Franklin Electric Co., Inc.

the Franklin Electric Reports fourth quarter 2025 and full year 2025 results conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Director of Investor Relations, Dean Cantrell.

Thank you, Andrew, and welcome everyone to Franklin Electric's fourth quarter 2025 earnings conference call. Joining me today is Jennifer Wolfenbarger, our Chief Financial Officer, and Joe Rosinski, our Chief Executive Officer. On today's call, Joe will review our fourth quarter and full year business highlights. Then Jennifer will provide additional details on our financial performance, and Joe will make some additional comments related to our key growth and value drivers along with our outlook. We will then take questions. Before we begin, let me remind you that as we conduct this call, we will be making forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, many of which could cause actual results to differ materially from such forward-looking statements. A discussion of these factors may be found in the company's annual report on Form 10-K and today's earnings release. During this call, we will present both GAAP and certain non-GAAP financial measures, a reconciliation of GAAP to non-GAAP measures is included in the appendix of our earnings presentation. All forward-looking statements made during this call are based on information currently available and, except as required by law, the company assumes no obligation to update any forward-looking statements. Earlier today, we published a slide deck to accompany our prepared remarks. The slides can be found in the Investor Relations section of our corporate website at www.franklin-electric.com. With that, I will now turn the call over to Joe.

Thanks, Dean, and good morning, everyone. Thank you for joining today's call. I'm excited to share the outcome of a year of great progress, transformation, and strong results today. Let's start on page two. We had a strong Q4 and full year results in all segments. Sales were up 5.4% and segment operating income was up 9.6% for the full year. each representing high points for Franklin in both revenue and segment operating income. Our solid Q4 had our sales up 4.4% and operating income up 9.2%. We grew volume for the year, had strong price realization, and managed a sometimes turbulent global market with focus. Our order book and backlog remain healthy as we move to 2026. Our cash conversion was 126%, representing our third year of cash conversion over 120%. Our balance sheet remained strong even as we completed about $120 million of acquisitions and $160 million in share buybacks. We've made some important changes in 2025 and are positioned well for 2026. If we move to slide three, I'd like to talk about some of these efforts. In 2025, we made some great progress, and I want to take a moment to thank our team for the focus, execution, and leading through change. We'd like to share a few highlights that won't show up in our overall financial results, starting with our priority to accelerate growth. While we serve our customers globally and in some dynamic markets, we saw strong results in each segment. We focused on our biggest opportunities and took share in many of our markets. We believe innovation and new products are a leading indicator for growth and added over 35 products that will deliver over $160 million in revenue by year three. We are positioning Franklin as an innovation and growth company, and our team is ready. As we look at our margins, I'd first like to highlight the great progress in our water treatment and distribution businesses. Our water treatment business is a key part of our water segment. We entered this business in the past five years and exited 2025 at $200 million in sales. More impressive is our effort to make life easy for our customers and streamline this business as we serve them which was highlighted by impressive sales growth and improvement of over 400 basis points operating margin in 2025. Also, we began our distribution business in the late 20-teens. We have grown this business to over $700 million with impressive services like our onsite inventory program and leading portal technology to seamlessly order and communicate needs. We focused on efficient service business in 2025 while bringing new solutions to market. We've grown and improved our operating margin in this business by 210 basis points in 2025. Furthering our margin focus, in 2025 we added a key transformation element with the launch of our value acceleration office. Here we are using 80-20, smart AI, and process engineering to streamline our portfolio, create powerful and simple internal systems, and manage costs more effectively. We expect strong contribution to our margins in the coming years based on this promising start in 2025. For investments in capital, we are known for great cash conversion and a strong balance sheet, but there is more we want to do. We have completed two important acquisitions in 2025 and added some smaller important deals at the end of the year. As we look to round out our right to win in important markets and regions, filling out our portfolio and reach will be our focus. We bought back about 1.8 million shares as we feel our future is bright. We have also increased our capital spending to make sure our investments position us for this growth. Finally, on talent, our strong culture has been focused on treating our employees and customers the best in our industry. Our focus on attracting great talent and building our engine for the future will bring elements of collaboration, innovation, and velocity to our everyday practices. to prepare us for a fast changing world. Our team is strong, ready for growth, and we are making it more resilient every day. With that, I'll turn the call back over to, I'll turn the call over to Jennifer to discuss the financial results in more detail.