Flowserve Corporation Reports Fourth Quarter and Full Year 2025 Results

2/5/26 4:06:00 PM ET

Fluid Controls

Industrials

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3D Growth Strategy and Flowserve Business System Deliver Strong Q4 and Full Year Results; Initiated 2026 Guidance and 2030 Financial Targets

Flowserve Corporation (NYSE:FLS), a leading provider of flow control products and services for the global infrastructure markets, reported its financial results for the fourth quarter and full year ended December 31, 2025.

Q4 and FY 2025 Highlights:

Fourth quarter bookings of $1.2 billion, including 10% aftermarket growth to over $680 million
Fourth quarter operating margin of 3.5%, including one-time impact from asbestos divestiture, and adjusted¹ operating margin² of 16.8%
Fourth quarter reported and adjusted earnings per share (EPS)³ of ($0.23) and $1.11, respectively. Reported EPS includes adjusted net expense items of $1.34, comprised of the one-time impact from asbestos divestiture, among other items
Full year bookings of $4.7 billion, including approximately $400 million in nuclear awards
Full year cash from operations of $506 million driven by strong earnings and working capital management, with $365 million of cash returned to shareholders through dividends and share repurchases

2026 and Strategic Highlights:

Announced acquisition of Trillium Flow Technologies' Valves Division⁴
Initiated full year 2026 guidance³, including total sales growth of 5% to 7% and adjusted EPS of $4.00 to $4.20, which at the midpoint, represents a 13% increase versus full year 2025 adjusted EPS³
Established 2030 financial targets including mid-single digit organic sales CAGR, ~20% adjusted operating margin, and double digit adjusted EPS CAGR

Management Commentary:

"We delivered outstanding financial results in the fourth quarter and for the full year 2025," said Scott Rowe, Flowserve's President and Chief Executive Officer. "I am incredibly proud of our global team's dedication and strong execution of the Flowserve Business System, which has been instrumental in reaching our 2027 adjusted operating margin target two years ahead of schedule."

Rowe continued, "With healthy end markets, a focus on expanding power generation opportunities, and the continued progress of the Flowserve Business System, we are confident in our 2026 guidance and updated long-term financial targets. We have significant operational momentum and are executing with discipline to drive greater value for our associates, customers, and shareholders."

Acquisition of Trillium Flow Technologies' Valves Division⁴:

In a separate press release issued today, the Company also announced it had signed a definitive agreement to acquire Trillium Flow Technologies' Valves Division, a market leading provider of highly engineered mission-critical valves and actuators used in nuclear, traditional power, industrial, and critical infrastructure applications. The press release can be viewed on Flowserve's Investors page.

Key Figures (unaudited):

(dollars in millions, except per share)	2025 Q4	2024 Q4	Change	2025	2024	Change
Original Equipment Bookings	$526.6	$557.2	(5.5%)	$2,068.5	$2,238.4	(7.6%)
Aftermarket Bookings	$682.3	$618.1	10.4%	$2,644.5	$2,422.4	9.2%
Total Bookings	$1,208.9	$1,175.3	2.9%	$4,713.0	$4,660.8	1.1%

Organic Sales⁵			0.8%			0.9%
Acquisitions Impact			30 bps			220 bps
Foreign Exchange Impact			240 bps			70 bps
Reported Sales	$1,222.2	$1,180.3	3.5%	$4,729.3	$4,557.8	3.8%

Operating Margin	3.5%	10.6%	(710 bps)	8.5%	10.1%	(160 bps)
Adjusted Operating Margin	16.8%	12.6%	420 bps	14.8%	11.8%	300 bps
Earnings Per Share	($0.23)	$0.59	(139.0%)	$2.64	$2.14	23.4%
Adjusted Earnings Per Share	$1.11	$0.70	58.6%	$3.64	$2.63	38.4%
Cash From Operations⁶	($0.2)	$197.3	($197.5)	$505.9	$425.3	$80.6
Backlog	$2,867.8	$2,789.6	2.8%	$2,867.8	$2,789.6	2.8%

2026 Guidance³:

The Company initiated 2026 guidance:

