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Flowserve (FLS) investor relations material
Flowserve Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved strong financial and operational performance in 2025, surpassing long-term margin targets ahead of schedule, with sales up 4% year-over-year and robust growth in bookings and aftermarket sales.
Advanced operational excellence and complexity reduction, driving significant margin expansion and improved cash flow.
Completed divestiture of legacy asbestos liabilities and integrated MOGAS acquisition, realizing cost synergies and margin improvements.
Announced acquisition of Trillium Flow Technologies' Valves Division, expected to close mid-2026, expanding nuclear and power market presence and increasing content per new reactor by 15%-20%.
Initiated 2026 guidance and set 2030 financial targets, including mid-single digit organic sales CAGR and ~20% adjusted operating margin.
Financial highlights
Q4 2025 sales reached $1.22 billion, up 4% year-over-year, with organic sales up 1% and positive FX impact; full year sales were $4.73 billion, up 3.8%.
Adjusted gross margin for Q4 was 36% (up 320 bps), and adjusted operating margin expanded 420 bps to 16.8%.
Adjusted EPS for Q4 was $1.11, a 59% increase year-over-year; full year adjusted EPS was $3.64, up 38.4%.
Full-year operating cash flow was $506 million, up from $425 million in 2024; free cash flow conversion was 97%.
Returned $365 million to shareholders in 2025 through dividends and share repurchases.
Outlook and guidance
2026 guidance: total sales growth of 5%-7% (1%-3% organic), with 100 bps FX benefit and 300 bps from acquisitions.
Adjusted operating margin to expand ~100 bps; adjusted EPS guidance of $4.00-$4.20 (midpoint up 13% vs. 2025).
76% of backlog expected to convert to revenue in 2026, with first half earnings representing ~40% of full-year.
2030 targets: mid-single digit organic sales CAGR, ~20% adjusted operating margin, double-digit adjusted EPS CAGR.
2026 guidance assumes Trillium acquisition closes mid-year and is EPS neutral for 2026.
- TimeTickerHeadlineOpen
- 6 FebSCW
73% revenue growth and record backlog driven by new space contracts and strategic investments. - 6 FebCDP
2025 FFO/share rose 5.8% with strong leasing and retention; 2026 guidance signals further growth. - 6 FebSCW
Revenue at 15.86 mln PLN, backlog 17.14 mln PLN, and major space contracts drive 2025 outlook. - 6 FebPENG
All proposals passed, with no questions raised during the Q&A session. - 6 FebSCW
Q2 2024 revenue up 115% y/y, backlog nearly doubled, Space segment leads growth. - 6 FebPECO
2026 FFO per share growth guided at 5.5% with record occupancy and strong acquisitions. - 6 FebISCTR
Net profit up 90% in 2025, with strong NIM, fee growth, and positive 2026 outlook. - 6 FebSCW
Q2 2025 revenue surged 120% y/y, driven by a record Asian contract and a tripled backlog. - 6 FebSCW
Q1 2025 revenue jumped 97% year-over-year, with strong backlog and major new contracts secured. - 6 FebSCW
Q3 revenue up 39% y/y, backlog at 58.3 mln PLN, Space leads growth with global contracts.
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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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