19 Feb Flowserve Corporation Reports Fourth Quarter and Full-Year Results
3D Strategy and Flowserve Business System Deliver Sales and Earnings Growth
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 fourth quarter and full year ended December 31, 2024.
Highlights (unaudited):
- Fourth quarter bookings of $1.2 billion, including $618 million of aftermarket activity
- Power bookings increased more than 40% year-over-year, with over $110 million in nuclear awards during the fourth quarter
- Gross margin and adjusted1 gross margin2 of 31.5% and 32.8%, respectively, increased 240 and 300 basis points versus the prior year period
- Operating income and adjusted operating income3 of $125 million and $149 million, respectively, an increase of 14% and 22% compared to last year
- Operating cash flow of $197 million driven by strong earnings and working capital improvements
- Initiated full-year 2025 guidance4, including organic sales growth of 3% to 5% and adjusted Earnings Per Share (EPS) of $3.10 to $3.30, which at the midpoint, represents a 22% increase versus full-year 2024 adjusted EPS5
Management Commentary:
“We made significant progress throughout 2024, launching the Flowserve Business System and leveraging our 3D strategy to drive solid top-line growth, expand margins, increase adjusted earnings, and deliver strong cash flow,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “I am grateful for the dedication and effort of our associates who are improving our execution and positioning Flowserve for continued near-term and long-term growth.”
Rowe continued, “Activity across our markets remains robust as customers leverage our capabilities to address ongoing demand, improve efficiency, and advance decarbonization investments. We enter 2025 with strong momentum, which we expect to build on through enhanced operational execution and our 80-20 complexity reduction efforts. With these levers, we are well-positioned to continue creating long-term value for our customers, shareholders, and associates.”
Key Figures (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
| (dollars in millions, except per share) |
|
2024 Q4 |
|
2023 Q4 |
Change |
|
2024 |
|
2023 |
|
Change |
| Backlog |
|
$2,789.6 |
|
$2,695.1 |
3.5% |
|
$2,789.6 |
|
$2,695.1 |
|
3.5% |
| Bookings |
|
$1,175.3 |
|
$1,043.6 |
12.6% |
|
$4,660.8 |
|
$4,271.8 |
|
9.1% |
| Original Equipment |
|
$557.2 |
|
$490.3 |
13.6% |
|
$2,238.4 |
|
$1,995.1 |
|
12.2% |
| Aftermarket |
|
$618.1 |
|
$553.3 |
11.7% |
|
$2,422.4 |
|
$2,276.7 |
|
6.4% |
| Sales6 |
|
$1,180.3 |
|
$1,165.2 |
1.3% |
|
$4,557.8 |
|
$4,320.6 |
|
5.5% |
| Organic |
|
|
|
|
(90) bps |
|
|
|
|
|
510 bps |
| Acquisitions |
|
|
|
|
320 bps |
|
|
|
|
|
90 bps |
| Foreign Exchange |
|
|
|
|
(100) bps |
|
|
|
|
|
(50) bps |
| Operating Margin |
|
10.6% |
|
9.4% |
120 bps |
|
10.1% |
|
7.7% |
|
240 bps |
| Adjusted Operating Margin3 |
|
12.6% |
|
10.5% |
210 bps |
|
11.8% |
|
9.5% |
|
230 bps |
| Earnings Per Share |
|
$0.59 |
|
$0.47 |
25.5% |
|
$2.14 |
|
$1.42 |
|
50.7% |
| Adjusted Earnings Per Share |
|
$0.70 |
|
$0.68 |
2.9% |
|
$2.63 |
|
$2.10 |
|
25.2% |
| Cash From Operations |
|
$197.3 |
|
$194.6 |
1.4% |
|
$425.3 |
|
$325.8 |
|
30.5% |
|
|
|
|
|
|
|
|
|
|
|
|
2025 Guidance:
|
Target range |
|
|
Organic sales growth |
+3% to +5% |
|
Impact from acquisitions |
Approx. +300 bps |
|
Impact from foreign exchange translation |
Approx. (100 bps) |
|
Total sales growth |
+5% to +7% |
|
Adjusted EPS |
$3.10 to $3.30 |
|
Net interest expense |
Approx. $70 million |
|
Adjusted tax rate |
Approx. 21% |
|
Capital expenditures |
$80 to $90 million |
Excluding sales, Flowserve provides guidance only on a non-GAAP basis due to the inherent and increasing difficulty and unreasonable effort required to forecast certain amounts that would be included in GAAP earnings. This includes, but is not limited to, items such as foreign currency fluctuations, realignment expenses, impairments, and discrete tax events. As a result, we have not provided a reconciliation to the most comparable GAAP financial measures for these forward-looking non-GAAP measures.
