Flowserve (FLS) Goldman Sachs Industrials and Materials Conference 2025 summary

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.