Financial Analysis

"ACQUISITIONS 2025 Barnes In March 2025, the Company acquired 100 percent of Barnes de Colombia S.A. (""Barnes""), a leading manufacturer and distributor of industrial and commercial pumps based in Cota, Cundinamarca, Colombia, for total upfront cash consideration of $96.8 million, net of cash acquired. The valuation of assets acquired and liabilities assumed has not yet been finalized as of December 31, 2025. As a result, the Company recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date. Finalization of the valuation during the measurement period could result in a change in the amounts recorded for the acquisition date fair value of intangible assets, goodwill and income taxes among other items. The completion of the valuation will occur no later than one year from the acquisition date. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date: (in millions) Assets acquired and liabilities assumed Cash and cash equivalents $ 3.4 Receivables $ 9.6 Inventories $ 23.6 Other current assets $ 3.9 Property, plant and equipment $ 13.5 Goodwill $ 44.5 Other intangible assets $ 45.5 Other non-current assets $ 3.6 Debt $ (13.8) Accounts payable $ (9.8) Accrued expenses and other current liabilities $ (2.4) Deferred tax liabilities $ (18.6) Other non-current liabilities $ (2.8) Total assets acquired and liabilities assumed $ 100.2 The Company allo …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Debt consisted of the following: (In millions) 2025 2024 New York Life Agreement $ 75.0 $ 75.0 Prudential Agreement 50.0 Credit Agreement 30.0 41.4 Project Bonds 11.5 12.8 Foreign subsidiary debt 0.6 0.3 Less: unamortized debt issuance costs (0.1) (0.1) 167.0 129.4 Less current maturities (31.8) (117.8) Long-term debt $ 135.2 $ 11.6 Debt outstanding at December 31, 2025, excluding unamortized debt issuance costs, matures as follows: (In millions) Total 2026 2027 2028 2029 2030 Thereafter Debt $ 167.1 $ 31.8 $ 1.5 $ 1.5 $ 1.5 $ 1.6 $ 129.2 New York Life Agreement On May 27, 2015, the Company entered into an uncommitted and unsecured private shelf agreement with NYL Investors LLC, an affiliate of New York Life, and each of the undersigned holders of Notes (the New York Life Agreement) for $150.0 million maximum aggregate principal borrowing capacity. On October 28, 2016, the Company entered into the First Amendment to the Note Purchase and Private Shelf Agreement. The Amendment was intended to make the covenants within the New York Life Agreement consistent with the covenants that were modified in the Third Amended and Restated Credit Agreement. On September 26, 2018, the Company entered into the Second Amendment to the Note Purchase and Private Shelf Agreement which increased the aggregate borrowing capacity to $200.0 million and authorized the issuance of $75.0 million of fixed rate senior noted due September 26, 2025. These senior notes bear an interest rate of 4.04 per …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"Share-based Compensation In 2023, the Company amended The Franklin Electric Co., Inc. 2017 Stock Plan, which is called The Franklin Electric Co., Inc. Amended and Restated 2017 Stock Plan (""the 2017 Amended and Restated Stock Plan"") and increased the number of shares available under the Plan by 900,000 to 2,300,000. The 2017 Amended and Restated Stock Plan is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, stock unit awards, and stock appreciation rights (SARs) to key employees and non-employee directors. Stock options and SARs reduce the number of available shares by one share for each share subject to the option or SAR, and stock awards and stock unit awards settled in shares reduce the number of available shares by 1.5 shares for every one share delivered. The Company also maintains the Franklin Electric Co., Inc. 2012 Stock Plan (the 2012 Stock Plan), which is a share-based compensation plan that provides for discretionary grants of stock options, stock awards and stock unit awards to key employees and non-employee directors. The 2012 Stock Plan authorized 2,400,000 shares for issuance as follows: 2012 Stock Plan Authorized Shares Stock Options 1,680,000 Stock/Stock Unit Awards 720,000 No additional options and awards are granted out of the 2012 Stock Plan. However, there are still unvested awards and unexercised options under this plan. The Company currently issues new shares from its common stock balance to satis …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS As of December 31, 2025 and December 31, 2024, the assets and liabilities measured at fair value on a recurring basis were as set forth in the table below: (In millions) December 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 10.2 $ 10.2 $ $ Marketable securities $ 9.7 $ 9.7 $ $ Total assets $ 19.9 $ 19.9 $ $ Liabilities: Total liabilities $ $ $ $ December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 5.0 $ 5.0 $ $ Total assets $ 5.0 $ 5.0 $ $ Liabilities: Share swap transaction $ 2.5 $ 2.5 $ $ Contingent payments related to acquisition $ 5.0 $ 5.0 Total liabilities $ 7.5 $ 2.5 $ $ 5.0 The Companys Level 1 cash equivalents assets are generally comprised of foreign bank guaranteed certificates of deposit and short term deposits. The Companys Level 1 marketable securities assets are comprised of short term investment funds. The marketable