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On July 23, 2026, Flowserve Corp (FLS) shares rose 4.5% today, currently trading at $71.66. This performance comes against the backdrop of a 52-week range of $4

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DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS) (“Flowserve” or the “Company”) will release its second quarter 2026 earnings results after the market closes on Wednesday, July 29, 2026.

Flowserve will host a conference call to discuss second quarter results the following morning, on Thursday, July 30, 2026, at 8:30 a.m. Eastern Time.

The earnings materials and webcast of the conference call can be accessed by shareholders and other interested parties on Flowserve’s Investors page.

About Flowserve

Flowserve Corporation is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company’s website at www.flowserve.com.

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DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS) (“Flowserve” or the “Company”), a leading provider of flow control products and services for the global infrastructure markets, has closed its all-cash acquisition of Trillium Flow Technologies' Valves Division1 (“TVD”) for $490 million plus working capital adjustments. TVD is a leading provider of highly engineered mission-critical valves and other flow control equipment used in nuclear and traditional power generation, industrial, and.

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.

The market expects Flowserve (FLS - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis company that makes pumps, valves and other parts for the oil and gas industries is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +13.9%.

Revenues are expected to be $1.19 billion, up 3.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.26% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Flowserve?For Flowserve, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Flowserve will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Flowserve would post earnings of $0.94 per share when it actually produced earnings of $1.11, delivering a surprise of +18.09%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Flowserve doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Manufacturing - General Industrial industry, Watsco (WSO - Free Report) , is soon expected to post earnings of $1.73 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -10.4%. This quarter's revenue is expected to be $1.5 billion, down 1.8% from the year-ago quarter.

The consensus EPS estimate for Watsco has been revised 1% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.62%.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Watsco will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS) (“Flowserve” or the “Company”) announced today its participation in the following upcoming investor conferences:

On Tuesday, May 5, Flowserve’s Investor Relations team will participate in investor meetings at the Oppenheimer Industrial Growth Conference. On Tuesday, May 12, Amy Schwetz, Senior Vice President and Chief Financial Officer, will participate in investor meetings as well as a fireside chat at the BofA Securities Industrials, Transportation & Airlines Key Leaders Conference that will begin at 11:05 am ET. Shareholders and other interested parties can access the live webcast on Flowserve’s Investors page. A replay of the webcast will be available after the event. About Flowserve

Flowserve Corporation is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company’s website at www.flowserve.com.

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Flowserve Business System Delivers Strong Execution; Reaffirms Full-Year EPS 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 first quarter ended March 31, 2026.

Highlights:

First quarter bookings of $1.15 billion, including: Over $110 million of nuclear bookings $680 million of aftermarket bookings First quarter operating margin of 11.2% decreased 30 basis points and adjusted1 operating margin2 of 15.1% expanded 230 basis points compared to the prior year period First quarter reported EPS of $0.64 and adjusted EPS3 of $0.85 Reported and adjusted EPS include a $0.19 benefit from recoverable IEEPA tariffs, offset by a ($0.06) impact from a taxing authority matter in Latin America and a ($0.06) headwind related to ongoing conflict in the Middle East Reaffirmed full-year 2026 adjusted EPS guidance3 of $4.00 to $4.20 Supported Middle East customers with their critical infrastructure needs while prioritizing employee safety Management Commentary:

“Our consistent execution of the Flowserve Business System resulted in strong margin and earnings expansion in the first quarter,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “I am proud of our global team’s continued demonstration of discipline and resilience in a highly dynamic environment. As we navigate the effects of the Middle East conflict, our priority remains employee safety while supporting our customers to ensure mission-critical flow control assets continue to operate. “

Rowe continued, “Looking ahead to the balance of 2026, I am confident that our focus on operational excellence and consistent execution will enable us to successfully manage through the evolving environment and capitalize on near-term opportunities. The underlying fundamentals of our business and end markets are robust, and we continue to maintain a favorable outlook supported by global megatrends and confidence in our proven growth strategy. Together, these factors position us well to drive value creation for our shareholders while progressing toward our 2030 sales, earnings, and operating margin expansion targets.”

