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]