Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, reported its financial results for the second quarter ended June 30, 2026.
Highlights:
- Quarterly bookings of $1.35 billion, up 26% versus the prior year period, including record aftermarket bookings of $696 million
- Operating margin of 13.0% expanded 70 basis points and adjusted1 operating margin2 of 15.3% expanded 70 basis points compared to the prior year period
- Reported EPS of $0.77 and adjusted EPS3 of $0.95
- Updated full-year 2026 organic sales guidance to down approximately 1% reflecting the continued impact of Middle East conflict
- Raised the low end of adjusted EPS guidance3 to $4.05 to $4.20
Management Commentary:
“Flowserve delivered strong second quarter results, with significant bookings growth, robust operating margin expansion, and adjusted earnings per share above our initial expectations,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “Importantly, this marks our 14th consecutive quarter of year-over-year adjusted gross margin expansion, a reflection of the structural, durable progress we’re making. These results, delivered against a dynamic market backdrop, underscore the strength of the Flowserve Business System and the power of the 3D growth strategy coupled with the commitment of our teams around the world.”
Rowe continued, “Demand across our end markets remains resilient, led by power, nuclear, and energy security investments. While our healthy project pipeline positions us for continued bookings growth, we are adjusting our full-year sales guidance to reflect geopolitical uncertainty in the Middle East and its expected impact on our run-rate business in the region during the second half of the year. At the same time, our strong earnings performance year to date and continued confidence in our ability to expand margins enable us to raise the low end of our full-year adjusted EPS guidance range. We remain firmly on track to deliver on our 2030 financial targets and create value for shareholders.”
Key Figures (unaudited):
|
(dollars in millions, except per share) |
Q2 2026 |
|
Q2 2025 |
|
Change |
|
YTD 2026 |
|
YTD 2025 |
|
Change |
|
|
Original Equipment Bookings |
|
$652.3 |
$453.3 |
|
43.9% |
$1,119.5 |
|
$990.2 |
|
13.1% |
||
|
Aftermarket Bookings |
$695.8 |
$620.6 |
|
12.1% |
$1,376.2 |
|
$1,309.2 |
|
5.1% |
|||
|
Total Bookings |
|
$1,348.1 |
$1,073.9 |
|
25.5% |
|
$2,495.7 |
|
$2,299.4 |
|
8.5% |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Organic Sales4 |
|
|
|
|
(3.3%) |
|
|
|
|
|
(6.9%) |
|
|
Acquisition/Divestiture Impact |
|
|
|
90 bps |
|
|
|
|
60 bps |
|||
|
Foreign Exchange Impact |
|
|
|
|
80 bps |
|
|
|
|
|
220 bps |
|
|
Reported Sales |
$1,169.2 |
$1,188.1 |
|
(1.6%) |
$2,237.4 |
|
$2,332.6 |
|
(4.1%) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Operating Margin |
13.0% |
12.3% |
|
70 bps |
12.1% |
|
11.9% |
|
20 bps |
|||
|
Adjusted Operating Margin |
|
15.3% |
14.6% |
|
70 bps |
|
15.2% |
|
13.8% |
|
140 bps |
|
|
Earnings Per Share (EPS) |
$0.77 |
$0.62 |
|
24.2% |
$1.41 |
|
$1.18 |
|
19.5% |
|||
|
Adjusted Earnings Per Share (EPS) |
|
$0.95 |
$0.91 |
|
4.4% |
|
$1.80 |
|
$1.63 |
|
10.4% |
|
|
Cash From Operations |
|
$129.2 |
|
$154.1 |
|
($24.9) |
|
$86.2 |
|
$104.2 |
|
($18.0) |
|
Backlog5 |
|
$3,336.0 |
|
$2,853.2 |
|
16.9% |
|
$3,336.0 |
|
$2,853.2 |
|
16.9% |
2026 Guidance3:
The Company updated 2026 guidance:
|
|
|
Prior |
|
Current |
|
Organic Sales Growth |
|
(1%) to +2% |
|
Approx. (1%) |
|
Impact From Acquisition/Divestiture |
|
Approx. +300 bps |
|
Approx. +300 bps |
|
Impact From Foreign Exchange Translation |
|
Approx. +100 bps |
|
Approx. +100 bps |
|
Total Sales Growth |
|
+3% to +6% |
|
Approx. +3% |
|
Adjusted EPS |
|
$4.00 to $4.20 |
|
$4.05 to $4.20 |
|
Net Interest Expense |
|
Approx. $85 million |
|
Approx. $85 million |
|
Adjusted Tax Rate |
|
21% to 22% |
|
21% to 22% |
|
Capital Expenditures |
|
$90 million to $100 million |
|
Approx. $100 million |
The guidance assumes tariff rates in place as of July 1, 2026, and assumes current business conditions in the Middle East, which have been impacted by armed conflict and geopolitical instability, persist for the remainder of the year.
Webcast and Conference Call Instructions:
Flowserve will host its conference call to discuss second quarter results on Thursday, July 30, 2026, at 8:30 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve’s Investors page.
