Flowserve (FLS) Climbs to Fresh High on Earnings Blowout

Core Insights - Flowserve Corp. (NYSE:FLS) has achieved significant stock performance, reaching an all-time high driven by strong earnings and positive cash flow projections from a subsidiary divestment [1][3]. Financial Performance - The company reported a 277% increase in attributable net income for Q3, amounting to $219 million compared to $58 million in the same quarter last year [3]. - Sales increased by 3.5% year-on-year, rising to $1.17 billion from $1.13 billion [3]. Future Outlook - For the full-year 2025, Flowserve raised its adjusted EPS forecast to a range of $3.40 to $3.50, up from a previous range of $3.25 to $3.40 [4]. - However, the company revised its total sales growth expectations down to 4-5% from 5-6%, and organic sales growth to around 2% from 3-4% [4]. Strategic Moves - Flowserve announced the divestment of its subsidiary BW/IP – New Mexico, Inc., which holds asbestos liabilities, to an affiliate of Acorn Investment Partners. This transaction is expected to close in Q4 2025 and enhance free cash flow by approximately $15 million to $20 million annually [5].