Flowserve Corporation Reports Third Quarter 2024 Results; Reaffirms 2024 Adjusted EPS Guidance
- Bookings of $1.20 billion, an increase of 12.7% compared to prior year, including $615 million of aftermarket activity and record levels of 3D strategy bookings
- Power bookings increased nearly 30% year-over-year, including over $100 million in nuclear awards during the third quarter
- Adjusted Gross and Operating Margins1 of 32.4% and 11.1%, respectively, an increase of 270 and 240 basis points compared to prior year period
- Third quarter Reported and Adjusted2 Earnings Per Share (EPS)3 of 44 cents and 62 cents, an increase of 26% and 24%, respectively, and both include a 7 cent unfavorable impact from a discrete charge for certain long-term liabilities
- Generated strong operating cash flow of $178 million, an increase of 121% year-over-year, driven by earnings growth and working capital improvements
DALLAS–(BUSINESS WIRE)–Flowserve Corporation (NYSE: FLS) (“Flowserve” or the “Company”), a leading provider of flow control products and services for the global infrastructure markets, today announced its financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights (all comparisons to the 2023 third quarter, unless otherwise noted)
-
Total bookings were $1.20 billion, up $136.1 million or 12.7%. On a constant currency basis4, total bookings were up $142.8 million or 13.4%
- Original equipment bookings were $589.0 million, up $103.8 million or 21.4%. On a constant currency basis, original equipment bookings were up $106.1 million or 21.9%
- Aftermarket bookings were $614.6 million, up $32.3 million or 5.6%. On a constant currency basis, aftermarket bookings were up $36.7 million or 6.3%
-
Sales were $1.13 billion, up $38.4 million or 3.5%. On a constant currency basis, sales were up $43.4 million or 4.0%
- Original equipment sales were $555.8 million, up $26.6 million or 5.0%. On a constant currency basis, original equipment sales were up $27.6 million or 5.2%
- Aftermarket sales were $577.3 million, up $11.7 million or 2.1%. On a constant currency basis, aftermarket sales were up $15.7 million or 2.8%
-
Reported gross and operating margins were 31.5% and 9.1%, respectively, up 250 basis points and 270 basis points, respectively
- Adjusted gross and operating margins were 32.4% and 11.1%, respectively, up 270 basis points and 240 basis points, respectively
- Both Reported and Adjusted third quarter 2024 operating margins were impacted by a $12.0 million expense charge from an actuarial-determined assessment of certain long-term liabilities, which reduced operating margins by approximately 106 basis points
-
Reported EPS of $0.44 and Adjusted EPS of $0.62, compared to $0.35 and $0.50, respectively
- Third quarter 2024 Reported EPS includes after-tax adjusted expenses of $23.5 million, comprised of realignment charges, an in-process R&D technology purchase, pension plan transition expense, below-the-line foreign currency impact and MOGAS Industries acquisition expense
- Both Reported and Adjusted EPS were impacted by a $9.2 million (7 cents per share) expense charge resulting from an actuarial-determined assessment of certain long-term liabilities
- Backlog of $2.8 billion was up 3.7% sequentially with a third quarter book-to-bill of 1.06x
“Our third quarter results reflect strong operational performance, including meaningful year-over-year improvements in margins, EPS and cash flow. The Flowserve Business System is beginning to deliver results as we advance our operational excellence and portfolio excellence initiatives. We generated $1.2 billion in bookings during the quarter, which included a healthy mix of project awards, strong aftermarket activity and record bookings from our 3D strategic initiatives,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “We believe our 3D strategy, combined with the Flowserve Business System, are the key drivers to accelerating growth and continuing to expand our margins.”
Rowe concluded, “With backlog at near-record levels of $2.8 billion and our successful closing of the MOGAS Industries acquisition earlier this month, we expect to exit 2024 with positive momentum. We are well-positioned to continue our meaningful progress in 2025 toward our 2027 financial targets. I am confident that our sustained progress will enable us to create long-term value for our customers, associates, and shareholders.”