Footnotes
|
1 See Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) and Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) tables for a detailed reconciliation of reported results to adjusted measures. |
|
2 Adjusted operating margin is calculated by dividing adjusted operating income by sales. Adjusted operating income is derived by excluding the adjusted items. |
|
3 Adjusted earnings per share (EPS) excludes realignment expenses, the impact from other specific discrete and below-the-line foreign currency effects and utilizes the then-applicable foreign exchange rates and fully diluted shares. Adjusted full-year 2026 EPS guidance excludes certain other discrete items which may arise during the year. |
|
4 Organic is defined as the change in sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions and divestitures. The impact of currency translation is calculated by translating current year results on a monthly basis at prior year exchange rates for the same period. |
|
5 Q2 and YTD 2026 backlog includes Trillium backlog of $225 million. |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||
|
(Unaudited) |
|||||||
|
|
Three Months Ended June 30, |
||||||
|
(Amounts in thousands) |
|
2026 |
|
|
|
2025 |
|
|
|
|||||||
|
Sales |
$ |
1,169,175 |
|
$ |
1,188,092 |
|
|
|
Cost of sales |
|
(784,449 |
) |
|
|
(781,510 |
) |
|
Gross profit |
|
384,726 |
|
|
|
406,582 |
|
|
Selling, general and administrative expense |
|
(266,318 |
) |
|
(265,908 |
) |
|
|
Net earnings from affiliates |
|
33,015 |
|
|
5,916 |
|
|
|
Operating income |
|
151,423 |
|
|
146,590 |
|
|
|
Interest expense |
|
(25,696 |
) |
|
(20,253 |
) |
|
|
Interest income |
|
5,023 |
|
|
2,526 |
|
|
|
Other expense, net |
|
(12,087 |
) |
|
(25,003 |
) |
|
|
Earnings before income taxes |
|
118,663 |
|
|
103,860 |
|
|
|
Provision for income taxes |
|
(17,078 |
) |
|
(15,636 |
) |
|
|
Net earnings, including noncontrolling interests |
|
101,585 |
|
|
88,224 |
|
|
|
Less: net earnings attributable to noncontrolling interests |
|
(2,587 |
) |
|
(6,470 |
) |
|
|
Net earnings attributable to Flowserve Corporation |
$ |
98,998 |
|
$ |
81,754 |
|
|
|
Net earnings per share attributable to Flowserve Corporation common shareholders: |
|
|
|||||
|
Basic |
$ |
0.78 |
|
$ |
0.62 |
|
|
|
Diluted |
|
0.77 |
|
|
0.62 |
|
|
|
Weighted average shares – basic |
|
127,644 |
|
|
130,846 |
|
|
|
Weighted average shares – diluted |
|
128,358 |
|
|
131,599 |
|
|
|
Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||||
|
(Amounts in thousands, except per share data) |
|||||||||||||||||||||||||
|
Three Months Ended June 30, 2026 |
Gross Profit |
Selling, General & Administrative Expense |
Net Earnings from Affiliates |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
||||||||||||||||
|
Reported |
$ |
384,726 |
|
$ |
266,318 |
|
$ |
33,015 |
|
$ |
151,423 |
|
$ |
(12,087 |
) |
$ |
17,078 |
|
$ |
98,998 |
|
14.4 |
% |
0.77 |
|
|
Reported as a percent of sales |
|
32.9 |
% |
|
22.8 |
% |
|
2.8 |
% |
|
13.0 |
% |
|
-1.0 |
% |
|
1.5 |
% |
|
8.5 |
% |
||||
|
Realignment charges (a) |
|
32,979 |
|
|
(7,751 |
) |
|
– |
|
|
40,730 |
|
|
– |
|
|
8,590 |
|
|
32,140 |
|
21.1 |
% |
0.25 |
|
|
Acquisition and divestiture related (b)(c) |
|
– |
|
|
(9,316 |
) |
|
(27,700 |
) |
|
(18,384 |
) |
|
– |
|
|
2,163 |
|
|
(20,547 |
) |
-11.8 |
% |
(0.16 |
) |
|
Amortization of intangible assets (d) |
|
1,543 |
|
|
(3,103 |
) |
|
– |
|
|
4,646 |
|
|
– |
|
|
997 |
|
|
3,649 |
|
21.5 |
% |
0.03 |
|
|
Discrete items (e)(f) |
|
31 |
|
|
(215 |
) |
|
– |
|
|
246 |
|
|
3,076 |
|
|
782 |
|
|
2,540 |
|
23.5 |
% |
0.02 |
|
|
Below-the-line foreign exchange impacts (g) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
6,315 |
|
|
1,414 |
|
|
4,901 |
|
22.4 |
% |
0.04 |
|
|
Adjusted |
$ |
419,279 |
|
$ |
245,933 |
|
$ |
5,315 |
|
$ |
178,661 |
|
$ |
(2,696 |
) |
$ |
31,024 |
|
$ |
121,681 |
|
20.0 |
% |
0.95 |
|
|
Adjusted as a percent of sales |
|
35.9 |
% |
|
21.0 |
% |
|
0.5 |
% |
|
15.3 |
% |
|
-0.2 |
% |
|
2.7 |
% |
|
10.4 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,003 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charges represent $9,316 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO). |
|||||||||||||||||||||||||
|
(c) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. |
|||||||||||||||||||||||||
|
(d) Charges represent non-cash amortization of intangible assets. |
|||||||||||||||||||||||||
|
(e) Charges represent $246 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
|||||||||||||||||||||||||
|
