Financial Data and Key Metrics Changes - Total revenues for Q4 2025 grew 4% year-over-year to $1.2 billion, with organic sales growth of roughly 1% and a 240 basis point benefit from foreign currency translation [6][12] - Adjusted gross margin reached 36%, a 320 basis point improvement versus last year, marking the 12th consecutive quarter of year-over-year margin expansion [7] - Adjusted EPS was $1.11, a 59% increase compared to the prior year [8] Business Line Data and Key Metrics Changes - Aftermarket bookings grew 10% to $682 million, while original equipment revenues declined by 2% due to customer delays and material receipt timing [3][6] - FPD segment saw adjusted gross margin increase by 370 basis points to 37.1%, with bookings growing 8% [8][9] - FCD segment's adjusted gross margin expanded by 220 basis points to 34%, although bookings declined due to project delays [9][10] Market Data and Key Metrics Changes - The company reported $4.7 billion in total bookings for 2025, representing a 9% year-over-year growth, with a backlog of $2.9 billion at year-end [12][15] - The nuclear market contributed significantly, with $400 million in nuclear awards, highlighting strong market position [15][19] - General industries showed growth, particularly in North America and the Middle East, driven by sectors like mining and pharmaceuticals [19][62] Company Strategy and Development Direction - The company is focused on advancing its 3D Strategy to drive growth and enhance operational excellence through the Flowserve Business System [3][12] - Strategic acquisitions, including Trillium Valves, are aimed at expanding the valve and actuation portfolio and enhancing market reach in nuclear and traditional power sectors [18][20] - The company anticipates that nuclear energy will become increasingly integral to its business, with potential for accelerated bookings growth [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic areas of focus to drive growth and deliver shareholder value, despite some short-term revenue headwinds [5][12] - The company expects mid-single-digit bookings growth in 2026, supported by a healthy backlog and positive trends in key markets [24][45] - Management highlighted the importance of operational excellence and the 80/20 program in driving margin improvements and simplifying operations [22][30] Other Important Information - The company returned $365 million to shareholders in 2025, including $255 million in share repurchases [11][27] - The balance sheet remains healthy with net leverage of one time, providing flexibility for capital allocation [11][27] - The company has a disciplined approach to capital allocation, focusing on growth-enhancing opportunities while maintaining an investment-grade rating [27][30] Q&A Session Summary Question: Organic revenue growth was light this quarter; can you provide context? - Management noted that about 50 basis points of revenue headwinds were due to delays in engineered projects, which are expected to resolve in the first half of 2026 [35][36] Question: What is the opportunity in Venezuela? - Management indicated that while Venezuela was previously a significant market, they are prepared to support operations if investment resumes, but it is not included in the 2026 numbers [39][40] Question: Confidence in mid-single-digit order progression? - Management expressed confidence in mid-single-digit growth, driven by strong aftermarket performance and positive trends in the power in-market [44][46] Question: What are the implications of the Trillium acquisition? - Management highlighted that Trillium's strong position in nuclear and traditional power markets aligns well with their growth strategy, and they expect to leverage operational excellence for cost synergies [50][52] Question: How does the backlog conversion impact EPS cadence? - Management stated that approximately 40% of EPS is expected in the first half of the year, with the first quarter typically being the lowest [63][64]

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Q4 2025 EARNINGS CONFERENCE CALL February 6, 2026 FORWARD LOOKING STATEMENT AND NON-GAAP MEASURES Safe Harbor Statement: This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipate ...

Core Viewpoint - Flowserve (FLS) reported quarterly earnings of $1.11 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and showing an increase from $0.70 per share a year ago [1] Earnings Performance - The earnings surprise for the quarter was +17.83%, with the company previously expected to earn $0.80 per share but actually earning $0.90 per share, resulting in a surprise of +12.5% [2] - Over the last four quarters, Flowserve has consistently surpassed consensus EPS estimates [2] Revenue Analysis - Flowserve posted revenues of $1.22 billion for the quarter, which was 2.97% below the Zacks Consensus Estimate, compared to $1.18 billion in revenues from the previous year [3] - The company has only exceeded consensus revenue estimates once in the last four quarters [3] Stock Performance - Flowserve shares have increased by approximately 15% since the beginning of the year, while the S&P 500 has gained 0.5% [4] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [5] - The current consensus EPS estimate for the next quarter is $0.85 on revenues of $1.19 billion, and for the current fiscal year, it is $3.93 on revenues of $4.99 billion [8] Industry Context - The Manufacturing - General Industrial industry, to which Flowserve belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook [9] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Financial Performance - Fourth quarter bookings reached $1.2 billion, with aftermarket growth of 10% to over $680 million[4] - Full year bookings totaled $4.7 billion, including approximately $400 million in nuclear awards[4] - Fourth quarter adjusted operating margin improved to 16.8%, a 420 basis points increase year-over-year[4] - Full year cash from operations was $506 million, with $365 million returned to shareholders through dividends and share repurchases[4] - Fourth quarter reported EPS was ($0.23), while adjusted EPS was $1.11, reflecting a 58.6% increase year-over-year[4][6] - The company reported a total sales increase to $4.73 billion for the year ended December 31, 2025, compared to $4.56 billion in 2024[25] - Net earnings attributable to Flowserve Corporation increased to $346.2 million in 2025, up from $282.8 million in 2024[25] - The effective tax rate for the year ended December 31, 2025, was 29.6%, with diluted EPS reported at $2.64[26] - Adjusted earnings for the year were $476,158 thousand, with an adjusted EPS of $3.64[26] - The company reported a loss on asbestos divestiture of $140,092 thousand, impacting net earnings significantly[26] Guidance and Future Projections - The company initiated 2026 guidance with total sales growth projected at 5% to 7% and adjusted EPS between $4.00 and $4.20, representing a 13% increase from 2025[4][7] - Established 2030 financial targets include mid-single digit organic sales CAGR and approximately 20% adjusted operating margin[10] - Full year 2026 guidance assumes the acquisition will be roughly neutral to adjusted EPS, including incremental interest expense related to financing[9] Acquisitions and Investments - The acquisition of Trillium Flow Technologies' Valves Division was announced, expected to close mid-year 2026[5][9] - Acquisition-related costs associated with the MOGAS acquisition amounted to $3.3 million, affecting the financial results[18] - The company incurred $65,881 in payments for acquisitions in 2025, down from $305,924 in 2024[39] Segment Performance - Flowserve Pumps Division bookings increased to $883.6 million in Q4 2025, up from $816.4 million in Q4 2024, with sales rising to $833.0 million[20] - Flow Control Division reported sales of $391.5 million in Q4 2025, slightly up from $387.9 million in Q4 2024, with a gross profit margin of 31.5%[20] - The Flowserve Pumps Division achieved a segment operating income of $166.8 million in Q4 2025, with an operating income margin of 20.0%[20] - Flow Control Division's segment operating income rose to $64.0 million in Q4 2025, representing an operating income margin of 16.3%[20] - The Flowserve Pumps Division achieved sales of $3,235.3 million in 2025, with a gross profit margin of 35.2%, up from 32.2% in 2024[30] - The Flow Control Division reported sales of $1,504.5 million in 2025, with a gross profit margin of 29.6%, slightly down from 30.1% in 2024[30] - The Flowserve Pumps Division's segment operating income increased to $600.9 million in 2025, representing 18.6% of sales, compared to 15.2% in 2024[30] - The Flow Control Division's segment operating income was $179.7 million in 2025, with an operating income margin of 11.9%[30] Profitability and Costs - Reported gross profit for the three months ended December 31, 2024, was $372.1 million, representing a gross profit margin of 31.5%[16] - For the year ended December 31, 2025, reported gross profit was $1,581,437 thousand, representing 33.4% of sales, while adjusted gross profit was $1,646,033 thousand, or 34.8% of sales[26] - The company incurred realignment charges of $11.6 million in Q4 2024, impacting overall profitability[16] - The company incurred realignment charges of $54,660 thousand in 2025, contributing to an adjusted operating income of $699,911 thousand[26] Assets and Liabilities - Cash and cash equivalents increased to $760,183 as of December 31, 2025, up from $675,441 in 2024[38] - Total assets rose to $5,708,200 in 2025, compared to $5,500,821 in 2024, reflecting a growth of approximately 3.8%[38] - Total current liabilities increased to $1,501,885 in 2025, compared to $1,468,084 in 2024[38] - Stock-based compensation increased to $38,263 in 2025, compared to $30,474 in 2024[39] Risks and Challenges - Forward-looking statements indicate potential risks including global supply chain disruptions and inflation affecting manufacturing efficiency and product costs[43] - The company is highly dependent on the energy, chemical, and power generation industries, which significantly influence sales performance[43] - The company faces risks related to international operations, including political and economic uncertainties in markets such as North Africa, Latin America, and the Middle East[43] - Flowserve's performance may be impacted by fluctuations in foreign currency exchange rates, particularly in hyperinflationary countries like Argentina[43] - The company acknowledges potential adverse effects from litigation, including claims related to asbestos-containing materials[43] Technology and Compliance - There is a focus on developing and integrating new technologies, including artificial intelligence and machine learning, to maintain competitive positioning[43] - The company is committed to environmental compliance and managing associated costs and liabilities[43] - The company emphasizes the importance of non-GAAP financial measures to provide clearer insights into underlying business trends, which are used in financial and operational decision-making[45] - Flowserve's financial results are reported in accordance with GAAP, but management believes non-GAAP measures offer additional useful comparisons[45]

Core Insights - Flowserve Corporation reported its financial results for Q4 and FY 2025, highlighting significant growth in bookings and operating margins [1] Financial Performance - Fourth quarter bookings reached $1.2 billion, with a notable 10% growth in aftermarket services, totaling over $680 million [1] - The operating margin for the fourth quarter was 3.5%, which included a one-time impact from the asbestos divestiture [1] - The adjusted operating margin was not specified in the excerpt but is mentioned as a key metric [1]

