Q1 2025 Highlights - Total bookings reached $1.2 billion, with 3D bookings accounting for 31% of the total[8] - Sales amounted to $1.1 billion, representing a 5% increase compared to the previous year[8] - Adjusted gross margins improved to 33.5%, a 180 basis points increase year-over-year[8] - Adjusted EPS increased nearly 25% year-over-year to $0.72[8] - $49 million was returned to shareholders through dividends ($28 million) and share repurchases ($21 million)[8] Bookings Overview - Total bookings grew by 18% compared to the prior year, with a book-to-bill ratio of 1.07x[9] - Power bookings increased by more than 45%[9] - Aftermarket bookings reached a record of nearly $690 million[12] - Original equipment bookings were $557 million in Q1 2025 compared to $462 million in Q1 2024[10] Segment Performance - FPD segment bookings increased by 21.2% year-over-year to $852.9 million[29] - FPD segment revenue increased by 1.8% year-over-year to $783.1 million[29] - FCD segment bookings increased by 10.2% year-over-year to $376.0 million[30] - FCD segment revenue increased by 13.6% year-over-year to $364.1 million[30] Financial Outlook - The company reaffirmed its full-year 2025 guidance, expecting organic growth of 3.0% - 5.0% and total sales growth of 5.0% - 7.0%[41] - Adjusted EPS is projected to be between $3.10 and $3.30[41] - Net interest expense is estimated at approximately $70 million, with an adjusted tax rate of around 21%[41]

Core Insights - Flowserve reported revenue of $1.14 billion for the quarter ended March 2025, reflecting a 5.3% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.11 billion by 3.35% [1] - The company's EPS was $0.72, up from $0.58 in the same quarter last year, resulting in an EPS surprise of 22.03% compared to the consensus estimate of $0.59 [1] Revenue Performance - Sales from FPD segment reached $783.10 million, exceeding the average estimate of $749.56 million, with a year-over-year change of 1.9% [4] - FCD segment sales were reported at $364.10 million, above the average estimate of $358.78 million, showing a significant year-over-year increase of 14.2% [4] - Intersegment sales reported a slight decline of -$2.70 million, compared to the average estimate of -$2.20 million, but still represented a year-over-year change of 10.8% [4] Operating Income - Adjusted Operating Income for the FPD segment was $138.60 million, surpassing the average estimate of $116.22 million [4] - Adjusted Operating Income for the FCD segment was $44.60 million, slightly above the average estimate of $42.93 million [4] Stock Performance - Flowserve's shares have returned -8.6% over the past month, contrasting with the Zacks S&P 500 composite's -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - Flowserve reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.59 per share, and up from $0.58 per share a year ago, adjusted for non-recurring items [1] - The earnings surprise was 22.03%, while the previous quarter saw a negative surprise of -9.09% with actual earnings of $0.70 compared to an expected $0.77 [2] - The company achieved revenues of $1.14 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.35%, and up from $1.09 billion year-over-year [3] Market Outlook - Flowserve shares have declined approximately 22.4% since the beginning of the year, contrasting with the S&P 500's decline of -6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.83 on revenues of $1.22 billion, and for the current fiscal year, it is $3.11 on revenues of $4.76 billion [8] - The Zacks Industry Rank places Manufacturing - General Industrial in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [9] Earnings Estimate Revisions - The trend for earnings estimate revisions for Flowserve is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [7] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Financial Performance - First quarter bookings reached $1.2 billion, with record aftermarket bookings of nearly $690 million[5] - Power bookings increased over 45% year-over-year, including more than $100 million in nuclear awards for the third consecutive quarter[5] - Gross margin and adjusted gross margin were 32.3% and 33.5%, respectively, reflecting increases of 110 and 180 basis points compared to the prior year[5] - Operating income and adjusted operating income were $132 million and $147 million, representing increases of 17% and 24% year-over-year[5] - The backlog stood at $2.9 billion, an 11.1% increase from $2.6 billion in the previous year[6] - The Flowserve Pumps Division reported bookings of $852.9 million, up from $703.5 million in the previous year[19] - The Flow Control Division saw bookings increase to $376.0 million from $341.1 million year-over-year[19] - Flowserve's Pumps Division reported a gross profit of $268,462, representing 34.3% of sales for Q1 2025, an increase from 32.2% in Q1 2024[20] - The Flow Control Division achieved a gross profit of $100,187, which is 27.5% of sales, compared to 28.9% in the same quarter last year[21] - Total bookings for the Pumps Division were $852.9 million, up 21.2% year-over-year, while the Flow Control Division saw bookings of $376.0 million, a 10.2% increase[26] - The adjusted operating income for the Pumps Division was $138.6 million, reflecting a 20.6% increase compared to the previous year[26] - The company reported a net earnings of $79,457 thousand for Q1 2025, compared to $77,915 thousand in Q1 2024[28] - The operating income margin for the Pumps Division improved to 17.4%, up 300 basis points from the previous year[26] Guidance and Projections - The company reaffirmed its full-year 2025 guidance, targeting adjusted EPS in the range of $3.10 to $3.30[7] - Total sales growth is projected to be between 5% to 7% for 2025, with organic sales growth expected at 3% to 5%[8] Cash Flow and Assets - Cash from operations was reported at ($49.9 million), a decline of 180.2% compared to $62.3 million in the prior year[6] - Cash and cash equivalents decreased to $540,804 thousand from $675,441 thousand at the end of 2024[27] - The total assets of Flowserve as of March 31, 2025, were $5,483,298 thousand, slightly down from $5,500,821 thousand at the end of 2024[27] Risks and Challenges - Forward-looking statements are based on current expectations and are subject to numerous risks and uncertainties, including global supply chain disruptions and inflationary pressures[31] - The company faces risks related to the conversion of bookings into revenues and the potential for unexpected cancellations or delays in customer orders[31] - There is a substantial dependence on the success of the energy, chemical, power generation, and general industries for sales[31] - The company is exposed to fluctuations in foreign currency exchange rates, particularly in hyperinflationary countries like Argentina[31] - The company acknowledges potential adverse impacts from public health emergencies, such as pandemics, on its business operations[31] - Increased aging and slower collection of receivables are particularly noted in Latin America and other emerging markets[31] - The company is dependent on third-party suppliers, and their failure to perform could adversely affect business operations[31] Management and Strategy - Management emphasizes the importance of successfully developing and introducing new products and integrating new technologies, including artificial intelligence and machine learning, to maintain competitive position[31] - Management does not assume any obligation to update forward-looking statements based on information available as of the date of the release[32] - The company incurred realignment charges of $2,979 thousand in the Pumps Division during the quarter[20]

