Workflow
Here's Why You Should Hold on to Flowserve Stock Right Now
FlowserveFlowserve(US:FLS) ZACKS·2025-05-21 17:01

Core Viewpoint - Flowserve Corporation is experiencing growth due to strong performance across its segments and strategic acquisitions, enhancing its appeal to shareholders [1][2]. Business Strength - The aftermarket business is showing solid momentum, with a 21.2% year-over-year increase in bookings for the Flowserve Pumps Division in Q1, supported by a book-to-bill ratio above 1.0x [3]. - Increased bookings in general industries, energy, and power end markets are contributing positively to the Flow Control Division's performance [3]. End Market Strength - Flowserve's booking levels are driven by strength in various end markets and its 3D strategy, with improved customer orders from large project wins in the energy sector [4]. - The chemical end market is also strong, supported by an unconventional gas project and a petrochemical project in the Middle East, with expectations for significant capacity additions [4]. - Growth in the power generation market is linked to increased data center capacity and rising activity in Artificial Intelligence [4]. Expansion Efforts - Flowserve is focused on expanding its market presence through acquisitions, such as the October 2024 acquisition of MOGAS Industries, which enhanced its valve and automation product portfolio [5]. - The MOGAS acquisition contributed positively to sales growth by 3.3% in Q1 2025 [5]. - In July 2024, Flowserve acquired intellectual property related to cryogenic LNG submerged pump technology from NexGen Cryogenic Solutions, expanding its LNG product portfolio [6]. Rewards to Shareholders - Flowserve rewards shareholders through dividends and share buybacks, distributing $27.6 million in dividends and repurchasing shares worth $21.1 million in Q1 2025 [7]. - The company's shares have gained 1.7% over the past year, outperforming the industry's growth of 0.2% [7].