FLS
Flowserve Corporation70.42
-1.40-1.95%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Clarifies H1 caution, Venezuela upside.
Q&A unpacked Q4 organic revenue lightness from 50 basis points of POC project delays rolling into H1 2026, alongside 76% backlog conversion on nuclear's longer cycle and 80/20 headwinds muting early growth—yet margins keep expanding. Management flagged Venezuela's installed base as surprise upside, absent from guidance. Bookings mid-single digits hinge on aftermarket, double-digit power, general industries, and Middle East acceleration. Trillium lifts nuclear reactor content 15-20% to $115-120M. Margins march higher, volume optional. Confident tone pervades; watch H1 proof.
Key Stats
Market Cap
9.21BP/E (TTM)
20.47Basic EPS (TTM)
3.44Dividend Yield
0.01%Recent Filings
10-K
FY2025 results
Flowserve posted flat bookings at $4.7B for FY2025 ended December 31, 2025, matching 2024 amid energy weakness offset by general industries and power generation gains; sales rose 3.8% to $4.7B on aftermarket strength, with FPD up 2.4% and FCD 6.8%. Gross margins expanded to 33.4% from 31.5% via pricing and mix, though operating income dipped to 8.5% on realignment costs, asbestos divestiture loss and merger expenses; Q4 repurchases hit $56.9M of $197.9M remaining capacity. Backlog climbed 2.8% to $2.9B. Cash flow surged to $506M. Cyclical customer spending stalls growth.
8-K
Acquires Trillium Valves for $490M
Flowserve signed a definitive agreement on February 4, 2026, to acquire Trillium Flow Technologies' Valves Division for $490 million in cash, targeting mission-critical valves for nuclear and power markets. Closing is slated for mid-year 2026, funded by cash and debt, subject to regulatory approvals. Acquisition bolsters nuclear leadership and aftermarket base. It eyes accretion to adjusted operating income in 2026.
8-K
Asbestos liabilities divested
Flowserve completed the divestiture of BW/IP-New Mexico on December 11, 2025, offloading all legacy asbestos liabilities and related insurance assets to Ajax HoldCo LLC, an Oaktree affiliate. The company contributed $199 million in cash toward BW/IP's $219 million capitalization. Balance sheet cleans up nicely. Expect a $140 million Q4 loss, excluded from adjusted EPS.
8-K
Asbestos divestiture deal signed
Flowserve signed a deal on October 28, 2025, to sell BW/IP-New Mexico, Inc., holding its legacy asbestos liabilities plus insurance and deferred tax assets, to Ajax HoldCo LLC, an Oaktree affiliate. Parent contributes $199M cash, buyer $20M, for Q4 close; removes liabilities from balance sheet but books ~$135M one-time loss. Frees $15-20M annual cash flow. Clean balance sheet ahead.
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