securities asset is recorded within the ""Other current assets"" line of the condensed consolidated balance sheets. These marketable securities were excess plan assets from the pension settlement disclosed in Note 10 Employee Benefit Plans. The excess plan assets were reclassified to Other current assets during the third quarter as a result of …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS The carrying amounts of the Companys intangible assets, excluding goodwill, are as follows: (In millions) 2025 2024 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangibles: Customer relationships $ 309.5 $ (149.7) $ 263.4 $ (128.8) Patents 7.4 (7.4) 7.2 (7.2) Technology 10.5 (7.8) 7.5 (7.5) Trade names 58.6 (11.6) 44.5 (8.1) Other 3.1 (2.5) 2.8 (2.4) Total $ 389.1 $ (179.0) $ 325.4 $ (154.0) Non-amortizing intangibles: Trade names 41.6 41.6 Total intangibles $ 430.7 $ (179.0) $ 367.0 $ (154.0) Amortization expense related to intangible assets for the years ended December 31, 2025, 2024, and 2023, was $23.6 million, $18.8 million, and $17.1 million, respectively. Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2026 2027 2028 2029 2030 $ 24.0 $ 22.5 $ 21.9 $ 20.9 $ 20.3 The change in the carrying amount of goodwill by reportable segment for 2025 and 2024, is as follows: (In millions) Water Systems Energy Systems Distribution Consolidated Balance as of December 31, 2023 $ 221.4 $ 70.4 $ 50.6 $ 342.4 Acquisitions 0.8 0.8 Adjustments to prior year acquisitions (1.0) (1.0) Foreign currency translation (3.6) (0.1) (3.7) Balance as of December 31, 2024 $ 217.6 $ 70.3 $ 50.6 $ 338.5 Acquisitions 55.2 55.2 Adjustments to prior year acquisitions 0.1 0.1 Foreign currency translation 4.1 0.2 4.3 Balance as of December 31, 2025 $ 277.0 $ 70.5 5 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income before income taxes consisted of the following: (In millions) 2025 2024 2023 Domestic $ 108.9 $ 169.5 $ 163.9 Foreign 85.8 62.3 78.3 $ 194.7 $ 231.8 $ 242.2 The income tax provision/(benefit) consisted of the following: (In millions) 2025 2024 2023 Current: Federal $ 22.0 $ 42.5 $ 27.0 Foreign 25.5 17.3 14.9 State 6.1 10.0 7.2 Total current 53.6 69.8 49.1 Deferred: Federal (2.5) (16.0) (1.1) Foreign (3.8) (0.8) (0.3) State (1.3) (2.8) (0.2) Total deferred $ (7.6) $ (19.6) $ (1.6) $ 46.0 $ 50.2 $ 47.5 The table below provides the updated requirements of ASU 2023-09 for 2025. A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows: (In millions) 2025 (a) Amount Percent U.S. Federal Statutory Tax Rate $ 40.9 21.0 % U.S. State and Local Income Taxes, Net of Federal Income Tax Effect (a) 3.4 1.7 Foreign Tax Effects Netherlands Exemption of Foreign Business Profits (7.2) (3.7) Pillar Two Global Minimum Tax 2.9 1.5 Other 1.3 0.6 Other foreign jurisdictions 7.3 3.7 Effect of Cross-Border under U.S. Tax Laws Foreign-derived intangible income (4.0) (2.1) Other (0.3) (0.1) U.S. Nontaxable or Nondeductible Items Nondeductible officer's compensation 2.5 1.3 Other 0.1 0.1 Other U.S. Adjustments (0.9) (0.4) Effective Tax Rate $ 46.0 23.6 % (a) The following jurisdictions made up the majority (greater than 50 percent) of the tax effect in this category: 2025 - California, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. This amendment modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, (2) the amount of income taxes paid (net of refunds received) (disaggregated by federal, state, and foreign taxes) as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid net of refunds, (3) the income or loss from continuing operations before income tax expense or benefit (disaggregated between domestic and foreign) and (4) income tax expense or benefit from continuing operations (disaggregated by federal, state and foreign). ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 should be applied on a prospective basis, while retrospective application is permitted. The Company adopted this ASU prospectively, effective with its 2025 annual financial statements and the adoption did not have a material impact on its financial statements. Accounting Standards Issued But Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Stat …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS Defined Benefit Plans - As of December 31, 2025, the Company maintained one domestic pension plan and three German pension plans. The Company used a December 31, 2025 measurement date for these plans. The Companys remaining domestic pension plan covers two retired participants. On February 13, 2025, the Company's Board of Directors approved the termination of the domestic Franklin Electric Co, Inc. Pension Plan (the Plan). On July 9, 2025, lump sum distributions of $59.9 million were made to eligible participants who elected that payment option to settle the obligation. On July 29, 2025, the Company settled its benefit obligation under the Plan for the remaining participants with the purchase of a nonparticipating, single premium annuity contract from a third-party insurance company, for $28.6 million. In connection with the termination and settlement of the Plan, the Company recognized a non-cash pension settlement gross loss of $55.3 million during the third quarter of 2025 related to the actuarial losses previously accumulated in Accumulated Other Comprehensive Loss, which was included in the Pension settlement loss line of the Companys condensed consolidated statements of income. The Plan was terminated on July 31st, 2025. Excess plan assets were reverted to the Company and will be contributed to the Company's defined contribution plan. The amount that exceeded the annual contribution limit is held in a suspense account until it can be contributed i …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

