Core Insights - Flowserve reported revenue of $1.14 billion for the quarter ended March 2025, reflecting a 5.3% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.11 billion by 3.35% [1] - The company's EPS was $0.72, up from $0.58 in the same quarter last year, resulting in an EPS surprise of 22.03% compared to the consensus estimate of $0.59 [1] Revenue Performance - Sales from FPD segment reached $783.10 million, exceeding the average estimate of $749.56 million, with a year-over-year change of 1.9% [4] - FCD segment sales were reported at $364.10 million, above the average estimate of $358.78 million, showing a significant year-over-year increase of 14.2% [4] - Intersegment sales reported a slight decline of -$2.70 million, compared to the average estimate of -$2.20 million, but still represented a year-over-year change of 10.8% [4] Operating Income - Adjusted Operating Income for the FPD segment was $138.60 million, surpassing the average estimate of $116.22 million [4] - Adjusted Operating Income for the FCD segment was $44.60 million, slightly above the average estimate of $42.93 million [4] Stock Performance - Flowserve's shares have returned -8.6% over the past month, contrasting with the Zacks S&P 500 composite's -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - Flowserve reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.59 per share, and up from $0.58 per share a year ago, adjusted for non-recurring items [1] - The earnings surprise was 22.03%, while the previous quarter saw a negative surprise of -9.09% with actual earnings of $0.70 compared to an expected $0.77 [2] - The company achieved revenues of $1.14 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.35%, and up from $1.09 billion year-over-year [3] Market Outlook - Flowserve shares have declined approximately 22.4% since the beginning of the year, contrasting with the S&P 500's decline of -6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.83 on revenues of $1.22 billion, and for the current fiscal year, it is $3.11 on revenues of $4.76 billion [8] - The Zacks Industry Rank places Manufacturing - General Industrial in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [9] Earnings Estimate Revisions - The trend for earnings estimate revisions for Flowserve is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [7] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Financial Performance - First quarter bookings reached $1.2 billion, with record aftermarket bookings of nearly $690 million[5] - Power bookings increased over 45% year-over-year, including more than $100 million in nuclear awards for the third consecutive quarter[5] - Gross margin and adjusted gross margin were 32.3% and 33.5%, respectively, reflecting increases of 110 and 180 basis points compared to the prior year[5] - Operating income and adjusted operating income were $132 million and $147 million, representing increases of 17% and 24% year-over-year[5] - The backlog stood at $2.9 billion, an 11.1% increase from $2.6 billion in the previous year[6] - The Flowserve Pumps Division reported bookings of $852.9 million, up from $703.5 million in the previous year[19] - The Flow Control Division saw bookings increase to $376.0 million from $341.1 million year-over-year[19] - Flowserve's Pumps Division reported a gross profit of $268,462, representing 34.3% of sales for Q1 2025, an increase from 32.2% in Q1 2024[20] - The Flow Control Division achieved a gross profit of $100,187, which is 27.5% of sales, compared to 28.9% in the same quarter last year[21] - Total bookings for the Pumps Division were $852.9 million, up 21.2% year-over-year, while the Flow Control Division saw bookings of $376.0 million, a 10.2% increase[26] - The adjusted operating income for the Pumps Division was $138.6 million, reflecting a 20.6% increase compared to the previous year[26] - The company reported a net earnings of $79,457 thousand for Q1 2025, compared to $77,915 thousand in Q1 2024[28] - The operating income margin for the Pumps Division improved to 17.4%, up 300 basis points from the previous year[26] Guidance and Projections - The company reaffirmed its full-year 2025 guidance, targeting adjusted EPS in the range of $3.10 to $3.30[7] - Total sales growth is projected to be between 5% to 7% for 2025, with organic sales growth expected at 3% to 5%[8] Cash Flow and Assets - Cash from operations was reported at ($49.9 million), a decline of 180.2% compared to $62.3 million in the prior year[6] - Cash and cash equivalents decreased to $540,804 thousand from $675,441 thousand at the end of 2024[27] - The total assets of Flowserve as of March 31, 2025, were $5,483,298 thousand, slightly down from $5,500,821 thousand at the end of 2024[27] Risks and Challenges - Forward-looking statements are based on current expectations and are subject to numerous risks and uncertainties, including global supply chain disruptions and inflationary pressures[31] - The company faces risks related to the conversion of bookings into revenues and the potential for unexpected cancellations or delays in customer orders[31] - There is a substantial dependence on the success of the energy, chemical, power generation, and general industries for sales[31] - The company is exposed to fluctuations in foreign currency exchange rates, particularly in hyperinflationary countries like Argentina[31] - The company acknowledges potential adverse impacts from public health emergencies, such as pandemics, on its business operations[31] - Increased aging and slower collection of receivables are particularly noted in Latin America and other emerging markets[31] - The company is dependent on third-party suppliers, and their failure to perform could adversely affect business operations[31] Management and Strategy - Management emphasizes the importance of successfully developing and introducing new products and integrating new technologies, including artificial intelligence and machine learning, to maintain competitive position[31] - Management does not assume any obligation to update forward-looking statements based on information available as of the date of the release[32] - The company incurred realignment charges of $2,979 thousand in the Pumps Division during the quarter[20]