Organic Sales Growth		+1% to +3%
Impact From Acquisitions		Approx. +300 bps
Impact From Foreign Exchange Translation		Approx. +100 bps
Total Sales Growth		+5% to +7%
Adjusted EPS		$4.00 to $4.20
Net Interest Expense		Approx. $80 million
Adjusted Tax Rate		21% to 22%
Capital Expenditures		$90 million to $100 million

Full-year 2026 guidance assumes the acquisition of Trillium Flow Technologies' Valves Division closes mid-year 2026 and, including incremental interest expense related to financing the acquisition, the acquisition will be roughly neutral to 2026 adjusted EPS. The guidance also assumes tariff rates in place as of February 1, 2026.

2030 Financial Targets:

The Company introduced 2030 financial targets, which include expectations for:

Organic Sales CAGR (2025-2030)		Mid-Single Digit Growth
Adjusted Operating Margin (by 2030)		~20%
Adjusted EPS CAGR (2025-2030)		Double-Digit Growth

Webcast and Conference Call Instructions:

Flowserve will host its conference call to discuss fourth quarter and full year results on Friday, February 6, at 10:00 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve's Investors page.

Footnotes

¹See 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.

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

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

⁴Transaction excludes Trillium Valves' French operations.

⁵Organic is defined as the change in Sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions. 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.

⁶ Cash from Operations for the fourth quarter 2025 includes a ($199) million one-time impact from legacy asbestos liabilities divestiture. Cash from Operations for the full year 2025 includes the impact of a $173 million one-time merger termination fee paid to Flowserve (net of incurred transaction costs and taxes) and a ($199) million one-time impact from legacy asbestos liabilities divestiture.

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended December 31,
(Amounts in thousands, except per share data)		2025			2024

Sales	$	1,222,191		$	1,180,348
Cost of sales		(796,956	)		(808,234	)
Gross profit		425,235			372,114
Selling, general and administrative expense		(247,863	)		(251,966	)
Loss on divestiture of asbestos-related assets and liabilities		(140,092	)		-
Net earnings from affiliates		4,893			4,557
Operating income		42,173			124,705
Interest expense		(19,574	)		(20,481	)
Interest income		2,488			1,625
Other income (expense), net		(18,294	)		(137	)
Earnings before income taxes		6,793			105,712
Provision for income taxes		(28,529	)		(22,202	)
Net earnings, including noncontrolling interests		(21,736	)		83,510
Less: Net earnings attributable to noncontrolling interests		(7,259	)		(5,969	)
Net (loss) earnings attributable to Flowserve Corporation	$	(28,995	)	$	77,541

Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	(0.23	)	$	0.59
Diluted		(0.23	)		0.59

Weighted average shares – basic		127,294			131,393
Weighted average shares – diluted		128,411			132,395

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 December 31, 2025	Gross Profit			Selling, General & Administrative Expense			Loss on Divestiture of Asbestos-Related Assets and Liabilities			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate		Diluted EPS
Reported	$	425,235		$	247,863		$	140,092		$	42,173		$	(18,294	)	$	28,529		$	(28,995	)	420.1	%	(0.23	)
Reported as a percent of sales		34.8	%		20.3	%		11.5	%		3.5	%		-1.5	%		2.3	%		-2.4	%
Realignment charges (a)		14,061			(2,115	)		-			16,176			-			3,591			12,585		22.2	%	0.10
Acquisition related (b)(c)		(126	)		(5,181	)		-			5,055			-			1,189			3,866		23.5	%	0.03
Purchase accounting step-up and intangible asset amortization (d)		438			(1,300	)		-			1,738			-			409			1,329		23.5	%	0.01
Discrete items (e)(f)		15			(296	)		-			311			8,564			206			8,669		2.3	%	0.07
Loss on asbestos divestiture (g)		-			-			(140,092	)		140,092			-			2,644			137,448		1.9	%	1.07
Below-the-line foreign exchange impacts (h)		-			-			-			-			7,096			(1,156	)		8,252		-16.3	%	0.06
Adjusted	$	439,623		$	238,971		$	-		$	205,543		$	(2,634	)	$	35,411		$	143,154		19.1	%	1.11
Adjusted as a percent of sales		36.0	%		19.6	%		0.0	%		16.8	%		-0.2	%		2.9	%		11.7	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs, net of a $6,888 gain associated with the divestiture of a pump product line.
(b) Charge represents $3,315 of acquisition and integration related costs associated with the MOGAS acquisition.
(c) Charge represents $1,740 of costs associated with merger and acquisition activity.
(d) Charge represents amortization of acquisition related intangible assets associated with the MOGAS acquisition.
(e) 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 US Qualified pension plan.
(f) Charge includes $641 for a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan and $7,923 for a non-cash pension settlement accounting loss incurred in conjunction with a United Kingdom based pension plan.
(g) Charge represents the one-time loss associated with the divestiture of our asbestos-related assets and liabilities including $199,000 of cash funded to the divested entity and $8,335 of transaction costs incurred.
(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.