SEGMENT AND GEOGRAPHIC INFORMATION The Companys business consists of the Water Systems, Distribution, and Energy Systems reportable segments, based on the principal end market served. The Company changed the name of the Fueling Systems segment to Energy Systems to reflect its diverse portfolio and growth strategy, as well as to better reflect the markets and customers served by the segment. The Company includes unallocated corporate expenses and intercompany eliminations that are not part of a reportable segment in its reconciliations to consolidated results. The Water Systems segment designs, manufactures and sells motors, pumps, electronic controls, water treatment systems and related parts and equipment primarily for use in submersible water or other fluid system applications. The Energy Systems segment designs, manufactures and sells pumps, electronic controls and related parts and equipment primarily for use in submersible fueling system applications. The Energy Systems segment integrates and sells motors and electronic controls produced by the Water Systems segment. The Company reports these product transfers between Water Systems and Energy Systems as inventory transfers since a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Distribution segment sells to and provides presale support and specifications to the installing contractors. The Distribution segment sells products produced by the Wat …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Company --Franklin Electric or the Company shall refer to Franklin Electric Co., Inc. and its consolidated subsidiaries. Fiscal Year --The financial statements and accompanying notes are as of and for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, and referred to as 2025, 2024 and 2023, respectively. Principles of Consolidation --The consolidated financial statements include the accounts of Franklin Electric Co., Inc. and its consolidated subsidiaries. All intercompany transactions have been eliminated. Business Combinations --The Company allocates the purchase price of its acquisitions to the assets acquired, liabilities assumed, and noncontrolling interests based upon their respective fair values at the acquisition date. The Company utilizes management estimates and may use inputs from an independent third-party valuation firm to assist in determining these fair values. The excess of the acquisition price over estimated fair values of the net assets acquired is recorded as goodwill. Goodwill is adjusted for any changes to acquisition date fair value amounts made within the measurement period, which may be up to one year from the acquisition date. If the preliminary, estimated fair values of the net assets acquired are in excess of the acquisition price, that represents a bargain purchase gain, and the Company records this amount in ""Accrued expenses and other current liabilities"" on the consolidated …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Authorized Shares The Company has the authority to issue 65,000,000, $0.10 par value common shares. The Company also has the authority to issue 100,000 preference shares with no par value and 5,000,000 preferred shares with no par value. No preference or preferred shares have been issued. Repurchased Shares During 2025, 2024, and 2023, pursuant to a stock repurchase program authorized by the Companys Board of Directors, the Company repurchased and retired the following amounts and number of shares: (In millions, except share amounts) 2025 2024 2023 Repurchases $ 160.0 $ 53.1 $ 32.5 Shares 1,790,958 549,062 371,452 The Company retired shares in the amount of 54,506, 74,513, and 101,690 in 2025, 2024, and 2023, respectively, that were received from employees as payment for the exercise price of their stock options and taxes owed upon the exercise of their stock options and release of their restricted awards. The Company also reduced outstanding shares in the amount of 16,856, 5,930, and 0 in 2025, 2024, and 2023, respectively, that had been previously granted as stock awards to employees but were forfeited upon not meeting the required restriction criteria or termination. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS The Company evaluated subsequent events from December 31, 2025 through the date these financial statements were issued and except for those noted below has noted no subsequent events after December 31, 2025 for which disclosure is required. In January 2026, management approved restructuring actions intended to improve operational efficiency and cost structure. There are no amounts recognized in our consolidated financial statements as of December 31, 2025 related to these plans as they did not meet the criteria for recognition under ASC 420 and 855. Management currently estimates that the total costs associated with these actions will be approximately $4.0 million and they are expected to be recorded in the first quarter of 2026.

