Financial Data and Key Metrics Changes - The company reported bookings of $1.2 billion for the quarter, representing a sequential increase of over $130 million and a 1% growth compared to the prior year [4] - Adjusted gross margins increased by 240 basis points to 34.8%, while adjusted operating margins rose to 14.8%, driven by incremental margins of 115% during the quarter [3][16] - Adjusted earnings per share was $0.90, marking a 45% increase compared to the same period last year [3] - The company raised its adjusted EPS guidance range for the second time this year to $3.40 to $3.50, reflecting a 31% increase from last year and over 60% from 2023 [2][25] Business Line Data and Key Metrics Changes - The aftermarket segment continued to perform strongly, with bookings exceeding $600 million for the sixth consecutive quarter, and two of the last three quarters seeing bookings above $650 million [4][29] - The FTD segment experienced a 24% growth in bookings and a 7% increase in sales, with adjusted operating margins expanding by 230 basis points [18] - Excluding engineered pump original equipment bookings, the remaining portfolio saw an impressive 9% growth in bookings [6] Market Data and Key Metrics Changes - The power market, particularly nuclear, showed strong growth, with over $140 million in nuclear bookings, a record for the company [5] - Mining project activity increased over 60% compared to last year, indicating a positive trend in that sector [8] - The chemical market remains the lowest growth area, although there were signs of improvement in North America [8] Company Strategy and Development Direction - The company is focused on driving sustainable growth, expanding margins, and enhancing cash flow, with a commitment to delivering superior value for shareholders [14][25] - The Flowserve business system is being leveraged to drive margin expansion and operational excellence, with the 80/20 complexity reduction program showing early benefits [20][25] - The company is strategically positioned to capitalize on the growing nuclear market, with expectations of significant growth opportunities in the next decade [12][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the aftermarket business, citing strong refinery and chemical plant utilization as key growth drivers [29] - The project environment is seen as constructive, with expectations for growth in power and nuclear markets, despite some delays in larger engineered projects [31] - The geopolitical and macro environment needs to stabilize for operators to gain confidence in project investments, but overall sentiment for 2026 and beyond is positive [32] Other Important Information - The company announced a divestment of legacy asbestos liabilities, which is expected to simplify capital structure and improve annual cash flow by $15 million to $20 million [24][56] - Cash from operations for the quarter was $402 million, with a free cash flow conversion rate of 174% when excluding the merger termination payment [23] Q&A Session Summary Question: Can you provide context on the operating environment and pipeline? - Management noted strong aftermarket performance and a shift in focus from large engineered projects to a more resilient business model, with expectations for continued growth in power and nuclear sectors [29][31] Question: How is pricing in the marketplace? - Pricing has remained sticky, with successful price increases implemented in the U.S. market, and the company is focused on maintaining a positive price-cost balance [34][37] Question: Can you elaborate on the margin improvements in FTD? - The integration of MOGAS has been successful, contributing positively to margins, and the company is optimistic about future growth opportunities in the FTD segment [41][45] Question: What is the expected market share for the nuclear flow control opportunity? - The company has a strong position in the nuclear market, with content in 75% of existing reactors and expectations to maintain or grow market share in upcoming projects [49][85] Question: What are the cash flow implications of the asbestos transaction? - The transaction is expected to enhance cash flow by $15 million to $20 million annually, simplifying capital allocation and reducing volatility [56][72]

Q3 2025 Financial Highlights - Total bookings reached $1.2 billion, a 1% increase[8] - Sales amounted to $1.2 billion, reflecting a 4% growth[8] - Adjusted gross margins improved to 34.8%, up by 240 basis points[8] - Adjusted EPS increased significantly to $0.90, a 45% rise[8] - Cash from operations totaled $402 million[8] - Adjusted operating margins reached 14.8%, an increase of 370 basis points[8] Bookings Overview - Original Equipment bookings were $560 million in Q3 2025 compared to $589 million in Q3 2024[13] - Aftermarket bookings increased to $653 million in Q3 2025 compared to $615 million in Q3 2024[13] - Power market bookings grew by 23%, while Chemical bookings increased by 18%[13] - Energy market bookings decreased by 19%[13] Nuclear Market Opportunity - The nuclear flow control opportunity is estimated to be over $10 billion in the next decade[25] - New large reactor projects represent an opportunity of over $100 million per reactor, while new SMR projects offer $20-80 million per reactor[26] - Recurring annual revenue from the global installed base is approximately $100 million[26] Full-Year 2025 Guidance - Total sales growth is projected to be up 4%-5%[46] - Adjusted EPS is expected to be in the range of $3.40-$3.50[46]