2024 Guidance5
Flowserve today reaffirmed its previously announced Adjusted EPS target range, as well as certain other financial metrics, provided in its full-year 2024 guidance issued on July 29, 2024. Flowserve’s 2024 Adjusted EPS target range excludes expected adjusted items including realignment charges of approximately $45 million and the potential impact of below-the-line foreign currency effects and certain other discrete items which may arise during the course of the year. In addition, Flowserve lowered its full-year 2024 Reported EPS target range. 2024 Guidance excludes the recently completed MOGAS Industries acquisition.
|
|
Target Range |
||
|
Revenue Growth |
Up 4.0% to 6.0% |
||
|
Reported Earnings Per Share |
$2.15 – $2.35 |
||
|
Adjusted Earnings Per Share |
$2.60 – $2.75 |
||
|
Net Interest Expense |
$60 to $65 million |
||
|
Adjusted Tax Rate |
~21% |
||
|
Capital Expenditures |
$75 – $85 million |
Third Quarter 2024 Results Conference Call
Flowserve will host its conference call with the financial community on Tuesday, October 29th at 10:00 AM Eastern. Scott Rowe, President and Chief Executive Officer, as well as other members of the management team will be presenting. The call can be accessed by shareholders and other interested parties at www.flowserve.com under the “Investors” section.
|
1 Adjusted gross and operating margins are calculated by dividing adjusted gross profit and adjusted operating income, respectively, by revenues. Adjusted gross profit and adjusted operating income are derived by excluding the adjusted items. 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. |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||
|
(Unaudited) |
|||||||
|
Three Months Ended September 30, |
|||||||
|
(Amounts in thousands, except per share data) |
|
2024 |
|
|
2023 |
|
|
|
|
|||||||
|
Sales |
$ |
1,133,087 |
|
$ |
1,094,718 |
|
|
|
Cost of sales |
|
(776,020 |
) |
|
(777,024 |
) |
|
|
Gross profit |
|
357,067 |
|
|
317,694 |
|
|
|
Selling, general and administrative expense |
|
(259,025 |
) |
|
(252,065 |
) |
|
|
Net earnings from affiliates |
|
5,150 |
|
|
4,627 |
|
|
|
Operating income |
|
103,192 |
|
|
70,256 |
|
|
|
Interest expense |
|
(16,587 |
) |
|
(17,273 |
) |
|
|
Interest income |
|
1,403 |
|
|
2,134 |
|
|
|
Other income (expense), net |
|
(5,920 |
) |
|
(13,710 |
) |
|
|
Earnings (loss) before income taxes |
|
82,088 |
|
|
41,407 |
|
|
|
(Provision for) benefit from income taxes |
|
(18,739 |
) |
|
11,186 |
|
|
|
Net earnings (loss), including noncontrolling interests |
|
63,349 |
|
|
52,593 |
|
|
|
Less: Net earnings attributable to noncontrolling interests |
|
(4,967 |
) |
|
(6,437 |
) |
|
|
Net earnings (loss) attributable to Flowserve Corporation |
$ |
58,382 |
|
$ |
46,156 |
|
|
|
|
|
||||||
|
Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: |
|
|
|||||
|
Basic |
$ |
0.44 |
|
$ |
0.35 |
|
|
|
Diluted |
|
0.44 |
|
|
0.35 |
|
|
|
|
|
||||||
|
Weighted average shares – basic |
|
131,395 |
|
|
131,183 |
|
|
|
Weighted average shares – diluted |
|
132,247 |
|
|
132,026 |
|
|
|
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 September 30, 2024 |
Gross |
Selling, |
Operating |
Other |
Provision |
Net Earnings |
Effective |
Diluted |
|||||||||||||||||
|
Reported |
$ |
357,067 |
|
$ |
259,025 |
|
$ |
103,192 |
|
$ |
(5,920 |
) |
$ |
18,739 |
|
$ |
58,382 |
|
|
22.8 |
% |
0.44 |
|
||
|
Reported as a percent of sales |
|
31.5 |
% |
|
22.9 |
% |
|
9.1 |
% |
|
-0.5 |
% |
|
1.7 |
% |
|
5.2 |
% |
|||||||
|
Realignment charges (a) |
|
6,813 |
|
|
(2,142 |
) |
|
8,955 |
|
|
– |
|
|
(246 |
) |
|
9,201 |
|
|
-2.7 |
% |
0.07 |
|
||
|
Discrete items (b)(c) |
|
2,700 |
|
|
(9,500 |
) |
|
12,200 |
|
|
– |
|
|
2,869 |
|
|
9,331 |
|
|
23.5 |
% |
0.07 |
|
||
|
Acquisition related (d) |
|
– |
|
|
(1,694 |
) |
|
1,694 |
|
|
– |
|
|
399 |
|
|
1,295 |
|
|
23.6 |
% |
0.01 |
|
||
|
Below-the-line foreign exchange impacts (e) |
|
– |
|
|
– |
|
|
– |
|
|
3,184 |
|
|
(467 |
) |
|
3,651 |
|
|
-14.8 |
% |
0.03 |
|
||
|
Adjusted |
$ |
366,580 |
|
$ |
245,689 |
|
$ |
126,041 |
|
$ |
(2,736 |
) |
$ |
21,294 |
|
$ |
81,860 |
|
|
19.7 |
% |
0.62 |
|
||
|
Adjusted as a percent of sales |
|
32.4 |
% |
|
21.7 |
% |
|
11.1 |
% |
|
-0.2 |
% |
|
1.9 |
% |
|
7.2 |
% |
|||||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,100 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charge represents a one-time $5,000 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
|||||||||||||||||||||||||
|
(c) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology. |
|||||||||||||||||||||||||
|
(d) Charge represents acquisition-related costs associated with the MOGAS acquisition. |
|||||||||||||||||||||||||
|
(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. |
|||||||||||||||||||||||||
|
Three Months Ended September 30, 2023 |
Gross |
Selling, |
Operating |
Other |
Provision |
Earnings |
Net |
Effective |
Diluted |
||||||||||||||||
|
Reported |
$ |
317,694 |
|
$ |
252,065 |
|
$ |
70,256 |
|
$ |
(13,710 |
) |
$ |
(11,186 |
) |
$ |
6,437 |
|
$ |
46,156 |
|
-27.0 |
% |
0.35 |
|
|
Reported as a percent of sales |
|
29.0 |
% |
|
23.0 |
% |
|
6.4 |
% |
|
-1.3 |
% |
|
-1.0 |
% |
|
0.6 |
% |
|
4.2 |
% |
||||
|
Realignment charges (a) |
|
7,240 |
|
|
(14,954 |
) |
|
22,194 |
|
|
– |
|
|
4,250 |
|
|
– |
|
|
17,944 |
|
19.1 |
% |
0.14 |
|
|
Acquisition related (b) |
|
– |
|
|
(2,539 |
) |
|
2,539 |
|
|
– |
|
|
443 |
|
|
– |
|
|
2,096 |
|
17.4 |
% |
0.02 |
|
|
Correction of prior period errors (c) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(3,559 |
) |
|
3,559 |
|
0.0 |
% |
0.03 |
|
|
Discrete tax benefit (d) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
13,000 |
|
|
– |
|
|
(13,000 |
) |
0.0 |
% |
(0.10 |
) |
|
Below-the-line foreign exchange impacts (e) |
|
– |
|
|
– |
|
|
– |
|
|
12,164 |
|
|
2,276 |
|
|
– |
|
|
9,888 |
|
18.7 |
% |
0.07 |
|
|
Adjusted |
$ |
324,934 |
|
$ |
234,572 |
|
$ |
94,989 |
|
$ |
(1,546 |
) |
$ |
8,783 |
|
$ |
2,878 |
|
$ |
66,643 |
|
11.2 |
% |
0.50 |
|
|
Adjusted as a percent of sales |
|
29.7 |
% |
|
21.4 |
% |
|
8.7 |
% |
|
-0.1 |
% |
|
0.8 |
% |
|
0.3 |
% |
|