SubsequentEventsTextBlock

"ACQUISITIONS 2026 Wood Brothers Industries In May 2026, the Company acquired 100 percent of Piertek, Inc, Piertek III, LLC, and Vistar Water Technologies, Inc. (""Wood Brothers Industries""), and its affiliated companies for a purchase price of $49.9 million, net of cash acquired. Wood Brothers Industries is a water treatment wholesale supplier based in Nebraska, and caters to professional water treatment dealers across the United States. The valuation of assets acquired and liabilities assumed has not yet been finalized as of June 30, 2026. As a result, the Company recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date. Finalization of the valuation during the measurement period could result in a change in the amounts recorded for the acquisition date fair value of intangible assets, goodwill, and income taxes among other items. The completion of the valuation will occur no later than one year from the acquisition date. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date: (in millions) Assets acquired and liabilities assumed Cash and cash equivalents $ 0.4 Receivables $ 2.1 Inventories $ 6.0 Property, plant and equipment $ 0.1 Lease right-of-use assets $ 1.5 Other intangible assets $ 27.9 Goodwill $ 23.0 Accounts payable and accrued expenses $ (2.1) Lease right-of-use liabilities $ (1.5) Deferred tax liabilities $ (7.1) Total asse …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT Debt consisted of the following: (In millions) June 30, 2026 December 31, 2025 Prudential Agreement $ 50.0 $ 50.0 New York Life Agreement 75.0 75.0 Credit Agreement 107.0 30.0 Project Bonds 10.8 11.5 Foreign subsidiary debt 0.1 0.6 Less: unamortized debt issuance costs (0.1) (0.1) $ 242.8 $ 167.0 Less: current maturities (108.5) (31.8) Long-term debt $ 134.3 $ 135.2 Prudential Agreement The Company maintains the Fourth Amended and Restated Note Purchase and Private Shelf Agreement (the ""Prudential Agreement"") with PGIM, Inc. and its affiliates. On May 15, 2024, the Company entered into Amendment No. 1 that increased the total available facility amount from lenders to $250.0 million from $150.0 million and changed the expiration date from July 30, 2024 to May 15, 2027. On September 26, 2025, the Company issued and sold $50.0 million of fixed rate senior notes due September 26, 2032. These senior notes bear an interest rate of 5.01 percent with interest-only payments due semi-annually. The proceeds from the issuance of the notes were used to pay off existing variable interest rate indebtedness. As of June 30, 2026, there was $200.0 million remaining borrowing capacity under the Prudential Agreement. New York Life Agreement The Company maintains an uncommitted and unsecured private shelf agreement with NYL Investors LLC, an affiliate of New York Life, and each of the undersigned holders of Notes (the ""New York Life Agreement""). On May 15, 2024, the Company entered into …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures , provides guidance for defining, measuring, and disclosing fair value within an established framework and hierarchy. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs and to minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value within the hierarchy are as follows: Level 1 Quoted prices for identical assets and liabilities in active markets; Level 2 Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. As of June 30, 2026 and December 31, 2025, the assets and liabilities measured at fair value on a recurring basis were as set forth in the table below: (In millions) June 30, 2026 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS The carrying amounts of the Companys intangible assets, excluding goodwill, are as follows: (In millions) June 30, 2026 December 31, 2025 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangibles: Customer relationships $ 341.8 $ (160.7) $ 309.5 $ (149.7) Technology 10.8 (8.1) 10.5 (7.8) Trade names 68.5 (13.8) 58.6 (11.6) Other 3.1 (2.5) 3.1 (2.5) Total $ 424.2 $ (185.1) $ 381.7 $ (171.6) Non-amortizing intangibles: Trade names 41.9 41.6 Total intangibles $ 466.1 $ (185.1) $ 423.3 $ (171.6) Amortization expense related to intangible assets for the second quarters ended June 30, 2026 and June 30, 2025 was $7.0 million and $6.0 million, respectively, and for six months ended June 30, 2026 and June 30, 2025 was $13.3 million and $11.1 million, respectively. The change in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2026 is as follows: (In millions) Water Systems Energy Systems Distribution Consolidated Balance as of December 31, 2025 $ 277.0 $ 70.5 $ 50.6 $ 398.1 Acquisitions 23.0 5.5 28.5 Adjustments to prior year acquisitions 0.2 0.2 Foreign currency translation 5.4 (0.1) 5.3 Balance as of June 30, 2026 $ 305.6 $ 70.4 $ 56.1 $ 432.1 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The Companys effective tax rate for the six-month period ended June 30, 2026 was 25.2 percent as compared to 24.9 percent for the six-month period ended June 30, 2025. The effective tax rate differs from the U.S. statutory rate of 21 percent primarily due to U.S. state taxes and foreign earnings taxed at rates different than the U.S. statutory rate partially offset by an object exemption of foreign business profits in the Netherlands and the recognition of the U.S. foreign-derived intangible income (FDII) provisions. For the second quarter of 2026, the Company recorded an effective tax rate of 25.7 percent, compared with 24.9 percent in the second quarter of 2025. The increase in the effective tax rate for the second quarter and first six months of 2026 compared to the comparable periods in the prior year was primarily due to increased unfavorable discrete events in 2026. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In July 2025, the FASB issued ASU 2025-05, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . ASU 2025-05 provides an optional practical expedient to simplify the measurement of credit losses for certain receivables and contract assets. ASU 2025-05 is effective for interim and annual periods beginning after December 15, 2025, with early adoption permitted. The guidance is to be applied prospectively. The Company adopted this ASU prospectively, effective with its 2026 interim financial statements and the adoption did not have a material impact on its financial statements. Accounting Standards Issued But Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the imp …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS The following table sets forth the aggregated net periodic benefit cost for all pension plans for the second quarters and six months ended June 30, 2026 and June 30, 2025: (In millions) Pension Benefits Second Quarter Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Service cost $ 0.1 $ 0.1 $ 0.1 $ 0.1 Interest cost 0.3 1.5 0.5 2.9 Expected return on assets (0.1) (1.6) (0.1) (3.2) Amortization of: Prior service cost Actuarial loss 0.4 0.8 Settlement cost Net periodic benefit cost $ 0.3 $ 0.4 $ 0.5 $ 0.6 The following table sets forth the aggregated net periodic benefit cost for the other post-retirement benefit plan for the second quarters and six months ended June 30, 2026 and June 30, 2025: (In millions) Other Benefits Second Quarter Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Service cost $ $ $ $ Interest cost 0.1 0.1 Expected return on assets Amortization of: Prior service cost Actuarial loss Settlement cost Net periodic benefit cost $ $ $ 0.1 $ 0.1 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

SEGMENT AND GEOGRAPHIC INFORMATION The Companys business consists of the Water Systems, Distribution, and Energy Systems reportable segments, based on the principal end market served. The Company includes unallocated corporate expenses and intercompany eliminations that are not part of a reportable segment in its reconciliations to consolidated results. The accounting policies of the operating segments are the same as those described in Note 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Revenue is recognized based on the invoice price at the point in time when the customer obtains control of the product, which is typically upon shipment to the customer. The Water Systems and Energy Systems segments include manufacturing operations and supply certain components and finished goods, both between segments and to the Distribution segment. The Company reports these product transfers between Water Systems and Energy Systems as inventory transfers as a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Company reports intersegment transfers from Water Systems to Distribution as intersegment revenue at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water Systems and Distribution segments. The Company's chief operating decision maker is its Chief Executive Officer. Performance is evaluated based on the sales and op …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

EQUITY ROLL FORWARD The schedules below set forth equity changes in the second quarters and six months ended June 30, 2026 and June 30, 2025: (In thousands) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Balance as of March 31, 2026 $ 4,416 $ 398,075 $ 1,092,821 $ (155,492) $ 2,850 $ 1,342,670 $ 1,908 Net income 65,742 492 66,234 (133) Dividends on common stock ($0.280/share) (12,416) (12,416) Common stock issued 4 2,359 2,363 Common stock repurchased (3) (3,759) (3,762) Share-based compensation 4 4,036 4,040 Dividend to noncontrolling interest (1,199) (1,199) Currency translation adjustment 11,958 (31) 11,927 (5) Pension and other post retirement plans, net of taxes (236) (236) Balance as of June 30, 2026 $ 4,421 $ 404,470 $ 1,142,388 $ (143,770) $ 2,112 $ 1,409,621 $ 1,770 (In thousands) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Balance as of March 31, 2025 $ 4,572 $ 370,347 $ 1,162,873 $ (240,545) $ 2,675 $ 1,299,922 $ 1,373 Net income 60,140 284 60,424 139 Dividends on common stock ($0.265/share) (12,161) (12,161) Common stock issued 12 10,077 10,089 Common stock repurchased (139) (122,445) (122,584) Share-based compensation 3 3,004 3,007 Currency translation adjustment 25,827 227 26,054 (1) Pension and other post …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing