Flowserve Corporation Reports Third Quarter 2026 Results

(dollars in millions, except per share)

Q3 2026

Q3 2025

Change

YTD 2026

YTD 2025

Change

Organic Bookings

7.7%

6.1%

Acquisitions/Divestitures Impact

660 bps

270 bps

Foreign Exchange Impact

(20 bps)

150 bps

Total Bookings

$1,383.5

$1,213.0

14.1%

$3,872.5

$3,511.2

10.3%

Original Equipment Bookings

$655.8

$559.9

17.1%

$1,768.6

$1,549.0

14.2%

Aftermarket Bookings

$727.7

$653.1

11.4%

$2,103.9

$1,962.2

7.2%

Organic Sales⁴

(1.2%)

(4.9%)

Acquisitions/Divestitures Impact

670 bps

260 bps

Foreign Exchange Impact

(10 bps)

140 bps

Reported Sales

$1,237.8

$1,174.4

5.4%

$3,475.2

$3,507.1

(0.9%)

Operating Margin

12.5%

6.7%

580 bps

12.2%

10.2%

200 bps

Adjusted Operating Margin

16.5%

14.8%

170 bps

15.6%

14.1%

150 bps

Earnings Per Share (EPS)

$0.81

$1.67

(51.5%)

$2.21

$2.85

(22.5%)

Adjusted Earnings Per Share (EPS)

$1.07

$0.90

18.9%

$2.87

$2.53

13.4%

Cash From Operations

$144.1

$401.8

($257.7)

$230.3

$506.1

($275.8)

Backlog

$3,471.8

$2,896.1

19.9%

$3,471.8

$2,896.1

19.9%

Prior

Current

Organic Sales Growth

Approx. (1%)

(2.5%) to (1.5%)

Impact From Acquisitions/Divestitures

Approx. +300 bps

Approx. +350 bps

Impact From Foreign Exchange Translation

Approx. +100 bps

Approx. +100 bps

Total Sales Growth

Approx. +3%

+2% to +3%

Adjusted EPS

$4.05 to $4.20

$4.10 to $4.20

Net Interest Expense

Approx. $85 million

Approx. $85 million

Adjusted Tax Rate

21% to 22%

21% to 22%

Capital Expenditures

Approx. $100 million

Approx. $90 million

¹ See Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) and Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) tables for a detailed reconciliation of reported results to adjusted measures.

² Adjusted operating margin is calculated by dividing adjusted operating income by sales. Adjusted operating income is derived by excluding the adjusted items.

³ Adjusted earnings per share (EPS) excludes realignment expenses, the impact from other specific discrete and below-the-line foreign currency effects and utilizes the then-applicable foreign exchange rates and fully diluted shares. Adjusted full-year 2026 EPS guidance excludes certain other discrete items which may arise during the year.

⁴ Organic is defined as the change in sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions and divestitures. The impact of currency translation is calculated by translating current year results on a monthly basis at prior year exchange rates for the same period.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended September 30,

(Amounts in thousands)

2026

2025

Sales

$

1,237,773

$

1,174,434

Cost of sales

(823,393

)

(794,148

)

Gross profit

414,380

380,286

Selling, general and administrative expense

(281,937

)

(305,152

)

Gain on sale of business

16,177

—

Net earnings from affiliates

5,986

4,138

Operating income

154,606

79,272

Interest expense

(26,641

)

(18,738

)

Interest income

2,362

792

Other (expense) income, net

(8,184

)

256,220

Earnings before income taxes

122,143

317,546

(Provision for) benefit from income taxes

(15,090

)

(93,688

)

Net earnings, including noncontrolling interests

107,053

223,858

Less: net earnings attributable to noncontrolling interests

(4,015

)

(4,276

)

Net earnings attributable to Flowserve Corporation

$

103,038

$

219,582

Net earnings per share attributable to Flowserve Corporation common shareholders:

Basic

$

0.81

$

1.69

Diluted

0.81

1.67

Weighted average shares - basic

127,164

130,315

Weighted average shares - diluted

127,962

131,235

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 September 30, 2026

Gross
Profit

Selling, General & Administrative
Expense

Gain on Sale of
Business

Operating
Income

Other Income (Expense),
Net

Provision For (Benefit From) Income
Taxes

Net Earnings
(Loss)

Effective
Tax Rate

Diluted
EPS

Reported

$

414,380

$

281,937

$

16,177

$

154,606

$

(8,184

)