Financial Performance - Bookings for Q1 2025 increased by $188.1 million, or 18.1%, compared to Q1 2024, totaling $1,226.4 million[130] - Sales for Q1 2025 rose by $57.0 million, or 5.2%, compared to Q1 2024, reaching $1,144.5 million[131] - Gross profit for Q1 2025 increased by $30.3 million, or 8.9%, totaling $369.3 million, with a gross profit margin of 32.3%[133] - Operating income for Q1 2025 rose by $18.8 million, or 16.6%, with an operating margin of 11.5%[138] - Net earnings from affiliates for Q1 2025 increased by $3.2 million, or 128.0%, primarily due to higher earnings from FPD joint ventures in South Korea[137] - SG&A for Q1 2025 increased by $14.8 million, or 6.5%, compared to Q1 2024, with SG&A as a percentage of sales rising to 21.2%[136] - Interest expense for Q1 2025 increased by $3.9 million due to higher outstanding debt, while interest income rose by $0.5 million[139] - Other net expense for Q1 2025 increased by $16.4 million, primarily due to foreign exchange losses and a pension settlement loss of $1.5 million[140] - The effective tax rate for Q1 2025 decreased to 18.3% from 20.5% in Q1 2024[141] - Other comprehensive income for Q1 2025 increased by $74.8 million, resulting from foreign currency translation adjustments[142] Backlog and Future Expectations - Backlog as of March 31, 2025, was $2,902.9 million, an increase of $113.3 million, or 4.1%, from December 31, 2024[132] - The company expects to deliver annual revenue growth in 2025, supported by a strong backlog and improved execution[122] - Backlog increased by $19.8 million, or 2.3%, to $889.4 million at March 31, 2025, with currency effects contributing approximately $9 million[161] Segment Performance - FPD segment bookings for Q1 2025 increased by $149.4 million, or 21.2%, with significant growth in general industries and power generation[147] - FCD segment bookings for Q1 2025 increased by $34.9 million, or 10.2%, driven by orders in the energy and general industries[156] - Gross profit margin for FPD in Q1 2025 improved to 34.3%, while FCD's gross profit margin decreased to 27.5%[149][158] Cash Flow and Capital Management - Cash used by operating activities was $49.9 million for the three months ended March 31, 2025, compared to cash provided of $62.3 million for the same period in 2024[164] - Cash balance decreased by $134.6 million to $540.8 million at March 31, 2025, due to various cash outflows including $27.6 million in dividends and $21.1 million in share repurchases[163] - Capital expenditures for the three months ended March 31, 2025 were $11.7 million, a decrease of $1.9 million compared to the same period in 2024[169] - Cash flows used by financing activities were $84.2 million for the three months ended March 31, 2025, compared to $54.2 million for the same period in 2024[170] - As of March 31, 2025, the company had $662.2 million of available capacity under its Second Amended and Restated Credit Agreement[171] - The company has $258.8 million of remaining capacity for Board of Directors approved share repurchases as of March 31, 2025[174] Risks and Challenges - The company faces increased aging and slower collection of receivables, particularly in Latin America and other emerging markets[188] - Potential adverse effects from new tariffs and related retaliatory actions could impact business operations[188] - The company is exposed to fluctuations in foreign currency exchange rates, especially in hyperinflationary countries like Argentina[188] - The company may face adverse impacts from impairment in the carrying value of goodwill or other intangible assets[188] - The competitive nature of the markets in which the company operates poses challenges to maintaining its competitive position[188] - The company must successfully develop and introduce new products and integrate new technologies, including artificial intelligence and machine learning[188] - The company is dependent on third-party suppliers, whose failure to perform timely could adversely affect operations[188] - Ineffective internal controls could impact the accuracy and timely reporting of business and financial results[188] Acquisition and Investment - The company incurred $1.3 million in acquisition-related costs for the acquisition of MOGAS in Q1 2025[125] - The 2025 Realignment Programs are anticipated to require a total investment of approximately $23 million, with $8 million estimated to be non-cash[126]

FOR IMMEDIATE RELEASE Flowserve Corporation Reports Third Quarter 2024 Results; Reaffirms 2024 Adjusted EPS Guidance DALLAS, October 28, 2024 – Flowserve Corporation (NYSE: FLS) ("Flowserve" or the "Company"), a leading provider of flow control products and services for the global infrastructure markets, today announced its financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Highlights (all comparisons to the 2023 third quarter, unless otherwise noted) • Bookings of $1.20 bi ...

For the quarter ended March 2024, Flowserve (FLS) reported revenue of $1.09 billion, up 10.9% over the same period last year. EPS came in at $0.58, compared to $0.40 in the year-ago quarter.The reported revenue represents a surprise of +4.81% over the Zacks Consensus Estimate of $1.04 billion. With the consensus EPS estimate being $0.47, the EPS surprise was +23.40%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...

Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Flowserve (FLS) and Nordson (NDSN) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with ...