Key Figures (unaudited):

(dollars in millions, except per share)

Q1 2026

Q1 2025

Change

Original Equipment Bookings

$467.9

$537.8

(13.0%)

Aftermarket Bookings

$680.3

$688.6

(1.2%)

Total Bookings

$1,148.2

$1,226.4

(6.4%)

Organic Sales4

(10.5%)

Acquisition/Divestiture Impact

20 bps

Foreign Exchange Impact

360 bps

Reported Sales

$1,068.3

$1,144.5

(6.7%)

Operating Margin

11.2%

11.5%

(30 bps)

Adjusted Operating Margin

15.1%

12.8%

230 bps

Earnings Per Share (EPS)

$0.64

$0.56

14.3%

Adjusted Earnings Per Share (EPS)

$0.85

$0.72

18.1%

Cash From Operations

($43.1)

($49.9)

$6.8

Backlog

$2,945.9

$2,902.9

1.5%

2026 Guidance3:

The Company updated 2026 guidance:

Prior

Current

Organic Sales Growth

+1% to +3%

(1%) to +2%

Impact From Acquisition/Divestiture

Approx. +300 bps

Approx. +300 bps

Impact From Foreign Exchange Translation

Approx. +100 bps

Approx. +100 bps

Total Sales Growth

+5% to +7%

+3% to +6%

Adjusted EPS

$4.00 to $4.20

$4.00 to $4.20

Net Interest Expense

Approx. $80 million

Approx. $85 million

Adjusted Tax Rate

21% to 22%

21% to 22%

Capital Expenditures

$90 million to $100 million

$90 million to $100 million

Full-year 2026 guidance assumes the acquisition of Trillium Flow Technologies’ Valves Division closes mid-year 2026 and, including incremental interest expense related to financing the acquisition, the acquisition will be roughly neutral to 2026 adjusted EPS. The guidance also assumes tariff rates in place as of April 2026.

Webcast and Conference Call Instructions:

Flowserve will host its conference call to discuss first quarter results on Thursday, April 30, 2026, at 10:00 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve’s Investors page.

Footnotes

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended March 31,

(Amounts in thousands, except per share data)

2026

2025

Sales

$

1,068,269

$

1,144,543

Cost of sales

(688,428

)

(775,209

)

Gross profit

379,841

369,334

Selling, general and administrative expense

(263,400

)

(243,177

)

Net earnings from affiliates

2,991

5,732

Operating income

119,432

131,889

Interest expense

(20,431

)

(19,175

)

Interest income

1,500

1,745

Other income (expense), net

6,999

(17,259

)

Earnings before income taxes

107,500

97,200

Provision for income taxes

(21,131

)

(17,743

)

Net earnings, including noncontrolling interests

86,369

79,457

Less: Net earnings attributable to noncontrolling interests

(4,688

)

(5,552

)

Net earnings attributable to Flowserve Corporation

$

81,681

$

73,905

Net earnings per share attributable to Flowserve Corporation common shareholders:

Basic

$

0.64

$

0.56

Diluted

0.64

0.56

Weighted average shares – basic

127,493

131,566

Weighted average shares – diluted

128,620

132,670

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 March 31, 2026

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

$

379,841

$

263,400

$

119,432

$

6,999

$

21,131

$

81,681

19.7

%

0.64

Reported as a percent of sales

35.6

%

24.7

%

11.2

%

0.7

%

2.0

%

7.6

%

Realignment charges (a)

16,502

(12,465

)

28,967

-

4,443

24,524

15.3

%

0.19

Acquisition and divestiture related (b)(c)

-

(8,588

)

8,588

-

2,150

6,438

25.0

%

0.05

Purchase accounting step-up and intangible asset amortization (d)

