Flowserve's Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Core Viewpoint - Flowserve Corporation reported strong first-quarter 2025 results, with adjusted earnings per share of 72 cents, exceeding estimates and reflecting a 24.1% year-over-year increase, driven by higher revenues [1] Financial Performance - Total revenues for the quarter reached $1.14 billion, surpassing the consensus estimate of $1.11 billion, marking a 5.2% year-over-year increase [1] - Aftermarket sales rose by 5.1% year over year, while Original equipment sales increased by 5.4% year over year [1] Bookings and Backlog - Total bookings amounted to $1.23 billion, reflecting an 18.1% year-over-year increase [2] - The backlog at the end of the quarter was $2.9 billion, up 11.1% year over year [2] Segment Performance - Flowserve Pumps Division generated revenues of $783.1 million, up 1.8% year over year, with bookings increasing by 21.2% to $852.9 million [3] - Flow Control Division reported revenues of $364.1 million, a 13.6% year-over-year increase, with bookings of $376.0 million, up 10.2% [4] Margin Profile - Cost of sales increased by 3.6% year over year to $775.2 million, while gross profit rose by 9% to $369.3 million, resulting in a gross margin of 32.3% [5] - Operating income increased by 16.6% year over year to $131.9 million, with an operating margin of 11.5% [5] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the first quarter were $540.8 million, down from $675.4 million at the end of 2024 [6] - Long-term debt was $1.45 billion, slightly down from $1.46 billion reported at the end of 2024 [6] - The company used net cash of $49.9 million from operating activities, compared to $62.3 million generated in the same period last year [7] 2025 Guidance - Flowserve expects a revenue increase of 5-7% from the previous year and anticipates adjusted earnings per share between $3.10 and $3.30 [8] - The adjusted tax rate is projected to be approximately 21%, with net interest expense and capital expenditure forecasted at $70 million and $80-$90 million, respectively [8]