Flowserve's Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Flowserve Corporation’s FLS fourth-quarter 2025 adjusted earnings (excluding 77 cents from non-recurring items) of $1.11 per share beat the Zacks Consensus Estimate of 94 cents. The bottom line increased 58.6% year over year. Results benefited primarily from higher revenues generated in the quarter.

Flowserve’s total revenues of $1.22 billion missed the consensus estimate of $1.26 billion. Also, the top line increased 3.5% year over year. Aftermarket bookings increased 10.4% year over year to $682.3 million, while original equipment bookings decreased 5.5% year over year to $526.6 million.

Total bookings amounted to $1.21 billion, reflecting an increase of 2.9% year over year. The backlog at the end of the quarter was $2.9 billion, up 2.8% year over year.

For 2025, it generated revenues of $4.73 billion, up 3.7% year over year. The company’s adjusted earnings came in at $3.64 per share, higher than $2.63 reported in 2024.

Segmental Details of FLS

Flowserve currently has two reportable segments, Flowserve Pump Division and Flow Control Division. A brief discussion of the segments is provided below:

In the fourth quarter, revenues from the Flowserve Pumps Division segment were $833 million, up 4.8% year over year. Our estimate was $845 million. Bookings increased 8.2% year over year to $883.6 million. Segmental operating income was $166.8 million, up 29.2% year over year.

Revenues from the Flow Control Division segment were $ 391.5 million, up 0.9% year over year. Our estimate was $416 million. Bookings of $330.3 million decreased 9.1% on a year-over-year basis. The segment’s operating income was $64 million, up 43.5% year over year.

Flowserve Corporation Price, Consensus and EPS Surprise

Flowserve Corporation price-consensus-eps-surprise-chart | Flowserve Corporation Quote

Margin Profile of FLS

In the fourth quarter, Flowserve’s cost of sales decreased 1.4% year over year to $797 million. Gross profit rose 14.3% year over year to $425.2 million and the margin increased 330 basis points (bps) to 34.8%. Selling, general and administrative expenses were $247.9 million, down 1.6% year over year.

Operating income decreased 66.2% year over year to $42.2 million. The operating margin was 3.5%, down 710 bps year over year. The effective tax rate was 420.1%.

Flowserve’s Balance Sheet and Cash Flow

Exiting the fourth quarter, Flowserve had cash and cash equivalents of $760.2 million compared with $675.4 million at the end of 2024. Long-term debt (due after one year) was $1.53 billion compared with $1.46 billion reported at the end of 2024.

In 2025, the company generated net cash of $505.9 million from operating activities compared with $425.3 million in the year-ago period. Capital expenditure totaled $70.9 million, down 12.5% year over year.

During the same period, the company used $109.6 million for distributing dividends and repurchased shares worth $254.9 million.

2026 Guidance of FLS

Flowserve has provided its 2026 outlook. The company expects a 5-7% increase in revenues from the year-ago level. Organic revenues are projected to grow 1-3%. It currently anticipates earnings per share (on an adjusted basis) to be $4.00-$4.20.

The adjusted tax rate is projected to be approximately 21-22%. The company forecasts net interest expense to be $80 million and capital expenditure in the range of $90-$100 million.

FLS’ Zacks Rank & Key Picks

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the same space are discussed below:

Nordson Corporation NDSN currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 1.9%.

RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.2%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has increased 0.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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