Three Months Ended December 31, 2024	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	$	372,114		$	251,966		$	124,705		$	(138	)	$	22,202		$	77,541			21.0	%	0.59
Reported as a percent of sales		31.5	%		21.3	%		10.6	%		0.0	%		1.9	%		6.6	%
Realignment charges (a)		11,569			(1,570	)		13,139			-			2,849			10,290			21.7	%	0.08
Acquisition related (b)		-			(7,150	)		7,150			-			1,682			5,468			23.5	%	0.04
Purchase accounting step-up and intangible asset amortization (c)		3,067			(1,033	)		4,100			-			1,300			2,800			31.7	%	0.02
Below-the-line foreign exchange impacts (d)		-			-			-			(4,370	)		(1,423	)		(2,947	)		32.6	%	(0.02	)
Adjusted	$	386,750		$	242,213		$	149,094		$	(4,508	)	$	26,610		$	93,152			21.2	%	0.70
Adjusted as a percent of sales		32.8	%		20.5	%		12.6	%		-0.4	%		2.3	%		7.9	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $8,600 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) 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)

FLOWSERVE PUMPS DIVISION	Three Months Ended December 31,
(Amounts in millions, except percentages)		2025			2024
Bookings	$	883.6		$	816.4
Sales		833.0			794.9
Gross profit		305.2			255.7
Gross profit margin		36.6	%		32.2	%
SG&A		143.4			131.4
Segment operating income		166.8			129.1
Segment operating income as a percentage of sales		20.0	%		16.2	%

FLOW CONTROL DIVISION	Three Months Ended December 31,
(Amounts in millions, except percentages)		2025			2024
Bookings	$	330.3		$	363.4
Sales		391.5			387.9
Gross profit		123.5			118.5
Gross profit margin		31.5	%		30.5	%
SG&A		59.5			73.9
Segment operating income		64.0			44.6
Segment operating income as a percentage of sales		16.3	%		11.5	%

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 December 31, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Three Months Ended December 31, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	305,245		$	143,380		$	166,757		Reported	$	255,710		$	131,402		$	129,069
Reported as a percent of sales		36.6	%		17.2	%		20.0	%	Reported as a percent of sales		32.2	%		16.5	%		16.2	%
Realignment charges (a)		4,120			(3,092	)		7,212		Realignment charges (a)		9,890			(41	)		9,931
Discrete items (b)		9			(36	)		45		Adjusted	$	265,600		$	131,361		$	139,000
Acquisition related (c)		-			(740	)		740		Adjusted as a percent of sales		33.4	%		16.5	%		17.5	%
Adjusted	$	309,374		$	139,512		$	174,754
Adjusted as a percent of sales		37.1	%		16.7	%		21.0	%

Flow Control Division
Three Months Ended December 31, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Three Months Ended December 31, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	123,529		$	59,537		$	63,992		Reported	$	118,503		$	73,859		$	44,592
Reported as a percent of sales		31.5	%		15.2	%		16.3	%	Reported as a percent of sales		30.5	%		19.0	%		11.5	%
Realignment charges (a)		9,417			1,313			8,104		Realignment charges (a)		1,679			(1,655	)		3,334
Acquisition related (d)		(126	)		(3,441	)		3,315		Acquisition related (b)		-			(7,150	)		7,150
Purchase accounting step-up and intangible asset amortization (e)		438			(1,300	)		1,738		Purchase accounting step-up and intangible asset amortization (c)		3,067			(1,033	)		4,100
Discrete items (b)		5			(86	)		91		Adjusted	$	123,249		$	64,021		$	59,176
Adjusted	$	133,263		$	56,023		$	77,240		Adjusted as a percent of sales		31.8	%		16.5	%		15.3	%
Adjusted as a percent of sales		34.0	%		14.3	%		19.7	%