Authorized Dividend:
Flowserve’s Board of Directors authorized a quarterly cash dividend of $0.21 per share on the Company’s outstanding shares of common stock. The dividend is payable on April 11, 2025, to shareholders of record as of the close of business on March 28, 2025. While Flowserve currently intends to pay regular quarterly cash dividends for the foreseeable future, any future dividends, at this $0.21 per share rate or otherwise, will be reviewed individually and declared by the Board at its discretion.
Webcast and Conference Call Instructions:
Flowserve will host its conference call to discuss fourth quarter results on Wednesday, February 19, at 10:00 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 includes expected 16 cent contribution from MOGAS operations (inclusive of $7 million cost synergy benefit) and excludes potential realignment expenses, below-the-line foreign currency effects, and certain other discrete items which may arise during the year and utilizes prevailing FX rates and approximately 132 million fully diluted shares. |
|
5 Adjusted 2024 EPS excludes realignment expenses, the impact from other specific discrete and below-the-line foreign currency effects and utilizes the then-applicable FX rates and approximately 132 million fully diluted shares. |
|
6 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. |
|
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
|
(Unaudited) |
|
|||||||
|
Three Months Ended December 31, |
||||||||
|
(Amounts in thousands, except per share data) |
|
2024 |
|
|
2023 |
|
||
|
|
||||||||
|
Sales |
$ |
1,180,348 |
|
$ |
1,165,179 |
|
||
|
Cost of sales |
|
(808,234 |
) |
|
(825,635 |
) |
||
|
Gross profit |
|
372,114 |
|
|
339,544 |
|
||
|
Selling, general and administrative expense |
|
(251,966 |
) |
|
(234,744 |
) |
||
|
Net earnings from affiliates |
|
4,557 |
|
|
4,663 |
|
||
|
Operating income |
|
124,705 |
|
|
109,463 |
|
||
|
Interest expense |
|
(20,481 |
) |
|
(16,886 |
) |
||
|
Interest income |
|
1,625 |
|
|
1,457 |
|
||
|
Other income (expense), net |
|
(137 |
) |
|
(22,599 |
) |
||
|
Earnings before income taxes |
|
105,712 |
|
|
71,435 |
|
||
|
(Provision for) benefit from income taxes |
|
(22,202 |
) |
|
(3,991 |
) |
||
|
Net earnings, including noncontrolling interests |
|
83,510 |
|
|
67,444 |
|
||
|
Less: Net earnings attributable to noncontrolling interests |
|
(5,969 |
) |
|
(4,827 |
) |
||
|
Net earnings attributable to Flowserve Corporation |
$ |
77,541 |
|
$ |
62,617 |
|
||
|
|
|
|||||||
|
Net earnings per share attributable to Flowserve Corporation common shareholders: |
|
|
||||||
|
Basic |
$ |
0.59 |
|
$ |
0.48 |
|
||
|
Diluted |
|
0.59 |
|
|
0.47 |
|
||
|
|
|
|||||||
|
Weighted average shares – basic |
|
131,393 |
|
|
131,184 |
|
||
|
Weighted average shares – diluted |
|
132,395 |
|
|
132,132 |
|
||
|
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 December 31, 2024 |
