Flowserve(US:FLS) ZACKS·2026-02-06 18:45Core Insights - Flowserve Corporation's fourth-quarter 2025 adjusted earnings per share (EPS) of $1.11 exceeded the Zacks Consensus Estimate of 94 cents, marking a 58.6% year-over-year increase driven by higher revenues [1][10] - Total revenues for the quarter were $1.22 billion, slightly below the consensus estimate of $1.26 billion, reflecting a 3.5% year-over-year growth [2][10] - The company reported a backlog of $2.9 billion, up 2.8% year over year, indicating a positive outlook for future revenue generation [2][10] Revenue and Earnings Summary - For the full year 2025, Flowserve generated revenues of $4.73 billion, a 3.7% increase from 2024, with adjusted earnings of $3.64 per share compared to $2.63 in 2024 [3] - In the fourth quarter, aftermarket bookings rose 10.4% year over year to $682.3 million, while original equipment bookings fell 5.5% to $526.6 million [2] Segment Performance - Flowserve's Pump Division reported revenues of $833 million, up 4.8% year over year, with bookings increasing 8.2% to $883.6 million and operating income rising 29.2% to $166.8 million [4] - The Flow Control Division generated revenues of $391.5 million, a 0.9% year-over-year increase, but bookings decreased 9.1% to $330.3 million, with operating income up 43.5% to $64 million [5] Margin and Cost Analysis - The cost of sales decreased by 1.4% year over year to $797 million, while gross profit increased by 14.3% to $425.2 million, resulting in a gross margin of 34.8%, up 330 basis points [6] - Operating income fell 66.2% year over year to $42.2 million, with an operating margin of 3.5%, down 710 basis points [6] Balance Sheet and Cash Flow - At the end of the fourth quarter, Flowserve had cash and cash equivalents of $760.2 million, up from $675.4 million at the end of 2024, while long-term debt increased to $1.53 billion [7] - The company generated net cash of $505.9 million from operating activities, an increase from $425.3 million in the previous year, with capital expenditures totaling $70.9 million, down 12.5% year over year [7][8] 2026 Guidance - Flowserve anticipates a revenue growth of 5-7% for 2026, with adjusted EPS projected between $4.00 and $4.20 [10][11] - The company expects an organic revenue growth of 1-3%, with a projected adjusted tax rate of approximately 21-22% and net interest expense of $80 million [11]