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Flowserve (FLS) investor relations material

Flowserve Goldman Sachs Industrials and Materials Conference 2025 summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Goldman Sachs Industrials and Materials Conference 2025 summary3 Dec, 2025

Demand environment and market outlook

  • Power market expected to grow at double-digit rates from 2025 to 2026, anchored by nuclear opportunities and strong aftermarket bookings.

  • General industries, including pharmaceuticals, water (Middle East), and mining, show positive growth trends into 2026.

  • Aftermarket business remains robust, with continued focus on commercial and operational improvements to gain share.

  • Chemical markets show signs of stabilization, with North America expected to improve in 2026.

  • Energy project environment is slower, but aftermarket strength offsets this.

Aftermarket and operational transformation

  • 2023 reorganization enabled a global approach to aftermarket, improving cost management and resource allocation.

  • Investments in digitization, 3D printing, and quoting speed have enhanced customer service and efficiency.

  • Aftermarket bookings have consistently exceeded $600 million per quarter, with recent quarters surpassing $650 million.

  • Focus on commercial excellence, especially cross-selling and data-driven opportunity identification.

  • Speed in quoting and delivery is a key competitive advantage.

Nuclear and power sector strategy

  • Nuclear represents about 5% of revenue, with a $10 billion bookings opportunity over the next decade.

  • New build nuclear projects offer ~$100 million per reactor, with 40 new reactors expected globally in 10 years.

  • Life extensions and restarts provide $30 million+ per project, with a $100 million annual aftermarket run rate.

  • SMRs (small modular reactors) are a rapidly growing segment, with first bookings in 2025 and 60 potential projects over the next decade.

  • Dedicated nuclear expertise and maintained certifications position the company strongly for new and existing nuclear opportunities.

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Frequently asked questions

Serving Flow

Flowserve Corporation is an American industrial and environmental machinery company that focuses on the manufacturing and servicing of pumps, valves, seals, and automation systems. The company primarily serves industries such as oil and gas, chemical, power generation, and water management, providing critical components for industrial operations. The company is headquartered in Irving, Texas, and its shares are listed on the NYSE.

Formed Through a Merger

The earliest predecessor to the early 20th century was through the merger and development of various engineering companies. However, what we today know as Flowserve was officially formed in 1997 through the merger of BW/IP, Inc. and Durco International, Inc. After the merger, Flowserve expanded its product offerings and global reach through various acquisitions.

Heading into the new millennium, Flowserve continued to grow through a focus on technological advancements and expanding its global presence. The company invested in research and development to provide advanced solutions in fluid motion and control. It expanded its market to various sectors including oil, gas, chemical, power generation, and water management.

Serving a Variety of Sectors

The company's product portfolio is designed to cater to a broad spectrum of industries. These industries encompass oil and gas, chemical, power generation, water treatment, and various other general industrial sectors. In the oil and gas sector, Flowserve’s equipment is utilized in a range of activities from upstream exploration to downstream processing. For the power generation industry, its products are employed in both traditional and nuclear power plants, contributing to operational safety and efficiency. With a global operational footprint, Flowserve has a network of manufacturing facilities, service centers, and sales offices across over 55 countries.

Fluid and Motion Control

Flowserve Corporation specializes in a variety of fluid motion and control products, primarily focusing on pumps, valves, and mechanical seals. The pumps it manufactures are designed for diverse applications, ranging from transferring basic fluids like water and oil to handling more complex and demanding substances such as corrosive or high-temperature liquids. Their valves, including types like ball, butterfly, and control valves, are used to regulate fluid flow and pressure in industrial processes. Additionally, Flowserve's mechanical seals play a critical role in maintaining the efficiency and integrity of rotating equipment, such as pumps and compressors, by preventing leaks and minimizing friction. Some other notable companies producing products for the same industry are ITT, Xylem, and Crane Company.

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