Flowserve's Q2 Earnings Beat Estimates, Revenues Increase Y/Y

Flowserve Corporation’s FLS second-quarter 2025 adjusted earnings (excluding 29 cents from non-recurring items) of 91 cents per share beat the Zacks Consensus Estimate of 78 cents. The bottom line increased 24.7% year over year. Results benefited primarily from higher revenues generated in the quarter.

Flowserve’s total revenues of $1.19 billion missed the consensus estimate of $1.21 billion. The top line increased 2.7% year over year. Aftermarket sales increased 7.1% year over year, while Original equipment sales decreased 1.9% year over year.

Total bookings amounted to $1.07 billion, reflecting a decrease of 13.8% year over year. The backlog at the end of the quarter was $2.85 billion, up 6.3% year over year.

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:

Revenues from the Flowserve Pumps Division segment were $818.9 million, up 0.8% year over year. Our estimate was $821.9 million. Bookings decreased 19.5% year over year to $723.8 million. Segmental operating income was $162.7 million, up 24.2% year over year.

Revenues from the Flow Control Division segment were $371.5 million, up 6.8% year over year. Our estimate was $389.9 million. Bookings of $354.7 million increased 1.6% on a year-over-year basis. The segment’s operating income was $37.8 million, up 17% year over year.

Margin Profile of FLS

In the second quarter, Flowserve’s cost of sales decreased 1.2% year over year to $781.5 million. Gross profit rose 11.1% year over year to $406.6 million and the margin increased 260 basis points (bps) to 34.2%. Selling, general and administrative expenses were $265.9 million, up 11.4% year over year.

Operating income increased 20.8% year over year to $146.6 million. The operating margin was 12.3%, up 180 bps year over year. The effective tax rate was 15.1%.

Flowserve’s Balance Sheet and Cash Flow

Exiting the second quarter, Flowserve had cash and cash equivalents of $629.2 million compared with $675.4 million at the end of 2024. Long-term debt (due after one year) was $1.44 billion compared with $1.46 billion reported at the end of 2024.

In the first six months of 2025, the company generated net cash of $104.2 million from operating activities compared with $49.5 million in the year-ago period. Capital expenditure totaled $28.3 million, up 0.2% year over year.

During the same period, the company used $55.2 million for distributing dividends and repurchased shares worth $52.8 million.

2025 Guidance of FLS

Flowserve has updated its 2025 outlook. The company now expects a 5-6% increase in revenues from the year-ago level compared with 5-7% anticipated earlier. It currently anticipates earnings per share (on an adjusted basis) to be $3.25-$3.40 compared with $3.10-$3.30 expected earlier.

The adjusted tax rate is projected to be approximately 20%. The company forecasts net interest expense and capital expenditure to be $70 million and $80-$90 million, respectively.

FLS’ Zacks Rank

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

Performance of Other Companies

Dover Corporation DOV reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.

Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.

Teck Resources Limited TECK came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.

Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion. 

Packaging Corporation of America PKG reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.

Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.

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