Flowserve(US:FLS) ZACKSยท2024-09-25 15:45Core Viewpoint - Flowserve Corporation (FLS) is experiencing growth due to positive trends in key end markets and strategic acquisitions, making it an attractive investment option for shareholders [1][2]. Business Strength - Flowserve is benefiting from strong momentum in its Flowserve Pump Division and Flow Control Division, with increased demand for products and services across North America, Europe, the Middle East, and Latin America [3]. - The aftermarket and original equipment businesses are driving growth, particularly in the Flowserve Pumps Division [3]. End-Market Strength - The company is witnessing improved customer orders from significant project wins in the oil and gas sector, alongside strength in the chemical market, particularly from the Emerald greenfield petrochemical project in Saudi Arabia [4]. - Flowserve anticipates significant chemical capacity additions in the Middle East and a modest improvement in global chemical demand in the upcoming quarters [4]. - The power generation market is also showing solid booking levels, driven by growth in data center capacity and increasing activity in Artificial Intelligence [4]. Accretive Acquisitions - In July 2024, Flowserve acquired intellectual property and in-process R&D related to cryogenic liquefied natural gas (LNG) submerged pump technology from NexGen Cryogenic Solutions Inc., enhancing its LNG product portfolio [5]. - In August 2024, Flowserve acquired MOGAS Industries, which will augment its valve and automation product portfolio and enhance its exposure to mining and mineral extraction [6]. Rewards to Shareholders - In the first half of 2024, Flowserve distributed $55.3 million in dividends and repurchased shares worth $16.2 million, with total dividends paid in 2023 amounting to $105 million [7]. - The company increased its quarterly dividend by approximately 5% to 21 cents per share in the first quarter of 2024, translating to an annual dividend of 84 cents [7].