Financial Performance - Bookings for Q1 2025 increased by $188.1 million, or 18.1%, compared to Q1 2024, totaling $1,226.4 million[130] - Sales for Q1 2025 rose by $57.0 million, or 5.2%, compared to Q1 2024, reaching $1,144.5 million[131] - Gross profit for Q1 2025 increased by $30.3 million, or 8.9%, totaling $369.3 million, with a gross profit margin of 32.3%[133] - Operating income for Q1 2025 rose by $18.8 million, or 16.6%, with an operating margin of 11.5%[138] - Net earnings from affiliates for Q1 2025 increased by $3.2 million, or 128.0%, primarily due to higher earnings from FPD joint ventures in South Korea[137] - SG&A for Q1 2025 increased by $14.8 million, or 6.5%, compared to Q1 2024, with SG&A as a percentage of sales rising to 21.2%[136] - Interest expense for Q1 2025 increased by $3.9 million due to higher outstanding debt, while interest income rose by $0.5 million[139] - Other net expense for Q1 2025 increased by $16.4 million, primarily due to foreign exchange losses and a pension settlement loss of $1.5 million[140] - The effective tax rate for Q1 2025 decreased to 18.3% from 20.5% in Q1 2024[141] - Other comprehensive income for Q1 2025 increased by $74.8 million, resulting from foreign currency translation adjustments[142] Backlog and Future Expectations - Backlog as of March 31, 2025, was $2,902.9 million, an increase of $113.3 million, or 4.1%, from December 31, 2024[132] - The company expects to deliver annual revenue growth in 2025, supported by a strong backlog and improved execution[122] - Backlog increased by $19.8 million, or 2.3%, to $889.4 million at March 31, 2025, with currency effects contributing approximately $9 million[161] Segment Performance - FPD segment bookings for Q1 2025 increased by $149.4 million, or 21.2%, with significant growth in general industries and power generation[147] - FCD segment bookings for Q1 2025 increased by $34.9 million, or 10.2%, driven by orders in the energy and general industries[156] - Gross profit margin for FPD in Q1 2025 improved to 34.3%, while FCD's gross profit margin decreased to 27.5%[149][158] Cash Flow and Capital Management - Cash used by operating activities was $49.9 million for the three months ended March 31, 2025, compared to cash provided of $62.3 million for the same period in 2024[164] - Cash balance decreased by $134.6 million to $540.8 million at March 31, 2025, due to various cash outflows including $27.6 million in dividends and $21.1 million in share repurchases[163] - Capital expenditures for the three months ended March 31, 2025 were $11.7 million, a decrease of $1.9 million compared to the same period in 2024[169] - Cash flows used by financing activities were $84.2 million for the three months ended March 31, 2025, compared to $54.2 million for the same period in 2024[170] - As of March 31, 2025, the company had $662.2 million of available capacity under its Second Amended and Restated Credit Agreement[171] - The company has $258.8 million of remaining capacity for Board of Directors approved share repurchases as of March 31, 2025[174] Risks and Challenges - The company faces increased aging and slower collection of receivables, particularly in Latin America and other emerging markets[188] - Potential adverse effects from new tariffs and related retaliatory actions could impact business operations[188] - The company is exposed to fluctuations in foreign currency exchange rates, especially in hyperinflationary countries like Argentina[188] - The company may face adverse impacts from impairment in the carrying value of goodwill or other intangible assets[188] - The competitive nature of the markets in which the company operates poses challenges to maintaining its competitive position[188] - The company must successfully develop and introduce new products and integrate new technologies, including artificial intelligence and machine learning[188] - The company is dependent on third-party suppliers, whose failure to perform timely could adversely affect operations[188] - Ineffective internal controls could impact the accuracy and timely reporting of business and financial results[188] Acquisition and Investment - The company incurred $1.3 million in acquisition-related costs for the acquisition of MOGAS in Q1 2025[125] - The 2025 Realignment Programs are anticipated to require a total investment of approximately $23 million, with $8 million estimated to be non-cash[126]

