福斯Flowserve第二季訂單創紀錄升25.5% 調整後每股盈利勝預期並上調全年指引

EX-99.1
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d15165dex991.htm
EX-99.1

EX-99.1

 

 EXHIBIT 99.1 
  

 
 Flowserve Corporation Reports Second Quarter 2026 Results 

Flowserve Business System Delivers Strong Q2 Performance; Updates 2026 Guidance 

DALLAS, July 29, 2026 – Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure
markets, reported its financial results for the second quarter ended June 30, 2026. 
 Highlights: 

 

 
•
 
 Quarterly bookings of $1.35 billion, up 26% versus the prior year period, including record aftermarket
bookings of $696 million 

  

 
•
 
 Operating margin of 13.0% expanded 70 basis points and
adjusted1 operating margin2 of 15.3% expanded 70 basis points compared to the prior year period 

 

 
•
 
 Reported EPS of $0.77 and adjusted EPS3 of $0.95

  

 
•
 
 Updated full-year 2026 organic sales guidance to down approximately 1% reflecting the continued impact of Middle
East conflict 

  

 
•
 
 Raised the low end of adjusted EPS guidance3 to $4.05 to
$4.20 

 Management Commentary: 

“Flowserve delivered strong second quarter results, with significant bookings growth, robust operating margin expansion, and adjusted earnings per share
above our initial expectations,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “ Importantly, this marks our 14th consecutive quarter of year-over-year adjusted gross margin expansion, a reflection of the
structural, durable progress we’re making. These results, delivered against a dynamic market backdrop, underscore the strength of the Flowserve Business System and the power of the 3D growth strategy coupled with the commitment of our teams
around the world.” 
 Rowe continued, “Demand across our end markets remains resilient, led by power, nuclear, and energy security investments.
While our healthy project pipeline positions us for continued bookings growth, we are adjusting our full-year sales guidance to reflect geopolitical uncertainty in the Middle East and its expected impact on our
run-rate business in the region during the second half of the year. At the same time, our strong earnings performance year to date and continued confidence in our ability to expand margins enable us to raise
the low end of our full-year adjusted EPS guidance range. We remain firmly on track to deliver on our 2030 financial targets and create value for shareholders.” 

 

 Key Figures (unaudited): 

 

 (dollars in millions, except per share)

  
Q2 2026
 
 
Q2 2025
 
 
Change
 
 
YTD 2026
 
 
YTD 2025
 
 
Change
 

 Original Equipment Bookings

  
$
652.3
 
 
$
453.3
 
 
 
43.9
% 
 
$
1,119.5
 
 
$
990.2
 
 
 
13.1
% 

 Aftermarket Bookings

  
$
695.8
 
 
$
620.6
 
 
 
12.1
% 
 
$
1,376.2
 
 
$
1,309.2
 
 
 
5.1
% 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Total Bookings

  
$
1,348.1
 
 
$
1,073.9
 
 
 
25.5
% 
 
$
2,495.7
 
 
$
2,299.4
 
 
 
8.5
% 

 Organic Sales4

  

 

 
 
(3.3
%) 
 

 

 
 
(6.9
%) 

 Acquisition/Divestiture Impact

  

 

 
 
90 bps
 
 

 

 
 
60 bps
 

 Foreign Exchange Impact

  

 

 
 
80 bps
 
 

 

 
 
220 bps
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Reported Sales

  
$
1,169.2
 
 
$
1,188.1
 
 
 
(1.6
%) 
 
$
2,237.4
 
 
$
2,332.6
 
 
 
(4.1
%) 

 Operating Margin

  
 
13.0
% 
 
 
12.3
% 
 
 
70 bps
 
 
 
12.1
% 
 
 
11.9
% 
 
 
20 bps
 

 Adjusted Operating Margin

  
 
15.3
% 
 
 
14.6
% 
 
 
70 bps
 
 
 
15.2
% 
 
 
13.8
% 
 
 
140 bps
 

 Earnings Per Share (EPS)

  
$
0.77
 
 
$
0.62
 
 
 
24.2
% 
 
$
1.41
 
 
$
1.18
 
 
 
19.5
% 

 Adjusted Earnings Per Share (EPS)

  
$
0.95
 
 
$
0.91
 
 
 
4.4
% 
 
$
1.80
 
 
$
1.63
 
 
 
10.4
% 

 Cash From Operations

  
$
129.2
 
 
$
154.1
 
 
($
24.9
) 
 
