Franklin Electric Co., Inc. (NASDAQ:FELE) Q1 2024 Earnings Call Transcript

Gregg Sengstack: And then, Matt our other residential surface pump business was essentially flat. Right.

Matt Summerville: Okay. With respect to dewatering, given I think that business is coming off of a record year in 23, and it is going to be a top-line headwind this year, how much of a decline do you expect in large dewatering pumps on a revenue basis in 24 relative to 23, as we kind of think about modeling that in with Jeff’s comments, on the overall organic outlook for WaterX that business?

Jeff Taylor: Yes. Matt, Let me unpack that a little bit. There’s a couple of pieces there. So when we talk about large dewatering, we have a large dewatering business that is global. And then we have a piece of it that is primarily U.S., Canada, which is selling to the fleet rental companies. And so we are seeing the business to the fleet rental companies primarily in the U.S. is where we saw the significant pullback on a year-over-year basis of about 50% in the first quarter. Our business globally for the first quarter is down 50% in the U.S., Canada. It was actually up 10% outside of the U.S. in Canada. And so that gets us to a global year-over-year decline of about 40%. So it’s really the large fleet rental business in the U.S. and Canada where we’re seeing the pressure in this year. You know, I think our business overall, we would expect it to be down in the mid-teens for the full year, coming off of a record year in 2023 globally of about $200 million of sales.

Matt Summerville: Perfect. Thanks, Jeff.

Jeff Taylor: You’re welcome.

Operator: Thank you. I will now turn the call back over to CEO Gregg Sangstack for any closing remarks.

Gregg Sengstack: We thank you for joining us this morning on our conference call, and we look forward to speaking to you in July with our second quarter results. Have a good week.

Operator: Ladies and gentlemen, thank you for participating. This does conclude today’s program, and you may now disconnect.