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, net of a $6,888 gain associated with the divestiture of a pump product line.										(a) Charges represent realignment costs incurred as a result of realignment programs of which $8,600 is non-cash.
(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 US Qualified pension plan.										(b) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.
(c) Charge represents costs associated with merger and acquisition activity.										(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 acquisition and integration-related costs associated with the MOGAS acquisition.
(e) Charge represents amortization of acquisition related intangible assets associated with the MOGAS acquisition.

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Year Ended December 31,
(Amounts in thousands, except per share data)		2025			2024			2023

Sales	$	4,729,260		$	4,557,806		$	4,320,577
Cost of sales		(3,147,823	)		(3,123,560	)		(3,043,749	)
Gross profit		1,581,437			1,434,246			1,276,828
Selling, general and administrative expense		(1,062,100	)		(978,037	)		(961,169	)
Loss on sale of business		-			(12,981	)		-
Loss on divestiture of asbestos-related assets and liabilities		(140,092	)		-			-
Net earnings from affiliates		20,679			19,051			17,894
Operating income		399,924			462,279			333,553
Interest expense		(77,740	)		(69,301	)		(66,924	)
Interest income		7,551			5,371			6,991
Other income (expense), net		195,663			(12,194	)		(49,870	)
Earnings before income taxes		525,398			386,155			223,750
Provision for income taxes		(155,596	)		(84,929	)		(18,562	)
Net earnings, including noncontrolling interests		369,802			301,226			205,188
Less: Net earnings attributable to noncontrolling interests		(23,555	)		(18,467	)		(18,445	)
Net earnings attributable to Flowserve Corporation	$	346,247		$	282,759		$	186,743

Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic		2.66		$	2.15		$	1.42
Diluted		2.64			2.14			1.42

Weighted average shares – basic		130,005			131,488			131,117
Weighted average shares – diluted		130,979			132,356			131,931

Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands, except per share data)

Twelve Months Ended December 31, 2025	Gross Profit			Selling, General & Administrative Expense			Loss on Divestiture of Asbestos-Related Assets and Liabilities			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate		Diluted EPS
Reported	$	1,581,437		$	1,062,100		$	140,092		$	399,924		$	195,663		$	155,596		$	346,247		29.6	%	2.64
Reported as a percent of sales		33.4	%		22.5	%		3.0	%		8.5	%		4.1	%		3.3	%		7.3	%
Realignment charges (a)		54,660			(3,595	)		-			58,255			-			13,687			44,568		23.5	%	0.34
Acquisition related (b)(c)		635			(13,895	)		-			14,530			-			3,417			11,113		23.5	%	0.08
Purchase accounting step-up and intangible asset amortization (d)		9,180			(5,200	)		-			14,380			-			4,138			10,242		28.8	%	0.08
Discrete items (e)(f)(g)		121			(31,412	)		-			31,533			13,064			8,609			35,988		19.3	%	0.27
Merger transaction costs (h)		-			(41,197	)		-			41,197			-			9,534			31,663		23.1	%	0.24
Merger termination payment (i)		-			-			-			-			(266,000	)		(60,957	)		(205,043	)	22.9	%	(1.57	)
Discrete tax items (j)		-			-			-			-			-			(24,860	)		24,860		0.0	%	0.19
Loss on asbestos divestiture (k)		-			-			(140,092	)		140,092			-			2,644			137,448		1.9	%	1.05
Below-the-line foreign exchange impacts (l)		-			-			-			-			43,893			4,821			39,072		11.0	%	0.30
Adjusted	$	1,646,033		$	966,801		$	-		$	699,911		$	(13,380	)	$	116,629		$	476,158		18.9	%	3.64
Adjusted as a percent of sales		34.8	%		20.4	%		0.0	%		14.8	%		-0.3	%		2.5	%		10.1	%