1,013

(2,245

)

3,258

-

523

2,735

16.1

%

0.02

Discrete items (e)(f)(g)

31

(674

)

705

1,500

519

1,686

23.5

%

0.01

Below-the-line foreign exchange impacts (h)

-

-

-

(9,038

)

(1,601

)

(7,437

)

17.7

%

(0.06

)

Adjusted

$

397,387

$

239,428

$

160,950

$

(539

)

$

27,165

$

109,627

19.2

%

0.85

Adjusted as a percent of sales

37.2

%

22.4

%

15.1

%

-0.1

%

2.5

%

10.3

%

  Note: Amounts may not calculate due to rounding

(a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility closure.

(b) Charge represents $7,791 of acquisition and integration related costs associated with the Greenray and Trillium Valves acquisitions.

(c) Charge represents $797 of costs associated with other strategic acquisition and divestiture activities.

(d) Charge represents amortization of acquisition related intangible assets associated with the MOGAS and Greenray acquisitions.

(e) Charge represents $277 of non-cash 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.

(f) Charge includes $1,500 for a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan.

(g) Charge represents $428 of transaction costs related to the divestiture of our asbestos-related assets and liabilities.

(h) 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 March 31, 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

$

369,334

$

243,177

$

131,889

$

(17,259

)

$

17,743

$

73,905

18.3

%

0.56

Reported as a percent of sales

32.3

%

21.2

%

11.5

%

-1.5

%

1.6

%

6.5

%

Realignment charges (a)

10,015

1,304

8,711

-

1,871

6,840

21.5

%

0.05

Acquisition related (b)

-

(1,281

)

1,281

-

301

980

23.5

%

0.01

Purchase accounting step-up and intangible asset amortization (c)

3,475

(1,300

)

4,775

-

1,361

3,414

28.5

%

0.03

Discrete items (d)(e)

33

(383

)

416

1,500

451

1,465

23.5

%

0.01

Below-the-line foreign exchange impacts (f)

-

-

-

11,373

2,445

8,928

21.5

%

0.07

Adjusted

$

382,857

$

241,517

$

147,072

$

(4,386

)

$

24,172

$

95,532

19.3

%

0.72

Adjusted as a percent of sales

33.5

%

21.1

%

12.8

%

-0.4

%

2.1

%

8.3

%

  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 $416 of non-cash 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 includes $1,500 for a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan.

(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

Three Months Ended March 31,

(Amounts in millions, except percentages)

2026

2025

Bookings

$

773.9

$

852.9

Sales

744.5

783.1

Gross profit

269.9

268.5

Gross profit margin

36.3

%

34.3

%

SG&A

147.2

137.7

Segment operating income

125.8

136.5

Segment operating income as a percentage of sales

16.9

%

17.4

%

FLOW CONTROL DIVISION

Three Months Ended March 31,

(Amounts in millions, except percentages)

2026

2025

Bookings

$

374.2

$

376.0

Sales

327.6

364.1

Gross profit

108.9

100.2

Gross profit margin

33.3

%

27.5

%

SG&A

67.2

68.7

Segment operating income

41.7

31.5

Segment operating income as a percentage of sales

12.7

%

8.6

%

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 March 31, 2026

Gross Profit

Selling, General & Administrative Expense

Operating Income

Three Months Ended March 31, 2025

Gross Profit

Selling, General & Administrative Expense

Operating Income

Reported

$

269,927

$

147,168

$

125,751

Reported

$

268,462

$

137,680

$

136,515

Reported as a percent of sales

36.3

%

19.8

%

16.9

%

Reported as a percent of sales

34.3

%

17.6

%

17.4

%

Realignment charges (a)

10,088

(4,141

)

14,229

Realignment charges (a)

2,979

998

1,981

Discrete items (b)

24

(48

)

72

Discrete items (b)

28

(125

)

153

Acquisition related (c)