(f) Charges include $3,076 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada. |
|||||||||||||||||||||||||
|
(g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. |
|||||||||||||||||||||||||
|
Three Months Ended June 30, 2025 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
|||||||||||||||||
|
Reported |
$ |
406,582 |
|
$ |
265,908 |
|
$ |
146,590 |
|
$ |
(25,003 |
) |
$ |
15,636 |
|
$ |
81,754 |
|
|
15.1 |
% |
0.62 |
|
||
|
Reported as a percent of sales |
|
34.2 |
% |
|
22.4 |
% |
|
12.3 |
% |
|
-2.1 |
% |
|
1.3 |
% |
|
6.9 |
% |
|||||||
|
Realignment charges (a) |
|
5,106 |
|
|
1,787 |
|
|
3,319 |
|
|
– |
|
|
1,318 |
|
|
2,001 |
|
|
39.7 |
% |
0.02 |
|
||
|
Acquisition related (b) |
|
752 |
|
|
(3,190 |
) |
|
3,942 |
|
|
– |
|
|
927 |
|
|
3,015 |
|
|
23.5 |
% |
0.02 |
|
||
|
Purchase accounting step-up and intangible asset amortization (c) |
|
2,642 |
|
|
(1,300 |
) |
|
3,942 |
|
|
– |
|
|
1,186 |
|
|
2,756 |
|
|
30.1 |
% |
0.02 |
|
||
|
Discrete items (d)(e) |
|
42 |
|
|
(382 |
) |
|
424 |
|
|
1,500 |
|
|
453 |
|
|
1,471 |
|
|
23.5 |
% |
0.01 |
|
||
|
Merger transaction costs (f) |
|
– |
|
|
(15,515 |
) |
|
15,515 |
|
|
– |
|
|
3,649 |
|
|
11,866 |
|
|
23.5 |
% |
0.09 |
|
||
|
Below-the-line foreign exchange impacts (g) |
|
– |
|
|
– |
|
|
– |
|
|
20,023 |
|
|
2,910 |
|
|
17,113 |
|
|
14.5 |
% |
0.13 |
|
||
|
Adjusted |
$ |
415,124 |
|
$ |
247,308 |
|
$ |
173,732 |
|
$ |
(3,480 |
) |
$ |
26,079 |
|
$ |
119,976 |
|
|
17.1 |
% |
0.91 |
|
||
|
Adjusted as a percent of sales |
|
34.9 |
% |
|
20.8 |
% |
|
14.6 |
% |
|
-0.3 |
% |
|
2.2 |
% |
|
10.1 |
% |
|||||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. |
|||||||||||||||||||||||||
|
(c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. |
|||||||||||||||||||||||||
|
(d) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
|||||||||||||||||||||||||
|
(e) Charge of $1,500 represents a pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. |
|||||||||||||||||||||||||
|
(f) Charge represents transaction costs incurred associated with the Chart Industries merger. |
|||||||||||||||||||||||||
|
(g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. |
|||||||||||||||||||||||||
|
SEGMENT INFORMATION |
|||||||
|
(Unaudited) |
|||||||
|
Three Months Ended June 30, |
|||||||
|
FLOWSERVE PUMPS DIVISION |
|
2026 |
|
|
|
2025 |
|
|
(Amounts in millions, except percentages) |
|
||||||
|
Bookings |
$ |
938.1 |
|
$ |
723.8 |
|
|
|
Sales |
|
814.1 |
|
|
818.9 |
|
|
|
Gross profit |
|
296.1 |
|
|
299.2 |
|
|
|
Gross profit margin |
|
36.4 |
% |
|
36.5 |
% |
|
|
SG&A |
|
148.0 |
|
|
142.4 |
|
|
|
Segment operating income |
|
181.2 |
|
|
162.7 |
|
|
|
Segment operating income as a percentage of sales |
|
22.3 |
% |
|
19.9 |
% |
|
|
Three Months Ended June 30, |
|||||||
|
FLOW CONTROL DIVISION |
|
2026 |
|
|
|
2025 |
|
|
(Amounts in millions, except percentages) |
|
||||||
|
Bookings |
$ |
417.1 |
|
$ |
354.7 |
|
|
|
Sales |
|
357.3 |
|
|
371.5 |
|
|
|
Gross profit |
|
88.5 |
|
|
107.7 |
|
|
|
Gross profit margin |
|
24.8 |
% |
|
29.0 |
% |
|
|
SG&A |
|
77.5 |
|
|
69.9 |
|
|
|
Segment operating income |
|
11.0 |
|
|
37.8 |
|
|
|
Segment operating income as a percentage of sales |
|
3.1 |
% |
|
10.2 |
% |
|
|
Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||
|
(Amounts in thousands) |
|||||||||||||||||||||||
|
Flowserve Pumps Division |
|||||||||||||||||||||||
|
Three Months Ended June 30, 2026 |
Gross Profit |
Selling, General & Administrative Expense |
Net Earnings from Affiliates |
Operating Income |
Three Months Ended June 30, 2025 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
|||||||||||||||
|
Reported |
$ |
296,141 |
|
$ |
148,003 |
|
$ |
33,014 |
|
$ |
181,151 |
|
Reported |
$ |
299,229 |
|
$ |
142,400 |
|
$ |
162,745 |
|
|
|
Reported as a percent of sales |
|
36.4 |
% |
|
18.2 |
% |
|
4.1 |
% |
|
22.3 |
% |
Reported as a percent of sales |
|
36.5 |
% |
|
17.4 |
% |
|
19.9 |
% |
|
|
Realignment charges (a) |
|
10,521 |
|
|
(5,392 |
) |
|
– |
|
|
15,913 |
|
Realignment charges (a) |
|
1,888 |
|
|
(1,749 |
) |
|
3,637 |
|
|
|
Discrete items (b) |
|
24 |
|
|
(48 |
) |
|
– |
|
|
72 |
|
Discrete items (b) |
|
35 |
|
|
(99 |
) |
|
134 |
|
|
|
Acquisition and divestiture related (c)(e) |
|
– |
|
|
(774 |
) |
|
(27,700 |
) |
|
(26,926 |
) |
Adjusted |
$ |
301,152 |
|
$ |
140,552 |
|
$ |
166,516 |
|
|
|
Amortization of intangible assets (d) |
|
1,443 |
|
|
(1,801 |
) |
|
– |
|
|
3,244 |
|
Adjusted as a percent of sales |
|
36.8 |
% |
|
17.2 |
% |
|
20.3 |
% |
|
|
Adjusted |
$ |
308,129 |
|
$ |
139,988 |
