Core Insights - Flowserve reported strong financial performance for the fourth quarter and full year 2025, achieving long-term margin targets two years ahead of schedule [4][7][20] Group 1: Financial Performance - For the full year, Flowserve delivered $4.7 billion in bookings, including $400 million in nuclear awards [1][6] - Fourth-quarter bookings reached $1.2 billion, a 3% increase from the prior year, with aftermarket bookings growing 10% to $682 million [3][8] - Adjusted gross margin for Q4 rose to 36%, up 320 basis points year-over-year, while adjusted operating margin reached 16.8%, exceeding long-term targets [7][9] Group 2: Cash Flow and Shareholder Returns - Flowserve generated $199 million in operating cash for Q4, with a full-year operating cash flow of $506 million, up 19% from 2024 [5][15] - The company returned $365 million to shareholders in 2025, including $255 million in share repurchases [5][15] Group 3: Market Opportunities and Acquisitions - CEO Scott Rowe highlighted steady project activity with significant opportunities in nuclear and traditional power, including a $28 million power award as the largest booking in the quarter [2][4] - Flowserve announced a definitive agreement to acquire the valve and actuation business from Trillium Flow Technologies, which is expected to enhance its nuclear aftermarket offerings [16][17] Group 4: Guidance and Long-term Targets - For 2026, Flowserve guided sales growth of 5% to 7% and adjusted EPS of $4.00 to $4.20, implying a 13% increase from 2025 [18][19] - Long-term targets include a mid-single-digit organic sales CAGR from 2025 to 2030 and 20% adjusted operating margins by 2030 [20]

Group 1: Investment Activity - Paradice Investment Management LLC initiated a new position in Flowserve Corporation, acquiring 338,154 shares valued at approximately $17.97 million as of September 30, 2025 [1][2] - This new position accounts for 4.03% of Paradice's reportable U.S. equity assets as of the same date [3] Group 2: Company Overview - Flowserve Corporation reported trailing twelve months (TTM) revenue of $4.65 billion and net income of $291.58 million, with a dividend yield of 1.6% [4] - The company specializes in designing, manufacturing, and servicing industrial flow management equipment, including pumps, valves, mechanical seals, and automation solutions [4][5] Group 3: Market Position and Merger - Flowserve is involved in a merger of equals with Chart Industries, which is expected to generate $300 million in annual cost savings and create significant synergies [9][10] - The combined company is projected to have an enterprise value of approximately $19 billion and adjusted EBITDA of $1.9 billion, indicating a valuation of around 10 times adjusted EBITDA [10][11]