$
86.2
 
 
$
104.2
 
 
($
18.0
) 

 Backlog5

  
$
3,336.0
 
 
$
2,853.2
 
 
 
16.9
% 
 
$
3,336.0
 
 
$
2,853.2
 
 
 
16.9
% 

 2026 Guidance3: 

The Company updated 2026 guidance: 
  

 
  
Prior
  
Current

 Organic Sales Growth

  
(1%) to +2%
  
Approx. (1%)

 Impact From Acquisition/Divestiture

  
Approx. +300 bps
  
Approx. +300 bps

 Impact From Foreign Exchange Translation

  
Approx. +100 bps
  
Approx. +100 bps

  
  

  
  

 Total Sales Growth

  
+3% to +6%
  
Approx. +3%

  
  

  
  

 Adjusted EPS

  
$4.00 to $4.20
  
$4.05 to $4.20

 Net Interest Expense

  
Approx. $85 million
  
Approx. $85 million

 Adjusted Tax Rate

  
21% to 22%
  
21% to 22%

 Capital Expenditures

  
$90 million to$100 million
  
Approx.$100 million

 The guidance assumes tariff rates in place as of July 1, 2026, and assumes current business conditions in the Middle
East, which have been impacted by armed conflict and geopolitical instability, persist for the remainder of the year. 

  
 2 

 

 Webcast and Conference Call Instructions: 

Flowserve will host its conference call to discuss second quarter results on Thursday, July 30, 2026, at 8:30 a.m. Eastern Time. The call can be accessed
by shareholders and other interested parties on Flowserve’s Investors page. 
 Footnotes 

 

1
 See 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. 

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

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

4
 Organic is defined as the change in sales, as defined by U.S. GAAP, excluding the impacts of currency
translation and acquisitions and divestitures. 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. 

5
 Q2 and YTD 2026 backlog includes Trillium backlog of $225 million. 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME 

(Unaudited) 
  

 
  
Three Months Ended June 30,
 

(Amounts in thousands)
  
2026
 
 
2025
 

 Sales

  
$
1,169,175
 
 
$
1,188,092
 

 Cost of sales

  
 
(784,449
) 
 
 
(781,510
) 

  
  

  

 
 
  

  

 

 Gross profit

  
 
384,726
 
 
 
406,582
 

 Selling, general and administrative expense

  
 
(266,318
) 
 
 
(265,908
) 

 Net earnings from affiliates

  
 
33,015
 
 
 
5,916
 

  
  

  

 
 
  

  

 

 Operating income

  
 
151,423
 
 
 
146,590
 

 Interest expense

  
 
(25,696
) 
 
 
(20,253
) 

 Interest income

  
 
5,023
 
 
 
2,526
 

 Other expense, net

  
 
(12,087
) 
 
 
(25,003
) 

  
  

  

 
 
  

  

 

 Earnings before income taxes

  
 
118,663
 
 
 
103,860
 

 Provision for income taxes

  
 
(17,078
) 
 
 
(15,636
) 

  
  

  

 
 
  

  

 

 Net earnings, including noncontrolling interests

  
 
101,585
 
 
 
88,224
 

 Less: net earnings attributable to noncontrolling interests

  
 
(2,587
) 
 
 
(6,470
) 

  
  

  

 
 
  

  

 

 Net earnings attributable to Flowserve Corporation

  
$
 98,998
 
 
$
 81,754
 

  
  

  

 
 
  

  

 

 Net earnings per share attributable to Flowserve Corporation common shareholders:

  

 

 Basic

  
$
 0.78
 
 
$
 0.62
 

 Diluted

  
 
0.77
 
 
 
0.62
 

 Weighted average shares - basic

  
 
127,644
 
 
 
130,846
 

 Weighted average shares - diluted

  
 
128,358
 
 
 
131,599
 

  
 3 

 

 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 June 30, 2026

 
GrossProfit
 
 
Selling,General &AdministrativeExpense
 
 
Net Earningsfrom Affiliates
 
 
OperatingIncome
 
 
Other Income(Expense), Net
 
 
Provision For(Benefit From)Income Taxes
 
 
Net Earnings(Loss)
 
 
EffectiveTax Rate
 
 
DilutedEPS
 

 Reported

 
$
384,726
 
 
$
266,318
 
 
$
 33,015
 
 
$
151,423
 
 
$
(12,087
) 
 
$
17,078
 
 
$
 98,998
 
 
 