Core Insights - FLS has inaugurated a new manufacturing facility for mill liners in Casablanca, Chile, aligning with its CORE'26 strategy and MissionZero sustainability goals [1][4] - The facility represents a significant investment of over DKK 160 million and spans 11,250 m², enhancing FLS's competitive position in the South American market [2] - The plant is designed to produce up to 6,500 tons of coatings annually and integrates various functions to improve efficiency and productivity [2] Sustainability and Community Impact - The LEED-certified facility reduces carbon emissions by up to 56% during manufacturing and recycles all water used in the process [3] - The new facility is expected to create up to 250 jobs in the Valparaíso region of Chile, positively impacting the local community [3] Strategic Commitment - The CEO of FLS emphasized that the new facility is a commitment to responsible mining and the communities in South America, beyond just manufacturing capabilities [4]

Core Viewpoint - FLSmidth has launched a new mill liner recycling service in Chile, emphasizing its commitment to sustainability and enhancing customer productivity, with plans for global expansion in the future [1][2]. Group 1: Sustainability Commitment - The new recycling service aligns with FLS's MissionZero sustainability program, supporting customers' productivity and sustainability goals [2]. - FLS provides CO2 emissions documentation for ESG reporting and helps optimize space on mine sites by eliminating the need for used liner storage [2]. Group 2: Recycling Technology - FLS has developed a portable, scalable, and modular recycling machine that can handle various liner types, shapes, and sizes, enhancing safety and efficiency [3]. - Recycling composite liners can lead to carbon emissions savings of up to 61% compared to producing new liners from virgin materials [3]. Group 3: Company Overview - FLSmidth is a full flowsheet technology and service supplier for the global mining and cement industries, aiming for zero emissions by 2030 through its MissionZero initiative [5].

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks with the potential to outperform the market in the short term [2][9] - Stocks are rated on a scale from A to F based on value, growth, and momentum, with higher scores indicating a better chance of outperformance [3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings [5] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate revisions [6] Group 3 - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Group 4 - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings outlooks [10] Group 5 - Flowserve Corporation, a leading manufacturer of flow control systems, is currently rated 3 (Hold) with a VGM Score of A and a Value Style Score of B, indicating attractive valuation metrics [11] - For fiscal 2025, Flowserve's earnings estimate has been revised upwards, with a consensus estimate of $3.20 per share and an average earnings surprise of 5.7% [12]

Group 1 - The Board of Directors of FLSmidth & Co. A/S has allocated a total of 118,815 performance shares to 107 members of the Executive Management and key staff as part of the Long-Term Incentive Programme [1][2] - The vesting period for the allocated shares is three years, contingent upon the fulfillment of specific Key Performance Indicators (KPIs) [2] - The target cost of the performance share programme is DKK 44.6 million, with a maximum potential cost of DKK 66.8 million assuming full vesting [2] Group 2 - The applicable KPIs for the performance shares include Adjusted EBITA as a percentage of revenue, Service Order Intake, Total Shareholder Return, and a Sustainability KPI covering four dimensions [2] - FLSmidth aims to achieve zero emissions in mining and cement by 2030 as part of its sustainability ambition, MissionZero [4]

Core Points - FLSmidth & Co. A/S held its Annual General Meeting on April 2, 2025, where key decisions regarding the company's operations and governance were made [1][2][3][4][5][6][7]. Group 1: Financial Approvals - The Annual Report for 2024 was approved by the General Meeting [2][6]. - A dividend of DKK 8 per share was adopted for distribution [2][4]. - The Remuneration Report for 2024 received approval through an advisory vote [2][6]. Group 2: Board of Directors - The General Meeting re-elected four existing members and elected three new members to the Board of Directors [3][6]. - Mr. Mads Nipper was elected as Chair and Mr. Christian Bruch as Vice Chair during the subsequent board meeting [7]. Group 3: Auditor and Governance - Ernst & Young was re-elected as the auditor for statutory financial and sustainability reporting [4][6]. - The Board of Directors' proposal to amend the articles of association to extend the authorization for share capital increase until April 2, 2030, was approved, allowing for a total aggregate issue of new shares of DKK 100,000,000 [4][6]. Group 4: Share Repurchase - The proposal to authorize the company to repurchase treasury shares until the next Annual General Meeting was approved [5][6].