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Key Takeaways FLS delivered Q4 adjusted EPS of $1.11, beating estimates and surging 58.6% year over year.FLS revenues rose 3.5% to $1.22B, with aftermarket bookings up 10.4% and backlog at $2.9B.FLS sees 2026 revenue growth of 5-7% and adjusted EPS guidance of $4.00-$4.20.Flowserve Corporation’s (FLS) fourth-quarter 2025 adjusted earnings (excluding 77 cents from non-recurring items) of $1.11 per share beat the Zacks Consensus Estimate of 94 cents. The bottom line increased 58.6% year over year. Results ben ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2025 grew 4% year-over-year to $1.2 billion, with organic sales growth of approximately 1% and a 240 basis point benefit from foreign currency translation [7][8] - Adjusted gross margin reached 36%, a 320 basis point improvement year-over-year, marking the 12th consecutive quarter of margin expansion [8] - Adjusted EPS was $1.11, reflecting a 59% increase compared to the prior year [8] Business Line Data and Key Metrics Changes - Aftermarket sales increased 8% in Q4, while original equipment revenues declined by 2% due to customer delays and material receipt timing [7][8] - FPD segment saw bookings grow 8%, with aftermarket growth of 12%, and adjusted operating margin expanded to 21% [9] - FCD segment's adjusted gross margin improved by 220 basis points to 34%, with adjusted operating margin increasing to 19.7% [10] Market Data and Key Metrics Changes - The company reported $2.6 billion in bookings for 2025, representing a 9% year-over-year growth, with a book-to-bill ratio of 1.0 times [12] - The nuclear market contributed significantly, with $400 million in nuclear awards during the year [15] - General industries showed strong growth, particularly in North America and the Middle East, driven by sectors like mining and pharmaceuticals [19] Company Strategy and Development Direction - The company is focused on advancing its 3D Strategy to drive growth and enhance operational excellence through the Flowserve Business System [3][5] - Strategic acquisitions, including Trillium Valves, are aimed at strengthening the valve and actuation portfolio and expanding market reach in nuclear and traditional power sectors [18][21] - The company anticipates mid-single-digit bookings growth in 2026, supported by strong aftermarket performance and increasing activity in the nuclear sector [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive growth and margin expansion despite potential short-term revenue headwinds [39] - The outlook for 2026 includes total reported sales growth of 5%-7%, with organic sales growth of 1%-3% [24] - The company is optimistic about the long-term growth potential in the nuclear sector, projecting it to become a more integral part of the business [22][60] Other Important Information - The company returned $365 million to shareholders in 2025, including $255 million in share repurchases [11] - The balance sheet remains healthy with net leverage of one time, providing flexibility for capital allocation [11] - The company has a disciplined approach to capital allocation, focusing on growth-enhancing opportunities while maintaining an investment-grade rating [27] Q&A Session Summary Question: Organic revenue growth was light this quarter; can you provide context? - Management noted that approximately 50 basis points of revenue headwinds were due to delays in engineered projects, which are expected to resolve in the first half of 2026 [37][39] Question: What is the opportunity in Venezuela? - Management indicated that while Venezuela was previously a significant market, they are prepared to support operations if investment resumes, although it is not included in the 2026 numbers [41][42] Question: Confidence in mid-single-digit order progression? - Management expressed confidence in mid-single-digit growth, driven by strong aftermarket performance and positive trends in the power in-market [48][50] Question: What are the implications of a shift towards gas turbines instead of nuclear? - Management believes nuclear will progress and emphasized their readiness to support traditional power growth if necessary, while still capturing aftermarket opportunities [76] Question: Insights on MOGUS integration and bookings opportunities? - Management reported successful integration of MOGUS, with a healthy project funnel for 2026, indicating confidence in future growth [84][86]

Flowserve (NYSE:FLS) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Company ParticipantsAmit Mehrotra - Managing Director and Industrial Sector HeadAmy Schwetz - CFOBrian Ezzell - VP of Investor RelationsDeane Dray - Managing DirectorJoe Giordano - Managing DirectorScott Rowe - President and CEOConference Call ParticipantsBrett Linzey - Managing Director & Senior Equity Research AnalystMike Halloran - Associate Director of Research and Senior Research AnalystNone - AnalystNone - AnalystOperatorGood day ...

Flowserve (NYSE:FLS) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Speaker8Good day and welcome to the Flowserve fourth quarter 2025 earnings call. Today's call is being recorded. At this time, I'd like to turn the call over to Brian Ezzell, VP of Investor Relations. Please go ahead.Speaker3Thank you, and good morning, everyone. Welcome to Flowserve's fourth quarter and full year 2025 business update. I'm joined by Scott Rowe, Flowserve's President and Chief Executive Officer, and Flowserve's Chief Fi ...

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Q4 2025 EARNINGS CONFERENCE CALL February 6, 2026 FORWARD LOOKING STATEMENT AND NON-GAAP MEASURES Safe Harbor Statement: This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipate ...

Flowserve (FLS) came out with quarterly earnings of $1.11 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.7 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +17.83%. A quarter ago, it was expected that this company that makes pumps, valves and other parts for the oil and gas industries would post earnings of $0.8 per share when it actually produced earnings of $0.9, delivering ...

