Flowserve Corporation Reports Second Quarter 2025 Results

Business Wire

29-07-2025

DALLAS--(BUSINESS WIRE)--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, 2025.
Highlights:
Solid bookings of $1.1 billion, including $621 million of durable aftermarket bookings
Robust gross margin and adjusted 1 gross margin 2 of 34.2% and 34.9%, respectively, both increased 260 basis points versus the prior year period
Operating margin and adjusted operating margin 3 of 12.3% and 14.6%, respectively, expanded 180 and 210 basis points compared to last year
Reported and Adjusted Earnings Per Share (EPS) 4 of 62 and 91 cents, respectively. Reported EPS includes adjusted items of 29 cents, comprised of below-the-line foreign exchange and merger transaction costs among other items
Strong cash from operations of $154 million driven by enhanced earnings generation
Increased full-year 2025 Adjusted EPS guidance from $3.10-$3.30 to $3.25-$3.40, an increase of more than 25% at the midpoint of the range versus last year
Management Commentary:
'Our strong second quarter results reflect the successful ongoing execution of our 3D strategy and the Flowserve Business System. We delivered another quarter of sales and earnings growth while also expanding margins, reflecting the resilience of our business model and progress on our operating initiatives. With the Flowserve Business System firmly established across the organization, we recently went live with our commercial excellence pillar to complement our 80/20 program and drive outsized growth, leveraging the optimized portfolio and delivering the best value to our customers,' said Scott Rowe, Flowserve's President and Chief Executive Officer.
Rowe continued, 'We are encouraged by our momentum through the first half of the year and remain confident in our ability to execute at a high level in any business environment. With our strong performance year-to-date combined with confidence in our outlook, we have increased our full-year adjusted EPS guidance. We are well positioned to deliver on our 2027 long-term targets and create value for our shareholders and stakeholders.'
Merger with Chart Industries, Inc.
In a separate press release issued today, Flowserve announced it has terminated its previously announced merger agreement to combine with Chart Industries, Inc. (NYSE: GTLS) ('Chart'). The termination follows the Flowserve Board of Directors' decision not to submit a revised offer to merge with Chart, after being notified that Chart's Board of Directors had determined that a recent unsolicited acquisition proposal from Baker Hughes (NASDAQ: BKR) constituted a 'superior proposal' under the terms of the merger agreement. In accordance with the terms of the merger agreement, Flowserve will receive a $266 million termination payment.
Key Figures:
(dollars in millions, except per share) 2025 Q2 2024 Q2 Change YTD 2025 YTD 2024 Change
Backlog
$2,853.2
$2,684.4
6.3%
$2,853.2
$2,684.4
6.3%
Bookings
$1,073.9
$1,246.1
(13.8%)
$2,299.4
$2,283.8
0.7%
Original Equipment
$453.3
$632.1
(28.3%)
$990.2
$1,094.1
(9.5%)
Aftermarket
$620.6
$614.0
1.1%
$1,309.2
$1,189.7
10.0%
Sales 5
$1,188.1
$1,156.9
2.7%
$2,332.6
$2,244.4
3.9%
Organic (100) bps 150 bps
Acquisitions 260 bps 290 bps
Foreign Exchange 110 bps (50) bps
Operating Margin
12.3%
10.5%
180 bps
11.9%
10.4%
150 bps
Adjusted Operating Margin
14.6%
12.5%
210 bps
13.8%
11.7%
210 bps
Earnings Per Share
$0.62
$0.55
12.7%
$1.18
$1.11
6.3%
Adjusted Earnings Per Share
$0.91
$0.73
24.7%
$1.63
$1.31
24.4%
Cash From Operations
$154.1
($12.8)
$166.9
$104.2
$49.5
$54.7
Expand
2025 Guidance:
The Company updated its full-year 2025 guidance, including increasing its Adjusted EPS target range.
2025 Adjusted EPS guidance reflects the updated net impact of tariffs and excludes any impact from the Company's annual assessment of actuarial-determined asbestos liabilities, which is typically performed in the third quarter.
Webcast and Conference Call Instructions:
Flowserve will host its conference call to discuss second quarter results on Wednesday, July 30, at 11:00 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve's Investors page.
Footnotes (pages 1-2)
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 gross margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding the adjusted items.
3 Adjusted operating margin is calculated by dividing adjusted operating income by sales. Adjusted operating income is derived by excluding the adjusted items.
4 Adjusted 2025 EPS excludes potential realignment expenses, below-the-line foreign currency effects, actuarial-determined assessments of certain long-term liabilities and certain other discrete items which may arise during the year and utilizes foreign exchange rates of the prior 30-day period and approximately 132 million fully diluted shares.
