FELE Stock: Insider Activity, Filings & Research
Franklin Electric Co., Inc. (FELE) — Drillr’s hub for FELE insider activity, SEC filings, earnings signals and AI research. Over the trailing 3 months, FELE insiders filed 0 open-market buys and 5 sales (SEC Form 4).
FELE insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 3, 2026 | SENGSTACK GREGG Cdirector | Grant | 366 | $97.44 |
| Jun 3, 2026 | SENGSTACK GREGG Cdirector | Tax | 145 | $97.44 |
| May 27, 2026 | Grandon Jonathan M.officer: Chief Administrative Officer | Option | 4,200 | $42.20 |
| May 27, 2026 | Grandon Jonathan M.officer: Chief Administrative Officer | Sell | 4,200 | $98.23 |
| May 27, 2026 | davis delancey wofficer: President, Headwater Companies | Sell | 1,900 | $100.00 |
| May 26, 2026 | Villavarayan Chrisdirector | Grant | 8 | — |
| May 26, 2026 | SENGSTACK GREGG Cdirector | Grant | 5 | — |
| May 26, 2026 | SHERMAN JENNIFER Ldirector | Grant | 139 | — |
| May 26, 2026 | PETERSON RENEE Jdirector | Grant | 111 | — |
| May 26, 2026 | Carano Mark Adirector | Grant | 5 | — |
| May 12, 2026 | Grizzle Victordirector | Grant | 2,526 | — |
| May 12, 2026 | Villavarayan Chrisdirector | Grant | 2,502 | — |
| May 12, 2026 | SHERMAN JENNIFER Ldirector | Grant | 3,493 | — |
| May 12, 2026 | PETERSON RENEE Jdirector | Grant | 1,459 | — |
| May 12, 2026 | SENGSTACK GREGG Cdirector | Grant | 1,459 | — |
Source: FELE SEC Form 4 filings, latest Jun 3, 2026. For informational purposes only — not investment advice.
Franklin Electric Co., Inc. company profile
Overview
Franklin Electric Co., Inc. (NASDAQ:FELE) is an Indiana-based industrial machinery manufacturer founded in 1944 and headquartered in Fort Wayne. The company has evolved from its origins as an electric motor manufacturer into a global leader in water and energy pumping systems. Franklin Electric went public in 1980 and operates through three main business segments serving residential, agricultural, municipal, and industrial markets worldwide. Under new CEO Joe Ruzynski, who took over in 2024, the company is focusing on growth acceleration through innovation, strategic acquisitions, and expansion into faster-growing adjacent markets.
Business
Franklin Electric operates in the industrial machinery sector, specifically focusing on water and fuel pumping systems and related infrastructure. The company's business is organized into three main segments: Water Systems (approximately 60% of revenue) designs and manufactures submersible motors, pumps, electronic drives and controls, water treatment systems, and monitoring devices. These products are essential for moving clean water and wastewater in various applications. Submersible pumps work underwater to extract groundwater from wells, while the electronic controls protect the equipment from electrical surges, overheating, and dry conditions. The water treatment systems purify water for residential and commercial use. This segment serves residential homeowners with private wells, agricultural operations needing irrigation, municipalities managing water infrastructure, and industrial facilities requiring water management. Energy Systems (formerly Fueling Systems, approximately 15% of revenue) provides pumps, pipes, electronic controls, and monitoring devices primarily for fuel dispensing at gas stations. The segment has expanded beyond traditional fueling to include critical asset monitoring systems for power utilities, hydroelectric facilities, and telecommunications infrastructure. These monitoring systems use sensors and electronic devices to track the health and performance of critical infrastructure, helping prevent failures and optimize operations. Distribution (approximately 25% of revenue) operates as a wholesale distributor, selling Water Systems products to installing contractors and providing technical support. This segment essentially acts as the retail arm, maintaining inventory and relationships with the contractors who install Franklin Electric's water systems in the field.
Revenue model
Franklin Electric generates revenue through product sales across its three business segments, with different customer bases and margin profiles for each. The Water Systems segment sells directly to wholesale distributors, specialty distributors, and original equipment manufacturers (OEMs). Revenue comes from selling physical products like pumps, motors, and control systems, with customers paying upfront for equipment. This segment benefits from both new installations and replacement demand, as pumps and motors have finite lifespans and require periodic replacement. The Energy Systems segment generates revenue by selling fueling equipment to petroleum equipment distributors and oil companies, as well as monitoring systems to utilities and infrastructure operators. The monitoring portion of this business, which represents about 25% of segment revenue, provides higher margins due to its technology-intensive nature and critical application in infrastructure management. The Distribution segment operates on traditional wholesale margins, purchasing products from the Water Systems segment and reselling them to contractors with markup. This segment's profitability depends heavily on volume throughput and operational efficiency. Several factors influence Franklin Electric's margins. Commodity prices for materials like steel and copper directly impact manufacturing costs. Weather patterns significantly affect demand, as wet conditions delay agricultural and construction projects while drought conditions increase demand for irrigation systems. Housing market activity drives residential well installations, while agricultural commodity prices influence farmers' willingness to invest in irrigation equipment. The company's margins also benefit from manufacturing productivity improvements, favorable product mix toward higher-value technology products, and pricing power in specialized applications. Competition from lower-cost manufacturers and economic slowdowns that reduce capital investments represent margin pressures.