Core Points - Société Générale S.A. has increased its holdings in FLSmidth to 6.97% of the total share capital and voting rights as of 22 October 2025, up from less than 5.00% previously [2]. Group 1 - FLSmidth & Co. A/S received a notification from Société Générale S.A. regarding its financial instrument holdings [1]. - The announcement is made in accordance with the Danish Capital Markets Act [3]. - FLSmidth is a technology and service supplier to the global mining industry, focusing on improving performance and sustainability [4].

Investment Rating - The report suggests a positive outlook for the nuclear power industry, particularly in the U.S., with a focus on companies involved in nuclear fuel supply, equipment manufacturing, and power operations [9][16]. Core Insights - The U.S. government has signed a cooperation agreement with Westinghouse Electric to build nuclear reactor projects valued at no less than $80 billion, indicating significant investment in the nuclear sector [1][11]. - The commercialization of Small Modular Reactors (SMRs) in the U.S. is expected to accelerate by 2025, driven by the demand from AI tech giants' data centers, regulatory support, and demonstration projects from leading SMR companies [2][12]. - The U.S. nuclear supply chain is heavily reliant on foreign suppliers for critical components and fuel, which presents both challenges and opportunities for domestic manufacturers and foreign suppliers from Japan, South Korea, and Europe [3][13]. - The surge in demand from AI data centers is revitalizing interest in nuclear power as a stable, low-carbon energy source, highlighting the urgency for new nuclear builds to meet rising electricity demands [4][14]. Summary by Sections Upstream - Focus on companies with scarce licenses and limited capacity, such as Cameco and Centrus Energy, which are positioned to benefit from the growing demand for nuclear fuel [9][16]. Midstream - Attention should be given to nuclear equipment manufacturers like BWX Technologies, Doosan Enerbility, and NuScale Power, which are expected to see growth as demonstration projects come online [9][16]. Downstream - Emphasis on nuclear power operators such as Talen Energy and Entergy, which are likely to have visible operating cash flows and benefit from the increasing reliance on nuclear energy [9][16].

Core Insights - Flowserve Corporation reported an earnings per share (EPS) of $0.90, exceeding the Zacks Consensus Estimate of $0.80, representing a 12.50% earnings surprise and a significant improvement from the $0.62 EPS reported in the same quarter last year [2][6] - The company's revenue for the quarter was $1.17 billion, slightly below the estimated $1.21 billion, but an increase from the $1.13 billion reported in the previous year [3][6] - Flowserve's third-quarter bookings reached $1.2 billion, with aftermarket bookings increasing by 6%, surpassing $650 million [3] Financial Metrics - Flowserve has a price-to-earnings (P/E) ratio of approximately 23.63, indicating the price investors are willing to pay for each dollar of earnings [4] - The price-to-sales ratio is about 1.48, suggesting that investors are paying $1.48 for every dollar of Flowserve's sales [4] - The enterprise value to sales ratio is around 1.40 [4] Financial Health - The company maintains a strong financial position with a debt-to-equity ratio of 0.10, indicating a low level of debt compared to its equity [5][6] - Flowserve's current ratio of 2.10 suggests a robust ability to cover its short-term liabilities with its short-term assets [5][6]

Flowserve (FLS) reported $1.17 billion in revenue for the quarter ended September 2025, representing a year-over-year increase of 3.7%. EPS of $0.90 for the same period compares to $0.62 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.21 billion, representing a surprise of -2.8%. The company delivered an EPS surprise of +12.5%, with the consensus EPS estimate being $0.80.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

