FLOWSERVE CORP (FLS) Earnings History

FLOWSERVE CORP - Q4 FY2025 EarningsMet

Filed at: Feb 5, 2026, 4:06 PM EST|Read from source

EXECUTIVE SUMMARY

Flowserve reported strong fourth quarter and full-year 2025 results, driven by the execution of its business system and healthy end markets. The company initiated 2026 guidance and established long-term financial targets, signaling confidence in future growth and profitability.

POSITIVE HIGHLIGHTS

  • •

    Full year cash from operations of $506 million driven by strong earnings and working capital management.

    positive
  • •

    Full year bookings increased 1.1% to $4.7 billion, with aftermarket bookings growing 9.2%.

    positive
  • •

    Adjusted operating margin improved significantly, up 300 bps year-over-year for the full year and 420 bps for Q4.

    positive
  • •

    Announced acquisition of Trillium Flow Technologies’ Valves Division to expand offerings in critical infrastructure applications.

    positive

CONCERNS & RISKS

  • •

    Reported net loss of $28.995 million for Q4 2025, a significant decline from net earnings of $77.541 million in Q4 2024.

    negative
  • •

    Reported operating margin for Q4 2025 was 3.5%, a substantial decrease from 10.6% in Q4 2024, impacted by a one-time asbestos divestiture loss.

    negative
  • •

    Original Equipment Bookings decreased 5.5% in Q4 and 7.6% for the full year.

    attention
  • •

    Inventories increased by $86.7 million year-over-year, while accounts receivable increased by $52.4 million.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.22B
+3.5%
Prior year: $1.18B
Annual (YTD)
$4.73B
N/A
Prior year: $4.56B
Net Income
Quarterly
$-29.00M
N/A
Prior year: $77.54M
Annual (YTD)
$346.25M
N/A
Prior year: $282.76M
EPS (Diluted)
Quarterly
$-0.23
N/A
Prior year: $0.59
Operating Income
Quarterly
$42.17M
-66.2%
Prior year: $124.70M
Annual (YTD)
$399.92M
N/A
Prior year: $462.28M
EPS (Basic)
Quarterly
$-0.23
N/A
Prior year: $0.59

MARGIN ANALYSIS

Gross Margin
Current Quarter
34.8%
Prior Year
31.5%
YoY Change
+330 bps
Operating Margin
Current Quarter
3.5%
Prior Year
10.6%
YoY Change
-710 bps
Net Margin
Current Quarter
-2.4%
Prior Year
6.6%
YoY Change
-900 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Flowserve Pumps Division
0.0%
N/A
CC: +1.8%
Flow Control Division
0.0%
N/A
CC: +6.4%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
Flowserve Pumps Division
N/A———+1.8%
Flow Control Division
N/A———+6.4%
Total Revenue$0.00M——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT GUIDANCE

FY2026

Organic Sales Growth
$0.0M—$0.0M
Mid-point: $0.0M
Total Sales Growth
$0.1M—$0.1M
Mid-point: $0.1M
"Includes impact from acquisitions and foreign exchange."
Adjusted EPS
$4.00—$4.20
Mid-point: $4.10
"Represents a 13% increase versus full year 2025 adjusted EPS at the midpoint."
Net Interest Expense
80,000,000—80,000,000
Mid-point: 80,000,000
"Approximate."
Adjusted Tax Rate
0.2%—0.2%
Mid-point: 0.2%
Capital Expenditures
90,000,000—100,000,000
Mid-point: 95,000,000

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Loss on divestiture of asbestos-related assets and liabilities
Includes $199 million cash funded to the divested entity and $8.3 million in transaction costs.
+$140.092M
$1.07 per share
FY 2025
Loss on divestiture of asbestos-related assets and liabilities
Includes $199 million cash funded to the divested entity and $8.3 million in transaction costs.
+$140.092M
$1.05 per share
FY 2025
Merger termination payment (Chart Industries)
Termination fee paid to Flowserve.
+$205.043M
$1.57 per share
FY 2025
Realignment charges
Net of a $6.9 million gain from divestiture of a pump product line.
+$54.66M
$0.34 per share
FY 2025
Acquisition related costs (MOGAS)
Includes integration costs and merger activity costs.
+$14.53M
$0.08 per share
FY 2025
Purchase accounting step-up and intangible asset amortization
Related to MOGAS acquisition.
+$14.38M
$0.08 per share
FY 2025
Discrete items (stock-based compensation, pension losses)
Includes non-cash stock grants and pension settlement losses.
+$31.533M
$0.27 per share
FY 2025
Merger transaction costs (terminated Chart Industries)
Transaction costs incurred.
+$41.197M
$0.24 per share
FY 2025
Discrete tax items
Tax charge related to enactment of the One Big Beautiful Bill Act.
$0.19 per share
FY 2025
Below-the-line foreign exchange impacts
Remeasurement of foreign exchange derivative contracts and assets/liabilities.
+$39.072M
$0.30 per share
Total Impact
+$680.599M$2.05 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Delivered outstanding financial results in the fourth quarter and for the full year 2025.

— FLOWSERVE CORP, Q4 FY2025 2025 Earnings Call

Global team's dedication and strong execution of the Flowserve Business System were instrumental in reaching 2027 adjusted operating margin target two years ahead of schedule.

— FLOWSERVE CORP, Q4 FY2025 2025 Earnings Call

Confident in 2026 guidance and updated long-term financial targets due to healthy end markets, focus on expanding power generation opportunities, and continued progress of the Flowserve Business System.

— FLOWSERVE CORP, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.