$

15,090

$

103,038

12.4

%

0.81

Reported as a percent of sales

33.5

%

22.8

%

1.3

%

12.5

%

-0.7

%

1.2

%

8.3

%

Realignment charges (a)

25,971

(6,018

)

(16,177

)

15,812

-

(6,260

)

22,072

-39.6

%

0.17

Acquisition and divestiture related (b)

-

(5,275

)

-

5,275

-

1,241

4,034

23.5

%

0.03

Amortization of intangible assets (c)

13,898

(6,765

)

-

20,663

-

2,874

17,789

13.9

%

0.14

Discrete items (d)

-

(7,830

)

-

7,830

1,000

190

8,640

2.2

%

0.07

Discrete tax items (e)

-

-

-

-

-

23,072

(23,072

)

0.0

%

(0.18

)

Below-the-line foreign exchange impacts (f)

-

-

-

-

5,132

442

4,690

8.6

%

0.04

Adjusted

$

454,249

$

256,049

$

-

$

204,186

$

(2,052

)

$

36,649

$

137,191

20.6

%

1.07

Adjusted as a percent of sales

36.7

%

20.7

%

0.0

%

16.5

%

-0.2

%

3.0

%

11.1

%

Note: Amounts may not calculate due to rounding

(a) Charges represent realignment costs incurred as a result of realignment programs and includes the gain on divestiture of our PMV Automation business (PMV) within FCD.

(b) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO), and the divestiture of PMV.

(c) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories.

(d) Charge represents the $7,972 strategic acquisition of intellectual property within FPD, an immaterial adjustment to transaction costs related to the divestiture of our asbestos-related assets and liabilities that were adjusted out in a prior period and $1,000 for non-cash pension settlement accounting losses incurred in conjunction with the U.S. pension plan.

(e) Discrete tax adjustment includes the impact from the release of a valuation allowance in Italy.

(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 and includes the foreign exchange loss on the Blue Chip Swap Securities transaction.

Three Months Ended September 30, 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

$

380,286

$

305,152

$

79,272

$

256,220

$

93,688

$

219,582

29.5

%

1.67

Reported as a percent of sales

32.4

%

26.0

%

6.7

%

21.8

%

8.0

%

18.7

%

Realignment charges (a)

25,481

(4,571

)

30,052

-

6,907

23,145

23.0

%

0.18

Acquisition related (b)

9

(4,243

)

4,252

-

1,000

3,252

23.5

%

0.02

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

2,625

(1,300

)

3,925

-

1,182

2,743

30.1

%

0.02

Discrete items (d)(e)(f)

31

(30,351

)

30,382

1,500

7,499

24,383

23.5

%

0.19

Merger transaction costs (g)

-

(25,682

)

25,682

-

5,885

19,797

22.9

%

0.15

Merger termination payment (h)

-

-

-

(266,000

)

(60,957

)

(205,043

)

22.9

%

(1.56

)

Discrete tax items (i)

-

-

-

-

(24,860

)

24,860

0.0

%

0.19

Below-the-line foreign exchange impacts (j)

-

-

-

5,401

622

4,779

11.5

%

0.04

Adjusted

$

408,432

$

239,005

$

173,565

$

(2,879

)

$

30,966

$

117,498

20.3

%

0.90

Adjusted as a percent of sales

34.8

%

20.4

%

14.8

%

-0.2

%

2.6

%

10.0

%

Note: Amounts may not calculate due to rounding

(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,300 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 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 U.S. Qualified pension plan.

(e) Charge of $1,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our U.S. Qualified pension plan.

(f) Charge of $30,100 represents the Q3 2025 non-cash adjustment to our estimated liability for incurred by not reported asbestos claims based on an annual actuarial study.

(g) Charge represents transaction costs incurred associated with the terminated Chart Industries merger.

(h) Amount represents the Chart Industries merger termination fee paid to Flowserve.

(i) Amount represents a one-time tax charge related to enactment of the One Big Beautiful Bill Act during Q3 2025.