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 |
$ |
372,114 |
|
$ |
251,966 |
|
$ |
124,705 |
|
$ |
(138 |
) |
$ |
22,202 |
|
$ |
77,541 |
|
21.0 |
% |
0.59 |
|
|
Reported as a percent of sales |
|
31.5 |
% |
|
21.3 |
% |
|
10.6 |
% |
|
0.0 |
% |
|
1.9 |
% |
|
6.6 |
% |
||||
|
Realignment charges (a) |
|
11,569 |
|
|
(1,570 |
) |
|
13,139 |
|
|
– |
|
|
2,849 |
|
|
10,290 |
|
21.7 |
% |
0.08 |
|
|
Acquisition related (b) |
|
– |
|
|
(7,150 |
) |
|
7,150 |
|
|
– |
|
|
1,682 |
|
|
5,468 |
|
23.5 |
% |
0.04 |
|
|
Purchase accounting step-up and intangible asset amortization (c) |
|
3,067 |
|
|
(1,033 |
) |
|
4,100 |
|
|
– |
|
|
1,300 |
|
|
2,800 |
|
31.7 |
% |
0.02 |
|
|
Below-the-line foreign exchange impacts (d) |
|
– |
|
|
– |
|
|
– |
|
|
(4,370 |
) |
|
(1,423 |
) |
|
(2,947 |
) |
32.6 |
% |
(0.02 |
) |
|
Adjusted |
$ |
386,750 |
|
$ |
242,213 |
|
$ |
149,094 |
|
$ |
(4,508 |
) |
$ |
26,610 |
|
$ |
93,152 |
|
21.2 |
% |
0.70 |
|
|
Adjusted as a percent of sales |
|
32.8 |
% |
|
20.5 |
% |
|
12.6 |
% |
|
-0.4 |
% |
|
2.3 |
% |
|
7.9 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $8,600 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) 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 December 31, 2023 |
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 |
$ |
339,544 |
|
$ |
234,744 |
|
$ |
109,463 |
|
$ |
(22,599 |
) |
$ |
3,991 |
|
$ |
62,617 |
|
5.6 |
% |
0.47 |
|
|
Reported as a percent of sales |
|
29.1 |
% |
|
20.1 |
% |
|
9.4 |
% |
|
-1.9 |
% |
|
0.3 |
% |
|
5.4 |
% |
||||
|
Realignment charges (a) |
|
9,464 |
|
|
(5,949 |
) |
|
15,413 |
|
|
– |
|
|
4,534 |
|
|
10,879 |
|
29.4 |
% |
0.08 |
|
|
Discrete asset write-downs (b)(c) |
|
(1,254 |
) |
|
– |
|
|
(1,254 |
) |
|
2,000 |
|
|
94 |
|
|
652 |
|
12.6 |
% |
0.01 |
|
|
Acquisition related (d) |
|
– |
|
|
1,244 |
|
|
(1,244 |
) |
|
– |
|
|
(293 |
) |
|
(951 |
) |
23.6 |
% |
(0.01 |
) |
|
Below-the-line foreign exchange impacts (e) |
|
– |
|
|
– |
|
|
– |
|
|
16,764 |
|
|
(274 |
) |
|
17,038 |
|
-1.6 |
% |
0.13 |
|
|
Adjusted |
$ |
347,754 |
|
$ |
230,039 |
|
$ |
122,378 |
|
$ |
(3,835 |
) |
$ |
8,052 |
|
$ |
90,235 |
|
7.8 |
% |
0.68 |
|
|
Adjusted as a percent of sales |
|
29.8 |
% |
|
19.7 |
% |
|
10.5 |
% |
|
-0.3 |
% |
|
0.7 |
% |
|
7.7 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,100 is non-cash. |
||||||||||||||||||||||
|
(b) Includes reversals of expenses that were adjusted for Non-GAAP measures in previous periods of $1,254. |
||||||||||||||||||||||
|
(c) Charge represents a non-cash asset write-down of $2,000 associated with the impairment of an equity investment. |
||||||||||||||||||||||
|
(d) Represents reversal of costs associated with a terminated acquisition that were adjusted for Non-GAAP measures in previous periods. |
||||||||||||||||||||||
|
(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 December 31, |
|||||||
|
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
||
|
Bookings |
$ |
816.4 |
|
$ |
722.2 |
|
