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Here's Why Investors Should Retain Flowserve Stock in Portfolio
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Key Takeaways
Flowserve's strong bookings across its Pumps and Flow Control divisions support its 3% revenue growth outlook.
FLS strengthened its nuclear and power generation presence through the Trillium Valves Division acquisition.
Flowserve faces pressure from Middle East disruptions, declining organic sales and rising long-term debt.
Flowserve Corporation (FLS - Free Report) has been experiencing strong momentum in the Pumps Division and Flow Control Division segments. Solid growth in customer bookings across energy, power generation, chemical and general industries is a prime catalyst for the Flowserve Pumps Division segment’s growth. The segment’s bookings increased 29.6% year over year to $938 million in second-quarter 2026, with a book-to-bill ratio of 1.15x.
An increase in bookings across energy, power generation and chemical industries is supporting the Flow Control Division segment’s performance. The segment’s bookings increased 17.6% year over year to $417 million in the second quarter with a book-to-bill ratio of 1.17x. Driven by strength across its businesses, Flowserve expects total revenues to increase about 3% in 2026 from the prior year.
FLS follows a balanced capital allocation strategy, wherein it utilizes its cash flow for acquisitions, paying out dividends and repurchasing shares. In June 2026, Flowserve completed the acquisition of Trillium Flow Technologies’ Valves Division. The buyout strengthened Flowserve’s position in nuclear and power generation markets and boosted its valve product portfolio. Management expects about 85% of Trillium sales to be reported in FCD and 15% in FPD beginning in the third quarter of 2026.
Flowserve used $55 million to distribute dividends and bought back shares worth $25 million in the first six months of 2026. It repurchased another $25 million of shares in July 2026. In February 2026, it hiked its quarterly dividend approximately 5% to 22 cents per share.
FLS’ Price Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have gained 1.6% in the past three months against the industry’s 3.6% decline.
Despite the positives, Flowserve’s strong order growth has yet to translate into near-term revenue gains, as disruptions to customer activity and shipment acceptance in the Middle East persist. In second-quarter 2026, organic revenues fell 3.3% and original equipment sales declined 11% year over year, despite a 43.9% surge in original equipment bookings.
High debt levels remain another concern for the company. Flowserve exited the second quarter of 2026 with long-term debt of $2.1 billion, much higher than $1.5 billion at 2025-end. Its interest expense was $25.7 million in the second quarter.
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Some better-ranked stocks from the same space are discussed below.
AIT delivered a trailing four-quarter average earnings surprise of 4.3%. In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2027 (ending June 2027) earnings has increased 1.4%.
IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 7.7%. In the past 60 days, the consensus estimate for IEX’s 2026 earnings has increased 1.2%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 7.8%. In the past 60 days, the Zacks Consensus Estimate for PH’s fiscal 2027 (ending June 2027) earnings has increased 0.7%.
Image: Bigstock
Here's Why Investors Should Retain Flowserve Stock in Portfolio
Key Takeaways
Flowserve Corporation (FLS - Free Report) has been experiencing strong momentum in the Pumps Division and Flow Control Division segments. Solid growth in customer bookings across energy, power generation, chemical and general industries is a prime catalyst for the Flowserve Pumps Division segment’s growth. The segment’s bookings increased 29.6% year over year to $938 million in second-quarter 2026, with a book-to-bill ratio of 1.15x.
An increase in bookings across energy, power generation and chemical industries is supporting the Flow Control Division segment’s performance. The segment’s bookings increased 17.6% year over year to $417 million in the second quarter with a book-to-bill ratio of 1.17x. Driven by strength across its businesses, Flowserve expects total revenues to increase about 3% in 2026 from the prior year.
FLS follows a balanced capital allocation strategy, wherein it utilizes its cash flow for acquisitions, paying out dividends and repurchasing shares. In June 2026, Flowserve completed the acquisition of Trillium Flow Technologies’ Valves Division. The buyout strengthened Flowserve’s position in nuclear and power generation markets and boosted its valve product portfolio. Management expects about 85% of Trillium sales to be reported in FCD and 15% in FPD beginning in the third quarter of 2026.
Flowserve used $55 million to distribute dividends and bought back shares worth $25 million in the first six months of 2026. It repurchased another $25 million of shares in July 2026. In February 2026, it hiked its quarterly dividend approximately 5% to 22 cents per share.
FLS’ Price Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have gained 1.6% in the past three months against the industry’s 3.6% decline.
Despite the positives, Flowserve’s strong order growth has yet to translate into near-term revenue gains, as disruptions to customer activity and shipment acceptance in the Middle East persist. In second-quarter 2026, organic revenues fell 3.3% and original equipment sales declined 11% year over year, despite a 43.9% surge in original equipment bookings.
High debt levels remain another concern for the company. Flowserve exited the second quarter of 2026 with long-term debt of $2.1 billion, much higher than $1.5 billion at 2025-end. Its interest expense was $25.7 million in the second quarter.
3 Promising Stocks
Some better-ranked stocks from the same space are discussed below.
Applied Industrial Technologies (AIT - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT delivered a trailing four-quarter average earnings surprise of 4.3%. In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2027 (ending June 2027) earnings has increased 1.4%.
IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 7.7%. In the past 60 days, the consensus estimate for IEX’s 2026 earnings has increased 1.2%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 7.8%. In the past 60 days, the Zacks Consensus Estimate for PH’s fiscal 2027 (ending June 2027) earnings has increased 0.7%.