(j) 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)

Three Months Ended September 30,

FLOWSERVE PUMPS DIVISION

2026

2025

(Amounts in millions, except percentages)

Bookings

$

940.1

$

819.5

Sales

830.4

800.3

Gross profit

314.3

265.8

Gross profit margin

37.8

%

33.2

%

SG&A

152.2

135.0

Segment operating income

168.0

134.9

Segment operating income as a percentage of sales

20.2

%

16.9

%

Three Months Ended September 30,

FLOW CONTROL DIVISION

2026

2025

(Amounts in millions, except percentages)

Bookings

$

446.2

$

396.1

Sales

411.6

377.4

Gross profit

98.9

114.2

Gross profit margin

24.0

%

30.3

%

SG&A

80.9

67.8

Gain on sale of business

16.2

—

Segment operating income

34.2

46.4

Segment operating income as a percentage of sales

8.3

%

12.3

%

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 September 30, 2026

Gross
Profit

Selling, General & Administrative
Expense

Operating
Income

Three Months Ended
September 30, 2025

Gross
Profit

Selling, General & Administrative
Expense

Operating
Income

Reported

$

314,255

$

152,218

$

168,023

Reported

$

265,776

$

135,046

$

134,869

Reported as a percent of sales

37.8

%

18.3

%

20.2

%

Reported as a percent of sales

33.2

%

16.9

%

16.9

%

Realignment charges (a)

(869

)

(534

)

(335

)

Realignment charges (a)

21,628

(88

)

21,716

Discrete items (b)

-

(7,967

)

7,967

Discrete items (b)

24

(63

)

87

Amortization of intangible assets (d)

2,916

(2,276

)

5,192

Adjusted

$

287,428

$

134,895

$

156,672

Adjusted

$

316,302

$

141,441

$

180,847

Adjusted as a percent of sales

35.9

%

16.9

%

19.6

%

Adjusted as a percent of sales

38.1

%

17.0

%

21.8

%

Flow Control Division

Three Months Ended September 30, 2026

Gross
Profit

Selling, General & Administrative
Expense

Gain on Sale of
Business

Operating
Income

Three Months Ended
September 30, 2025

Gross
Profit

Selling, General & Administrative
Expense

Operating
Income

Reported

$

98,906

$

80,889

$

16,177

$

34,194

Reported

$

114,250

$

67,810

$

46,440

Reported as a percent of sales

24.0

%

19.7

%

3.9

%

8.3

%

Reported as a percent of sales

30.3

%

18.0

%

12.3

%

Realignment charges (a)

26,840

(3,762

)

(16,177

)

14,425

Realignment charges (a)

4,386

(2,395

)

6,781

Acquisition and divestiture related (c)

-

(2,956

)

-

2,956

Acquisition related (c)

9

(4,243

)

4,252

Amortization of intangible assets (d)

10,982

(4,489

)

-

15,471

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

2,625

(1,300

)

3,925

Adjusted

$

136,728

$

69,682

$

-

$

67,046

Discrete items (b)

5

(45

)

50

Adjusted as a percent of sales

33.2

%

16.9

%

0.0

%

16.3

%

Adjusted

$

121,275

$

59,827

$

61,448

Adjusted as a percent of sales

32.1

%

15.9

%

16.3

%

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 and includes the gain on divestiture of our PMV Automation business (PMV) within FCD.

(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,300 is non-cash.

(b) Charge represents the $7,967 strategic acquisition of intellectual property within FPD.

(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 U.S. Qualified pension plan.

(c) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and the divestiture of PMV with FCD.

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

(d) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories.

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

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Amounts in thousands, except per share data)

Nine Months Ended September 30,

2026

2025

Sales

$

3,475,217

$

3,507,069

Cost of sales

(2,296,270

)

(2,350,867

)

Gross profit

1,178,947

1,156,202

Selling, general and administrative expense

(811,655

)

(814,237

)

Gain on sale of business

16,177

—

Net earnings from affiliates

41,992

15,786

Operating income

425,461

357,751

Interest expense

(72,768

)

(58,166

)

Interest income

8,885

5,063

Other (expense) income, net

(13,272

)

213,958

Earnings before income taxes

348,306

518,606

Provision for income taxes

(53,299

)

(127,067

)

Net earnings, including noncontrolling interests

295,007

391,539

Less: Net earnings attributable to noncontrolling interests

(11,290

)

(16,298

)

Net earnings attributable to Flowserve Corporation

$

283,717

$

375,241

Net earnings per share attributable to Flowserve Corporation common shareholders:

Basic

$

2.23

$

2.87

Diluted

2.21

2.85

Weighted average shares - basic

127,434

130,910

Weighted average shares - diluted

128,314

131,836

Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)

(Amounts in thousands, except per share data)