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 and net of a $6,888 gain associated with the divestiture of a pump product line.
(b) Charge represents $12,790 of acquisition and integration related costs associated with the MOGAS acquisition.
(c) Charge represents $1,740 of costs associated with merger and acquisition activity.
(d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
(e) 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 US Qualified pension plan.
(f) Charge includes $5,141 for a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan and $7,923 for a non-cash pension settlement accounting loss incurred in conjunction with a United Kingdom based pension plan.
(g) 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.
(h) Charge represents transaction costs incurred associated with the terminated Chart Industries merger.
(i) Amount represents the Chart Industries merger termination fee paid to Flowserve.
(j) Amount represents a one-time tax charge related to enactment of the One Big Beautiful Bill Act during Q3 2025.
(k) Charge represents the one-time loss associated with the divestiture of our asbestos-related assets and liabilities including $199,000 of cash funded to the divested entity and $8,335 of transaction costs incurred.
(l) 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.


Twelve Months Ended December 31, 2024	Gross Profit			Selling, General & Administrative Expense			Loss 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	$	1,434,246		$	978,037		$	12,981		$	462,279		$	(12,194	)	$	84,929		$	282,759		22.0	%	2.14
Reported as a percent of sales		31.5	%		21.5	%		0.3	%		10.1	%		-0.3	%		1.9	%		6.2	%
Realignment charges (a)		31,576			(4,939	)		(12,981	)		49,496			-			4,884			44,612		9.9	%	0.34
Discrete items (b)(c)(d)		2,700			(7,500	)		-			10,200			-			2,869			7,331		28.1	%	0.06
Acquisition related (e)		-			(9,944	)		-			9,944			-			2,340			7,604		23.5	%	0.06
Discrete asset write-downs (f)(g)		-			(1,795	)		-			1,795			3,567			1,342			4,020		25.0	%	0.03
Purchase accounting step-up and intangible asset amortization (h)		3,067			(1,033	)		-			4,100			-			1,300			2,800		31.7	%	0.02
Below-the-line foreign exchange impacts (i)		-			-			-			-			(2,302	)		(1,912	)		(390	)	83.1	%	(0.00	)
Adjusted	$	1,471,589		$	952,826		$	-		$	537,814		$	(10,929	)	$	95,752		$	348,736		20.7	%	2.63
Adjusted as a percent of sales		32.3	%		20.9	%		0.0	%		11.8	%		-0.2	%		2.1	%		7.7	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $33,700 is non-cash.
(b) Charge represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.
(c) Charge represents a one-time $5,000 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
(d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.
(e) Charge represents acquisition and integration related costs associated with the MOGAS acquisition.
(f) Charge represents a $1,795 non-cash write-down of a software asset.
(g) Charge represents a $3,567 non-cash write-down of a debt investment.
(h) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
(i) 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)

FLOWSERVE PUMPS DIVISION	Year Ended December 31,
(Amounts in millions, except percentages)		2025			2024
Bookings	$	3,273.3		$	3,304.3
Sales		3,235.3			3,158.6
Gross profit		1,138.7			1,017.0
Gross profit margin		35.2	%		32.2	%
SG&A		558.5			556.2
Segment operating income		600.9			480.2
Segment operating income as a percentage of sales		18.6	%		15.2	%

FLOW CONTROL DIVISION	Year Ended December 31,
(Amounts in millions, except percentages)		2025			2024
Bookings	$	1,454.3		$	1,370.7
Sales		1,504.5			1,409.3
Gross profit		445.7			424.0
Gross profit margin		29.6	%		30.1	%
SG&A		266.0			252.7
Loss on sale of business		-			(13.0	)
Segment operating income		179.7			158.3
Segment operating income as a percentage of sales		11.9	%		11.2	%

Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands)