||
|
Sales |
|
794.9 |
|
|
832.8 |
|
||
|
Gross profit |
|
255.7 |
|
|
238.2 |
|
||
|
Gross profit margin |
|
32.2 |
% |
|
28.6 |
% |
||
|
SG&A |
|
131.4 |
|
|
149.4 |
|
||
|
Segment operating income |
|
129.1 |
|
|
93.5 |
|
||
|
Segment operating income as a percentage of sales |
|
16.2 |
% |
|
11.2 |
% |
||
|
|
||||||||
|
FLOW CONTROL DIVISION |
Three Months Ended December 31, |
|||||||
|
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
||
|
Bookings |
$ |
363.4 |
|
$ |
326.9 |
|
||
|
Sales |
|
387.9 |
|
|
336.0 |
|
||
|
Gross profit |
|
118.5 |
|
|
101.9 |
|
||
|
Gross profit margin |
|
30.5 |
% |
|
30.3 |
% |
||
|
SG&A |
|
73.9 |
|
|
52.1 |
|
||
|
Segment operating income |
|
44.6 |
|
|
49.8 |
|
||
|
Segment operating income as a percentage of sales |
|
11.5 |
% |
|
14.8 |
% |
||
|
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 December 31, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Three Months Ended December 31, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
|||||||||||||
|
Reported |
$ |
255,710 |
|
$ |
131,402 |
|
$ |
129,069 |
|
Reported |
$ |
238,213 |
|
$ |
149,354 |
|
$ |
93,522 |
|
|
|
Reported as a percent of sales |
|
32.2 |
% |
|
16.5 |
% |
|
16.2 |
% |
Reported as a percent of sales |
|
28.6 |
% |
|
17.9 |
% |
|
11.2 |
% |
|
|
Realignment charges (a) |
|
9,890 |
|
|
(41 |
) |
|
9,931 |
|
Realignment charges (a) |
|
3,313 |
|
|
(2,537 |
) |
|
5,850 |
|
|
|
Adjusted |
$ |
265,600 |
|
$ |
131,361 |
|
$ |
139,000 |
|
Discrete asset write-downs (b) |
|
(1,254 |
) |
|
– |
|
|
(1,254 |
) |
|
|
Adjusted as a percent of sales |
|
33.4 |
% |
|
16.5 |
% |
|
17.5 |
% |
Adjusted |
$ |
240,272 |
|
$ |
146,817 |
|
$ |
98,118 |
|
|
|
Adjusted as a percent of sales |
|
28.9 |
% |
|
17.6 |
% |
|
11.8 |
% |
|||||||||||
|
Flow Control Division |
Flow Control Division |
|||||||||||||||||||
|
Three Months Ended December 31, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Three Months Ended December 31, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
|||||||||||||
|
Reported |
$ |
118,503 |
|
$ |
73,859 |
|
$ |
44,592 |
|
Reported |
$ |
101,894 |
|
$ |
52,056 |
|
$ |
49,838 |
|
|
|
Reported as a percent of sales |
|
30.5 |
% |
|
19.0 |
% |
|
11.5 |
% |
Reported as a percent of sales |
|
30.3 |
% |
|
15.5 |
% |
|
14.8 |
% |
|
|
Realignment charges (a) |
|
1,679 |
|
|
(1,655 |
) |
|
3,334 |
|
Realignment charges (a) |
|
6,313 |
|
|
(915 |
) |
|
7,228 |
|
|
|
Acquisition related (b) |
|
– |
|
|
(7,150 |
) |
|
7,150 |
|
Acquisition related (c) |
|
– |
|
|
1,244 |
|
|
(1,244 |
) |
|
|
Purchase accounting step-up and intangible asset amortization (c) |
|
3,067 |
|
|
(1,033 |
) |
|
4,100 |
|
Adjusted |
$ |
108,207 |
|
$ |
52,385 |
|
$ |
55,822 |
|
|
|
Adjusted |
$ |
123,249 |
|
$ |
64,021 |
|
$ |
59,176 |
|
Adjusted as a percent of sales |
|
32.2 |
% |
|
15.6 |
% |
|
16.6 |
% |
|
|
Adjusted as a percent of sales |
|
31.8 |
% |
|
16.5 |
% |
|
15.3 |
% |
|||||||||||
|