-

(39

)

39

Adjusted

$

271,469

$

138,553

$

138,649

Purchase accounting step-up and intangible asset amortization (d)

1,013

(945

)

1,958

Adjusted as a percent of sales

34.7

%

17.7

%

17.7

%

Adjusted

$

281,052

$

141,995

$

142,049

Adjusted as a percent of sales

37.7

%

19.1

%

19.1

%

Flow Control Division

Three Months Ended March 31, 2026

Gross Profit

Selling, General & Administrative Expense

Operating Income

Three Months Ended March 31, 2025

Gross Profit

Selling, General & Administrative Expense

Operating Income

Reported

$

108,947

$

67,231

$

41,716

Reported

$

100,187

$

68,705

$

31,482

Reported as a percent of sales

33.3

%

20.5

%

12.7

%

Reported as a percent of sales

27.5

%

18.9

%

8.6

%

Realignment charges (a)

6,414

5,021

1,393

Realignment charges (a)

7,102

121

6,981

Discrete items (b)

5

(55

)

60

Acquisition related (c)

-

(1,281

)

1,281

Acquisition related (c)

-

(7,738

)

7,738

Purchase accounting step-up and intangible asset amortization (d)

3,475

(1,300

)

4,775

Purchase accounting step-up and intangible asset amortization (d)

-

(1,300

)

1,300

Discrete items (b)

4

(64

)

68

Adjusted

$

115,366

$

63,159

$

52,207

Adjusted

$

110,768

$

66,181

$

44,587

Adjusted as a percent of sales

35.2

%

19.3

%

15.9

%

Adjusted as a percent of sales

30.4

%

18.2

%

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, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility closure.

(a) Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash.

(b) Charge represents non-cash 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 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.

(c) Charge represents acquisition and integration related costs associated with the Greenray and Trillium Valves acquisitions within FPD and FCD, respectively.

(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.

(d) Charge represents amortization of acquisition related intangible assets associated with the Greenray and MOGAS acquisitions within FPD and FCD, respectively.

(d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.

  Segment Results

(Unaudited)

  Flowserve Pumps Division

  (dollars in millions)

Q1 2026

Q1 2025

Change

Organic Bookings

(13.6%)

Acquisition / Divestiture Impact

0.3%

FX Impact (a)

4.0%

Total Bookings (b)

$774

$853

(9.3%)

Organic Sales

(9.5%)

Acquisition / Divestiture Impact

0.3%

FX Impact (a)

4.3%

Reported Sales (b)

$745

$783

(4.9%)

Gross Margin

36.3%

34.3%

200 bps

Adjusted Gross Margin (c)

37.7%

34.7%

300 bps

Operating Margin

16.9%

17.4%

(50 bps)

Adjusted Operating Margin (d)

19.1%

17.7%

140 bps

Backlog (b)

$2,076

$2,019

2.8%

Flowserve Control Division

(dollars in millions)

Q1 2026

Q1 2025

Change

Organic Bookings

(2.9%)

Acquisition / Divestiture Impact

0.0%

FX Impact (a)

2.4%

Total Bookings (b)

$374

$376

(0.5%)

Organic Sales

(12.1%)

Acquisition / Divestiture Impact

0.0%

FX Impact (a)

2.1%

Reported Sales (b)

$328

$364

(10.0%)

Gross Margin

33.3%

27.5%

580 bps

Adjusted Gross Margin (c)

35.2%

30.4%

480 bps

Operating Margin

12.7%

8.6%

410 bps

Adjusted Operating Margin (d)

15.9%

12.2%

370 bps

Backlog (b)

$876

$889

(1.5%)

  (a) Foreign exchange (FX) impact reflects a year-over-year change in foreign currency translation.

(b) Bookings, sales, and backlog do not include interdivision eliminations.

(c) Adjusted gross margin is a non‑GAAP financial measure. Adjusted gross margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding realignment charges and other specific discrete items. See the Segment Reconciliation of Non‑GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited).