Core Insights - Flowserve reported quarterly earnings of $0.9 per share, exceeding the Zacks Consensus Estimate of $0.8 per share, and up from $0.62 per share a year ago [1][2] - The earnings surprise was +12.50%, with a previous quarter surprise of +16.67% [2] - Revenue for the quarter was $1.17 billion, missing the Zacks Consensus Estimate by 2.8%, but up from $1.13 billion year-over-year [3] Earnings Performance - Flowserve has surpassed consensus EPS estimates three times over the last four quarters [2] - The company has only topped consensus revenue estimates once in the last four quarters [3] Stock Performance - Flowserve shares have declined approximately 8.2% year-to-date, contrasting with the S&P 500's gain of 16.9% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $1.27 billion, and for the current fiscal year, it is $3.37 on revenues of $4.81 billion [8] - The industry outlook is critical, with the Manufacturing - General Industrial sector ranking in the bottom 38% of Zacks industries [9] Related Industry Insights - Xometry, another company in the same industry, is expected to report earnings of $0.11 per share, reflecting a year-over-year increase of +450% [10] - Xometry's anticipated revenues are $168.23 million, representing an 18.7% increase from the previous year [11]

Exhibit 99.1 Flowserve Corporation Reports Third Quarter 2025 Results DALLAS, October 28, 2025 – Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, reported its financial results for the third quarter ended September 30, 2025. Highlights: Management Commentary: "Flowserve delivered another quarter of exceptional performance highlighted by strong revenue growth, significant margin and earnings expansion, and robust cash generatio ...

Core Viewpoint - Flowserve Corporation has agreed to divest its wholly owned subsidiary BW/IP - New Mexico, Inc., which holds asbestos liabilities, to Acorn Investment Partners, allowing Flowserve to simplify its capital structure and focus on value-enhancing opportunities [1][2][4]. Transaction Overview - Acorn will acquire 100% of BW/IP, which will be capitalized with approximately $219 million in cash, including $199 million from Flowserve and $20 million from Acorn [4]. - Flowserve will remove all asbestos liabilities, related insurance assets, and associated deferred tax assets from its consolidated balance sheet as a result of this transaction [4]. Financial Impact - The divestiture is expected to result in a one-time loss of approximately $135 million in the fourth quarter of 2025, which will be excluded from adjusted earnings per share [5]. - The transaction is anticipated to improve Flowserve's free cash flow by approximately $15 million to $20 million annually [5]. Advisors - J.P. Morgan Securities LLC is serving as the financial advisor, while Baker McKenzie is the legal advisor for Flowserve [7].