6.1 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $0 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charges represent costs associated with a terminated acquisition. |
|||||||||||||||||||||||||
|
(c) Represents the amount to correct the cumulative impact of prior period errors |
|||||||||||||||||||||||||
|
(d) Represents a discrete tax benefit due to release of tax valuation allowance on the net deferred tax assets in a foreign jurisdiction. The associated tax expense was adjusted out in 2015. |
|||||||||||||||||||||||||
|
(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. |
|||||||||||||||||||||||||
|
SEGMENT INFORMATION |
|||||||
|
(Unaudited) |
|||||||
|
|
|
||||||
|
FLOWSERVE PUMPS DIVISION |
Three Months Ended September 30, |
||||||
|
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
|
|
Bookings |
$ |
886.6 |
|
$ |
734.7 |
|
|
|
Sales |
|
782.1 |
|
|
766.2 |
|
|
|
Gross profit |
|
253.2 |
|
|
220.3 |
|
|
|
Gross profit margin |
|
32.4 |
% |
|
28.8 |
% |
|
|
SG&A |
|
149.1 |
|
|
146.7 |
|
|
|
Segment operating income |
|
109.3 |
|
|
78.3 |
|
|
|
Segment operating income as a percentage of sales |
|
14.0 |
% |
|
10.2 |
% |
|
|
|
|
||||||
|
FLOW CONTROL DIVISION |
Three Months Ended September 30, |
||||||
|
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
|
|
Bookings |
$ |
318.4 |
|
$ |
330.5 |
|
|
|
Sales |
|
353.1 |
|
|
330.7 |
|
|
|
Gross profit |
|
106.5 |
|
|
97.6 |
|
|
|
Gross profit margin |
|
30.2 |
% |
|
29.5 |
% |
|
|
SG&A |
|
59.8 |
|
|
54.0 |
|
|
|
Segment operating income |
|
46.7 |
|
|
43.5 |
|
|
|
Segment operating income as a percentage of sales |
|
13.2 |
% |
|
13.2 |
% |
|
|
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 September 30, 2024 |
Gross Profit |
Selling, |
Operating |
Three Months Ended September 30, 2023 |
Gross Profit |
Selling, |
Operating |
|||||||||||||
|
Reported |
$ |
253,185 |
|
$ |
149,060 |
|
$ |
109,274 |
|
Reported |
$ |
220,321 |
|
$ |
146,679 |
|
$ |
78,269 |
|
|
|
Reported as a percent of sales |
|
32.4 |
% |
|
19.1 |
% |
|
14.0 |
% |
Reported as a percent of sales |
|
28.8 |
% |
|
19.1 |
% |
|
10.2 |
% |
|
|
Realignment charges (a) |
|
8,415 |
|
|
(716 |
) |
|
9,131 |
|
Realignment charges (a) |
|
6,141 |
|
|
(9,929 |
) |
|
16,070 |
|
|
|
Discrete items (b)(c) |
|
1,700 |
|
|
(8,000 |
) |
|
9,700 |
|
Adjusted |
$ |
226,462 |
|
$ |
136,750 |
|
$ |
94,339 |
|
|
|
Adjusted |
$ |
263,300 |
|
$ |
140,344 |
|
$ |
128,105 |
|
Adjusted as a percent of sales |
|
29.6 |
% |
|
17.8 |
% |
|
12.3 |
% |
|
|
Adjusted as a percent of sales |
|
33.7 |
% |
|
17.9 |
% |
|
16.4 |
% |
|||||||||||
|
Flow Control Division |
||||||||||||||||||||
|
Three Months Ended September 30, 2024 |
Gross Profit |
Selling, |
Operating |
Three Months Ended September 30, 2023 |
Gross Profit |
Selling, |
Operating |
|||||||||||||
|
Reported |
$ |
106,503 |
|
$ |
59,790 |
|
$ |
46,713 |
|
Reported |
$ |
97,563 |
|
$ |
54,016 |
|
$ |
43,547 |
|
|
|
Reported as a percent of sales |
|
30.2 |
% |
|
16.9 |
% |
|
13.2 |
% |
Reported as a percent of sales |
|
29.5 |
% |
|
16.3 |
% |
|
13.2 |
% |
|
|
Realignment charges (a) |
|
(1,590 |
) |