Financial Performance - Fourth quarter bookings reached $1.2 billion, with aftermarket growth of 10% to over $680 million[4] - Full year bookings totaled $4.7 billion, including approximately $400 million in nuclear awards[4] - Fourth quarter adjusted operating margin improved to 16.8%, a 420 basis points increase year-over-year[4] - Full year cash from operations was $506 million, with $365 million returned to shareholders through dividends and share repurchases[4] - Fourth quarter reported EPS was ($0.23), while adjusted EPS was $1.11, reflecting a 58.6% increase year-over-year[4][6] - The company reported a total sales increase to $4.73 billion for the year ended December 31, 2025, compared to $4.56 billion in 2024[25] - Net earnings attributable to Flowserve Corporation increased to $346.2 million in 2025, up from $282.8 million in 2024[25] - The effective tax rate for the year ended December 31, 2025, was 29.6%, with diluted EPS reported at $2.64[26] - Adjusted earnings for the year were $476,158 thousand, with an adjusted EPS of $3.64[26] - The company reported a loss on asbestos divestiture of $140,092 thousand, impacting net earnings significantly[26] Guidance and Future Projections - The company initiated 2026 guidance with total sales growth projected at 5% to 7% and adjusted EPS between $4.00 and $4.20, representing a 13% increase from 2025[4][7] - Established 2030 financial targets include mid-single digit organic sales CAGR and approximately 20% adjusted operating margin[10] - Full year 2026 guidance assumes the acquisition will be roughly neutral to adjusted EPS, including incremental interest expense related to financing[9] Acquisitions and Investments - The acquisition of Trillium Flow Technologies' Valves Division was announced, expected to close mid-year 2026[5][9] - Acquisition-related costs associated with the MOGAS acquisition amounted to $3.3 million, affecting the financial results[18] - The company incurred $65,881 in payments for acquisitions in 2025, down from $305,924 in 2024[39] Segment Performance - Flowserve Pumps Division bookings increased to $883.6 million in Q4 2025, up from $816.4 million in Q4 2024, with sales rising to $833.0 million[20] - Flow Control Division reported sales of $391.5 million in Q4 2025, slightly up from $387.9 million in Q4 2024, with a gross profit margin of 31.5%[20] - The Flowserve Pumps Division achieved a segment operating income of $166.8 million in Q4 2025, with an operating income margin of 20.0%[20] - Flow Control Division's segment operating income rose to $64.0 million in Q4 2025, representing an operating income margin of 16.3%[20] - The Flowserve Pumps Division achieved sales of $3,235.3 million in 2025, with a gross profit margin of 35.2%, up from 32.2% in 2024[30] - The Flow Control Division reported sales of $1,504.5 million in 2025, with a gross profit margin of 29.6%, slightly down from 30.1% in 2024[30] - The Flowserve Pumps Division's segment operating income increased to $600.9 million in 2025, representing 18.6% of sales, compared to 15.2% in 2024[30] - The Flow Control Division's segment operating income was $179.7 million in 2025, with an operating income margin of 11.9%[30] Profitability and Costs - Reported gross profit for the three months ended December 31, 2024, was $372.1 million, representing a gross profit margin of 31.5%[16] - For the year ended December 31, 2025, reported gross profit was $1,581,437 thousand, representing 33.4% of sales, while adjusted gross profit was $1,646,033 thousand, or 34.8% of sales[26] - The company incurred realignment charges of $11.6 million in Q4 2024, impacting overall profitability[16] - The company incurred realignment charges of $54,660 thousand in 2025, contributing to an adjusted operating income of $699,911 thousand[26] Assets and Liabilities - Cash and cash equivalents increased to $760,183 as of December 31, 2025, up from $675,441 in 2024[38] - Total assets rose to $5,708,200 in 2025, compared to $5,500,821 in 2024, reflecting a growth of approximately 3.8%[38] - Total current liabilities increased to $1,501,885 in 2025, compared to $1,468,084 in 2024[38] - Stock-based compensation increased to $38,263 in 2025, compared to $30,474 in 2024[39] Risks and Challenges - Forward-looking statements indicate potential risks including global supply chain disruptions and inflation affecting manufacturing efficiency and product costs[43] - The company is highly dependent on the energy, chemical, and power generation industries, which significantly influence sales performance[43] - The company faces risks related to international operations, including political and economic uncertainties in markets such as North Africa, Latin America, and the Middle East[43] - Flowserve's performance may be impacted by fluctuations in foreign currency exchange rates, particularly in hyperinflationary countries like Argentina[43] - The company acknowledges potential adverse effects from litigation, including claims related to asbestos-containing materials[43] Technology and Compliance - There is a focus on developing and integrating new technologies, including artificial intelligence and machine learning, to maintain competitive positioning[43] - The company is committed to environmental compliance and managing associated costs and liabilities[43] - The company emphasizes the importance of non-GAAP financial measures to provide clearer insights into underlying business trends, which are used in financial and operational decision-making[45] - Flowserve's financial results are reported in accordance with GAAP, but management believes non-GAAP measures offer additional useful comparisons[45]

DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, reported its financial results for the fourth quarter and full year ended December 31, 2025. Q4 and FY 2025 Highlights: Fourth quarter bookings of $1.2 billion, including 10% aftermarket growth to over $680 million Fourth quarter operating margin of 3.5%, including one-time impact from asbestos divestiture, and adjusted1 operating margin2 of. ...