Franklin Electric Bundle
What is Franklin Electric's Legacy?
Franklin Electric, a global leader in water and fuel management, traces its origins to a groundbreaking innovation: the world's first reliable submersible motor. This 1950 development transformed water well systems, offering a quiet, freeze-resistant, and efficient solution.
Founded in 1944 by E.J. Schaefer and T.W. Kehoe with initial capital under $20,000, the company aimed to mass-produce small electric motors. Named in honor of electrical pioneer Benjamin Franklin, it now boasts a market capitalization of approximately $4.39 billion as of July 2025.
The company's journey from a small motor manufacturer to a global enterprise is marked by continuous innovation, exemplified by products like the Franklin Electric BCG Matrix. In Q2 2025, Franklin Electric reported consolidated net sales of $587.4 million, an 8% increase year-over-year, with full-year 2025 sales guidance between $2.09 billion and $2.15 billion.
What is the Franklin Electric Founding Story?
The Franklin Electric company origins trace back to November 1944 in Bluffton, Indiana. Founded by electrical engineers Edward J. Schaefer and T.W. Kehoe, the venture began with an initial capital investment of less than $20,000.
The Genesis of Franklin Electric
Franklin Electric was formally established in November 1944 by Edward J. Schaefer and T.W. Kehoe. The company's initial capital was under $20,000, and it was named in honor of Benjamin Franklin.
- Founding date: November 1944
- Founders: Edward J. Schaefer and T.W. Kehoe
- Initial investment: Less than $20,000
- Location: Bluffton, Indiana
- Inspiration for name: Benjamin Franklin
The Franklin Electric company's early years were marked by its first product: a backpack generator designed for wartime use. This generator was intended to power radio equipment for paratroopers and assault troops during World War II, with the U.S. Army being their sole customer in 1945. Following the war's conclusion, the company faced a significant drop in demand. To navigate this shift, Schaefer and Kehoe strategically pivoted, recognizing the opportunities presented by the post-war housing boom. They began developing and manufacturing fractional horsepower motors specifically for water pumping applications, serving both residential needs and addressing basement flooding. This adaptation proved highly successful, aligning with a strong market demand and contributing to sales of nearly $1.7 million by 1947, showcasing a rapid early growth trajectory in the Franklin Electric timeline.
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What Drove the Early Growth of Franklin Electric?
The Franklin Electric company origins trace back to a pivotal innovation in 1950: the creation of the first practical submersible motor. This invention, known for its quiet operation, freeze resistance, compact design, and high pumping capacity, quickly established the company's market presence.
Foundational Innovation Drives Early Growth
The introduction of the submersible motor in 1950 was a game-changer. Its unique features led to rapid market adoption, setting the stage for significant expansion.
Rapid Sales and Product Diversification
By 1959, nationwide sales had climbed to $12 million. The 1950s also saw the company broaden its product offerings and distribution networks.
Global Footprint and Strategic Ventures
International expansion commenced in the 1960s, beginning with Australia in 1962 and Canada in 1963. The company also entered the food packaging equipment sector in 1964.
Milestones and Market Impact
The company manufactured its one millionth submersible motor in 1966. By 1970, it was recognized among Fortune's top 1,000 manufacturing firms in the U.S., highlighting its substantial growth and Growth Strategy of Franklin Electric.
The 1970s marked a period of robust sales growth, fueled by increasing demand for electric motors in home heating and electricity. The company expanded its Bluffton plant twice during this decade, adding 50,000 square feet in 1975. By 1969, Franklin had produced its five-millionth fractional horsepower motor. A key acquisition in 1973, Control Company of Canada, further expanded its facilities. The partnership in 1988 to provide motors for innovative submersible turbine pumps signaled a significant entry into the fuel transfer market, a move that would later develop into Franklin Fueling Systems.
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What are the key Milestones in Franklin Electric history?
Franklin Electric's journey is a testament to its enduring commitment to innovation and strategic growth, navigating both significant advancements and market challenges throughout its history. From its early days, the company has consistently pushed boundaries, establishing itself as a leader in various sectors through technological breakthroughs and astute business decisions.
| Year | Milestone |
|---|---|
| 1950 | Developed the first reliable submersible motor, revolutionizing the water well industry. |
| Late 1960s | Introduced the first submersible fuel transfer pump in Australia, supporting the shift to underground petroleum storage. |
| 1982 | Launched the 'Amazing Little Switch,' a groundbreaking solid-state switch for the electrical industry. |
| 2024 | Acquired Blake Group Holdings Ltd., expanding its presence in agricultural and industrial wastewater markets. |
| Q1 2025 | Continued strategic acquisitions to bolster its growth trajectory. |
Franklin Electric has consistently driven progress through pioneering innovations, such as the development of the first reliable submersible motor in 1950, which reshaped the water well industry. Further demonstrating its forward-thinking approach, the company introduced the electrical industry's first dependable solid-state switch, the 'Amazing Little Switch,' in 1982.