|
$ |
5,314 |
|
$ |
173,454 |
|
|||||||||||
|
Adjusted as a percent of sales |
|
37.8 |
% |
|
17.2 |
% |
|
0.7 |
% |
|
21.3 |
% |
|||||||||||
|
Flow Control Division |
|||||||||||||||||||||||
|
Three Months Ended June 30, 2026 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Three Months Ended June 30, 2025 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
||||||||||||||||
|
Reported |
$ |
88,546 |
|
$ |
77,528 |
|
$ |
11,018 |
|
Reported |
$ |
107,694 |
|
$ |
69,922 |
|
$ |
37,772 |
|
||||
|
Reported as a percent of sales |
|
24.8 |
% |
|
21.7 |
% |
|
3.1 |
% |
Reported as a percent of sales |
|
29.0 |
% |
|
18.8 |
% |
|
10.2 |
% |
||||
|
Realignment charges (a) |
|
22,458 |
|
|
(1,735 |
) |
|
24,193 |
|
Realignment charges (a) |
|
3,217 |
|
|
3,504 |
|
|
(287 |
) |
||||
|
Discrete items (b) |
|
5 |
|
|
(20 |
) |
|
25 |
|
Acquisition related (c) |
|
752 |
|
|
(3,190 |
) |
|
3,942 |
|
||||
|
Acquisition and divestiture related (c) |
|
– |
|
|
(8,427 |
) |
|
8,427 |
|
Purchase accounting step-up and intangible asset amortization (d) |
|
2,642 |
|
|
(1,300 |
) |
|
3,942 |
|
||||
|
Amortization of intangible assets (d) |
|
100 |
|
|
(1,302 |
) |
|
1,402 |
|
Discrete items (b) |
|
5 |
|
|
(99 |
) |
|
104 |
|
||||
|
Adjusted |
$ |
111,109 |
|
$ |
66,044 |
|
$ |
45,065 |
|
Adjusted |
$ |
114,310 |
|
$ |
68,838 |
|
$ |
45,472 |
|
||||
|
Adjusted as a percent of sales |
|
31.1 |
% |
|
18.5 |
% |
|
12.6 |
% |
Adjusted as a percent of sales |
|
30.8 |
% |
|
18.5 |
% |
|
12.2 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
Note: Amounts may not calculate due to rounding |
||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,003 is non-cash. |
(a) Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash. |
||||||||||||||||||||||
|
(b) Charges represent $97 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
(b) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
||||||||||||||||||||||
|
(c) Charges represent $9,201 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Flowserve Al Mansoori Services Company (FAMCO) and Trillium Valves within FPD and FCD, respectively. |
(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. |
||||||||||||||||||||||
|
(d) Charges represent non-cash amortization of intangible assets. |
(d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. |
||||||||||||||||||||||
|
(e) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. |
|||||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||
|
(Unaudited) |
|||||||
|
(Amounts in thousands, except per share data) |
Six Months Ended June 30, |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
|||||||
|
Sales |
$ |
2,237,444 |
|
$ |
2,332,635 |
|
|
|
Cost of sales |
|
(1,472,877 |
) |
|
|
(1,556,719 |
) |
|
Gross profit |
|
764,567 |
|
|
|
775,916 |
|
|
Selling, general and administrative expense |
|
(529,718 |
) |
|
(509,085 |
) |
|
|
Net earnings from affiliates |
|
36,006 |
|
|
11,648 |
|
|
|
Operating income |
|
270,855 |
|
|
278,479 |
|
|
|
Interest expense |
|
(46,127 |
) |
|
(39,428 |
) |
|
|
Interest income |
|
6,523 |
|
|
4,271 |
|
|
|
Other expense, net |
|
(5,088 |
) |
|
(42,262 |
) |
|
|
Earnings before income taxes |
|
226,163 |
|
|
201,060 |
|
|
|
Provision for income taxes |
|
(38,209 |
) |
|
(33,379 |
) |
|
|
Net earnings, including noncontrolling interests |
|
187,954 |
|
|
167,681 |
|
|
|
Less: Net earnings attributable to noncontrolling interests |
|
(7,275 |
) |
|
(12,022 |
) |
|
|
Net earnings attributable to Flowserve Corporation |
$ |
180,679 |
|
$ |
155,659 |
|
|
|
Net earnings per share attributable to Flowserve Corporation common shareholders: |
|
|
|||||
|
Basic |
$ |
1.42 |
|
$ |
1.19 |
|
|
|
Diluted |
|
1.41 |
|
|
1.18 |
|
|
|
|
|
||||||
|
Weighted average shares – basic |
|
127,569 |
|
|
131,206 |
|
|
|
Weighted average shares – diluted |
|
128,489 |
|
|
132,135 |
|
|
|
Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||||
|
(Amounts in thousands, except per share data) |
|||||||||||||||||||||||||
|
Six Months Ended June 30, 2026 |
Gross Profit |
Selling, General & Administrative Expense |
Net Earnings from Affiliates |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
||||||||||||||||
|
Reported |
$ |
764,567 |
|
$ |
529,718 |
|
$ |
36,006 |
|
$ |
270,855 |
|
$ |
(5,088 |
) |
$ |
38,209 |
|
$ |
180,679 |
|
16.9 |
% |
1.41 |
|
|
Reported as a percent of sales |
|
34.2 |
% |
|
23.7 |
% |
|
1.6 |
% |
|
12.1 |
% |
|
-0.2 |
% |
|
1.7 |
% |
|
8.1 |
% |
||||
|
Realignment charges (a) |
|
49,481 |
|
|
(20,216 |
) |
|
– |
|
|
69,697 |
|
|
– |
