What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Franklin Electric Co. (FELE) revenue becomes net income?

For TTM through Q1 2026, Franklin Electric Co. turned $2.18B of revenue into $150M of net income — a net margin of 6.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Franklin Electric Co. (FELE) gross, operating, and net margins?

For TTM through Q1 2026, Franklin Electric Co. reported a gross margin of 35.2%, an operating margin of 12.9%, and a net margin of 6.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Franklin Electric Co. (FELE) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Franklin Electric Co. (FELE) Income Statement Waterfall

Revenue

$2.18B

Gross Margin

+35.2%

Operating Margin

+12.9%

Net Margin

+6.9%

Income statement waterfall for Franklin Electric Co. (FELE) — TTM through Q1 2026

Net income: $150M

Margin breakdown for Franklin Electric Co. (FELE) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.18B	$2.18B
Cost of Revenue	-$1.41B	$767M
Gross Profit	$767M	$767M
Operating Expenses	-$487M	$280M
Operating Income	$280M	$280M
Other Income / Expense	-$81.2M	$199M
Pre-tax Income	$199M	$199M
Income Tax	-$46.6M	$152M
Other Items	-$1.56M	$150M
Net Income	$150M	$150M

Revenue$2.18B
Cost of Revenue-$1.41B
Gross Profit$767M
Operating Expenses-$487M
Operating Income$280M
Other Income / Expense-$81.2M
Pre-tax Income$199M
Income Tax-$46.6M
Other Items-$1.56M
Net Income$150M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Franklin Electric Co. (FELE) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

FELE Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation