Core Insights - Flowserve Corporation's third-quarter 2025 adjusted earnings per share (EPS) of 90 cents exceeded the Zacks Consensus Estimate of 80 cents, marking a 45.2% year-over-year increase, primarily driven by higher revenues [1] - Total revenues for the quarter were $1.17 billion, slightly below the consensus estimate of $1.21 billion, but still represented a 3.6% year-over-year growth [2] - The company updated its 2025 guidance, now expecting a revenue increase of 4-5% compared to the previous forecast of 5-6%, while raising the EPS guidance to $3.40-$3.50 from $3.25-$3.40 [8][9] Revenue and Sales Performance - Aftermarket sales increased by 6.3% year over year, while original equipment sales decreased by 4.9% year over year [2] - Total bookings reached $1.21 billion, reflecting a 0.8% year-over-year increase, with a backlog of $2.9 billion, up 4% year over year [2] Segment Analysis - Flowserve Pump Division reported revenues of $800.3 million, a 2.3% year-over-year increase, but bookings decreased by 7.6% to $819.5 million [3] - Flow Control Division revenues were $377.4 million, up 6.9% year over year, with bookings increasing by 24.4% to $396.1 million [4] Margin and Cost Structure - Cost of sales rose by 2.3% year over year to $794.1 million, while gross profit increased by 6.5% to $380.3 million, resulting in a gross margin of 32.4%, up 90 basis points [5] - Operating income decreased by 23.2% year over year to $79.3 million, with an operating margin of 6.7%, down 240 basis points [5] Balance Sheet and Cash Flow - As of the end of the third quarter, Flowserve had cash and cash equivalents of $833.8 million, an increase from $675.4 million at the end of 2024, while long-term debt decreased slightly to $1.44 billion [6] - In the first nine months of 2025, the company generated net cash of $506.1 million from operating activities, significantly up from $228 million in the previous year [7] Future Outlook - The adjusted tax rate is projected to be approximately 20%, with net interest expense and capital expenditure expected to be $70 million and $75 million, respectively [9]

ITT FY Conference Summary Company Overview - **Company**: ITT Inc. (NYSE: ITT) - **Date of Conference**: September 18, 2025 Key Points Industry and Market Position - ITT has experienced strong orders growth in Q2, indicating a positive trajectory for the company moving forward [3][4] - The automotive segment has seen a significant shift, with its contribution to EBIT decreasing from over 60% to approximately 30%, and projected to be around 20% by 2030 [4][5] - ITT aims for long-term targets of 5% organic growth, 10% total growth, and an operating margin of 23% or more [5] Financial Performance - ITT generated a free cash flow margin of 14% in Q2, which supports ongoing investments in R&D and M&A [3][6] - The company repurchased $500 million in shares this year, indicating a strong capital allocation strategy [18] Organic Growth Strategy - ITT has made significant investments in high-performance products across its segments, including automotive and industrial applications [9][10] - The automotive business has outperformed the market by approximately 700 basis points over the last decade, with market shares in Europe, China, and North America at 31%, 27%, and a healthy position respectively [10][11] - Major investments include a $50 million plant for high-performance vehicles, resulting in a 5% market share gain in that segment within 18 months [11][12] Inorganic Growth Strategy - ITT is actively pursuing M&A opportunities, focusing on high-margin businesses and establishing strong relationships with potential targets [14][15] - The company has a healthy M&A funnel and aims to deploy capital for acquisitions in the near future [15][16] Market Dynamics - The automotive market is expected to remain flat in production year-over-year, with China showing resilience while Europe and North America may decline [24][25] - ITT has maintained a strong market share in the automotive sector, with a focus on original equipment (OE) rather than aftermarket sales [23] Industrial Products (IP) Segment - The IP segment is experiencing moderate growth, particularly in spare parts, while the long-cycle business has seen a decline in the order funnel due to previous high order volumes [40][41] - The backlog for ITT stands at approximately $1.2 billion, with a significant portion expected to convert into revenue in 2025 and 2026 [47][48] Decarbonization Efforts - ITT is positioned to support customers in decarbonization efforts, particularly in oil and gas, with solutions that prevent flaring and enhance carbon capture [49][50] - The marine segment, particularly Svanehøj, is benefiting from a shift towards cleaner fuels like LNG and ammonia [50] Aerospace and Defense - The CCT segment, while smaller, has shown growth potential, particularly in defense applications [54][58] - ITT is negotiating new pricing terms with Boeing, aiming to adjust for increased material costs since previous contracts were set [56][57] Conclusion - ITT is strategically positioned for growth through a combination of organic and inorganic initiatives, with a strong focus on innovation, market share expansion, and capital allocation to enhance shareholder value [3][5][14]

Core Viewpoint - Flowserve Corporation reported strong first-quarter 2025 results, with adjusted earnings per share of 72 cents, exceeding estimates and reflecting a 24.1% year-over-year increase, driven by higher revenues [1] Financial Performance - Total revenues for the quarter reached $1.14 billion, surpassing the consensus estimate of $1.11 billion, marking a 5.2% year-over-year increase [1] - Aftermarket sales rose by 5.1% year over year, while Original equipment sales increased by 5.4% year over year [1] Bookings and Backlog - Total bookings amounted to $1.23 billion, reflecting an 18.1% year-over-year increase [2] - The backlog at the end of the quarter was $2.9 billion, up 11.1% year over year [2] Segment Performance - Flowserve Pumps Division generated revenues of $783.1 million, up 1.8% year over year, with bookings increasing by 21.2% to $852.9 million [3] - Flow Control Division reported revenues of $364.1 million, a 13.6% year-over-year increase, with bookings of $376.0 million, up 10.2% [4] Margin Profile - Cost of sales increased by 3.6% year over year to $775.2 million, while gross profit rose by 9% to $369.3 million, resulting in a gross margin of 32.3% [5] - Operating income increased by 16.6% year over year to $131.9 million, with an operating margin of 11.5% [5] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the first quarter were $540.8 million, down from $675.4 million at the end of 2024 [6] - Long-term debt was $1.45 billion, slightly down from $1.46 billion reported at the end of 2024 [6] - The company used net cash of $49.9 million from operating activities, compared to $62.3 million generated in the same period last year [7] 2025 Guidance - Flowserve expects a revenue increase of 5-7% from the previous year and anticipates adjusted earnings per share between $3.10 and $3.30 [8] - The adjusted tax rate is projected to be approximately 21%, with net interest expense and capital expenditure forecasted at $70 million and $80-$90 million, respectively [8]