Latest news with #MOGAS
Yahoo
13-05-2025
- Business
- Yahoo
FLS Q1 Earnings Call: Pricing Actions and Supply Chain Initiatives Drive Outperformance Amid Tariff Uncertainty
Flow control equipment manufacturer Flowserve (NYSE:FLS) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 5.2% year on year to $1.14 billion. Its non-GAAP profit of $0.72 per share was 19.6% above analysts' consensus estimates. Is now the time to buy FLS? Find out in our full research report (it's free). Revenue: $1.14 billion vs analyst estimates of $1.1 billion (5.2% year-on-year growth, 3.6% beat) Adjusted EPS: $0.72 vs analyst estimates of $0.60 (19.6% beat) Adjusted EBITDA: $171.5 million vs analyst estimates of $144.8 million (15% margin, 18.4% beat) Management reiterated its full-year Adjusted EPS guidance of $3.20 at the midpoint Operating Margin: 11.5%, up from 10.4% in the same quarter last year Free Cash Flow was -$61.67 million, down from $48.65 million in the same quarter last year Backlog: $2.9 billion at quarter end, up 11.1% year on year Market Capitalization: $6.64 billion Flowserve's first quarter results were shaped by robust aftermarket demand and strong execution across its business systems. CEO Scott Rowe credited the company's performance to high service levels in its aftermarket division, which secured a major nuclear power plant upgrade, and to operational improvements from the 80-20 complexity reduction program. CFO Amy Schwetz noted that early-year price increases and disciplined cost control further supported margin expansion, while the integration of recent acquisitions, such as MOGAS, contributed positively to earnings. Management's forward-looking guidance remains cautious, with attention to the evolving tariff environment and macroeconomic uncertainties. Rowe explained that Flowserve's global manufacturing footprint and ability to shift sourcing are central to mitigating tariff impacts, but he acknowledged that sustained uncertainty or further trade policy changes could pressure future bookings. Schwetz reiterated guidance for margin expansion, attributing confidence to operational levers and ongoing benefits from the Flowserve Business System, while emphasizing the company's readiness to respond quickly if conditions deteriorate. Flowserve's first quarter was influenced by high aftermarket activity, strong nuclear sector orders, and progress in operational initiatives. Management highlighted several factors impacting both the quarter's performance and the company's outlook amid a shifting trade landscape. Aftermarket and Nuclear Orders: Aftermarket bookings reached nearly $690 million, including a significant nuclear power plant upgrade order, marking the fourth consecutive quarter above $600 million. Nuclear-related activity exceeded $100 million for the third straight quarter, supporting the backlog and visibility into future revenue. Pricing Actions and Tariff Response: The company implemented two price increases—one annual and one targeted in March—to offset new tariff impacts. Management emphasized proactive engagement with customers and the use of change orders to reprice projects in the backlog where possible. Supply Chain Adaptability: Flowserve's global manufacturing and sourcing flexibility was cited as a competitive advantage. The company is actively relocating production and sourcing to regions with lower tariff exposure, aiming to mitigate a potential $90–$100 million annualized gross tariff impact. Operational Excellence Programs: The ongoing 80-20 complexity reduction and Flowserve Business System initiatives have improved productivity and margins. Management reported that SKU rationalization reduced complexity at key sites, with expectations for further benefits by midyear. MOGAS Acquisition Integration: The integration of MOGAS, specializing in severe service valves, is ahead of schedule. Despite lighter project bookings, the aftermarket business remains strong, and cost synergies are materializing, contributing to gross margin improvements. Looking ahead, Flowserve's performance will depend on its ability to navigate tariffs, maintain momentum in aftermarket and nuclear markets, and continue operational improvements. Tariff Mitigation Efforts: Management aims to offset increased costs through pricing, supply chain adjustments, and leveraging trade agreements. The timing of these actions versus tariff implementation remains a risk to margin performance in the second half of the year. Aftermarket and Nuclear Visibility: Continued strength in aftermarket services and nuclear sector orders provides near-term revenue certainty, especially given multi-quarter visibility on large nuclear projects. Operational Initiatives: Expansion of the 80-20 program and the Flowserve Business System is expected to drive further gross margin gains and working capital efficiencies, supporting the company's goal of 100 basis points of operating margin expansion for the year. Andy Kaplowitz (Citigroup): Asked about the sustainability of high aftermarket bookings; management responded that while recent nuclear orders may not repeat, the elevated run rate and project funnel support continued strength unless macro conditions worsen. Mike Halloran (Baird): Inquired about Flowserve's manufacturing footprint and pricing power; Rowe described regional manufacturing as a competitive advantage and outlined aggressive price actions to stay ahead of cost pressures. Deane Dray (RBC Capital Markets): Sought clarification on pricing dynamics between aftermarket and original equipment; management