5 Organic is defined as the change in Sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions. 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.
Expand
(Unaudited)
Three Months Ended June 30,
(Amounts in thousands, except per share data)
2025
2024
Sales
$
1,188,092
$
1,156,892
Cost of sales
(781,510
)
(790,796
)
Gross profit
406,582
366,096
Selling, general and administrative expense
(265,908
)
(238,627
)
Loss on sale of business
-
(12,981
)
Net earnings from affiliates
5,916
6,816
Operating income
146,590
121,304
Interest expense
(20,253
)
(16,917
)
Interest income
2,526
1,174
Other expense, net
(25,003
)
(5,263
)
Earnings before income taxes
103,860
100,298
Provision for income taxes
(15,636
)
(23,846
)
Net earnings, including noncontrolling interests
88,224
76,452
Less: Net earnings attributable to noncontrolling interests
(6,470
)
(3,836
)
Net earnings attributable to Flowserve Corporation
$
81,754
$
72,616
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic
$
0.62
$
0.55
Diluted
0.62
0.55
Weighted average shares – basic
130,846
131,656
Weighted average shares – diluted
131,599
132,415
Expand
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, 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.
Three Months Ended June 30, 2024
Gross Profit
Selling, General & Administrative Expense
Loss on Sale of Business
Operating Income
Other Income (Expense), Net
Provision For (Benefit From) Income Taxes
Net Earnings (Loss)
Effective Tax Rate
Diluted EPS
Reported
$
366,096
$
238,627
$
12,981
$
121,304
$
(5,263
)
$
23,846
$
72,616
23.8
%
0.55
Reported as a percent of sales
31.6
%
20.6
%
1.1
%
10.5
%
-0.5
%
2.1
%
6.3
%
Realignment charges (a)
7,521
267
(12,981
)
20,235
-
1,558
18,677
7.7
%
0.14
Discrete items (b)
-
(1,100
)
-
1,100
-
259
841
23.5
%
0.01
Discrete asset write-downs (c)(d)
-
(1,795
)
-
1,795
3,567
1,342
4,020
25.0
%
0.03
Below-the-line foreign exchange impacts (e)
-
-
-
-
207
29
178
13.9
%
0.00
Adjusted
$
373,617
$
235,999
$
-
$
144,434
$
(1,489
)
$
27,034
$
96,332
21.3
%
0.73
Adjusted as a percent of sales
32.3
%
20.4
%
0.0
%
12.5
%
-0.1
%
2.3
%
8.3
%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $19,200 is non-cash.
(b) Charge represents costs associated with merger and acquisition activity.
(c) Charge represents a $1,795 non-cash write-down of a software asset.
(d) Charge represents a $3,567 non-cash write-down of a debt investment.
(e) 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.
Expand
SEGMENT INFORMATION
(Unaudited)
FLOWSERVE PUMPS DIVISION
Three Months Ended June 30,
(Amounts in millions, except percentages)
2025
2024
Bookings
$
723.8
$
898.8
Sales
818.9
812.2
Gross profit
299.2
260.2
Gross profit margin
36.5
%
32.0
%
SG&A
142.4
136.1
Segment operating income
162.7
131.0
Segment operating income as a percentage of sales
19.9
%
16.1
%
FLOW CONTROL DIVISION
Three Months Ended June 30,
(Amounts in millions, except percentages)
2025
2024
Bookings
$
354.7
$
349.2
Sales
371.5
347.7
Gross profit
107.7
106.3
Gross profit margin
29.0
%
30.6
%
SG&A
69.9
61.0
Loss on sale of business
-
(13.0
)
Segment operating income
37.8
32.3
Segment operating income as a percentage of sales
10.2
%
9.3
%
Expand
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, 2025
Gross Profit
Selling, General & Administrative Expense
Operating Income
Three Months Ended June 30, 2024
Gross Profit
Selling, General & Administrative Expense
Operating Income
Reported
$
299,229
$
142,400
$
162,745
Reported
$
260,215
$
136,053
$
130,978
Reported as a percent of sales
36.5
%
17.4
%
19.9
%
Reported as a percent of sales
32.0
%
16.8
%
16.1
%
Realignment charges (a)
1,888
(1,749
)
3,637
Realignment charges (a)
7,378
720
6,658
Discrete items (b)
35
(99
)
134
Adjusted
$
267,593
$
136,773
$
137,636
Adjusted
$
301,152
$
140,552
$
166,516
Adjusted as a percent of sales
32.9
%
16.8
%
16.9
%
Adjusted as a percent of sales
36.8
%
17.2
%
20.3
%
Flow Control Division
Three Months Ended June 30, 2025
Gross Profit
Selling, General & Administrative Expense
Operating Income
Three Months Ended June 30, 2024
Gross Profit
Selling, General & Administrative Expense
Loss on Sale of Business
Operating Income
Reported as a percent of sales
29.0
%
18.8
%
10.2
%
Reported as a percent of sales
30.6
%
17.6
%
3.7
%
9.3
%
Realignment charges (a)
3,217
3,504
(287
)
Realignment charges (a)
221
53
(12,981
)
13,149
Acquisition related (c)
752
(3,190
)
3,942
Discrete items (b)
-
(1,100
)
-
1,100
Purchase accounting step-up and intangible asset amortization (d)
2,642
(1,300
)
3,942
Adjusted
$
106,492
$
59,987
$
-
$
46,500
Discrete items (b)
5
(99
)
104
Adjusted as a percent of sales
30.6
%
17.3
%
0.0
%
13.4
%
Adjusted
$
114,310
$
68,838
$
45,472
Adjusted as a percent of sales
30.8
%
18.5
%
12.2
%
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.