|
|
13,033 |
|
|
56,664 |
|
18.7 |
% |
0.44 |
|
|
Acquisition and divestiture related (b)(c) |
|
– |
|
|
(17,904 |
) |
|
(27,700 |
) |
|
(9,796 |
) |
|
– |
|
|
4,313 |
|
|
(14,109 |
) |
-44.0 |
% |
(0.11 |
) |
|
Amortization of intangible assets (d) |
|
2,556 |
|
|
(5,347 |
) |
|
– |
|
|
7,903 |
|
|
– |
|
|
1,520 |
|
|
6,383 |
|
19.2 |
% |
0.05 |
|
|
Discrete items (e)(f) |
|
62 |
|
|
(889 |
) |
|
– |
|
|
951 |
|
|
4,576 |
|
|
1,301 |
|
|
4,226 |
|
23.5 |
% |
0.03 |
|
|
Below-the-line foreign exchange impacts (g) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(2,723 |
) |
|
(187 |
) |
|
(2,536 |
) |
6.9 |
% |
(0.02 |
) |
|
Adjusted |
$ |
816,666 |
|
$ |
485,362 |
|
$ |
8,306 |
|
$ |
339,610 |
|
$ |
(3,235 |
) |
$ |
58,189 |
|
$ |
231,307 |
|
19.6 |
% |
1.80 |
|
|
Adjusted as a percent of sales |
|
36.5 |
% |
|
21.7 |
% |
|
0.4 |
% |
|
15.2 |
% |
|
-0.1 |
% |
|
2.6 |
% |
|
10.3 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charges represent $17,904 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO). |
|||||||||||||||||||||||||
|
(c) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. |
|||||||||||||||||||||||||
|
(d) Charges represent non-cash amortization of intangible assets. |
|||||||||||||||||||||||||
|
(e) Charges represent discrete items including $523 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan and $428 of transaction costs related to the divestiture of our asbestos-related assets and liabilities. |
|||||||||||||||||||||||||
|
(f) Charges include $4,576 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada. |
|||||||||||||||||||||||||
|
(g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. |
|||||||||||||||||||||||||
|
Six Months Ended June 30, 2025 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
|||||||||||||||||
|
Reported |
$ |
775,916 |
|
$ |
509,085 |
|
$ |
278,479 |
|
$ |
(42,262 |
) |
$ |
33,379 |
|
$ |
155,659 |
|
|
16.6 |
% |
1.18 |
|
||
|
Reported as a percent of sales |
|
33.3 |
% |
|
21.8 |
% |
|
11.9 |
% |
|
-1.8 |
% |
|
1.4 |
% |
|
6.7 |
% |
|||||||
|
Realignment charges (a) |
|
15,121 |
|
|
3,091 |
|
|
12,030 |
|
|
– |
|
|
3,189 |
|
|
8,841 |
|
|
26.5 |
% |
0.07 |
|
||
|
Acquisition related (b) |
|
752 |
|
|
(4,471 |
) |
|
5,223 |
|
|
– |
|
|
1,228 |
|
|
3,995 |
|
|
23.5 |
% |
0.03 |
|
||
|
Purchase accounting step-up and intangible asset amortization (c) |
|
6,117 |
|
|
(2,600 |
) |
|
8,717 |
|
|
– |
|
|
2,547 |
|
|
6,170 |
|
|
29.2 |
% |
0.05 |
|
||
|
Discrete items (d)(e) |
|
75 |
|
|
(765 |
) |
|
840 |
|
|
3,000 |
|
|
903 |
|
|
2,937 |
|
|
23.5 |
% |
0.02 |
|
||
|
Merger transaction costs (f) |
|
– |
|
|
(15,515 |
) |
|
15,515 |
|
|
– |
|
|
3,649 |
|
|
11,866 |
|
|
23.5 |
% |
0.09 |
|
||
|
Below-the-line foreign exchange impacts (g) |
|
– |
|
|
– |
|
|
– |
|
|
31,396 |
|
|
5,355 |
|
|
26,041 |
|
|
17.1 |
% |
0.20 |
|
||
|
Adjusted |
$ |
797,981 |
|
$ |
488,825 |
|
$ |
320,804 |
|
$ |
(7,866 |
) |
$ |
50,250 |
|
$ |
215,509 |
|
|
18.1 |
% |
1.63 |
|
||
|
Adjusted as a percent of sales |
|
34.2 |
% |
|
21.0 |
% |
|
13.8 |
% |
|
-0.3 |
% |
|
2.2 |
% |
|
9.2 |
% |
|||||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $3,000 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. |
|||||||||||||||||||||||||
|
(c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. |
|||||||||||||||||||||||||
|
(d) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
|||||||||||||||||||||||||
|
(e) Charge of $3,000 represents a pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. |
|||||||||||||||||||||||||
|
(f) Charge represents transaction costs incurred associated with the Chart Industries merger. |
|||||||||||||||||||||||||
|
(g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. |
|||||||||||||||||||||||||
|
SEGMENT INFORMATION |
|||||||
|
(Unaudited) |
|||||||
|
FLOWSERVE PUMPS DIVISION |
Six Months Ended June 30, |
||||||
|
(Amounts in millions, except percentages) |
|
2026 |
|
|
|
2025 |
|
|
|
|
||||||
|
Bookings |
$ |
1,711.4 |
|
$ |
1,576.1 |
|
|
|
Sales |
|
1,558.6 |
|
|
1,602.1 |
|
|
|
Gross profit |
|
566.1 |
|
|
567.7 |
|
|
|
Gross profit margin |
|
36.3 |
% |
|
35.4 |
% |
|
|
SG&A |
|
295.2 |
|
|
280.1 |
|
|
|
Segment operating income |
|
306.9 |
|
|
299.3 |
|
|
|
Segment operating income as a percentage of sales |
|
19.7 |
% |
|
18.7 |
% |
|
|
FLOW CONTROL DIVISION |
Six Months Ended June 30, |
||||||
|
(Amounts in millions, except percentages) |
|
2026 |
|
|
|
2025 |
|
|
|
|
||||||
|
Bookings |
$ |
791.3 |
|
$ |
730.4 |
|
|
|
Sales |
|
684.9 |
|
|
735.6 |
|
|
|
Gross profit |
|
197.5 |