|
(1,379 |
) |
|
(211 |
) |
Realignment charges (a) |
|
1,099 |
|
|
(1,572 |
) |
|
2,671 |
|
|
|
Discrete items (b) |
|
800 |
|
|
(400 |
) |
|
1,200 |
|
Acquisition related (b) |
|
– |
|
|
(2,539 |
) |
|
2,539 |
|
|
|
Acquisition related (d) |
|
– |
|
|
(1,694 |
) |
|
1,694 |
|
Adjusted |
$ |
98,662 |
|
$ |
49,905 |
|
$ |
48,757 |
|
|
|
Adjusted |
$ |
105,713 |
|
$ |
56,317 |
|
$ |
49,396 |
|
Adjusted as a percent of sales |
|
29.8 |
% |
|
15.1 |
% |
|
14.7 |
% |
|
|
Adjusted as a percent of sales |
|
29.9 |
% |
|
15.9 |
% |
|
14.0 |
% |
|||||||||||
|
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 $5,100 is non-cash. |
(a) Charges represent realignment costs incurred as a result of realignment programs of which $0 is non-cash. |
|||||||||||||||||||
|
(b) Charge represents a one-time $3,700 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
(b) Charges represent costs associated with a terminated acquisition |
|||||||||||||||||||
| (c) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology. | ||||||||||||||||||||
|
(d) Charge represents acquisition-related costs associated with the MOGAS acquisition. |
||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||
|
(Unaudited) |
|||||||
|
Nine Months Ended September 30, |
|||||||
|
(Amounts in thousands, except per share data) |
|
2024 |
|
|
2023 |
|
|
|
|
|||||||
|
Sales |
$ |
3,377,458 |
|
$ |
3,155,399 |
|
|
|
Cost of sales |
|
(2,315,326 |
) |
|
(2,218,114 |
) |
|
|
Gross profit |
|
1,062,132 |
|
|
937,285 |
|
|
|
Selling, general and administrative expense |
|
(726,070 |
) |
|
(726,424 |
) |
|
|
Loss on sale of business |
|
(12,981 |
) |
|
– |
|
|
|
Net earnings from affiliates |
|
14,494 |
|
|
13,229 |
|
|
|
Operating income |
|
337,575 |
|
|
224,090 |
|
|
|
Interest expense |
|
(48,820 |
) |
|
(50,039 |
) |
|
|
Interest income |
|
3,746 |
|
|
5,535 |
|
|
|
Other income (expense), net |
|
(12,057 |
) |
|
(27,271 |
) |
|
|
Earnings (loss) before income taxes |
|
280,444 |
|
|
152,315 |
|
|
|
(Provision for) benefit from income taxes |
|
(62,728 |
) |
|
(14,571 |
) |
|
|
Net earnings (loss), including noncontrolling interests |
|
217,716 |
|
|
137,744 |
|
|
|
Less: Net earnings attributable to noncontrolling interests |
|
(12,498 |
) |
|
(13,618 |
) |
|
|
Net earnings (loss) attributable to Flowserve Corporation |
$ |
205,218 |
|
$ |
124,126 |
|
|
|
|
|
||||||
|
Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: |
|
|
|||||
|
Basic |
$ |
1.56 |
|
$ |
0.95 |
|
|
|
Diluted |
|
1.55 |
|
|
0.94 |
|
|
|
|
|
||||||
|
Weighted average shares – basic |
|
131,520 |
|
|
131,095 |
|
|
|
Weighted average shares – diluted |
|
132,343 |
|
|
131,864 |
|
|
|
Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||||
|
(Amounts in thousands, except per share data) |
|||||||||||||||||||||||||
|
Nine Months Ended September 30, 2024 |
Gross Profit |
Selling, |
Loss on |
Operating |
Other |
Provision For |
Net |
Effective |
Diluted |
||||||||||||||||
|
Reported |
$ |
1,062,132 |
|
$ |
726,070 |
|
$ |
12,981 |
|
$ |
337,575 |
|
$ |
(12,057 |
) |
$ |
62,728 |
|
$ |
205,218 |
|
22.4 |