Flowserve Pumps Division
Twelve Months Ended December 31, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Twelve Months Ended December 31, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	1,138,712		$	558,507		$	600,884		Reported	$	1,017,048		$	556,225		$	480,216
Reported as a percent of sales		35.2	%		17.3	%		18.6	%	Reported as a percent of sales		32.2	%		17.6	%		15.2	%
Realignment charges (a)		30,614			(3,932	)		34,546		Realignment charges (a)		30,727			(1,078	)		31,805
Discrete items (b)		96			(323	)		419		Discrete items (b)(c)(d)		1,700			(6,000	)		7,700
Acquisition related (c)		-			(740	)		740		Adjusted	$	1,049,475		$	549,147		$	519,721
Adjusted	$	1,169,422		$	553,512		$	636,589		Adjusted as a percent of sales		33.2	%		17.4	%		16.5	%
Adjusted as a percent of sales		36.1	%		17.1	%		19.7	%

Flow Control Division
Twelve Months Ended December 31, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Twelve Months Ended December 31, 2024	Gross Profit			Selling, General & Administrative Expense			Loss on Sale of Business			Operating Income
Reported	$	445,660		$	265,973		$	179,687		Reported	$	423,973		$	252,675		$	12,981		$	158,265
Reported as a percent of sales		29.6	%		17.7	%		11.9	%	Reported as a percent of sales		30.1	%		17.9	%		0.9	%		11.2	%
Realignment charges (a)		24,121			2,544			21,577		Realignment charges (a)		1,077			(3,095	)		(12,981	)		17,153
Acquisition related (d)		635			(12,155	)		12,790		Discrete item (b)		800			(400	)		-			1,200
Purchase accounting step-up and intangible asset amortization (e)		9,180			(5,200	)		14,380		Acquisition related (e)		-			(9,944	)		-			9,944
Discrete items (b)		19			(294	)		313		Purchase accounting step-up and intangible asset amortization (f)		3,067			(1,033	)		-			4,100
Adjusted	$	479,615		$	250,868		$	228,747		Adjusted	$	428,917		$	238,203		$	-		$	190,662
Adjusted as a percent of sales		31.9	%		16.7	%		15.2	%	Adjusted as a percent of sales		30.4	%		16.9	%		0.0	%		13.5	%

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 of which $5,300 is non-cash and net of a $6,888 gain associated with the divestiture of a pump product line.										(a) Charges represent realignment costs incurred as a result of realignment programs of which $33,700 is non-cash.
(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 US Qualified pension plan.										(b) Charge represents a one-time $3,700 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
(c) Charge represents costs associated with merger and acquisition activity.										(c) Charge represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.
(d) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.										(d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.
(e) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.										(e) Charge represents acquisition and integration related costs associated with the MOGAS acquisition.
										(f) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.


Fourth Quarter and Full Year 2025 - Segment Results
(dollars in millions, comparison vs. 2024 fourth quarter and full year, unaudited)

	FPD										FCD
	4th Qtr					Full Year					4th Qtr					Full Year
Bookings	$	883.6				$	3,273.3				$	330.3				$	1,454.3
- vs. prior year		67.2		8.2	%		-31.0		-0.9	%		-33.2		-9.1	%		83.6		6.1	%
- on constant currency		43.6		5.3	%		-60.0		-1.8	%		-36.5		-10.0	%		80.9		5.9	%

Sales	$	833.0				$	3,235.3				$	391.5				$	1,504.5
- vs. prior year		38.1		4.8	%		76.8		2.4	%		3.6		0.9	%		95.2		6.8	%
- on constant currency		14.4		1.8	%		50.7		1.6	%		-0.9		-0.2	%		90.0		6.4	%

Gross Profit	$	305.2				$	1,138.7				$	123.5				$	445.7
- vs. prior year		19.4	%				12.0	%				4.2	%				5.1	%

Gross Margin (% of sales)		36.6	%				35.2	%				31.5	%				29.6	%
- vs. prior year (in basis points)	440 bps					300 bps					100 bps					(50) bps

Operating Income	$	166.8				$	600.9				$	64.0				$	179.7
- vs. prior year		37.7		29.2	%		120.7		25.1	%		19.4		43.5	%		21.4		13.5	%
- on constant currency		31.2		24.2	%		111.7		23.3	%		19.5		43.8	%		22.6		14.3	%

