Flowserve Corporation Earnings Recaps
Flowserve rose 11.9% after reporting 14% bookings growth, 170 basis points of adjusted operating margin expansion, and 19% adjusted EPS growth. The company also raised the low end of its EPS guidance, though it revised its sales outlook lower amid increasingly challenging Middle East conditions.
Key takeaways
- Bookings increased 14% to $1.4 billion; the book-to-bill ratio was 1.12x, and backlog reached a record $3.5 billion.
- Aftermarket bookings rose 11% to $728 million, while original equipment bookings grew 17% to $656 million.
- Adjusted operating margin expanded 170 basis points to 16.5%; adjusted EPS grew 19% to $1.07.
- Sales were $1.24 billion, in line with expectations; reported sales rose 5%, but organic sales declined 1%.
- Management cited Middle East headwinds, including customers deferring some noncritical maintenance and larger turnarounds, as it revised its full-year sales outlook.
Flowserve shares fell 15% after first quarter results, as investors reacted to a sharp deceleration in bookings — down 6% year-over-year — driven by disruptions in the Middle East and a softer start in original equipment orders. While management maintained full-year EPS guidance, the weak top-line growth and booking trends overshadowed margin expansion.
Key takeaways
- First quarter bookings came in at $1.15 billion, a 6% decline from the prior year, with original equipment demand negatively impacted by project delays and Middle East disruptions; without an estimated $50 million headwind in the region, bookings were roughly in line with internal expectations.
- Aftermarket bookings totaled $680 million, down modestly versus a particularly strong prior year, but marked the eighth consecutive quarter above $600 million.
- Adjusted operating margins expanded by 230 basis points and adjusted EPS increased 18%, aided by one-time factors such as tariffs and other unanticipated items.
- Middle East unrest led to logistics shutdowns and customer delays, affecting both sales and earnings in the quarter, though operations are slowly recovering under a temporary ceasefire.
- Flowserve reaffirmed its 2026 adjusted EPS outlook of $4.00–$4.20; management flagged ongoing geopolitical risks but pointed to an expanded project funnel and visibility for mid-single-digit bookings growth for the year.
Flowserve reported exceptional third-quarter results, underscoring strong booking trends and significant margin expansion, which have led to an upward revision of its adjusted EPS guidance for 2025.
Key takeaways
- Bookings reached $1.2 billion, improving sequentially and reflecting a 1% year-over-year growth, with a record $140 million in nuclear bookings.
- Adjusted EPS increased by 45% year-over-year to $0.90, propelled by 240 basis points of gross margin expansion to 34.8%.
- Cash returned to shareholders totaled $173 million, including $145 million in share repurchases, highlighting strong cash flow performance and a commitment to shareholder value.
- The focus on aftermarket opportunities and selective engineered projects contributed to greater consistency in revenue and bookings, mitigating cyclicality.
- Continued strength in power markets, particularly nuclear, positions Flowserve for long-term leadership and growth in flow control technologies.
Flowserve reported strong Q2 2025 earnings, surpassing expectations with a notable increase in adjusted EPS guidance, while also successfully navigating the termination of its merger with Chart Industries.
Key takeaways
- Adjusted EPS rose to $0.91, and full-year guidance increased to $3.25–$3.40, reflecting over 25% year-over-year growth.
- Bookings reached approximately $1.1 billion, with a fifth consecutive quarter of aftermarket bookings exceeding $600 million.
- The company received a $266 million termination payment following the cancellation of the merger with Chart Industries, with plans to utilize this capital for shareholder value creation.
- Strong year-over-year growth in general industries (+9%), despite some expected decreases in energy and chemical bookings.
- Backlog remains robust at $2.9 billion, providing a solid foundation for future growth in a dynamic market environment.