Franklin Electric Reports Record First Quarter 2023 Results
Image source: Franklin Electric Co. Inc.
First quarter 2023 operating income was $52.6 million, compared to first quarter operating income in 2022 of $39.9 million. First quarter 2023 GAAP fully diluted EPS was $0.79, versus GAAP fully diluted EPS in the first quarter 2022 of $0.63.
“The Franklin Electric team delivered a strong start to 2023 with records for first quarter sales, operating income and earnings per share. Overall, demand remains seasonally robust, and we continue to make progress with managing and improving our supply chain. Strong shipments during the quarter drove top-line sales and operating leverage resulting in year-over-year operating margin expansion and a more normal backlog which decreased sequentially by $30 million,” commented Gregg Sengstack, Franklin Electric’s Chairperson and Chief Executive Officer.
“While the demand environment remains healthy across each of our businesses, we are mindful of the ongoing macroeconomic and geopolitical pressures that are expected to persist throughout 2023. Our strong first quarter results give us confidence as we move to the busy season for our business,” concluded Mr. Sengstack.
Segment Summaries
Water Systems sales, a new first quarter record, were $306.6 million in the first quarter 2023, an increase of $34.0 million compared to the first quarter 2022. Sales increases were led by pricing actions and strong end market demand across most major product lines led by surface pumping, especially in large dewatering pumps, and groundwater. Water Systems operating income in the first quarter was $49.0 million, a new first quarter record, driven by higher sales and operating leverage. First quarter 2022 Water Systems operating income was $33.2 million.
Distribution sales, a new first quarter record, were $143.0 million in the first quarter 2023, an increase of $8.1 million compared to the first quarter 2022. The Distribution segment operating income was $4.7 million in the first quarter of 2023 compared to first quarter 2022 operating income of $9.4 million. Distribution segment sales and operating income were negatively impacted by weather, seasonality, and margin compression from unfavorable pricing of commodity-based products sold through the business.
Fueling Systems sales, a new first quarter record, were $72.7 million in the first quarter 2023, an increase of $0.2 million compared to the first quarter 2022. Sales increases in the U.S. and Canada of 4 percent were offset by sales declines outside the U.S. and Canada. Fueling Systems operating income in the first quarter was $20.8 million, a new first quarter record, driven by a favorable product and geographic mix of sales. First quarter 2022 Fueling Systems operating income was $17.7 million.
2023 Guidance
The Company is updating and raising its guidance for full year 2023 sales to be in the range of $2.15 billion to $2.25 billion and full year 2023 EPS to be in the range of $4.25 to $4.45.
Source: Franklin Electric Co., Inc.