% |
1.55 |
|
|
Reported as a percent of sales |
|
31.4 |
% |
|
21.5 |
% |
|
0.4 |
% |
|
10.0 |
% |
|
-0.4 |
% |
|
1.9 |
% |
|
6.1 |
% |
||||
|
Realignment charges (a) |
|
20,007 |
|
|
(3,369 |
) |
|
(12,981 |
) |
|
36,357 |
|
|
– |
|
|
2,035 |
|
|
34,322 |
|
5.6 |
% |
0.26 |
|
|
Discrete items (b)(c)(d) |
|
2,700 |
|
|
(7,500 |
) |
|
– |
|
|
10,200 |
|
|
– |
|
|
2,869 |
|
|
7,331 |
|
28.1 |
% |
0.06 |
|
|
Acquisition related (e) |
|
– |
|
|
(2,794 |
) |
|
– |
|
|
2,794 |
|
|
– |
|
|
658 |
|
|
2,136 |
|
23.6 |
% |
0.02 |
|
|
Discrete asset write-downs (f)(g) |
|
– |
|
|
(1,795 |
) |
|
– |
|
|
1,795 |
|
|
3,567 |
|
|
1,342 |
|
|
4,020 |
|
25.0 |
% |
0.03 |
|
|
Below-the-line foreign exchange impacts (h) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
2,068 |
|
|
(489 |
) |
|
2,557 |
|
-23.6 |
% |
0.02 |
|
|
Adjusted |
$ |
1,084,839 |
|
$ |
710,612 |
|
$ |
– |
|
$ |
388,721 |
|
$ |
(6,422 |
) |
$ |
69,143 |
|
$ |
255,584 |
|
20.5 |
% |
1.93 |
|
|
Adjusted as a percent of sales |
|
32.1 |
% |
|
21.0 |
% |
|
0.0 |
% |
|
11.5 |
% |
|
-0.2 |
% |
|
2.0 |
% |
|
7.6 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $25,100 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charge 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 a one-time $5,000 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
|||||||||||||||||||||||||
|
(d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology. |
|||||||||||||||||||||||||
|
(e) Charge represents acquisition-related costs associated with the MOGAS acquisition. |
|||||||||||||||||||||||||
|
(f) Charge represents a $1,795 non-cash write-down of a software asset. |
|||||||||||||||||||||||||
|
(g) Charge represents a $3,567 non-cash write-down of a debt investment. |
|||||||||||||||||||||||||
|
(h) 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. |
|||||||||||||||||||||||||
|
Nine Months Ended September 30, 2023 |
Gross Profit |
Selling, |
Operating |
Other |
Provision |
Earnings |
Net |
Effective |
Diluted |
||||||||||||||||
|
Reported |
$ |
937,285 |
|
$ |
726,424 |
|
$ |
224,090 |
|
$ |
(27,271 |
) |
$ |
14,571 |
|
$ |
13,618 |
|
$ |
124,126 |
|
9.6 |
% |
0.94 |
|
|
Reported as a percent of sales |
|
29.7 |
% |
|
23.0 |
% |
|
7.1 |
% |
|
-0.9 |
% |
|
0.5 |
% |
|
0.4 |
% |
|
3.9 |
% |
||||
|
Realignment charges (a) |
|
11,548 |
|
|
(39,076 |
) |
|
50,624 |
|
|
– |
|
|
10,415 |
|
|
– |
|
|
40,209 |
|
20.6 |
% |
0.30 |
|
|
Acquisition related (b) |
|
– |
|
|
(8,491 |
) |
|
8,491 |
|
|
– |
|
|
1,997 |
|
|
– |
|
|
6,494 |
|
23.5 |
% |
0.05 |
|
|
Discrete asset write-downs (c)(d)(e) |
|
1,969 |
|
|
(3,955 |
) |
|
5,924 |
|
|
– |
|
|
1,517 |
|
|
– |
|
|
4,407 |
|
25.6 |
% |
0.03 |
|
|
Below-the-line foreign exchange impacts (f) |
|
– |
|
|
– |
|
|
– |
|
|
24,328 |
|
|
2,669 |
|
|
– |
|
|
21,659 |
|
0.0 |
% |
0.16 |
|
|
Correction of prior period errors (g) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(3,559 |
) |
|
3,559 |
|
0.0 |
% |
0.03 |
|
|
Discrete tax benefit (h) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
13,000 |
|
|
– |
|
|
(13,000 |
) |
0.0 |
% |
(0.10 |