(a) Charges represent realignment costs incurred as a result of realignment programs of which $19,200 is non-cash.
(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.
(b) Charge represents costs associated with merger and acquisition activity.
(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.
(d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
Expand
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Six Months Ended June 30,
(Amounts in thousands, except per share data)
2025
2024
Sales
$
2,332,635
$
2,244,371
Cost of sales
(1,556,719
)
(1,539,307
)
Gross profit
775,916
705,064
Selling, general and administrative expense
(509,085
)
(467,045
)
Loss on sale of business
-
(12,981
)
Net earnings from affiliates
11,648
9,344
Operating income
278,479
234,382
Interest expense
(39,428
)
(32,233
)
Interest income
4,271
2,343
Other expense, net
(42,262
)
(6,137
)
Earnings before income taxes
201,060
198,355
Provision for income taxes
(33,379
)
(43,988
)
Net earnings, including noncontrolling interests
167,681
154,367
Less: Net earnings attributable to noncontrolling interests
(12,022
)
(7,531
)
Net earnings attributable to Flowserve Corporation
$
155,659
$
146,836
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic
$
1.19
$
1.12
Diluted
1.18
1.11
Weighted average shares – basic
131,206
131,583
Weighted average shares – diluted
132,135
132,392
Expand
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, 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.
Six Months Ended June 30, 2024
Gross Profit
Selling, General & Administrative Expense
Loss on Sale of Business
Operating Income
Other Income (Expense), Net
Provision For (Benefit From) Income Taxes
Net Earnings (Loss)
Effective Tax Rate
Diluted EPS
Reported as a percent of sales
31.4
%
20.8
%
0.6
%
10.4
%
-0.3
%
2.0
%
6.5
%
Realignment charges (a)
13,194
(1,227
)
(12,981
)
27,402
-
2,281
25,121
8.3
%
0.19
Discrete items (b)(c)
-
900
-
(900
)
-
259
(1,159
)
-28.8
%
(0.01
)
Discrete asset write-downs (d)(e)
-
(1,795
)
-
1,795
3,567
1,342
4,020
25.0
%
0.03
Below-the-line foreign exchange impacts (f)
-
-
-
-
(1,116
)
(22
)
(1,094
)
2.0
%
(0.01
)
Adjusted
$
718,258
$
464,923
$
-
$
262,679
$
(3,686
)
$
47,848
$
173,724
20.9
%
1.31
Adjusted as a percent of sales
32.0
%
20.7
%
0.0
%
11.7
%
-0.2
%
2.1
%
7.7
%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $20,000 is non-cash.
(b) Represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.
(c) Charge represents $1,100 of costs associated with merger and acquisition activity.
(d) Charge represents a $1,795 non-cash write-down of a software asset.
(e) Charge represents a $3,567 non-cash write-down of a debt investment.
(f) 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.