(d) Adjusted operating margin excludes realignment charges and other specific discrete items.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

March 31,

December 31,

(Amounts in thousands, except par value)

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

$

792,354

$

760,183

Accounts receivable, net of allowance for expected credit losses of $84,394 and $83,094, respectively

958,985

1,029,095

Contract assets, net of allowance for expected credit losses of $6,331 and $6,028, respectively

357,487

322,472

Inventories

809,583

789,898

Prepaid expenses and other

136,204

141,237

Total current assets

3,054,613

3,042,885

Property, plant and equipment, net of accumulated depreciation of $1,219,307 and $1,224,912, respectively

559,223

566,751

Operating lease right-of-use assets, net

165,222

166,031

Goodwill

1,381,437

1,391,988

Deferred taxes

156,422

156,250

Other intangible assets, net

194,442

198,475

Other assets, net of allowance of expected credit losses of $66,091 and $66,047, respectively

221,801

185,820

Total assets

$

5,733,160

$

5,708,200

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

520,392

$

554,243

Accrued liabilities

499,611

587,475

Contract liabilities

269,165

274,669

Debt due within one year

52,972

49,868

Operating lease liabilities

35,466

35,630

Total current liabilities

1,377,606

1,501,885

Long-term debt due after one year

1,662,000

1,525,210

Operating lease liabilities

139,887

149,565

Retirement obligations and other liabilities

273,415

277,216

Shareholders’ equity:

Preferred shares, $1.00 par value

-

-

Shares authorized – 1,000, no shares issued

Common shares, $1.25 par value

220,991

220,991

Shares authorized – 305,000

Shares issued – 176,793 and 176,793, respectively

Capital in excess of par value

486,518

508,890

Retained earnings

4,315,243

4,261,977

Treasury shares, at cost – 49,215 and 49,763 shares, respectively

(2,218,764

)

(2,231,685

)

Deferred compensation obligation

6,676

6,629

Accumulated other comprehensive loss

(598,359

)

(575,405

)

Total Flowserve Corporation shareholders' equity

2,212,305

2,191,397

Noncontrolling interests

67,947

62,927

Total equity

2,280,252

2,254,324

Total liabilities and equity

$

5,733,160

$

5,708,200

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,

(Amounts in thousands)

2026

2025

Cash flows – Operating activities:

Net earnings, including noncontrolling interests

$

86,369

$

79,457

Adjustments to reconcile net earnings to net cash (used) provided by operating activities:

Depreciation

20,329

18,831

Amortization of intangible and other assets

3,731

5,571

Stock-based compensation

10,716

8,656

Foreign currency, asset write downs and other non-cash adjustments

(14,525

)

(7,350

)

Change in assets and liabilities:

Accounts receivable, net

63,517

(50,679

)

Inventories

(24,604

)

8,804

Contract assets, net

(38,454

)

(9,447

)

Prepaid expenses and other assets, net

(8,940

)

6,669

Accounts payable

(32,385

)

(16,861

)

Contract liabilities

(3,722

)

(3,648

)

Accrued liabilities

(110,074

)

(89,467

)

Retirement obligations and other liabilities

5,027

(5,448

)

Net deferred taxes

(65

)

4,978

Net cash flows (used) by operating activities

(43,080

)

(49,934

)

Cash flows – Investing activities:

Capital expenditures

(16,899

)

(11,738

)

Proceeds from disposal of assets

9,719

462

Net cash flows (used) by investing activities

(7,180

)

(11,276

)

Cash flows – Financing activities:

Payments on term loan

(9,375

)

(9,375

)

Proceeds under revolving credit facility

150,000

-

Proceeds under other financing arrangements

391

150

Payments under other financing arrangements

(2,610

)

(101

)

Repurchases of common shares

-

(21,088

)

Payments related to tax withholding for stock-based compensation

(22,635

)