|
|
207.9 |
|
|
|
Gross profit margin |
|
28.9 |
% |
|
28.3 |
% |
|
|
SG&A |
|
144.8 |
|
|
138.6 |
|
|
|
Segment operating income |
|
52.7 |
|
|
69.3 |
|
|
|
Segment operating income as a percentage of sales |
|
7.7 |
% |
|
9.4 |
% |
|
|
Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||
|
(Amounts in thousands) |
|||||||||||||||||||||||
|
Flowserve Pumps Division |
|||||||||||||||||||||||
|
Six Months Ended June 30, 2026 |
Gross Profit |
Selling, General & Administrative Expense |
Net Earnings from Affiliates |
Operating Income |
Six Months Ended June 30, 2025 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
|||||||||||||||
|
Reported |
$ |
566,068 |
|
$ |
295,171 |
|
$ |
36,006 |
|
$ |
306,902 |
|
Reported |
$ |
567,691 |
|
$ |
280,080 |
|
$ |
299,259 |
|
|
|
Reported as a percent of sales |
|
36.3 |
% |
|
18.9 |
% |
|
2.3 |
% |
|
19.7 |
% |
Reported as a percent of sales |
|
35.4 |
% |
|
17.5 |
% |
|
18.7 |
% |
|
|
Realignment charges (a) |
|
20,609 |
|
|
(9,533 |
) |
|
– |
|
|
30,142 |
|
Realignment charges (a) |
|
4,867 |
|
|
(751 |
) |
|
5,618 |
|
|
|
Discrete items (b) |
|
48 |
|
|
(96 |
) |
|
– |
|
|
144 |
|
Discrete items (b) |
|
63 |
|
|
(224 |
) |
|
287 |
|
|
|
Acquisition and divestiture related (c)(e) |
|
– |
|
|
(813 |
) |
|
(27,700 |
) |
|
(26,887 |
) |
Adjusted |
$ |
572,621 |
|
$ |
279,105 |
|
$ |
305,164 |
|
|
|
Amortization of intangible assets (d) |
|
2,456 |
|
|
(2,746 |
) |
|
– |
|
|
5,202 |
|
Adjusted as a percent of sales |
|
35.7 |
% |
|
17.4 |
% |
|
19.0 |
% |
|
|
Adjusted |
$ |
589,181 |
|
$ |
281,983 |
|
$ |
8,306 |
|
$ |
315,503 |
|
|||||||||||
|
Adjusted as a percent of sales |
|
37.8 |
% |
|
18.1 |
% |
|
0.5 |
% |
|
20.2 |
% |
|||||||||||
|
Flow Control Division |
|||||||||||||||||||||||
|
Six Months Ended June 30, 2026 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Six Months Ended June 30, 2025 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
||||||||||||||||
|
Reported |
$ |
197,493 |
|
$ |
144,759 |
|
$ |
52,734 |
|
Reported |
$ |
207,881 |
|
$ |
138,627 |
|
$ |
69,254 |
|
||||
|
Reported as a percent of sales |
|
28.8 |
% |
|
21.1 |
% |
|
7.7 |
% |
Reported as a percent of sales |
|
28.3 |
% |
|
18.8 |
% |
|
9.4 |
% |
||||
|
Realignment charges (a) |
|
28,872 |
|
|
3,286 |
|
|
25,586 |
|
Realignment charges (a) |
|
10,319 |
|
|
3,625 |
|
|
6,694 |
|
||||
|
Discrete items (b) |
|
10 |
|
|
(75 |
) |
|
85 |
|
Acquisition related (c) |
|
752 |
|
|
(4,471 |
) |
|
5,223 |
|
||||
|
Acquisition and divestiture related (c) |
|
– |
|
|
(16,165 |
) |
|
16,165 |
|
Purchase accounting step-up and intangible asset amortization (d) |
|
6,117 |
|
|
(2,600 |
) |
|
8,717 |
|
||||
|
Amortization of intangible assets (d) |
|
100 |
|
|
(2,601 |
) |
|
2,701 |
|
Discrete items (b) |
|
9 |
|
|
(163 |
) |
|
172 |
|
||||
|
Adjusted |
$ |
226,475 |
|
$ |
129,204 |
|
$ |
97,271 |
|
Adjusted |
$ |
225,078 |
|
$ |
135,018 |
|
$ |
90,060 |
|
||||
|
Adjusted as a percent of sales |
|
33.1 |
% |
|
18.9 |
% |
|
14.2 |
% |
Adjusted as a percent of sales |
|
30.6 |
% |
|
18.4 |
% |
|
12.2 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
Note: Amounts may not calculate due to rounding |
||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. |
(a) Charges represent realignment costs incurred as a result of realignment programs of which $3,000 is non-cash. |
||||||||||||||||||||||
|
(b) Charges represent $229 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
(b) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
||||||||||||||||||||||
|
(c) Charges represent $16,978 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray and Flowserve Al Mansoori Services Company (FAMCO) within FPD and Trillium Valves within FCD. |
(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. |
||||||||||||||||||||||
|
(d) Charges represent non-cash amortization of intangible assets. |
(d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. |
||||||||||||||||||||||
|
(e) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. |
|||||||||||||||||||||||
|
Segment Results |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Flowserve Pumps Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
(dollars in millions) |
Q2 2026 |
Q2 2025 |
Change |
|
YTD 2026 |
YTD 2025 |
Change |
|
Organic Bookings |
|
|
26.8% |
|
|
5.0% |
|
|
Acquisition / Divestiture Impact |
|
|
1.1% |
|
|
0.7% |
|
|
FX Impact (a) |
|
|
1.7% |
|
|
|
2.9% |
|
Total Bookings (b) |
$938 |
$724 |
29.6% |
$1,711 |
$1,576 |
8.6% |
|
|
|
|
|
|
|
|
||
|
Organic Sales |
|
|
(3.2%) |
|
|
(6.3%) |