Expand
SEGMENT INFORMATION
(Unaudited)
FLOWSERVE PUMPS DIVISION
Six Months Ended June 30,
(Amounts in millions, except percentages)
2025
2024
Bookings
$
1,576.1
$
1,602.2
Sales
1,602.1
1,581.6
Gross profit
567.7
508.2
Gross profit margin
35.4
%
32.1
%
SG&A
280.1
275.8
Segment operating income
299.3
241.9
Segment operating income as a percentage of sales
18.7
%
15.3
%
FLOW CONTROL DIVISION
Six Months Ended June 30,
(Amounts in millions, except percentages)
2025
2024
Bookings
$
730.4
$
689.9
Sales
735.6
668.2
Gross profit
207.9
199.0
Gross profit margin
28.3
%
29.8
%
SG&A
138.6
119.0
Loss on sale of business
-
(13.0
)
Segment operating income
69.3
67.0
Segment operating income as a percentage of sales
9.4
%
10.0
%
Expand
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, 2025
Gross Profit
Selling, General & Administrative Expense
Operating Income
Six Months Ended June 30, 2024
Gross Profit
Selling, General & Administrative Expense
Operating Income
Reported
$
567,691
$
280,080
$
299,259
Reported
$
508,153
$
275,763
$
241,872
Reported as a percent of sales
35.4
%
17.5
%
18.7
%
Reported as a percent of sales
32.1
%
17.4
%
15.3
%
Realignment charges (a)
4,867
(751
)
5,618
Realignment charges (a)
12,422
(321
)
12,743
Discrete items (b)
63
(224
)
287
Discrete item (b)
-
2,000
(2,000
)
Adjusted
$
572,621
$
279,105
$
305,164
Adjusted
$
520,575
$
277,442
$
252,615
Adjusted as a percent of sales
35.7
%
17.4
%
19.0
%
Adjusted as a percent of sales
32.9
%
17.5
%
16.0
%
Flow Control Division
Six Months Ended June 30, 2025
Gross Profit
Selling, General & Administrative Expense
Operating Income
Six Months Ended June 30, 2024
Gross Profit
Selling, General & Administrative Expense
Loss on Sale of Business
Operating Income
Reported
$
207,881
$
138,627
$
69,254
Reported
$
198,966
$
119,026
$
12,981
$
66,959
Reported as a percent of sales
28.3
%
18.8
%
9.4
%
Reported as a percent of sales
29.8
%
17.8
%
1.9
%
10.0
%
Realignment charges (a)
10,319
3,625
6,694
Realignment charges (a)
988
(61
)
(12,981
)
14,030
Acquisition related (c)
752
(4,471
)
5,223
Discrete item (c)
-
(1,100
)
-
1,100
Purchase accounting step-up and intangible asset amortization (d)
6,117
(2,600
)
8,717
Adjusted
$
199,954
$
117,865
$
-
$
82,089
Discrete items (b)
9
(163
)
172
Adjusted as a percent of sales
29.9
%
17.6
%
0.0
%
12.3
%
Adjusted
$
225,078
$
135,018
$
90,060
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 of which $3,000 is non-cash.
(a) Charges represent realignment costs incurred as a result of realignment programs of which $20,000 is non-cash.
(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.
(b) Represents a reduction to reserves associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.
(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.
(c) Charge represents costs associated with merger and acquisition activity.
(d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
Expand
Second Quarter and Year-to-Date 2025 - Segment Results
(dollars in millions, comparison vs. 2024 second quarter and year-to-date, unaudited)
FPD
FCD
2nd Qtr
Full Year
2nd Qtr
Full Year
Bookings
$
723.8
$
1,576.1
$
354.7
$
730.4
- vs. prior year
-175.1
-19.5
%
-26.2
-1.6
%
5.4
1.6
%
40.5
5.9
%
- on constant currency
-185.0
-20.6
%
-15.8
-1.0
%
3.5
1.0
%
43.5
6.3
%
Sales
$
818.9
$
1,602.1
$
371.5
$
735.6
- vs. prior year
6.8
0.8
%
20.5
1.3
%
23.8
6.8
%
67.3
10.1
%
- on constant currency
-2.3
-0.3
%
30.3
1.9
%
20.4
5.9
%
69.3
10.4
%
Gross Profit
$
299.2
$
567.7
$
107.7
$
207.9
- vs. prior year
15.0
%
11.7
%
1.3
%
4.5
%
Gross Margin (% of sales)
36.5
%
35.4
%
29.0
%
28.3
%
- vs. prior year (in basis points)
450 bps
330 bps
(160) bps
(150) bps
Operating Income
$
162.7
$
299.3
$
37.8
$
69.3
- vs. prior year
31.8
24.2
%
57.4
23.7
%
5.5
17.1
%
2.3
3.4
%
- on constant currency
29.4
22.5
%
58.5
24.2
%
5.6
17.2
%
3.1
4.7
%
Operating Margin (% of sales)
19.9
%
18.7
%
10.2
%
9.4
%
- vs. prior year (in basis points)
380 bps
340 bps
90 bps
(60) bps
Adjusted Operating Income *
$
166.5
$
305.2
$
45.5
$
90.1
- vs. prior year
28.9
21.0
%
52.5
20.8
%
-1.0
-2.2
%
8.0
9.7
%
- on constant currency
26.5
19.3
%
53.7
21.2
%
-1.0
-2.2
%
8.8
10.7
%
Adj. Oper. Margin (% of sales)*
20.3
%
19.0
%
12.2
%
12.2
%
- vs. prior year (in basis points)
340 bps
300 bps
(120) bps
(10) bps
Backlog
$
1,980.7
$
880.9
* Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges and other specific discrete items
Expand