(11,063

)

Payments of dividends

(26,722

)

(27,617

)

Contingent consideration payment related to acquired business

-

(15,000

)

Other

(529

)

(138

)

Net cash flows (used) provided by financing activities

88,520

(84,232

)

Effect of exchange rate changes on cash and cash equivalents

(6,089

)

10,805

Net change in cash and cash equivalents

32,171

(134,637

)

Cash and cash equivalents at beginning of period

760,183

675,441

Cash and cash equivalents at end of period

$

792,354

$

540,804

About Flowserve:

Flowserve Corporation is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company’s website at www.flowserve.com.

Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, blockades or other closures of major trade lanes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrate new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.

More News From Flowserve Corporation

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Flowserve (FLS - Free Report) reported $1.07 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 6.7%. EPS of $0.85 for the same period compares to $0.72 a year ago.

The reported revenue represents a surprise of -10.08% over the Zacks Consensus Estimate of $1.19 billion. With the consensus EPS estimate being $0.82, the EPS surprise was +3.66%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Flowserve performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Sales- Flow Control Division (FCD): $327.6 million compared to the $375.7 million average estimate based on three analysts. The reported number represents a change of -10% year over year.Sales- Flowserve Pump Division (FPD): $744.5 million versus the three-analyst average estimate of $815.14 million. The reported number represents a year-over-year change of -4.9%.Adjusted Operating Income- Flowserve Pump Division (FPD): $142.05 million versus the three-analyst average estimate of $150.39 million.Adjusted Operating Income- Flow Control Division (FCD): $52.21 million versus the three-analyst average estimate of $50.17 million.View all Key Company Metrics for Flowserve here>>>

Shares of Flowserve have returned +15.7% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Flowserve Corporation (FLS) Q1 2026 Earnings Call Transcript

Flowserve Corporation (FLS) Presents at Bank of America 33rd Annual Industrials, Transportation and Airlines Key Leaders Conference Transcript

On May 26, 2026, Flowserve Corp FLS shares rose 5.4% to a current price of $73.35. This performance comes amidst a 52-week range of $45.11 to $92.41, highlighting significant volatility in the stock's price. The recent uptick is notable given the stock’s 1-month decline of 11.9%, but the year-to-date performance shows a modest increase of 6.0% and a remarkable 49.9% rise over the past year.

GF Value™ verdict: The current price of $73.35 is 39.5% above the GF Value™ of $52.58, indicating overvaluation.GF Score™: 87/100 (Strong), suggesting a strong overall performance across key metrics.Most notable signal: Insiders bought $0.2M in shares in the last 3 months, indicating confidence in the company's future. Is FLS Overvalued or Undervalued? The current trading price of Flowserve Corp FLS at $73.35 is significantly above the GF Value™ of $52.58, marking the stock as overvalued by 39.5%. This overvaluation suggests a lack of margin of safety for investors, as buying at such levels may lead to potential losses if the market corrects itself towards the intrinsic value. The GF Valuation label indicates that the stock is significantly overvalued, raising concerns about the sustainability of its current price.

When a stock is identified as overvalued, it carries inherent risks, particularly in a volatile market environment. Investors might face downward pressure on the stock price as market corrections occur, particularly if the company's performance does not justify the high valuation. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates, providing an essential context for understanding Flowserve's current market position.

How Does FLS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.2x 26.8x Forward P/E 18.1x - Flowserve's current P/E ratio of 27.2x is slightly above its 5-year median P/E of 26.8x, indicating that the stock is trading at a premium compared to its historical valuation. Additionally, the forward P/E of 18.1x suggests expectations of improved earnings in the future, though this is not enough to offset the current overvaluation indicated by the GF Value™ verdict. Therefore, the P/E analysis aligns with the GF Value™ conclusion that the stock is overvalued at its current price.