|
|
Acquisition / Divestiture Impact |
|
|
1.4% |
|
|
0.9% |
|
|
FX Impact (a) |
|
|
1.2% |
|
|
|
2.7% |
|
Reported Sales (b) |
$814 |
$819 |
(0.6%) |
$1,559 |
$1,602 |
(2.7%) |
|
|
|
|
|
|
|
|
||
|
Gross Margin |
36.4% |
36.5% |
(10 bps) |
36.3% |
35.4% |
90 bps |
|
|
Adjusted Gross Margin (c) |
37.8% |
36.8% |
100 bps |
37.8% |
35.7% |
210 bps |
|
|
Operating Margin |
22.3% |
19.9% |
240 bps |
19.7% |
18.7% |
100 bps |
|
|
Adjusted Operating Margin (d) |
21.3% |
20.3% |
100 bps |
20.2% |
19.0% |
120 bps |
|
|
Backlog (b) |
$2,204 |
$1,981 |
11.3% |
$2,204 |
$1,981 |
11.3% |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Flowserve Control Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
(dollars in millions) |
Q2 2026 |
Q2 2025 |
Change |
|
YTD 2026 |
YTD 2025 |
Change |
|
Organic Bookings |
|
|
17.3% |
|
|
6.9% |
|
|
Acquisition / Divestiture Impact |
|
|
0.0% |
|
|
0.0% |
|
|
FX Impact (a) |
|
|
0.3% |
|
|
|
1.4% |
|
Total Bookings (b) |
$417 |
$355 |
17.6% |
$791 |
$730 |
8.3% |
|
|
|
|
|
|
|
|
||
|
Organic Sales |
|
|
(3.8%) |
|
|
(7.9%) |
|
|
Acquisition / Divestiture Impact |
|
|
0.0% |
|
|
0.0% |
|
|
FX Impact (a) |
|
|
0.0% |
|
|
|
1.0% |
|
Reported Sales (b) |
$357 |
$371 |
(3.8%) |
$685 |
$736 |
(6.9%) |
|
|
|
|
|
|
|
|
||
|
Gross Margin |
24.8% |
29.0% |
(420 bps) |
28.8% |
28.3% |
50 bps |
|
|
Adjusted Gross Margin (c) |
31.1% |
30.8% |
30 bps |
33.1% |
30.6% |
250 bps |
|
|
Operating Margin |
3.1% |
10.2% |
(710 bps) |
7.7% |
9.4% |
(170 bps) |
|
|
Adjusted Operating Margin (d) |
12.6% |
12.2% |
40 bps |
14.2% |
12.2% |
200 bps |
|
|
Backlog (b) |
$1,154 |
$881 |
30.9% |
$1,154 |
$881 |
30.9% |
|
|
|
|
|
|
|
|
||
|
(a) Constant foreign exchange (FX) represents the year-over-year variance assuming 2026 results at 2025 FX rates |
|||||||
|
(b) Bookings, sales, and backlog do not include interdivision eliminations |
|||||||
|
(c) Adjusted gross margin is a non‑GAAP financial measure. Adjusted gross margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding realignment charges and other specific discrete items. See the Segment Reconciliation of Non‑GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) |
|||||||
|
(d) Adjusted operating margin excludes realignment charges and other specific discrete items |
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
(Unaudited) |
|||||||
|
June 30, |
December 31, |
||||||
|
(Amounts in thousands, except par value) |
|
2026 |
|
|
2025 |
|
|
|
|
|
||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
731,007 |
|
$ |
760,183 |
|
|
|
Accounts receivable, net of allowance for expected credit losses of $89,364 and $83,094, respectively |
|
1,056,706 |
|
|
1,029,095 |
|
|
|
Contract assets, net of allowance for expected credit losses of $5,871 and $6,028, respectively |
|
340,234 |
|
|
322,472 |
|
|
|
Inventories |
|
832,537 |
|
|
789,898 |
|
|
|
Prepaid expenses and other |
|
158,642 |
|
|
141,237 |
|
|
|
Total current assets |
|
3,119,126 |
|
|
3,042,885 |
|
|
|
Property, plant, and equipment, net of accumulated depreciation of $1,233,503 and $1,224,912, respectively |
|
595,446 |
|
|
566,751 |
|
|
|
Operating lease right-of-use asset, net |
|
170,716 |
|
|
166,031 |
|
|
|
Goodwill |
|
1,744,877 |
|
|
1,391,988 |
|
|
|
Deferred taxes |
|
160,395 |
|
|
156,250 |
|
|
|
Other intangible assets, net |
|
345,231 |
|
|
198,475 |
|
|
|
Other assets, net of allowance for expected credit losses of $66,209 and $66,047, respectively |
|
184,497 |
|
|
185,820 |
|
|
|
Total assets |
$ |
6,320,288 |
|
$ |
5,708,200 |
|
|
|
LIABILITIES AND EQUITY |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
543,323 |
|
$ |
554,243 |
|
|
|
Accrued liabilities |
|
561,747 |
|
|
587,475 |
|
|
|
Contract liabilities |
|
293,864 |
|
|
274,669 |
|
|
|
Debt due within one year |
|
12,741 |
|
|
49,868 |
|
|
|
Operating lease liabilities |
|
37,330 |
|
|
35,630 |
|
|
|
Total current liabilities |
|
1,449,005 |
|
|
1,501,885 |
|
|
|
Long-term debt due after one year |
|
2,122,423 |
|
|
1,525,210 |
|
|
|
Operating lease liabilities |
|
145,851 |
|
|
149,565 |
|
|
|
Retirement obligations and other liabilities |
|
275,552 |
|
|
277,216 |
|
|
|
Contingencies (See Note 12) |
|||||||
|
Shareholders’ equity: |
|||||||
|
Preferred shares, $1.00 par value |
|
— |
|
|
— |
|
|
|
Shares authorized — 1,000, no shares issued |
|||||||
|
Common shares, $1.25 par value |
|
220,991 |
|
|
220,991 |
|
|
|
Shares authorized — 305,000 |
|||||||
|
Shares issued — 176,793 and 176,793, respectively |
|||||||
|
Capital in excess of par value |
|