Financial Performance - The company reported bookings of $1,213.0 million for the three months ended September 30, 2025, representing an increase of $9.4 million, or 0.8%, compared to the same period in 2024[160]. - Sales for the three months ended September 30, 2025, were $1,174.4 million, up from $1,133.1 million in the same period of 2024[160]. - Bookings for the nine months ended September 30, 2025, increased by $24.0 million, or 0.7%, compared to the same period in 2024[161]. - Sales for the three months ended September 30, 2025 increased by $41.3 million, or 3.6%, compared to the same period in 2024, driven by aftermarket customer sales[163]. - Sales for the nine months ended September 30, 2025 increased by $91.5 million, or 9.0%, compared to the same period in 2024, driven by increased customer sales in North America ($46 million) and Asia Pacific ($25 million)[204]. Profitability and Margins - Gross profit for the three months ended September 30, 2025 increased by $23.2 million, or 6.5%, with a gross profit margin of 32.4%, up from 31.5% in 2024[166]. - Gross profit for the Flowserve Pumps Division for the three months ended September 30, 2025, increased by $12.6 million, or 5.0%, with a gross profit margin of 33.2%[192]. - Gross profit for the three months ended September 30, 2025 increased by $7.7 million, or 7.2%, with a gross profit margin of 30.3%, up from 30.2% in the same period in 2024[205]. - Operating income for the three months ended September 30, 2025 decreased by $23.9 million, or 23.2%, with operating income as a percentage of sales at 6.7% compared to 9.1% in 2024[173]. - Operating income for the Flowserve Pumps Division for the three months ended September 30, 2025, increased by $25.6 million, or 23.4%, compared to the same period in 2024[197]. - Operating income for the nine months ended September 30, 2025 increased by $2.0 million, or 1.8%, despite a $27.6 million increase in SG&A[211]. Expenses and Costs - SG&A expenses for the three months ended September 30, 2025 increased by $46.2 million, or 17.8%, with SG&A as a percentage of sales rising to 26.0% from 22.9% in 2024[168]. - SG&A for the Flowserve Pumps Division for the three months ended September 30, 2025, decreased by $14.1 million, or 9.5%, compared to the same period in 2024[194]. - SG&A for the nine months ended September 30, 2025 increased by $27.6 million, or 15.4%, primarily due to increased acquisition and integration costs associated with the MOGAS acquisition[208]. - The company incurred $9.5 million in acquisition and integration-related costs for MOGAS for the nine months ended September 30, 2025[154]. Backlog and Future Expectations - Backlog as of September 30, 2025 was $2,896.1 million, an increase of $106.5 million, or 3.8%, from December 31, 2024, with approximately 41% related to aftermarket orders[165]. - The backlog at September 30, 2025, was $2,006.5 million, an increase of $76.1 million, or 3.9%, compared to December 31, 2024[198]. - The company expects to deliver annual revenue growth in 2025, supported by a strong backlog and improved execution following the acquisition of MOGAS[150]. Cash and Investments - The company has cash and cash equivalents of $833.8 million as of September 30, 2025, with $715.4 million of borrowings available under its credit agreement[151]. - Cash provided by operating activities for the nine months ended September 30, 2025 was $506.1 million, compared to $228.0 million for the same period in 2024[215]. - Cash balance increased by $158.4 million to $833.8 million at September 30, 2025, compared to December 31, 2024[214]. - Capital expenditures for the nine months ended September 30, 2025 were $45.5 million, a decrease of $6.6 million compared to the same period in 2024[220]. - The company has $254.9 million of remaining capacity for Board of Directors approved share repurchases as of September 30, 2025[225]. Tax and Other Income - The effective tax rate for the three months ended September 30, 2025 was 29.5%, up from 22.8% in 2024, influenced by state income taxes and foreign operations[179]. - The effective tax rate for the nine months ended September 30, 2025, increased to 24.5% from 22.4% in the same period of 2024[180]. - Other income for the three months ended September 30, 2025 increased by $262.1 million, primarily due to a $266.0 million payment received from the terminated Chart Merger[177]. - Other comprehensive income for the three months ended September 30, 2025, decreased by $64.6 million to a loss of $13.9 million compared to income of $50.7 million in the same period of 2024[182]. Market and Operational Risks - The company faces risks from global supply chain disruptions and inflation, which could increase manufacturing costs and affect product delivery efficiency[235]. - There is a substantial dependence on the success of the energy, chemical, and power generation industries for sales performance[235]. - The company is exposed to credit-related losses due to potential non-performance by counterparties to financial instruments[237]. - Increased aging and slower collection of receivables, particularly in Latin America and other emerging markets, could adversely affect cash flow[235]. - The company is at risk from potential adverse effects of new tariffs and retaliatory actions, impacting international operations[241]. - The company’s ability to maintain competitive positioning relies on successful development and introduction of new products and technologies, including AI and machine learning[241]. Foreign Currency Impact - The company recognized net foreign currency translation losses of $(16.9) million for Q3 2025, compared to gains of $52.9 million in Q3 2024[238]. - For the nine months ended September 30, 2025, the company reported foreign currency translation losses of $142.3 million, significantly higher than $0.2 million in the same period of 2024[238]. - As of September 30, 2025, the company had $199.3 million in aggregate notional amount outstanding in foreign exchange forward contracts, down from $695.9 million at December 31, 2024[239]. - A sensitivity analysis indicated that a 10% change in foreign currency exchange rates could impact net earnings by approximately $30.0 million for the nine months ended September 30, 2025[240].