Operating Margin (% of sales)		20.0	%				18.6	%				16.3	%				11.9	%
- vs. prior year (in basis points)	380 bps					340 bps					480 bps					70 bps

Adjusted Operating Income *	$	174.8				$	636.6				$	77.2				$	228.7
- vs. prior year		35.8		25.7	%		116.9		22.5	%		18.1		30.5	%		38.1		20.0	%
- on constant currency		29.3		21.1	%		107.9		20.8	%		18.2		30.7	%		39.3		20.6	%

Adj. Oper. Margin (% of sales)*		21.0	%				19.7	%				19.7	%				15.2	%
- vs. prior year (in basis points)	350 bps					320 bps					440 bps					170 bps

Backlog	$	2,044.8									$	828.6

* Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges and other specific discrete items

CONSOLIDATED BALANCE SHEETS
(Unaudited)
	December 31,			December 31,
(Amounts in thousands, except par value)		2025			2024

ASSETS
Current assets:
Cash and cash equivalents	$	760,183		$	675,441
Accounts receivable, net of allowance for expected credit losses of $83,094 and $79,059, respectively		1,029,095			976,739
Contract assets, net		322,472			298,906
Inventories		789,898			837,254
Prepaid expenses and other		141,237			116,157
Total current assets		3,042,885			2,904,497
Property, plant and equipment, net		566,751			539,703
Operating lease right-of-use assets, net		166,031			159,400
Goodwill		1,391,988			1,286,295
Deferred taxes		156,250			221,742
Other intangible assets, net		198,475			188,604
Other assets, net		185,820			200,580
Total assets	$	5,708,200		$	5,500,821

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	554,243		$	545,310
Accrued liabilities		587,475			561,486
Contract liabilities		274,669			283,670
Debt due within one year		49,868			44,059
Operating lease liabilities		35,630			33,559
Total current liabilities		1,501,885			1,468,084
Long-term debt due after one year		1,525,210			1,460,132
Operating lease liabilities		149,565			149,838
Retirement obligations and other liabilities		277,216			371,055
Shareholders' equity:
Preferred shares, $1.00 par value
Shares authorized – 1,000, no shares issued
Common shares, $1.25 par value		220,991			220,991
Shares authorized – 305,000
Shares issued – 176,793 and 176,793, respectively
Capital in excess of par value		508,890			502,045
Retained earnings		4,261,977			4,025,750
Treasury shares, at cost – 49,763 and 45,688 shares, respectively		(2,231,685	)		(2,007,869	)
Deferred compensation obligation		6,629			8,172
Accumulated other comprehensive loss		(575,405	)		(741,424	)
Total Flowserve Corporation shareholders' equity		2,191,397			2,007,665
Noncontrolling interests		62,927			44,047
Total equity		2,254,324			2,051,712
Total liabilities and equity	$	5,708,200		$	5,500,821

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Year Ended December 31,
(Amounts in thousands)		2025			2024			2023