Submersible Motor Innovation
The creation of the first reliable submersible motor in 1950 marked a significant turning point for the water well sector, establishing a new standard for performance and durability.
Fuel Transfer Pump Advancement
In the late 1960s, the company's development of the first submersible fuel transfer pump in Australia was instrumental in the industry's move towards safer underground petroleum product storage.
Solid-State Switch Technology
The introduction of the 'Amazing Little Switch' in 1982 represented a leap forward in electrical component reliability, offering the industry its first dependable solid-state switching solution.
Strategic Acquisitions for Growth
Over the years, strategic acquisitions have been key to expanding Franklin Electric's product portfolio and market reach, notably in agricultural and industrial wastewater sectors, as seen with the 2024 acquisition of Blake Group Holdings Ltd.
Sustainability Recognition
The company's commitment to sustainability has been acknowledged through various accolades, including being named one of America's Most Responsible Companies and America's Climate Leaders in 2024, and one of Newsweek's America's Greenest Companies 2025.
Market Adaptability
Franklin Electric's ability to adapt is further highlighted by its ongoing focus on innovation and growth, including new product launches and continued strategic acquisitions, all contributing to its resilience in dynamic markets.
Despite its successes, Franklin Electric has encountered significant challenges, including a sharp market downturn in 1982 that led to substantial inventory build-up. More recently, macroeconomic pressures have impacted performance, with Q1 2025 consolidated net sales decreasing by 1% and earnings per share falling to $0.67 from $0.70 in Q1 2024, alongside an 8% decrease in operating income.
Market Downturn Impact
The company faced a severe market decline by 1982, resulting in a significant accumulation of unsold inventory, a direct consequence of rapid market shifts.
Macroeconomic Pressures
The broader economic climate has presented ongoing challenges, as evidenced by the 1% decrease in consolidated net sales and a drop in EPS in Q1 2025 compared to the previous year.
Segment-Specific Sales Decline
The Distribution segment experienced a 3% decrease in net sales in Q1 2025, attributed to reduced volumes, negative pricing impacts, and adverse weather conditions.
Operational Efficiency
A notable challenge in Q1 2025 was the 8% decrease in operating income, indicating a need for continued focus on operational efficiency and cost management.
Navigating Industry Headwinds
The company's ability to overcome these challenges is supported by its diversified global operations and strong brand portfolio, as detailed in the Brief History of Franklin Electric.
Adaptability and Resilience
Despite these headwinds, Franklin Electric's strategic focus on innovation, acquisitions, and customer service demonstrates its inherent adaptability and commitment to sustained growth and market leadership.
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What is the Timeline of Key Events for Franklin Electric?
The Franklin Electric company origins trace back to 1944, when E.J. Schaefer and T.W. Kehoe established the company in Bluffton, Indiana, with a modest capital of less than $20,000. This marked the beginning of a journey focused on providing valuable and innovative solutions for critical resource movement.
| Year | Key Event |
|---|---|
| 1944 | Franklin Electric was founded in Bluffton, Indiana, by E.J. Schaefer and T.W. Kehoe. |
| 1950 | The company developed the first practical submersible motor, a significant innovation in water movement technology. |
| 1959 | Nationwide sales reached $12 million, indicating substantial early growth. |
| 1962 | Franklin Electric established its first foreign venture in Australia, signaling international expansion. |
| 1963 | The first fully-owned foreign subsidiary, Franklin Electric of Canada, was founded. |
| 1966 | The company manufactured its one millionth submersible motor, a testament to its production capabilities. |
| 1970 | Franklin Electric was listed among Fortune's top 1,000 manufacturing firms in the United States. |
| 1988 | FE Petro was founded, with Franklin Electric supplying motors, contributing to the fueling systems sector. |
| 1994 | The company celebrated its 50th anniversary and acquired a 97% interest in Oil Dynamics, Inc. |
| 2017 | Headwater Companies, LLC was formed through the acquisition of three distributors. |
| 2024 | Franklin Electric acquired Blake Group Holdings Ltd., expanding into agricultural and industrial wastewater markets, and reported full-year net sales of $2.0 billion. |
| December 2024 | The company was recognized as one of Newsweek's America's Greenest Companies 2025. |
| Q1 2025 | Reported net sales of $455.2 million and completed two acquisitions. |
| Q2 2025 | Reported consolidated net sales of $587.4 million, an 8% increase from Q2 2024, with EPS of $1.31. |
2025 Financial Projections
The company anticipates full-year 2025 sales between $2.09 billion and $2.15 billion. Earnings per share are projected to be between $3.95 and $4.25.
Strategic Growth Initiatives
Future plans include launching new products for the residential market in Q3 2025. The company is actively pursuing mergers and acquisitions in rapidly expanding sectors.
Focus on Innovation and Efficiency
Franklin Electric aims to drive revenue growth and enhance margins through continued innovation and operational efficiencies. Maintaining key differentiators is central to its strategy.
Commitment to Sustainability and Partnership
The company is dedicated to sustainable practices and strives to be an indispensable partner to its customers. This commitment aligns with its founding vision of providing essential solutions.
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