14.4
% 
 
 
0.77
 

 Reported as a percent of sales

 
 
32.9
% 
 
 
22.8
% 
 
 
2.8
% 
 
 
13.0
% 
 
 
-1.0
% 
 
 
1.5
% 
 
 
8.5
% 
 

 

 Realignment charges (a)

 
 
32,979
 
 
 
(7,751
) 
 
 
— 
 
 
 
40,730
 
 
 
— 
 
 
 
8,590
 
 
 
32,140
 
 
 
21.1
% 
 
 
0.25
 

 Acquisition and divestiture related (b)(c)

 
 
— 
 
 
 
(9,316
) 
 
 
(27,700
) 
 
 
(18,384
) 
 
 
— 
 
 
 
2,163
 
 
 
(20,547
) 
 
 
-11.8
% 
 
 
(0.16
) 

 Amortization of intangible assets (d)

 
 
1,543
 
 
 
(3,103
) 
 
 
— 
 
 
 
4,646
 
 
 
— 
 
 
 
997
 
 
 
3,649
 
 
 
21.5
% 
 
 
0.03
 

 Discrete items (e)(f)

 
 
31
 
 
 
(215
) 
 
 
— 
 
 
 
246
 
 
 
3,076
 
 
 
782
 
 
 
2,540
 
 
 
23.5
% 
 
 
0.02
 

 Below-the-line
foreign exchange impacts (g)

 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
6,315
 
 
 
1,414
 
 
 
4,901
 
 
 
22.4
% 
 
 
0.04
 

 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

 
$
419,279
 
 
$
245,933
 
 
$
 5,315
 
 
$
178,661
 
 
$
(2,696
) 
 
$
31,024
 
 
$
121,681
 
 
 
20.0
% 
 
 
0.95
 

 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

 
 
35.9
% 
 
 
21.0
% 
 
 
0.5
% 
 
 
15.3
% 
 
 
-0.2
% 
 
 
2.7
% 
 
 
10.4
% 
 

 

 Note: Amounts may not calculate due to rounding 
  

(a)
 Charges represent realignment costs incurred as a result of realignment programs of which $5,003 is non-cash. 

(b)
 Charges represent $9,316 of costs associated with strategic acquisition and divestiture activities including
the acquisitions of Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO). 

(c)
 Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our
previously held equity interest in FAMCO. 

(d)
 Charges represent non-cash amortization of intangible assets.

(e)
 Charges represent $246 of 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)
 Charges include $3,076 for non-cash pension settlement accounting
losses incurred in conjunction with pension plans in the United States and Canada. 

(g)
 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 June 30, 2025

  
GrossProfit
 
 
Selling,General &AdministrativeExpense
 
 
OperatingIncome
 
 
Other Income(Expense), Net
 
 
Provision For(Benefit From)Income Taxes
 
 
Net Earnings(Loss)
 
 
Effective TaxRate
 
 
DilutedEPS
 

 Reported

  
$
406,582
 
 
$
265,908
 
 
$
146,590
 
 
$
(25,003
) 
 
$
15,636
 
 
$
 81,754
 
 
 
15.1
% 
 
 
0.62
 

 Reported as a percent of sales

  
 
34.2
% 
 
 
22.4
% 
 
 
12.3
% 
 
 
-2.1
% 
 
 
1.3
% 
 
 
6.9
% 
 

 

 Realignment charges (a)

  
 
5,106
 
 
 
1,787
 
 
 
3,319
 
 
 
— 
 
 
 
1,318
 
 
 
2,001
 
 
 
39.7
% 
 
 
0.02
 

 Acquisition related (b)

  
 
752
 
 
 
(3,190
) 
 
 
3,942
 
 
 
— 
 
 
 
927
 
 
 
3,015
 
 
 
23.5
% 
 
 
0.02
 

 Purchase accounting step-up and intangible asset
amortization (c)

  
 
2,642
 
 
 
(1,300
) 
 
 
3,942
 
 
 
— 
 
 
 
1,186
 
 
 
2,756
 
 
 
30.1
% 
 
 
0.02
 

 Discrete items (d)(e)

  
 
42
 
 
 
(382
) 
 
 
424
 
 
 
1,500
 
 
 
453
 
 
 
1,471
 
 
 
23.5
% 
 
 
0.01
 

 Merger transaction costs (f)

  
 
— 
 
 
 
(15,515
) 
 
 
15,515
 
 
 
— 
 
 
 
3,649
 
 
 
11,866
 
 
 
