We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Flowserve's Q3 Earnings Top Estimates, Revenues Increase Y/Y
Read MoreHide Full Article
Key Takeaways
Flowserve's Q3 EPS rose 45.2% to $0.90, topping estimates on higher aftermarket sales.
Revenues grew 3.6% year over year to $1.17 billion, with a 6.9% gain in Flow Control sales.
FLS lifted 2025 EPS guidance to $3.40-$3.50, despite trimming its revenue growth forecast.
Flowserve Corporation’s (FLS - Free Report) third-quarter 2025 adjusted earnings (excluding 77 cents from non-recurring items) of 90 cents per share beat the Zacks Consensus Estimate of 80 cents. The bottom line increased 45.2% year over year. Results benefited primarily from higher revenues generated in the quarter.
Flowserve’s total revenues of $1.17 billion missed the consensus estimate of $1.21 billion. However, the top line increased 3.6% year over year. Aftermarket sales increased 6.3% year over year, while original equipment sales decreased 4.9% year over year.
Total bookings amounted to $1.21 billion, reflecting an increase of 0.8% year over year. The backlog at the end of the quarter was $2.9 billion, up 4% 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 $800.3 million, up 2.3% year over year. Our estimate was $818.2 million. Bookings decreased 7.6% year over year to $819.5 million. Segmental operating income was $134.9 million, up 23.4% year over year.
Revenues from the Flow Control Division segment were $377.4 million, up 6.9% year over year. Our estimate was $391.5 million. Bookings of $396.1 million increased 24.4% on a year-over-year basis. The segment’s operating income was $46.4 million, relatively stable year over year.
Flowserve Corporation Price, Consensus and EPS Surprise
In the third quarter, Flowserve’s cost of sales increased 2.3% year over year to $794.1 million. Gross profit rose 6.5% year over year to $380.3 million and the margin increased 90 basis points (bps) to 32.4%. Selling, general and administrative expenses were $305.2 million, up 17.8% year over year.
Operating income decreased 23.2% year over year to $79.3 million. The operating margin was 6.7%, down 240 bps year over year. The effective tax rate was 29.5%.
Flowserve’s Balance Sheet and Cash Flow
Exiting the third quarter, Flowserve had cash and cash equivalents of $833.8 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 nine months of 2025, the company generated net cash of $506.1 million from operating activities compared with $228 million in the year-ago period. Capital expenditure totaled $45.5 million, down 12.8% year over year.
During the same period, the company used $82.7 million for distributing dividends and repurchased shares worth $197.9 million.
2025 Guidance of FLS
Flowserve has updated its 2025 outlook. The company now expects a 4-5% increase in revenues from the year-ago level compared with 5-6% anticipated earlier. It currently anticipates earnings per share (on an adjusted basis) to be $3.40-$3.50 compared with $3.25-$3.40 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 $75 million, respectively.
Trimble Inc. (TRMB - Free Report) presently carries a Zacks Rank #2 (Buy). TRMB’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 7.5%. In the past 60 days, the Zacks Consensus Estimate for Trimble’s 2025 earnings has been stable.
RBC Bearings Incorporated (RBC - Free Report) currently carries a Zacks Rank of 2. RBC has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 3.8%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ 2025 earnings has increased 0.4%.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. HLIO has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 15.5%. In the past 60 days, the Zacks Consensus Estimate for Helios’ 2025 earnings has inched up 0.4%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Flowserve's Q3 Earnings Top Estimates, Revenues Increase Y/Y
Key Takeaways
Flowserve Corporation’s (FLS - Free Report) third-quarter 2025 adjusted earnings (excluding 77 cents from non-recurring items) of 90 cents per share beat the Zacks Consensus Estimate of 80 cents. The bottom line increased 45.2% year over year. Results benefited primarily from higher revenues generated in the quarter.
Flowserve’s total revenues of $1.17 billion missed the consensus estimate of $1.21 billion. However, the top line increased 3.6% year over year. Aftermarket sales increased 6.3% year over year, while original equipment sales decreased 4.9% year over year.
Total bookings amounted to $1.21 billion, reflecting an increase of 0.8% year over year. The backlog at the end of the quarter was $2.9 billion, up 4% 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 $800.3 million, up 2.3% year over year. Our estimate was $818.2 million. Bookings decreased 7.6% year over year to $819.5 million. Segmental operating income was $134.9 million, up 23.4% year over year.
Revenues from the Flow Control Division segment were $377.4 million, up 6.9% year over year. Our estimate was $391.5 million. Bookings of $396.1 million increased 24.4% on a year-over-year basis. The segment’s operating income was $46.4 million, relatively stable 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 third quarter, Flowserve’s cost of sales increased 2.3% year over year to $794.1 million. Gross profit rose 6.5% year over year to $380.3 million and the margin increased 90 basis points (bps) to 32.4%. Selling, general and administrative expenses were $305.2 million, up 17.8% year over year.
Operating income decreased 23.2% year over year to $79.3 million. The operating margin was 6.7%, down 240 bps year over year. The effective tax rate was 29.5%.
Flowserve’s Balance Sheet and Cash Flow
Exiting the third quarter, Flowserve had cash and cash equivalents of $833.8 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 nine months of 2025, the company generated net cash of $506.1 million from operating activities compared with $228 million in the year-ago period. Capital expenditure totaled $45.5 million, down 12.8% year over year.
During the same period, the company used $82.7 million for distributing dividends and repurchased shares worth $197.9 million.
2025 Guidance of FLS
Flowserve has updated its 2025 outlook. The company now expects a 4-5% increase in revenues from the year-ago level compared with 5-6% anticipated earlier. It currently anticipates earnings per share (on an adjusted basis) to be $3.40-$3.50 compared with $3.25-$3.40 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 $75 million, respectively.
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 are discussed below:
Trimble Inc. (TRMB - Free Report) presently carries a Zacks Rank #2 (Buy). TRMB’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 7.5%. In the past 60 days, the Zacks Consensus Estimate for Trimble’s 2025 earnings has been stable.
RBC Bearings Incorporated (RBC - Free Report) currently carries a Zacks Rank of 2. RBC has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 3.8%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ 2025 earnings has increased 0.4%.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. HLIO has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 15.5%. In the past 60 days, the Zacks Consensus Estimate for Helios’ 2025 earnings has inched up 0.4%.