Flowserve Corporation is a global enterprise that specializes in the conception, creation, distribution, and upkeep of industrial equipment crucial for managing fluid ...
Flowserve Corporation (NYSE: FLS) is a global enterprise specializing in the design, manufacture, distribution, and maintenance of industrial flow control equipment. Founded in 1997 through the merger of BW/IP and Durco International, the company has a rich heritage dating back over 230 years through its legacy brands. Headquartered in Irving, ...Flowserve Corporation (NYSE: FLS) is a global enterprise specializing in the design, manufacture, distribution, and maintenance of industrial flow control equipment. Founded in 1997 through the merger of BW/IP and Durco International, the company has a rich heritage dating back over 230 years through its legacy brands. Headquartered in Irving, Texas, Flowserve operates in two principal divisions: the Flowserve Pump Division (FPD) and the Flow Control Division (FCD). The FPD offers custom-engineered and pre-configured pumps, mechanical seals, auxiliary components, and replacement parts, along with comprehensive aftermarket services such as installation, diagnostics, retrofits, and asset management programs. The FCD focuses on advanced valve and automation technologies, providing isolation and control valves, actuation systems, and maintenance services like advanced diagnostics and field machining. These products are crucial for accurately controlling the flow of liquids, gases, and other fluids across diverse industries, including oil and gas, chemical and pharmaceutical manufacturing, power generation, water management, mining, pulp and paper, and food and beverage. Flowserve generates revenue through direct sales teams, independent distributors, and sales representatives worldwide. The company holds a strong market position as one of the world's largest manufacturers of pumps, valves, and seals, with a focus on innovation and sustainability. Under the leadership of President and CEO R. Scott Rowe since April 2017, Flowserve has pursued a 3D growth strategy, emphasizing growth, diversification, and digitalization. Financially, the company has a market capitalization of approximately $10.2 billion, a trailing twelve-month revenue of around $4.6 billion, and a net profit margin of 8%. With over 16,000 employees, Flowserve remains dedicated to supporting global infrastructure and essential processes, ensuring reliable operation and efficiency for its customers.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$4.7B
+3.8%
+9.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$346.2M
+22.5%
+21.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+34.6%
+7.6%
-11.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+13.0%
+14.8%
-4.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+7.3%
+18.0%
+10.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$435.0M
+26.3%
+287.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.2%
+21.8%
+271.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
80.3%
-4.4%
+20.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.03x
+2.4%
-2.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, everyone, and welcome to the Flowserve Second Quarter 2026 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Brian Ezzell, Vice President of Investor Relations. Please go ahead, sir.
Brian Ezzell: Thank you, and good morning, everyone. Welcome to Flowserve's Second Quarter 2026 Business Update. I'm joined by Scott Rowe, Flowserve's President and Chief Executive Officer; and Flowserve Chief Financial Officer, Amy Schwetz. Following Scott, and Amy's prepared remarks, we'll open the call for questions. Turning to Slide 2. Our discussion will contain forward-looking statements that are based upon information available as of today. Actual results may differ due to risks and uncertainties. Refer to additional information, including our note on non-GAAP measures in our press release, earnings presentation and SEC filings, which are available on our website. With that, I will turn it over to Scott.
Robert Rowe: Thank you, Brian, and good morning, everyone. Turning to Slide 3. I'd like to begin by thanking our associates around the world for their hard work, disciplined execution and resilience in what remains a dynamic environment. The second quarter was marked by meaningful customer bookings, solid execution and strong financial performance, building on the momentum of the Flowserve Business System and durable end market demand. Starting off with some key highlights. Bookings were a standout in the quarter, growing double digits year-over-year to $1.35 billion, with record bookings of almost $700 million, and adjusted operating margin expanded 70 basis points to 15.3%. That performance drove adjusted earnings per share of $0.95, ahead of our expectations for the quarter. Sales came in modestly ahead of what we outlined in April, down 2% on a reported basis and down 3% on an organic basis versus the prior year period, reflecting ongoing 80/20 actions and the continuing conflict in the Middle East. These results reflect the earnings power we have built over the last 3 years. Adjusted operating margin has expanded from 9.5% in 2023 to an expected roughly 16% this year, well on the way to our 2030 target of 20%. This expansion has been enabled through operational excellence, the 80/20 program and commercial excellence, all of which are strengthening execution, reducing complexity, and driving sustainable margin expansion. With half the year behind us, we are updating our full year guidance, including modestly lowering our sales outlook due to the expected impact of the conflict in the Middle East and raising the low end of our adjusted EPS guidance range to reflect strong year-to-date performance and confidence in back half earnings. Taken together, I'm incredibly pleased with the performance in the second quarter and encouraged by the continued progress we are making. Let's turn to bookings on Slide 4. Bookings in the second quarter were $1.35 billion, up 26% versus the …