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 $8,600 is non-cash. |
(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,100 is non-cash. |
|||||||||||||||||||
|
(b) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. |
(b) Represents reversals of expenses that were adjusted for Non-GAAP measures in previous periods. |
|||||||||||||||||||
|
(c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. |
(c) Represents reversal of costs associated with a terminated acquisition that were adjusted for Non-GAAP measures in previous periods. |
|||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
|
(Unaudited) |
|
||||||||||
|
Year Ended December 31, |
|||||||||||
|
(Amounts in thousands, except per share data) |
|
2024 |
|
|
2023 |
|
|
2022 |
|
||
|
|
|||||||||||
|
Sales |
$ |
4,557,806 |
|
$ |
4,320,577 |
|
$ |
3,615,120 |
|
||
|
Cost of sales |
|
(3,123,560 |
) |
|
(3,043,749 |
) |
|
(2,620,825 |
) |
||
|
Gross profit |
|
1,434,246 |
|
|
1,276,828 |
|
|
994,295 |
|
||
|
Selling, general and administrative expense |
|
(978,037 |
) |
|
(961,169 |
) |
|
(815,545 |
) |
||
|
Loss on sale of business |
|
(12,981 |
) |
|
– |
|
|
– |
|
||
|
Net earnings from affiliates |
|
19,051 |
|
|
17,894 |
|
|
18,469 |
|
||
|
Operating income |
|
462,279 |
|
|
333,553 |
|
|
197,219 |
|
||
|
Interest expense |
|
(69,301 |
) |
|
(66,924 |
) |
|
(46,247 |
) |
||
|
Interest income |
|
5,371 |
|
|
6,991 |
|
|
3,963 |
|
||
|
Other income (expense), net |
|
(12,194 |
) |
|
(49,870 |
) |
|
(559 |
) |
||
|
Earnings before income taxes |
|
386,155 |
|
|
223,750 |
|
|
154,376 |
|
||
|
(Provision for) benefit from income taxes |
|
(84,929 |
) |
|
(18,562 |
) |
|
43,639 |
|
||
|
Net earnings, including noncontrolling interests |
|
301,226 |
|
|
205,188 |
|
|
198,015 |
|
||
|
Less: Net earnings attributable to noncontrolling interests |
|
(18,467 |
) |
|
(18,445 |
) |
|
(9,326 |
) |
||
|
Net earnings attributable to Flowserve Corporation |
$ |
282,759 |
|
$ |
186,743 |
|
$ |
188,689 |
|
||
|
|
|
|
|||||||||
|
Net earnings per share attributable to Flowserve Corporation common shareholders: |
|
|
|
||||||||
|
Basic |
$ |
2.15 |
|
$ |
1.42 |
|
$ |
1.44 |
|
||
|
Diluted |
|
2.14 |
|
|
1.42 |
|
|
1.44 |
|
||
|
|
|
|
|||||||||
|
Weighted average shares – basic |
|
131,488 |
|
|
131,117 |
|
|
130,630 |
|
||
|
Weighted average shares – diluted |
|
132,356 |
|
|
131,931 |
|
|
131,315 |
|
||
|
Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||||
|
(Amounts in thousands, except per share data) |
|||||||||||||||||||||||||
|
Twelve Months Ended December 31, 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 |
$ |
1,434,246 |
|
$ |
978,037 |
|
$ |
12,981 |
|
$ |
462,279 |
|
$ |
(12,194 |
) |
$ |
84,929 |
|
$ |
282,759 |
|
22.0 |
% |
2.14 |
|
|
Reported as a percent of sales |
|
31.5 |
% |
|
21.5 |
% |
|
0.3 |
% |
|
10.1 |
% |
|
-0.3 |
% |
|
1.9 |
% |
|
6.2 |
% |
||||
|
Realignment charges (a) |
|
31,576 |
|
|
(4,939 |
) |
|