What Does FLS's GF Score™ Tell Us? Metric Rating GF Score™ 87/100 Financial Strength 6/10 Profitability 8/10 Growth 8/10 Valuation 5/10 Momentum 9/10 The GF Score™ of 87/100 indicates a strong overall performance, with particularly high scores in Profitability (8/10) and Growth (8/10), suggesting that Flowserve is well-positioned in these areas. However, the Valuation score of 5/10 reflects the current concerns regarding overvaluation. Additionally, the Momentum score of 9/10 indicates strong recent price performance, although this may not be sustainable if the stock is indeed overvalued.

What Are Insiders Doing with FLS Stock? In the last three months, insiders at Flowserve Corp have purchased $0.2 million worth of shares, and there have been no reported sales. This buying activity suggests that insiders have confidence in the company’s future prospects and may believe that the current price provides a favorable opportunity. Such insider buying can be a positive signal for potential investors, as it indicates alignment between management's interests and those of the shareholders.

What This Means for Investors Based on the GF Value™ assessment, Flowserve Corp FLS is currently overvalued at a price of $73.35, significantly above the estimated fair value of $52.58. Investors may want to exercise caution and consider the implications of the current valuation relative to the stock's historical performance and the inherent risks involved.

For the complete analysis, visit the Flowserve Corp FLS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is FLS's GF Score™?

FLS's GF Score™ is 87/100, indicating a strong overall performance across key metrics, which suggests potential for higher long-term returns.

Is FLS overvalued or undervalued?

FLS is currently overvalued, with a GF Value™ of $52.58 compared to the current price of $73.35, indicating a significant margin of overvaluation.

What is FLS's P/E ratio?

FLS's P/E ratio (TTM) is 27.2x, which is slightly above its historical 5-year median of 26.8x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS) (“Flowserve” or the “Company”), a leading provider of flow control products and services for the global infrastructure markets, today issued the following statement in response to a letter issued by Starboard Value LP (collectively with its affiliates, "Starboard").

The Flowserve Board of Directors (the “Board”) and management team are committed to acting in the best interests of the Company and all shareholders. We regularly engage with investors to better understand their perspectives, and we welcome constructive input that furthers our goal of creating sustainable, long-term value for all shareholders. To this end, members of Flowserve’s management team have held discussions with Starboard in recent months.

Flowserve has made meaningful portfolio and operational improvements that have resulted in 860 basis points of adjusted operating margin improvement since 2022. We believe the Company is better positioned to drive growth and value creation than at any point in our history. Powered by our 3D strategy and the Flowserve Business System, the Company continues to deliver substantial year‑over‑year improvement across key operational and financial metrics.

The Company reaffirms its 2026 guidance, including adjusted operating margin expansion and double-digit adjusted EPS growth. Additionally, the management team remains committed to its 2030 financial targets of mid-single digit organic sales CAGR from 2025-2030, 20% adjusted operating margin by 2030, and double-digit adjusted EPS CAGR from 2025-2030.

The strength of our aftermarket franchise and a resurgent power and nuclear end market fueled by AI growth, data center development and broader electrification trends provide a strong backdrop for growth. The current geopolitical environment should drive increased investment in energy security and diversification globally, providing another long-term tailwind for the Company. In addition, strong cash generation continues to facilitate disciplined, value-creating capital deployment, such as the acquisition of the Valves Division of Trillium Flow Technologies, as well as the return of $365 million to shareholders in 2025, including $255 million in share repurchases.

The Board and management team will continue to take action to drive sustainable growth, expand margins and enhance cash flow, thereby increasing value for all shareholders.

About Flowserve

Flowserve Corporation is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company’s website at www.flowserve.com.

Safe Harbor Statement

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, “may,” “should,” “expects,” “could,” “intends,” “plans,” “anticipates,” “estimates,” “believes,” “forecasts,” “predicts” or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, blockades or other closures of major trade lanes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrate new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the U.S. Securities and Exchange Commission.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.