) |
|
Adjusted |
$ |
950,802 |
|
$ |
674,902 |
|
$ |
289,129 |
|
$ |
(2,943 |
) |
$ |
44,169 |
|
$ |
10,059 |
|
$ |
187,454 |
|
18.3 |
% |
1.42 |
|
|
Adjusted as a percent of sales |
|
30.1 |
% |
|
21.4 |
% |
|
9.2 |
% |
|
-0.1 |
% |
|
1.4 |
% |
|
0.3 |
% |
|
5.9 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $7,601 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charges represent costs associated with a terminated acquisition. |
|||||||||||||||||||||||||
|
(c) Charge represents a further expense of $1,834 associated with a sales contract that was initially adjusted out of Non-GAAP measures in 2017. |
|||||||||||||||||||||||||
|
(d) Charge represents a further $1,173 non-cash write-down of inventory associated with a customer sales contract that was originally determined to be uncollectible in 2020. |
|||||||||||||||||||||||||
|
(e) Charge represents a $2,917 non-cash write-down of a licensing agreement. |
|||||||||||||||||||||||||
|
(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. |
|||||||||||||||||||||||||
|
(g) Represents the amount to correct the cumulative impact of prior period errors. |
|||||||||||||||||||||||||
|
(h) Represents a discrete tax benefit due to release of tax valuation allowance on the net deferred tax assets in a foreign jurisdiction. The associated tax expense was adjusted out in 2015. |
|||||||||||||||||||||||||
|
SEGMENT INFORMATION |
|||||||
|
(Unaudited) |
|||||||
|
|
|||||||
|
FLOWSERVE PUMPS DIVISION |
Nine Months Ended September 30, |
||||||
|
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
|
|
Bookings |
$ |
2,488.6 |
|
|
$ |
2,222.3 |
|
|
Sales |
|
2,363.7 |
|
|
|
2,231.7 |
|
|
Gross profit |
|
761.3 |
|
|
|
668.6 |
|
|
Gross profit margin |
|
32.2 |
% |
|
|
30.0 |
% |
|
SG&A |
|
424.8 |
|
|
|
426.4 |
|
|
Segment operating income |
|
351.1 |
|
|
|
255.3 |
|
|
Segment operating income as a percentage of sales |
|
14.9 |
% |
|
|
11.4 |
% |
|
|
|
|
|||||
|
FLOW CONTROL DIVISION |
Nine Months Ended September 30, |
||||||
|
(Amounts in millions, except percentages) |
|
2024 |
|
|
|
2023 |
|
|
Bookings |
$ |
1,008.3 |
|
|
$ |
1,022.1 |
|
|
Sales |
|
1,021.4 |
|
|
|
930.0 |
|
|
Gross profit |
|
305.5 |
|
|
|
270.9 |
|
|
Gross profit margin |
|
29.9 |
% |
|
|
29.1 |
% |
|
SG&A |
|
178.8 |
|
|
|
172.7 |
|
|
Loss on sale of business |
|
(13.0 |
) |
|
|
– |
|
|
Segment operating income |
|
113.7 |
|
|
|
98.2 |
|
|
Segment operating income as a percentage of sales |
|
11.1 |
% |
|
|
10.6 |
% |
|
Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||
|
(Amounts in thousands) |
|||||||||||||||||||||||
|
Flowserve Pumps Division |
|||||||||||||||||||||||
|
Nine Months Ended September 30, 2024 |
Gross |
Selling, |
Operating |
Nine Months Ended September 30, 2023 |
Gross |
Selling, |
Operating |
||||||||||||||||
|
Reported |
$ |
761,338 |
|
$ |
424,824 |
|
$ |
351,146 |
|
Reported |
$ |
668,562 |
|
$ |
426,438 |
|
$ |
255,345 |
|
||||
|
Reported as a percent of sales |
|
32.2 |
% |
|
18.0 |
% |
|
14.9 |
% |
Reported as a percent of sales |
|
30.0 |
% |
|
19.1 |
% |
|
11.4 |
% |
||||
|