(12,981 |
) |
|
49,496 |
|
|
– |
|
|
4,884 |
|
|
44,612 |
|
9.9 |
% |
0.34 |
|
|
Discrete items (b)(c)(d) |
|
2,700 |
|
|
(7,500 |
) |
|
– |
|
|
10,200 |
|
|
– |
|
|
2,869 |
|
|
7,331 |
|
28.1 |
% |
0.06 |
|
|
Acquisition related (e) |
|
– |
|
|
(9,944 |
) |
|
– |
|
|
9,944 |
|
|
– |
|
|
2,340 |
|
|
7,604 |
|
23.5 |
% |
0.06 |
|
|
Discrete asset write-downs (f)(g) |
|
– |
|
|
(1,795 |
) |
|
– |
|
|
1,795 |
|
|
3,567 |
|
|
1,342 |
|
|
4,020 |
|
25.0 |
% |
0.03 |
|
|
Purchase accounting step-up and intangible asset amortization (h) |
|
3,067 |
|
|
(1,033 |
) |
|
– |
|
|
4,100 |
|
|
– |
|
|
1,300 |
|
|
2,800 |
|
31.7 |
% |
0.02 |
|
|
Below-the-line foreign exchange impacts (i) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(2,302 |
) |
|
(1,912 |
) |
|
(390 |
) |
83.1 |
% |
(0.00 |
) |
|
Adjusted |
$ |
1,471,589 |
|
$ |
952,826 |
|
$ |
– |
|
$ |
537,814 |
|
$ |
(10,929 |
) |
$ |
95,752 |
|
$ |
348,736 |
|
20.7 |
% |
2.63 |
|
|
Adjusted as a percent of sales |
|
32.3 |
% |
|
20.9 |
% |
|
0.0 |
% |
|
11.8 |
% |
|
-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 $33,700 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 and integration 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) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. |
|||||||||||||||||||||||||
|
(i) 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. |
|||||||||||||||||||||||||
|
Twelve Months Ended December 31, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings Attributable to Noncontrolling Interests |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
||||||||||||||||
|
Reported |
$ |
1,276,828 |
|
$ |
961,169 |
|
$ |
333,553 |
|
$ |
(49,870 |
) |
$ |
18,562 |
|
$ |
18,445 |
|
$ |
186,743 |
|
8.3 |
% |
1.42 |
|
|
Reported as a percent of sales |
|
29.6 |
% |
|
22.2 |
% |
|
7.7 |
% |
|
-1.2 |
% |
|
0.4 |
% |
|
0.4 |
% |
|
4.3 |
% |
||||
|
Realignment charges (a) |
|
21,012 |
|
|
(45,025 |
) |
|
66,037 |
|
|
– |
|
|
14,949 |
|
|
– |
|
|
51,088 |
|
22.6 |
% |
0.39 |
|
|
Discrete asset write-downs (b)(c)(d)(e) |
|
715 |
|
|
(3,955 |
) |
|
4,670 |
|
|
2,000 |
|
|
1,611 |
|
|
– |
|
|
5,059 |
|
24.2 |
% |
0.04 |
|
|
Acquisition related (f) |
|
– |
|
|
(7,247 |
) |
|
7,247 |
|
|
– |
|
|
1,704 |
|
|
– |
|
|
5,543 |
|
23.5 |
% |
0.04 |
|
|
Below-the-line foreign exchange impacts (g) |
|
– |
|
|
– |
|
|
– |
|
|
41,092 |
|
|
2,395 |
|
|
– |
|
|
38,697 |
|
5.8 |
% |
0.29 |
|
|
Correction of prior period errors (h) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(3,559 |
) |
|
3,559 |
|
0.0 |
% |
0.03 |
|
|
Discrete tax benefit (i) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
13,000 |
|
|
– |
|
|
(13,000 |
) |
0.0 |
% |
(0.10 |
) |
|
Adjusted |
$ |
1,298,555 |
|
$ |
904,942 |
|
$ |
411,507 |
|
$ |
(6,778 |
) |
$ |
52,221 |
|
$ |
14,886 |
|
$ |
277,689 |
|
15.1 |
% |
2.10 |
|
|
Adjusted as a percent of sales |
|
30.1 |
% |
|
20.9 |
% |
|
9.5 |
% |
|
-0.2 |
% |
|
1.2 |
% |
|
0.3 |
% |
|
6.4 |
% |
||||
|