Nine Months Ended September 30, 2026

Gross
Profit

Selling, General & Administrative
Expense

Gain on Sale of
Business

Net earnings from
affiliates

Operating
Income

Other Income (Expense),
Net

Provision For (Benefit From) Income
Taxes

Net Earnings
(Loss)

Effective
Tax Rate

Diluted
EPS

Reported

$

1,178,947

$

811,655

$

16,177

$

41,992

$

425,461

$

(13,272

)

$

53,299

$

283,717

15.3

%

2.21

Reported as a percent of sales

33.9

%

23.4

%

0.5

%

1.2

%

12.2

%

-0.4

%

1.5

%

8.2

%

Realignment charges (a)

75,452

(26,234

)

(16,177

)

-

85,509

-

6,773

78,736

7.9

%

0.61

Acquisition and divestiture related (b)(c)

-

(23,179

)

-

(27,700

)

(4,521

)

-

5,554

(10,075

)

-122.8

%

(0.08

)

Amortization of intangible assets (d)

16,454

(12,113

)

-

-

28,567

-

4,394

24,173

15.4

%

0.19

Discrete items (e)(f)

62

(8,719

)

-

-

8,781

5,576

1,491

12,866

10.4

%

0.10

Discrete tax items (g)

-

-

-

-

-

-

23,072

(23,072

)

0.0

%

(0.18

)

Below-the-line foreign exchange impacts (h)

-

-

-

-

-

2,409

255

2,154

10.6

%

0.02

Adjusted

$

1,270,915

$

741,410

$

-

$

14,292

$

543,797

$

(5,287

)

$

94,838

$

368,499

20.0

%

2.87

Adjusted as a percent of sales

36.6

%

21.3

%

0.0

%

0.4

%

15.6

%

-0.2

%

2.7

%

10.6

%

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, and of which $5,234 is non-cash. Also includes the gain on divestiture of our PMV Automation business (PMV) within FCD.

(b) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO), and the divestiture of PMV.

(c) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO.

(d) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories.

(e) Charges represent discrete items including $523 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 U.S. Qualified pension plan, $286 of transaction costs related to the divestiture of our asbestos-related assets and liabilities and the $7,972 strategic acquisition of intellectual property within FPD.

(f) Charges include $5,576 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada.

(g) Discrete tax adjustment includes the impact from the release of a valuation allowance in Italy.

(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 and includes the foreign exchange loss on the Blue Chip Swap Securities transaction.

Nine Months Ended September 30, 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

$

1,156,202

$

814,237

$

357,751

$

213,958

$

127,067

$

375,241

24.5

%

2.85

Reported as a percent of sales

33.0

%

23.2

%

10.2

%

6.1

%

3.6

%

10.7

%

Realignment charges (a)

40,600

(1,481

)

42,081

-

10,096

31,985

24.0

%

0.24

Acquisition related (b)

761

(8,714

)

9,475

-

2,228

7,247

23.5

%

0.05

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

8,742

(3,900

)

12,642

-

3,729

8,913

29.5

%

0.07

Discrete items (d)(e)(f)

106

(31,116

)

31,222

4,500

8,403

27,319

23.5

%

0.21

Merger transaction costs (g)

-

(41,197

)

41,197

-

9,534

31,663

23.1

%

0.24

Merger termination payment (h)

-

-

-

(266,000

)

(60,957

)

(205,043

)

22.9

%

(1.56

)

Discrete tax items (i)

-

-

-

-

(24,860

)

24,860

0.0

%

0.19

Below-the-line foreign exchange impacts (j)

-

-

-

36,797

5,977

30,820

16.2

%

0.23

Adjusted

$

1,206,411

$

727,829

$

494,368

$

(10,745

)

$

81,217

$

333,005

18.9

%

2.53

Adjusted as a percent of sales

34.4

%

20.8

%

14.1

%

-0.3

%

2.3

%

9.5

%

Note: Amounts may not calculate due to rounding

(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,300 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 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 U.S. Qualified pension plan.

(e) Charge of $4,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our U.S. Qualified pension plan.

(f) Charge of $30,100 represents the Q3 2025 non-cash adjustment to our estimated liability for incurred by not reported asbestos claims based on an annual actuarial study.

(g) Charge represents transaction costs incurred associated with the terminated Chart Industries merger.

(h) Amount represents the Chart Industries merger termination fee paid to Flowserve.

(i) Amount represents a one-time tax charge related to enactment of the One Big Beautiful Bill Act during Q3 2025.

(j) 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.