers a wide range of products, reducing reliance on any single market or product line.
• Technological Innovation: Invests in research and development to create advanced and efficient solutions.
• Strategic Partnerships: Collaborates with other companies to expand its market reach and product offerings.