Cash flows – Operating activities:
Net earnings, including noncontrolling interests	$	369,802		$	301,226		$	205,188
Adjustments to reconcile net earnings to net cash provided by operating activities		-
Depreciation		79,236			75,849			73,464
Amortization of intangible and other assets		16,218			9,749			10,283
Loss on sale of business		-			12,981			-
Loss on sale of asbestos-related assets and liabilities		140,092			-			-
Contribution to divest asbestos-related assets and liabilities		(199,000	)		-			-
Stock-based compensation		38,263			30,474			27,808
Foreign currency, asset write downs and other non-cash adjustments		(15,226	)		24,172			(17,331	)
Change in assets and liabilities, net of businesses acquired:
Accounts receivable, net		691			(82,188	)		4,744
Inventories		86,678			38,872			(59,831	)
Contract assets, net		(13,279	)		(18,513	)		(41,149	)
Prepaid expenses and other assets, net		(56,489	)		15,116			7,825
Accounts payable		(28,852	)		(12,336	)		53,065
Contract liabilities		(23,502	)		(6,070	)		26,837
Accrued liabilities		25,210			49,578			59,213
Retirement obligations and other		38,088			1,456			38,497
Net deferred taxes		47,954			(15,058	)		(62,841	)
Net cash flows provided by operating activities		505,884			425,308			325,772
Cash flows – Investing activities:
Capital expenditures		(70,927	)		(81,019	)		(67,359	)
Payments for acquisitions, net of cash acquired		(65,881	)		(305,924	)		-
Proceeds from disposal of assets		11,551			2,244			2,057
Payments for disposition of business		-			(2,555	)		-
Net affiliate investment activity		96			40			(3,278	)
Net cash flows used by investing activities		(125,161	)		(387,214	)		(68,580	)
Cash flows – Financing activities:
Payments on term loan		(37,500	)		(95,375	)		(40,000	)
Proceeds from term loan		-			366,000			-
Proceeds under revolving credit facility		200,000			100,000			280,000
Payments under revolving credit facility		(100,000	)		(100,000	)		(280,000	)
Proceeds under other financing arrangements		15,309			1,437			1,114
Payments under other financing arrangements		(5,888	)		(1,455	)		(2,604	)
Payments related to tax withholding for stock-based compensation		(11,754	)		(9,581	)		(6,245	)
Repurchases of common shares		(254,860	)		(20,070	)		-
Payments of dividends		(109,639	)		(110,440	)		(104,955	)
Contingent consideration payment related to acquired business		(15,000	)		-			-
Other		(7,596	)		(13,021	)		(324	)
Net cash flows provided (used) provided by financing activities		(326,928	)		117,495			(153,014	)
Effect of exchange rate changes on cash		30,947			(25,826	)		6,529
Net change in cash and cash equivalents		84,742			129,763			110,707
Cash and cash equivalents at beginning of period		675,441			545,678			434,971
Cash and cash equivalents at end of period	$	760,183		$	675,441		$	545,678
Supplemental Cash Flow Information:
Income taxes paid (net of refunds)	$	92,327		$	81,172		$	119,275
Interest paid		75,472			66,809			64,865
Non-Cash Investing and Financing Activities:
Contingent liabilities incurred related to acquired business, but not paid	$	674		$	15,000		$	-

About Flowserve:

Flowserve Corporation is one of the world's leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company's website at www.flowserve.com.

Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers' ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrate new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205296401/en/

Flowserve Contacts

Investor Contacts:

Brian Ezzell, Vice President, Investor Relations, Treasurer & Corporate Finance (469) 420-3222

Olivia Webb, Director, Investor Relations (469) 420-3223

Media Contact: media@flowserve.com

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Date	Price Target	Rating	Analyst
11/14/2025		Buy → Neutral	BofA Securities
3/17/2025	$71.00	Neutral → Outperform	Robert W. Baird
12/12/2024	$55.00 → $69.00	Sell → Neutral	Goldman
11/22/2024	$57.00 → $69.00	Sector Perform → Outperform	RBC Capital Mkts
10/18/2024	$65.00	Buy	Jefferies
9/26/2023	$40.00 → $50.00	Hold → Buy	Jefferies
1/30/2023	$33.00 → $40.00	Neutral → Buy	BofA Securities
9/15/2022	$38.00 → $31.00	Outperform → Neutral	Credit Suisse

Flowserve Corporation Reports Fourth Quarter and Full Year 2025 Results

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Recent Analyst Ratings for
$FLS

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SEC Filings

Flowserve Corporation filed SEC Form 8-K: Results of Operations and Financial Condition

SEC Form 8-K filed by Flowserve Corporation

Flowserve Corporation filed SEC Form 8-K: Regulation FD Disclosure

$FLS
Insider Trading

President & CEO Rowe Robert Scott was granted 84 shares, increasing direct ownership by 0.02% to 346,714 units (SEC Form 4)

President & CEO Rowe Robert Scott exercised 114,943 shares at a strike of $48.63 and sold $14,989,332 worth of shares (212,683 units at $70.48), decreasing direct ownership by 22% to 346,630 units (SEC Form 4)

Director Delly Gayla J gifted 900 shares, decreasing direct ownership by 4% to 21,496 units (SEC Form 4)

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Analyst Ratings

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Press Releases

Flowserve downgraded by BofA Securities

Flowserve upgraded by Robert W. Baird with a new price target

Flowserve upgraded by Goldman with a new price target