Flowserve(US:FLS)2024-07-29 21:16Financial Performance - Total bookings for Q2 2024 reached $1.25 billion, an increase of $135.1 million or 12.2% year-over-year, with a constant currency increase of 13.0%[3] - Reported EPS for Q2 2024 was $0.55, a 41% increase compared to $0.39 in Q2 2023, while adjusted EPS rose to $0.73, up 40% from $0.52[6] - Sales for Q2 2024 were $1.16 billion, reflecting a $76.5 million or 7.1% increase year-over-year, with a constant currency increase of 7.7%[3] - The company reported a net earnings increase to $72.6 million in Q2 2024, compared to $51.2 million in Q2 2023[11] - Flowserve Corporation reported sales of $2,244.4 million for the six months ended June 30, 2024, compared to $2,060.7 million for the same period in 2023, representing an increase of 8.9%[38] - Net earnings for the six months ended June 30, 2024, were $154,367, an increase from $85,151 in the same period of 2023[25] - The diluted earnings per share (EPS) for the six months ended June 30, 2024, was $1.11, compared to $0.59 for the same period in 2023, indicating a significant improvement[39] Bookings and Backlog - Original equipment bookings increased to $632.1 million, up $112.0 million or 21.5%, while aftermarket bookings rose to $614.0 million, an increase of $23.1 million or 3.9%[3] - The backlog at the end of Q2 2024 was $2.7 billion, representing a 2.8% sequential increase, with a book-to-bill ratio of 1.08x[7] - Flowserve Pumps Division reported bookings of $1,602.2 million for the six months ended June 30, 2024, an increase of 7.7% compared to $1,487.8 million for the same period in 2023[41] - Flow Control Division bookings were $689.9 million, a slight decrease of 0.2% from $691.6 million in the same period last year[41] Margins and Profitability - Adjusted gross margin improved to 32.3%, up 200 basis points from the prior year, and adjusted operating margin increased to 12.5%, up 210 basis points[6] - Reported gross profit for the six months ended June 30, 2024, was $508,153, representing 32.1% of sales, compared to $448,241 and 30.6% for the same period in 2023[21] - Gross profit for the six months ended June 30, 2024, was $705.1 million, up from $619.6 million in the prior year, reflecting a gross profit margin of 31.4%[39] - Gross profit for the Flowserve Pumps Division increased to $508.2 million, resulting in a gross profit margin of 32.1%, compared to 30.6% in the prior year[41] - Gross profit for the Flow Control Division was $199.0 million, with a gross profit margin of 29.8%, compared to 28.9% in the prior year[41] Operational Efficiency - Flowserve's operational excellence program and organizational design changes contributed to significant improvements in bookings, revenue, and margins[4] - Overall, the company is focused on expanding its market presence and enhancing operational efficiency through strategic initiatives and product development[41] Guidance and Future Outlook - Flowserve raised its full-year 2024 adjusted EPS guidance to a range of $2.60 to $2.75[6] - Adjusted earnings per share (EPS) guidance for 2024 has been raised to a range of $2.60 to $2.75, up from the previous range of $2.50 to $2.70[29] - The company reaffirmed its revenue growth target range of 4.0% to 6.0% for the full year[29] - Capital expenditures for 2024 are reaffirmed at $75 million to $85 million[29] Segment Performance - The Flowserve Pumps Division achieved bookings of $898.8 million for the three months ended June 30, 2024, compared to $760.0 million in the prior year, an increase of 18.3%[34] - The Flow Control Division reported sales of $347.7 million for the three months ended June 30, 2024, up from $317.7 million in the same period of 2023, representing a growth of 9.5%[34] - Segment operating income for the Flowserve Pumps Division was $131.0 million, or 16.1% of sales, for the three months ended June 30, 2024, compared to $98.0 million, or 12.8% of sales, in the prior year[34] - Segment operating income for the Flowserve Pumps Division was $241.9 million, representing 15.3% of sales, up from 12.1% in the previous year[41] - Segment operating income for the Flow Control Division was $67.0 million, which is 10.0% of sales, up from 9.1% in the previous year[41] Cash and Assets - Total current assets increased to $2,815,815 as of June 30, 2024, compared to $2,703,777 at the end of 2023[24] - Cash and cash equivalents at the end of the period were $515,083, down from $545,678 at the beginning of the period[25] - Total liabilities and equity as of June 30, 2024, were $5,164,484, compared to $5,108,719 at the end of 2023[24] Losses and Charges - The company reported a loss on business sale of $12,981 for the six months ended June 30, 2024[25] - The company incurred a loss on the sale of businesses amounting to $12.98 million for the six months ended June 30, 2024[38] - The company experienced a loss on the sale of business amounting to $13.0 million in the Flow Control Division[41] - The company reported realignment charges of $13.2 million for the six months ended June 30, 2024, which included non-cash charges of $20.0 million[40]