Core Viewpoint - FLSmidth & Co. A/S announces preliminary and unaudited financial results for the full year 2025, exceeding previous expectations, and introduces financial guidance for 2026 focusing on organic revenue growth and Adjusted EBITA margin [1][5]. Financial Results for FY 2025 - Preliminary financial figures for FY 2025 show consolidated revenue of DKK 14.6 billion, with an Adjusted EBITA margin of 15.9%, surpassing the previous guidance of 15.0% to 15.5% [5]. - Order intake for FY 2025 reached DKK 15.0 billion, with organic revenue growth at -1% [2]. - The company recognized an impairment of deferred tax assets in Denmark amounting to approximately DKK 600 million in Q4 2025 [2]. Financial Guidance for FY 2026 - FLSmidth expects organic revenue growth to range from -1% to 4% for FY 2026, with an Adjusted EBITA margin projected between 15.5% and 16.5% [7][6]. - The guidance reflects expectations of stable market conditions and customer investment levels in the mining industry, with no significant regulatory changes anticipated [8]. Business Segment Performance - The Service business is expected to achieve organic revenue growth of 2% to 5%, driven by demand for productivity-enhancing solutions [10]. - The Products business anticipates a decline in organic revenue growth of -15% to -5% due to a reduced order backlog and low investment activity [10]. - The Pumps, Cyclones & Valves (PC&V) segment is projected to grow organically by 4% to 7%, supported by robust market conditions [10]. Upcoming Reports - The full annual report for 2025 is scheduled for publication on 18 February 2026 [9].

Core Viewpoint - FLSmidth & Co. A/S has appointed Toni Laaksonen as the new CEO, effective immediately, succeeding Mikko Keto, who left to pursue other opportunities [1][6]. Group 1: Leadership Transition - Toni Laaksonen's appointment follows a thorough recruitment process and comes after several years of restructuring at FLSmidth, positioning the company for its next phase of strategic and operational development [2]. - Mikko Keto has stepped down from his role and the Board of Directors expressed gratitude for his contributions to the company [6]. Group 2: New CEO's Background and Vision - Toni Laaksonen brings over 15 years of international leadership experience in the global mining technology and services industry, ensuring continuity in strategy while focusing on organizational culture and operational performance [3][7]. - Laaksonen has a strong track record in driving profitable growth and operational excellence, having previously served as President and CEO at Glaston Corporation [7]. - He aims to enhance commercial execution and customer experience, positioning FLSmidth to capitalize on future opportunities [5]. Group 3: Company Strategy and Goals - FLSmidth is focused on accelerating growth, improving customer experience, maintaining cost discipline, and strengthening organizational culture as it enters a new growth cycle in the mining industry [2][4]. - The company has a sustainability ambition, MissionZero, aiming for zero emissions in mining by 2030 and plans to become carbon neutral in its operations by the same year [9].

Company Overview - Chart Industries, Inc. is a leading provider of highly engineered cryogenic and heat transfer equipment, focusing on LNG, hydrogen, and industrial gas infrastructure globally [6] - The company has a market capitalization of $9.32 billion, with a revenue of $4.29 billion and a net income of $66.70 million for the trailing twelve months [4] Recent Developments - Paradice Investment Management sold all 58,813 shares of Chart Industries during the fourth quarter, resulting in a transaction value of $11.77 million [1][2] - As of January 28, Chart Industries shares were priced at $207.27, which is relatively flat over the past year and underperformed the S&P 500 by 14.25 percentage points [3] Financial Performance - Chart Industries reported record third-quarter orders of $1.68 billion, a nearly 44% increase year over year, with a backlog of approximately $6.05 billion [11] - The adjusted operating margin reached a record 22.9%, and adjusted EPS rose 27.5% to $2.78, despite GAAP results being impacted by deal-related charges [11] Market Position and Strategy - The company generates revenue primarily through the sale of specialized equipment and aftermarket services, serving a diverse global customer base including industrial gas producers and energy companies [9] - Chart Industries is positioned as a key supplier to energy transition and specialty process industries, leveraging its technical expertise and strong aftermarket service capabilities [6]

Core Viewpoint - Growth investors are interested in stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score helps in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Flowserve (FLS) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being particularly desirable [3] - Flowserve has a historical EPS growth rate of 19.6%, with projected EPS growth of 13.3% this year, surpassing the industry average of 10.2% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, indicates how efficiently a company generates sales from its assets [5] - Flowserve's S/TA ratio is 0.83, outperforming the industry average of 0.81, indicating better efficiency [5] Group 4: Sales Growth - Sales growth is another important metric, with Flowserve expected to achieve a 4.6% sales growth this year, compared to the industry average of 4.2% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - Flowserve has seen upward revisions in current-year earnings estimates, with a 0.2% increase in the Zacks Consensus Estimate over the past month [8] Group 6: Overall Assessment - Flowserve has a Zacks Rank of 2 and a Growth Score of A, indicating it is a potential outperformer and a solid choice for growth investors [9]