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Flowserve Q1 EPS beat estimates, but revenues fell 6.7% and missed consensus expectations.
FLS bookings dropped 6.4% YoY, with declines in both aftermarket and original equipment orders.
Flowserve cut its 2026 revenue growth outlook and sees adjusted EPS between $4.00 and $4.20.
Flowserve Corporation’s (FLS - Free Report) first-quarter 2026 adjusted earnings of 85 cents per share beat the Zacks Consensus Estimate of 82 cents. The bottom line increased 18.1% year over year.
Flowserve’s total revenues of $1.07 billion missed the consensus estimate of $1.19 billion. Also, the top line decreased 6.7% year over year. Aftermarket bookings decreased 1.2% year over year to $680.3 million, while original equipment bookings decreased 13% year over year to $467.9 million.
Total bookings amounted to $1.15 billion, reflecting a decrease of 6.4% year over year. The backlog at the end of the quarter was $2.95 billion, up 1.5% 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:
In the first quarter, revenues from the Flowserve Pumps Division segment were $744.5 million, down 4.9% year over year. Our estimate was $809.7 million. Bookings decreased 9.3% year over year to $773.9 million. Segmental operating income was $125.8 million, down 7.8% year over year.
Revenues from the Flow Control Division segment were $327.6 million, down 10% year over year. Our estimate was $375.9 million. Bookings of $374.2 million inched down 0.5% on a year-over-year basis. The segment’s operating income was $41.7 million, up 32.4% year over year.
Flowserve Corporation Price, Consensus and EPS Surprise
In the first quarter, Flowserve’s cost of sales decreased 11.2% year over year to $688.4 million. Gross profit rose 2.8% year over year to $379.8 million and the margin increased 330 basis points (bps) to 35.6%. Selling, general and administrative expenses were $263.4 million, up 8.3% year over year.
Operating income decreased 9.5% year over year to $119.4 million. The operating margin was 11.2%, down 30 bps year over year. The effective tax rate was 19.7%.
Flowserve’s Balance Sheet and Cash Flow
Exiting the first quarter, Flowserve had cash and cash equivalents of $792.4 million compared with $760.2 million at the end of 2025. Long-term debt (due after one year) was $1.66 billion compared with $1.53 billion reported at the end of 2025.
In the first three months of 2026, the company used net cash of $43.1 million for operating activities compared with $49.9 million cash used in the year-ago period. Capital expenditure totaled $16.9 million, up 44% year over year.
During the same period, the company used $26.7 million for distributing dividends. Flowserve did not repurchase shares in the first three months.
2026 Guidance of FLS
Flowserve has updated its 2026 outlook. The company now expects a 3-6%
increase in revenues from the year-ago level compared with 5-7% expected earlier. Organic revenues are projected to decline 1% to grow 2% compared with 1-3% increase expected earlier. It currently anticipates earnings per share (on an adjusted basis) to be $4.00-$4.20.
The adjusted tax rate is projected to be approximately 21-22%. The company forecasts net interest expense to be $85 million and capital expenditure in the range of $90-$100 million.
FLS’ Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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Flowserve's Q1 Earnings Surpass Estimates, Revenues Decrease Y/Y
Key Takeaways
Flowserve Corporation’s (FLS - Free Report) first-quarter 2026 adjusted earnings of 85 cents per share beat the Zacks Consensus Estimate of 82 cents. The bottom line increased 18.1% year over year.
Flowserve’s total revenues of $1.07 billion missed the consensus estimate of $1.19 billion. Also, the top line decreased 6.7% year over year. Aftermarket bookings decreased 1.2% year over year to $680.3 million, while original equipment bookings decreased 13% year over year to $467.9 million.
Total bookings amounted to $1.15 billion, reflecting a decrease of 6.4% year over year. The backlog at the end of the quarter was $2.95 billion, up 1.5% 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:
In the first quarter, revenues from the Flowserve Pumps Division segment were $744.5 million, down 4.9% year over year. Our estimate was $809.7 million. Bookings decreased 9.3% year over year to $773.9 million. Segmental operating income was $125.8 million, down 7.8% year over year.
Revenues from the Flow Control Division segment were $327.6 million, down 10% year over year. Our estimate was $375.9 million. Bookings of $374.2 million inched down 0.5% on a year-over-year basis. The segment’s operating income was $41.7 million, up 32.4% 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 first quarter, Flowserve’s cost of sales decreased 11.2% year over year to $688.4 million. Gross profit rose 2.8% year over year to $379.8 million and the margin increased 330 basis points (bps) to 35.6%. Selling, general and administrative expenses were $263.4 million, up 8.3% year over year.
Operating income decreased 9.5% year over year to $119.4 million. The operating margin was 11.2%, down 30 bps year over year. The effective tax rate was 19.7%.
Flowserve’s Balance Sheet and Cash Flow
Exiting the first quarter, Flowserve had cash and cash equivalents of $792.4 million compared with $760.2 million at the end of 2025. Long-term debt (due after one year) was $1.66 billion compared with $1.53 billion reported at the end of 2025.
In the first three months of 2026, the company used net cash of $43.1 million for operating activities compared with $49.9 million cash used in the year-ago period. Capital expenditure totaled $16.9 million, up 44% year over year.
During the same period, the company used $26.7 million for distributing dividends. Flowserve did not repurchase shares in the first three months.
2026 Guidance of FLS
Flowserve has updated its 2026 outlook. The company now expects a 3-6%
increase in revenues from the year-ago level compared with 5-7% expected earlier. Organic revenues are projected to decline 1% to grow 2% compared with 1-3% increase expected earlier. It currently anticipates earnings per share (on an adjusted basis) to be $4.00-$4.20.
The adjusted tax rate is projected to be approximately 21-22%. The company forecasts net interest expense to be $85 million and capital expenditure in the range of $90-$100 million.
FLS’ Zacks Rank & Stocks to Consider
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.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.