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
|
(a) Charges represent realignment costs incurred as a result of realignment programs of which $9,701 is non-cash. |
|||||||||||||||||||||||||
|
(b) Charge represents a further expense of $1,834 associated with a sales contract that was initially adjusted out of Non-GAAP measures in 2017. |
|||||||||||||||||||||||||
|
(c) Includes reversals of expenses that were adjusted for Non-GAAP measures in previous periods of $81. |
|||||||||||||||||||||||||
|
(d) Charge represents a $2,917 non-cash write-down of a licensing agreement. |
|||||||||||||||||||||||||
|
(e) Charge represents a non-cash asset write-down of $2,000 associated with the impairment of an equity investment. |
|||||||||||||||||||||||||
|
(f) Charges represent costs associated with a terminated acquisition. |
|||||||||||||||||||||||||
|
(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. |
|||||||||||||||||||||||||
|
(h) Represents the amount to correct the cumulative impact of immaterial prior period errors. |
|||||||||||||||||||||||||
|
(i) 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 on Non-GAAP measures in 2015. |
|||||||||||||||||||||||||
|
SEGMENT INFORMATION |
||||||||
|
(Unaudited) |
|
|||||||
|
|
||||||||
|
FLOWSERVE PUMPS DIVISION |
Year Ended December 31, |
|||||||
|
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
||
|
Bookings |
$ |
3,304.3 |
|
$ |
2,941.2 |
|
||
|
Sales |
|
3,158.6 |
|
|
3,064.5 |
|
||
|
Gross profit |
|
1,017.0 |
|
|
906.8 |
|
||
|
Gross profit margin |
|
32.2 |
% |
|
29.6 |
% |
||
|
SG&A |
|
556.2 |
|
|
575.8 |
|
||
|
Segment operating income |
|
480.2 |
|
|
348.9 |
|
||
|
Segment operating income as a percentage of sales |
|
15.2 |
% |
|
11.4 |
% |
||
|
|
||||||||
|
FLOW CONTROL DIVISION |
Year Ended December 31, |
|||||||
|
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
||
|
Bookings |
$ |
1,370.7 |
|
$ |
1,345.9 |
|
||
|
Sales |
|
1,409.3 |
|
|
1,266.0 |
|
||
|
Gross profit |
|
424.0 |
|
|
372.8 |
|
||
|
Gross profit margin |
|
30.1 |
% |
|
29.4 |
% |
||
|
SG&A |
|
252.7 |
|
|
224.8 |
|
||
|
Loss on sale of business |
|
(13.0 |
) |
|
– |
|
||
|
Segment operating income |
|
158.3 |
|
|
148.0 |
|
||
|
Segment operating income as a percentage of sales |
|
11.2 |
% |
|
11.7 |
% |
||
|
Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
|
(Amounts in thousands) |
|||||||||||||||||||||||
|
Flowserve Pumps Division |
|||||||||||||||||||||||
|
Twelve Months Ended December 31, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Twelve Months Ended December 31, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
||||||||||||||||
|
Reported |
$ |
1,017,048 |
|
$ |
556,225 |
|
$ |
480,216 |
|
Reported |
$ |
906,775 |
|
$ |
575,792 |
|
$ |
348,867 |
|
||||
|
Reported as a percent of sales |
|
32.2 |
% |
|
17.6 |
% |
|
15.2 |
% |
Reported as a percent of sales |
|
29.6 |
% |
|
18.8 |
% |
|
11.4 |
% |
||||
|
Realignment charges (a) |