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,
(Amounts in thousands, except par value)
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
629,203
$
675,441
Accounts receivable, net of allowance for expected credit losses of $91,911 and $79,059, respectively
1,049,817
976,739
Contract assets, net of allowance for expected credit losses of $4,577 and $3,404, respectively
339,355
298,906
Inventories
864,532
837,254
Prepaid expenses and other
121,121
116,157
Total current assets
3,004,028
2,904,497
Property, plant and equipment, net of accumulated depreciation of $1,223,841 and $1,142,667, respectively
558,345
539,703
Operating lease right-of-use assets, net
163,171
159,400
Goodwill
1,337,747
1,286,295
Deferred taxes
224,017
221,742
Other intangible assets, net
182,489
188,604
Other assets, net of allowance for expected credit losses of $65,830 and $66,081, respectively
212,728
200,580
Total assets
$
5,682,525
$
5,500,821
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
573,433
$
545,310
Accrued liabilities
495,425
561,486
Contract liabilities
283,181
283,670
Debt due within one year
44,870
44,059
Operating lease liabilities
33,473
33,559
Total current liabilities
1,430,382
1,468,084
Long-term debt due after one year
1,440,676
1,460,132
Operating lease liabilities
148,806
149,838
Retirement obligations and other liabilities
383,659
371,055
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
489,530
502,045
Retained earnings
4,125,669
4,025,750
Treasury shares, at cost – 46,233 and 45,688 shares, respectively
(2,036,348
)
(2,007,869
)
Deferred compensation obligation
6,413
8,172
Accumulated other comprehensive loss
(583,204
)
(741,424
)
Total Flowserve Corporation shareholders' equity
2,223,051
2,007,665
Noncontrolling interests
55,951
44,047
Total equity
2,279,002
2,051,712
Total liabilities and equity
$
5,682,525
$
5,500,821
Expand
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
(Amounts in thousands)
2025
2024
Cash flows – Operating activities:
Net earnings, including noncontrolling interests
$
167,681
$
154,367
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation
38,695
37,883
Amortization of intangible and other assets
9,589
4,391
Loss on sale of business
-
12,981
Stock-based compensation
18,822
17,400
Foreign currency, asset write downs and other non-cash adjustments
(877
)
10,935
Change in assets and liabilities:
Accounts receivable, net
(22,631
)
(168,540
)
Inventories
14,208
3,603
Contract assets, net
(28,930
)
(13,267
)
Prepaid expenses and other, net
13,589
10,945
Accounts payable
(10,414
)
14,376
Contract liabilities
(15,254
)
10,894
Accrued liabilities
(84,466
)
(47,795
)
Retirement obligations and other liabilities
(3,138
)
4,402
Net deferred taxes
7,338
(3,100
)
Net cash flows provided by operating activities
104,212
49,475
Cash flows – Investing activities:
Capital expenditures
(28,340
)
(28,289
)
Proceeds from disposal of assets
867
-
Payments for disposition of business
-
(2,352
)
Other
-
551
Net cash flows (used) by investing activities
(27,473
)
(30,090
)
Cash flows – Financing activities:
Payments on term loan
(18,750
)
(30,000
)
Proceeds under revolving credit facility
50,000
100,000
Payments under revolving credit facility
(50,000
)
(25,000
)
Proceeds under other financing arrangements
3,072
562
Payments under other financing arrangements
(1,231
)
(1,460
)
Repurchases of common shares
(52,797
)
(16,161
)
Payments related to tax withholding for stock-based compensation
(11,337
)
(9,093
)
Payments of dividends
(55,209
)
(55,259
)
Contingent consideration payment related to acquired business
(15,000
)
-
Other
(3,192
)
(272
)
Net cash flows (used) by financing activities
(154,444
)
(36,683
)
Effect of exchange rate changes on cash and cash equivalents
31,467
(13,297
)
Net change in cash and cash equivalents
(46,238
)
(30,595
)
Cash and cash equivalents at beginning of period
675,441
545,678
Cash and cash equivalents at end of period
$
629,203
$
515,083
Expand
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: 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; economic, political and other risks associated with our international operations, including military actions, trade embargoes, 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; 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, such as litigation involving asbestos-containing material claims; 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.