Realignment charges (a) |
|
20,837 |
|
|
(1,037 |
) |
|
21,874 |
|
Realignment charges (a) |
|
7,484 |
|
|
(11,996 |
) |
|
19,480 |
|
||||
|
Discrete items (b)(c)(d) |
|
1,700 |
|
|
(6,000 |
) |
|
7,700 |
|
Discrete asset write-downs (b)(c)(d) |
|
1,969 |
|
|
(3,955 |
) |
|
5,924 |
|
||||
|
Adjusted |
$ |
783,875 |
|
$ |
417,787 |
|
$ |
380,720 |
|
Adjusted |
$ |
678,015 |
|
$ |
410,487 |
|
$ |
280,749 |
|
||||
|
Adjusted as a percent of sales |
|
33.2 |
% |
|
17.7 |
% |
|
16.1 |
% |
Adjusted as a percent of sales |
|
30.4 |
% |
|
18.4 |
% |
|
12.6 |
% |
||||
|
Flow Control Division |
|||||||||||||||||||||||
|
Nine Months Ended September 30, 2024 |
Gross |
Selling, |
Loss on |
Operating |
Nine Months Ended September 30, 2023 |
Gross |
Selling, |
Operating |
|||||||||||||||
|
Reported |
$ |
305,469 |
|
$ |
178,816 |
|
$ |
12,981 |
|
$ |
113,672 |
|
Reported |
$ |
270,914 |
|
$ |
172,718 |
|
$ |
98,196 |
|
|
|
Reported as a percent of sales |
|
29.9 |
% |
|
17.5 |
% |
|
1.3 |
% |
|
11.1 |
% |
Reported as a percent of sales |
|
29.1 |
% |
|
18.6 |
% |
|
10.6 |
% |
|
|
Realignment charges (a) |
|
(602 |
) |
|
(1,440 |
) |
|
(12,981 |
) |
|
13,819 |
|
Realignment charges (a) |
|
4,263 |
|
|
(10,478 |
) |
|
14,741 |
|
|
|
Discrete item (b) |
|
800 |
|
|
(400 |
) |
|
– |
|
|
1,200 |
|
Acquisition related (e) |
|
– |
|
|
(8,491 |
) |
|
8,491 |
|
|
|
Acquisition related (e) |
|
– |
|
|
(2,794 |
) |
|
– |
|
|
2,794 |
|
Adjusted |
$ |
275,177 |
|
$ |
153,749 |
|
$ |
121,428 |
|
|
|
Adjusted |
$ |
305,667 |
|
$ |
174,182 |
|
$ |
– |
|
$ |
131,485 |
|
Adjusted as a percent of sales |
|
29.6 |
% |
|
16.5 |
% |
|
13.1 |
% |
|
|
Adjusted as a percent of sales |
|
29.9 |
% |
|
17.1 |
% |
|
0.0 |
% |
|
12.9 |
% |
|||||||||||
|
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 $25,100 is non-cash. |
(a) Charges represent realignment costs incurred as a result of realignment programs of which $7,601 is non-cash. |
||||||||||||||||||||||
|
(b) Charge represents a one-time $3,700 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan. |
(b) Charge represents a further expense of $1,834 associated with a sales contract that was initially reserved for in 2017. |
||||||||||||||||||||||
|
(c) Charge 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 a further $1,173 non-cash write-down of inventory associated with a customer sales contract that was originally determined to be uncollectible in 2020. |
||||||||||||||||||||||
|
(d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology. |
(d) Charge represents a $2,917 non-cash write-down of a licensing agreement. |
||||||||||||||||||||||
|
(e) Charge represents acquisition-related costs associated with the MOGAS acquisition. |
(e) Charges represent costs associated with a terminated acquisition. |
||||||||||||||||||||||
Contacts
Investor Contacts:
Brian Ezzell, Vice President, Investor Relations, Treasurer & Corporate Finance (469) 420-3222
Tarek Zeni, Director, Investor Relations (469) 420-4045
Media Contact:
Wes Warnock, Vice President, Marketing, Communications & Public Affairs (972) 443-6900
