Flowserve Corporation Reports Second Quarter 2025 Results
Strong Second Quarter Results Reflect Continued Execution of 3D Growth Strategy and Success of the Flowserve Business System; Increases Full-year 2025 Earnings Guidance
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 adjusted1 gross margin2 of 34.2% and 34.9%, respectively, both increased 260 basis points versus the prior year period
- Operating margin and adjusted operating margin3 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% |
|||||
| Sales5 |
$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 |
2025 Guidance:
The Company updated its full-year 2025 guidance, including increasing its Adjusted EPS target range.
|
Prior Range |
Current Range |
|||
|
Organic sales growth |
|
+3% to +5% |
|
+3% to +4% |
|
Impact from acquisitions |
|
Approx. +300 bps |
|
Approx. +200 bps |
|
Impact from foreign exchange translation |
|
Approx. (100) to 0 bps |
|
Approx. 0 bps |
|
Total sales growth |
|
+5% to +7% |
|
+5% to +6% |
|
Adjusted EPS |
|
$3.10 to $3.30 |
|
$3.25 to $3.40 |
|
Net interest expense |
|
Approx. $70 million |
|
Approx. $70 million |
|
Adjusted tax rate |
|
Approx. 21% |
|
Approx. 20% |
|
Capital expenditures |
|
$80 to $90 million |
|
$80 to $90 million |
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. |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||
|
(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 |
|
|
|
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. |
||||||||||||||||||||||||
|
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 |
% |
||
| 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 |
$ |
107,694 |
|
$ |
69,923 |
|
$ |
37,771 |
|
Reported |
$ |
106,271 |
|
$ |
61,034 |
|
$ |
12,981 |
|
$ |
32,251 |
|
||
|
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 |
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. |
||||||||||||||||||||||||
| 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 |
|
||
| 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 |
$ |
705,064 |
|
$ |
467,045 |
|
$ |
12,981 |
|
$ |
234,382 |
|
$ |
(6,137 |
) |
$ |
43,988 |
|
$ |
146,836 |
|
22.2 |
% |
1.11 |
|
|
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. |
|||||||||||||||||||||||||
|
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 |
% |
|
|
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. |
||||||||||||||||||||||||
Contacts
Flowserve 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:
David Mason, Senior Director, Communications (214) 500-9687