494,925 |
|
|
508,890 |
|
|
|
Retained earnings |
|
4,385,914 |
|
|
4,261,977 |
|
|
|
Treasury shares, at cost — 49,532 and 49,763 shares, respectively |
|
(2,241,970 |
) |
|
(2,231,685 |
) |
|
|
Deferred compensation obligation |
|
7,015 |
|
|
6,629 |
|
|
|
Accumulated other comprehensive loss |
|
(607,263 |
) |
|
(575,405 |
) |
|
|
Total Flowserve Corporation shareholders’ equity |
|
2,259,612 |
|
|
2,191,397 |
|
|
|
Noncontrolling interests |
|
67,845 |
|
|
62,927 |
|
|
|
Total equity |
|
2,327,457 |
|
|
2,254,324 |
|
|
|
Total liabilities and equity |
$ |
6,320,288 |
|
$ |
5,708,200 |
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(Unaudited) |
|||||||
|
Six Months Ended June 30, |
|||||||
|
(Amounts in thousands) |
|
2026 |
|
|
|
2025 |
|
|
|
|
||||||
|
Cash flows — Operating activities: |
|
|
|||||
|
Net earnings, including noncontrolling interests |
$ |
187,954 |
|
$ |
167,681 |
|
|
|
|
|
|
|
||||
|
Adjustments to reconcile net earnings to net cash provided by operating activities |
|||||||
|
Depreciation |
|
40,414 |
|
|
38,695 |
|
|
|
Amortization of intangible and other assets |
|
7,903 |
|
|
9,589 |
|
|
|
(Gain) on remeasurement of previously held equity interest |
|
(27,700 |
) |
|
— |
|
|
|
Stock-based compensation |
|
20,595 |
|
|
18,822 |
|
|
|
Foreign currency, asset write downs and other non-cash adjustments |
|
(17,314 |
) |
|
(6,211 |
) |
|
|
Change in assets and liabilities: |
|
||||||
|
Accounts receivable, net |
|
6,859 |
|
|
(22,631 |
) |
|
|
Inventories |
|
(4,294 |
) |
|
14,208 |
|
|
|
Contract assets, net |
|
(11,161 |
) |
|
(28,930 |
) |
|
|
Prepaid expenses and other assets, net |
|
17,984 |
|
|
13,589 |
|
|
|
Accounts payable |
|
(52,347 |
) |
|
(10,414 |
) |
|
|
Contract liabilities |
|
(10,439 |
) |
|
(15,254 |
) |
|
|
Accrued liabilities |
|
(80,798 |
) |
|
(84,466 |
) |
|
|
Retirement obligations and other liabilities |
|
9,801 |
|
|
2,196 |
|
|
|
Net deferred taxes |
|
(1,291 |
) |
|
7,338 |
|
|
|
Net cash flows provided by operating activities |
|
86,166 |
|
|
104,212 |
|
|
|
Cash flows — Investing activities: |
|
|
|||||
|
Capital expenditures |
|
(33,807 |
) |
|
(28,340 |
) |
|
|
Payments for acquisitions, net of cash acquired |
|
(517,735 |
) |
|
— |
|
|
|
Proceeds from disposal of assets |
|
9,865 |
|
|
867 |
|
|
|
Affiliate investment activity |
|
(2,000 |
) |
|
— |
|
|
|
Net cash flows (used) by investing activities |
|
(543,677 |
) |
|
(27,473 |
) |
|
|
Cash flows — Financing activities: |
|
|
|||||
|
Proceeds from issuance of senior notes |
|
499,320 |
|
|
— |
|
|
|
Payments on term loan |
|
(77,875 |
) |
|
(18,750 |
) |
|
|
Proceeds from long-term debt |
|
74,750 |
|
|
— |
|
|
|
Payment of deferred loan costs |
|
(4,893 |
) |
|
— |
|
|
|
Proceeds under revolving credit facility |
|
150,000 |
|
|
50,000 |
|
|
|
Payments under revolving credit facility |
|
(100,000 |
) |
|
(50,000 |
) |
|
|
Proceeds under other financing arrangements |
|
998 |
|
|
3,072 |
|
|
|
Payments under other financing arrangements |
|
(5,266 |
) |
|
(1,231 |
) |
|
|
Repurchases of common shares |
|
(25,000 |
) |
|
(52,797 |
) |
|
|
Payments related to tax withholding for stock-based compensation |
|
(23,011 |
) |
|
(11,337 |
) |
|
|
Payments of dividends |
|
(54,838 |
) |
|
(55,209 |
) |
|
|
Contingent consideration payment related to acquired business |
|
— |
|
|
(15,000 |
) |
|
|
Other |
|
529 |
|
|
(3,192 |
) |
|
|
Net cash flows (used) provided by financing activities |
|
434,714 |
|
|
(154,444 |
) |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
(6,379 |
) |
|
31,467 |
|
|
|
Net change in cash and cash equivalents |
|
(29,176 |
) |
|
(46,238 |
) |
|
|
Cash and cash equivalents at beginning of period |
|
760,183 |
|
|
675,441 |
|
|
|
Cash and cash equivalents at end of period |
$ |
731,007 |
|
$ |
629,203 |
|
|
About Flowserve:
Flowserve Corporation is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company’s website at www.flowserve.com.
Safe Harbor Statement: This news release 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,” “anticipates,” “estimates,” “believes,” “forecasts,” “predicts” or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.
The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, blockades or other closures of major trade lanes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrate new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.
All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company’s performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260729051430/en/
Media gallery