|
30,727 |
|
|
(1,078 |
) |
|
31,805 |
|
Realignment charges (a) |
|
10,797 |
|
|
(14,533 |
) |
|
25,330 |
|
||||
|
Discrete items (b)(c)(d) |
|
1,700 |
|
|
(6,000 |
) |
|
7,700 |
|
Discrete asset write-downs (b)(c)(d) |
|
715 |
|
|
(3,955 |
) |
|
4,670 |
|
||||
|
Adjusted |
$ |
1,049,475 |
|
$ |
549,147 |
|
$ |
519,721 |
|
Adjusted |
$ |
918,287 |
|
$ |
557,304 |
|
$ |
378,867 |
|
||||
|
Adjusted as a percent of sales |
|
33.2 |
% |
|
17.4 |
% |
|
16.5 |
% |
Adjusted as a percent of sales |
|
30.0 |
% |
|
18.2 |
% |
|
12.4 |
% |
||||
|
Flow Control Division |
Flow Control Division |
||||||||||||||||||||||
|
Twelve Months Ended December 31, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Loss on Sale of Business |
Operating Income |
Twelve Months Ended December 31, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
|||||||||||||||
|
Reported |
$ |
423,973 |
|
$ |
252,675 |
|
$ |
12,981 |
|
$ |
158,265 |
|
Reported |
$ |
372,808 |
|
$ |
224,774 |
|
$ |
148,034 |
|
|
|
Reported as a percent of sales |
|
30.1 |
% |
|
17.9 |
% |
|
0.9 |
% |
|
11.2 |
% |
Reported as a percent of sales |
|
29.4 |
% |
|
17.8 |
% |
|
11.7 |
% |
|
|
Realignment charges (a) |
|
1,077 |
|
|
(3,095 |
) |
|
(12,981 |
) |
|
17,153 |
|
Realignment charges (a) |
|
10,576 |
|
|
(11,393 |
) |
|
21,969 |
|
|
|
Discrete item (b) |
|
800 |
|
|
(400 |
) |
|
– |
|
|
1,200 |
|
Acquisition related (e) |
|
– |
|
|
(7,247 |
) |
|
7,247 |
|
|
|
Acquisition related (e) |
|
– |
|
|
(9,944 |
) |
|
– |
|
|
9,944 |
|
Adjusted |
$ |
383,384 |
|
$ |
206,134 |
|
$ |
177,250 |
|
|
|
Purchase accounting step-up and intangible asset amortization (f) |
|
3,067 |
|
|
(1,033 |
) |
|
– |
|
|
4,100 |
|
Adjusted as a percent of sales |
|
30.3 |
% |
|
16.3 |
% |
|
14.0 |
% |
|
|
Adjusted |
$ |
428,917 |
|
$ |
238,203 |
|
$ |
– |
|
$ |
190,662 |
|
|||||||||||
|
Adjusted as a percent of sales |
|
30.4 |
% |
|
16.9 |
% |
|
0.0 |
% |
|
13.5 |
% |
|||||||||||
|
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 $33,700 is non-cash. |
(a) Charges represent realignment costs incurred as a result of realignment programs of which $9,701 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) Includes reversals of expenses that were adjusted for Non-GAAP measures in previous periods of $81. |
||||||||||||||||||||||
|
(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 and integration related costs associated with the MOGAS acquisition. |
(e) Charges represent costs associated with a terminated acquisition. |
||||||||||||||||||||||
|
(f) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. |
|||||||||||||||||||||||
Contacts
Flowserve
Investor Contacts:
Brian Ezzell, Vice President, Investor Relations, Treasurer & Corporate Finance (972) 443-6560
Tarek Zeni, Director, Investor Relations (469) 420-4045
Media Contact:
Wes Warnock, Vice President, Marketing, Communications & Public Affairs (972) 443-6900
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