Competitive moat
Franklin Electric possesses a moderate but defensible moat built primarily on market leadership, distribution relationships, and specialized expertise rather than insurmountable barriers. The company's strongest competitive advantage lies in its established distribution network and relationships with installing contractors. Franklin Electric has built a national groundwater distribution business with over 400 locations, creating switching costs for contractors who rely on technical support, inventory availability, and established service relationships. The Distribution segment reinforces this moat by providing direct customer contact and market intelligence. Technical expertise and product specialization provide another layer of protection, particularly in submersible pumps and electronic controls where reliability is critical. Water system failures can be costly and disruptive, creating preference for proven, reliable brands. The company's 80-year operating history and focus on quality have built brand recognition in these specialized markets. However, the moat faces several vulnerabilities. The industrial machinery sector has relatively low barriers to entry for basic products, and competition from lower-cost manufacturers, particularly from Asia, pressures margins and market share. The company's products, while specialized, are not proprietary technologies that cannot be replicated. Additionally, cyclical demand patterns tied to weather, agricultural cycles, and construction activity create periods of vulnerability when customers delay purchases. The Energy Systems segment's expansion into critical infrastructure monitoring represents a potential moat strengthening, as these applications require higher reliability and create stickier customer relationships. However, this remains a smaller portion of the business and faces competition from larger technology companies entering the industrial IoT space.
Risks & safety
Franklin Electric demonstrates strong financial stability with minimal solvency risk and conservative capital structure. **Liquidity and Debt Position:** - Cash and short-term investments: $84 million (Q1 2025) - Current ratio: 1.98x indicating solid short-term liquidity - Debt-to-equity ratio: 0.17x representing very conservative leverage - The company maintains acquisition capacity of approximately $1 billion with ability to leverage up to 3x debt-to-EBITDA **Cash Flow and Profitability:** - Free cash flow was negative $26 million in Q1 2025 due to seasonal working capital, but generated $220 million for full year 2024 - Operating cash flow demonstrates strong underlying profitability - EBITDA margins remain healthy across segments **Valuation Metrics:** - P/E ratio: 34.6x (elevated due to cyclical earnings trough) - EV/EBITDA: 25.1x (also elevated) - Price-to-book: 3.3x - Graham number suggests potential overvaluation at current levels **Other Considerations:** - Seasonal working capital swings create quarterly cash flow volatility but are normal for the business - Strong balance sheet provides flexibility for acquisitions and economic downturns
Recent development
Franklin Electric has undergone significant strategic evolution over the past few years, marked by leadership transition and business segment expansion. Leadership and Strategic Pivot: Joe Ruzynski became CEO in 2024, replacing Gregg Sengstack, bringing a focus on "growth acceleration, resilient margins, strategic investments, and top-tier talent." The new leadership emphasizes faster decision-making, digital tool integration, and expansion into adjacent faster-growing markets beyond traditional water and fueling applications. Business Segment Evolution: The company renamed its Fueling Systems segment to Energy Systems, reflecting expansion beyond traditional gas station equipment into critical infrastructure monitoring for power utilities, hydroelectric facilities, and telecommunications. This higher-margin business now represents about 25% of the Energy Systems segment revenue and demonstrates strong growth momentum. Acquisition Strategy: Franklin Electric completed several strategic acquisitions, including PumpEng in Australia and Barnsley in Colombia in 2025, plus Action Manufacturing and Water Works Pump in previous years. The combined acquisition value reached approximately $125 million with expected revenue impact of $50 million, focusing on geographic expansion and complementary technologies. Manufacturing and Supply Chain: The company has been diversifying its manufacturing footprint beyond China (which represents less than 10% of cost of goods sold) by expanding operations in Turkey and India. This strategy helps mitigate tariff risks while maintaining cost competitiveness. Market Focus Shift: Management is targeting faster-growing verticals including wastewater treatment, mining markets, and leveraging data analytics to better understand customer needs. The company is also investing in new product development and innovation to differentiate from commodity competitors.
FELE company profile · for informational purposes only — not investment advice.
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