INDIA - 2025/06/08: In this photo illustration, a Flowserve logo is seen displayed on a smartphone and in the background. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesFlowserve (FLS) stock has surged 31% in the last day, on the back of good earnings, and is now trading at $68.95. Our multi-factor analysis indicates that it might be the right moment to acquire additional shares of FLS stock. Overall, we maintain a favorable outlook on the ...

Q3 2025 EARNINGS CONFERENCE CALL October 29, 2025 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 Insights - Flowserve Corporation (FLS) is positioned for growth due to strong performance across its segments, strategic acquisitions, and shareholder-friendly initiatives [1][4][9] - The company has achieved a Zacks Rank 1 (Strong Buy) and has outperformed the industry with a 21.1% gain over the past year compared to the industry's 10% growth [1][4] Business Strength - Flowserve is experiencing robust momentum in its Pump Division and Flow Control Division, driven by strong aftermarket demand in North America, the Middle East, and Africa [4] - The Flow Control Division's bookings increased by 5.9% year over year, supported by rising customer orders in energy and general industries [5] End Market Strength - The company's Diversify, Decarbonize, and Digitize (3D) strategy is enhancing booking levels, with ongoing investments in stormwater infrastructure and drainage projects contributing positively [6] - The chemical end market is benefiting from increased investments in petrochemical projects in the Middle East and Asia, while the power generation market sees solid bookings due to global investments in nuclear energy and combined-cycle power generation [6] - Flowserve reported $1.1 billion in bookings for Q2 2025, marking the 14th consecutive quarter with bookings exceeding $1 billion [6] Expansion Efforts - Flowserve has strengthened its business through acquisitions, notably acquiring MOGAS Industries in October 2024, which enhanced its valve and automation product portfolio [7] - The MOGAS acquisition contributed positively to sales growth, adding 2.6% to the Flow Control Division's performance in Q2 2025 [7][8] Rewards to Shareholders - The company has been rewarding shareholders through dividends and share buybacks, distributing $55.2 million in dividends and repurchasing $52.8 million in shares in the first half of 2025 [9]

Core Insights - Flowserve Corporation's second-quarter 2025 adjusted earnings per share (EPS) of 91 cents exceeded the Zacks Consensus Estimate of 78 cents, marking a year-over-year increase of 24.7% driven by higher revenues [1][9] - Total revenues for the quarter were $1.19 billion, slightly below the consensus estimate of $1.21 billion, reflecting a year-over-year growth of 2.7% [2][9] - Despite a significant 13.8% decline in total bookings to $1.07 billion, the backlog increased by 6.3% year over year to $2.85 billion [2][9] Revenue Breakdown - Flowserve Pump Division generated revenues of $818.9 million, a 0.8% increase year over year, with bookings down 19.5% to $723.8 million [3] - Flow Control Division reported revenues of $371.5 million, up 6.8% year over year, with bookings increasing by 1.6% to $354.7 million [4] Margin Analysis - Cost of sales decreased by 1.2% year over year to $781.5 million, while gross profit rose by 11.1% to $406.6 million, resulting in a gross margin increase of 260 basis points to 34.2% [5] - Operating income increased by 20.8% year over year to $146.6 million, with an operating margin of 12.3%, up 180 basis points [5] Balance Sheet and Cash Flow - As of the end of the second quarter, Flowserve had cash and cash equivalents of $629.2 million, down from $675.4 million at the end of 2024, while long-term debt decreased to $1.44 billion [6] - The company generated net cash of $104.2 million from operating activities in the first half of 2025, compared to $49.5 million in the same period last year [6] Shareholder Returns - During the same period, Flowserve distributed $55.2 million in dividends and repurchased shares worth $52.8 million [7] 2025 Guidance - Flowserve has updated its 2025 revenue growth expectation to 5-6%, down from the previous 5-7%, while raising its adjusted EPS forecast to $3.25-$3.40 from $3.10-$3.30 [10]