said aftermarket pricing is stickier due to lead times and urgency, while project repricing is enabled through updated contract terms. Nathan Jones (Stifel): Questioned visibility into the project pipeline and timing of tariff impacts; Rowe explained that large projects provide year-ahead visibility, with nuclear projects tracked two years out, and Schwetz noted that margin pressure from tariffs is expected to intensify in the second half. Joe Giordano (TD Cowen): Asked about clean energy project funding and macro assumptions in guidance; management said decarbonization remains active, with guidance based on current tariff and demand signals, and built-in contingencies for demand softness if conditions weaken. In the coming quarters, the StockStory team will watch (1) the effectiveness of Flowserve's tariff mitigation strategies and whether pricing actions hold amid potential customer resistance, (2) the pace of margin expansion and working capital improvement from operational programs, and (3) ongoing momentum in aftermarket and nuclear bookings, which underpin revenue visibility. Progress on MOGAS integration and additional supply chain adjustments will also be key markers. Flowserve currently trades at a forward P/E ratio of 15.8×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
08-05-2025
- Automotive
- Zawya
ENOC Link delivers 350 million in total volume to business customers since launch
Key highlights: ENOC Link has delivered nearly 350 million in fuel volume to UAE businesses since 2019, serving 268 companies across transportation and logistics sectors. The mobile fuel delivery service has experienced explosive growth of 306.4% by 2024, offering 24/7 on-demand fueling that saves businesses time and vehicle wear. ENOC Link plans to transition 60% of its customer portfolio to motor gasoline (MOGAS) by 2026, expanding from its Dubai terminals and Abu Dhabi operations hub. Total volume includes motor gasoline (MOGAS) and diesel; Dubai-based mobile fuel delivery service aims to have 60% of its customer portfolio transitioned to using MOGAS by 2026 Dubai, UAE: ENOC Link, the innovative digital fuel delivery platform, has delivered total volumes of 349,790,732 of motor gasoline (MOGAS) and diesel to businesses from its inception in 2019 to 2024, highlighting the growing market demand for mobile fuel services within the business-to-business sector. Underscoring the success of the Group's innovative approach to fuel supply, ENOC Link currently helps over 268 businesses across the country to operate efficiently, including 60 businesses served from its Mussafah base in Abu Dhabi. The platform caters to the needs of various sectors, including transportation and logistics. Commenting on its ongoing success, His Excellency Saif Humaid Al Falasi, Group CEO at ENOC, said: 'Since its inception as part of the Group's accelerator programme, NEXT, ENOC Link has supplied fuel to 268 businesses in the country, resulting in record growth of 306.4% by 2024. With consistency at the heart of our operations, we will continue to remain flexible and embrace emerging technologies aligning with ENOC's highest standards to meet both current and future demands.' ENOC Link offers convenient, on-demand fuel delivery directly to businesses and commercial fleets, ensuring access to quality fuels while helping them save on mileage and vehicle wear and tear. ENOC Link also offers night-time fuelling, enabling businesses to enhance efficiency by leveraging ENOC Link's 24/7 service for optimised truck utilisation and seamless operations backed by Internet of Things (IoT) technology. The digital platform also provides businesses with MOGAS through its terminals located in Dubai and operation hub in Abu Dhabi and is targeting 60% of gasoline users among its customer portfolio by 2026. ENOC Link unveiled the world's first solar-powered biodiesel truck at WETEX 2024. The innovative digital fuel delivery service also plans to expand its reach across all emirates in the UAE. Most recently, ENOC Link supported the Fujairah International Marine Club (FIMC). For their XCAT World Championship, which took place from February 13-16, 2025, through supplying Super 98 fuel for the event. The support came in alignment of ENOC's commitment to fostering strong and mutually beneficial relationships and collaboration with its partners. ENOC Link was also the Gold Sponsor of the highly anticipated Community Festival 2025, which took place on the 22nd of February at DAMAC Hills. The fully-day event was organised in collaboration with Dubai Police, Dubai Civil Defense, Dubai Land Department, Dubai Ambulance, RTA, and Dubai Municipality. ENOC Link's support of the Community Festival 2025 came as part of ENOC Group's efforts to have a positive impact on the communities. About ENOC Group: ENOC Group is a leading integrated global energy player and a wholly owned entity of the Government of Dubai that is integral to the Emirate's success. ENOC owns and operates assets in the fields of exploration & production, supply & operations, terminals, fuel retail, aviation fuel and petroleum products for commercial & industrial use. The Group's general business operations include automotive services, non-fuel F&B retail and fabrication services. Servicing thousands of customers in over 60 markets, the Group employs a multi-national workforce of over 12,500 employees and is deploying its world-class customer service, latest innovations, and technologies as well as best practices to empower the UAE's social and economic development.