23.5
% 
 
 
0.09
 

 Below-the-line
foreign exchange impacts (g)

  
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
20,023
 
 
 
2,910
 
 
 
17,113
 
 
 
14.5
% 
 
 
0.13
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
415,124
 
 
$
247,308
 
 
$
173,732
 
 
$
(3,480
) 
 
$
26,079
 
 
$
119,976
 
 
 
17.1
% 
 
 
0.91
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
34.9
% 
 
 
20.8
% 
 
 
14.6
% 
 
 
-0.3
% 
 
 
2.2
% 
 
 
10.1
% 
 

 

 Note: Amounts may not calculate due to rounding 

 

(a)
 Charges represent realignment costs incurred as a result of realignment programs of which $1,500 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)
 Charge represents 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. 

(e)
 Charge of $1,500 represents a pension settlement accounting loss incurred in conjunction with the freeze of our
US Qualified pension plan. 

(f)
 Charge represents transaction costs incurred associated with the Chart Industries merger.

(g)
 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. 

  
 4 

 

 SEGMENT INFORMATION 

(Unaudited) 
  

 
  
Three Months Ended June 30,
 

FLOWSERVE PUMPS DIVISION
  
2026
 
 
2025
 

(Amounts in millions, except percentages)
  
 
 

 Bookings

  
$
938.1
 
 
$
723.8
 

 Sales

  
 
814.1
 
 
 
818.9
 

 Gross profit

  
 
296.1
 
 
 
299.2
 

 Gross profit margin

  
 
36.4
% 
 
 
36.5
% 

 SG&A

  
 
148.0
 
 
 
142.4
 

 Segment operating income

  
 
181.2
 
 
 
162.7
 

 Segment operating income as a percentage of sales

  
 
22.3
% 
 
 
19.9
% 

 
  
Three Months Ended June 30,
 

FLOW CONTROL DIVISION
  
2026
 
 
2025
 

(Amounts in millions, except percentages)
  
 
 

 Bookings

  
$
417.1
 
 
$
354.7
 

 Sales

  
 
357.3
 
 
 
371.5
 

 Gross profit

  
 
88.5
 
 
 
107.7
 

 Gross profit margin

  
 
24.8
% 
 
 
29.0
% 

 SG&A

  
 
77.5
 
 
 
69.9
 

 Segment operating income

  
 
11.0
 
 
 
37.8
 

 Segment operating income as a percentage of sales

  
 
3.1
% 
 
 
10.2
% 

  
 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 June 30, 2026

  
Gross Profit
 
 
Selling,General &AdministrativeExpense
 
 
Net Earningsfrom Affiliates
 
 
OperatingIncome
 

 Reported

  
$
296,141
 
 
$
148,003
 
 
$
 33,014
 
 
$
181,151
 

 Reported as a percent of sales

  
 
36.4
% 
 
 
18.2
% 
 
 
4.1
% 
 
 
22.3
% 

 Realignment charges (a)

  
 
10,521
 
 
 
(5,392
) 
 
 
— 
 
 
 
15,913
 

 Discrete items (b)

  
 
24
 
 
 
(48
) 
 
 
— 
 
 
 
72
 

 Acquisition and divestiture related (c)(e)

  
 
— 
 
 
 
(774
) 
 
 
(27,700
) 
 
 
(26,926
) 

 Amortization of intangible assets (d)

  
 
1,443
 
 
 
(1,801
) 
 
 
— 
 
 
 
3,244
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
308,129
 
 
$
139,988
 
 
$
 5,314
 
 
$
173,454
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
37.8
% 
 
 
17.2
% 
 
 
0.7
% 
 
 
21.3
% 
 Flow Control Division 

 

 Three Months Ended June 30, 2026

  
Gross Profit
 
 
Selling,General &AdministrativeExpense
 
 
OperatingIncome
 

 Reported

  
$
 88,546
 
 
$
77,528
 
 
$
11,018
 

 Reported as a percent of sales

  
 
24.8
% 
 
 
21.7
% 
 
 
3.1
% 

 Realignment charges (a)

  
 
22,458
 
 
 
(1,735
) 
 
 
24,193
 

 Discrete items (b)

  
 
5
 
 
 
(20
) 
 
 
25
 

 Acquisition and divestiture related (c)

  
 
— 
 
 
 
(8,427
) 
 
 
8,427
 

 Amortization of intangible assets (d)

  
 
100
 
 
 
(1,302
) 
 
 
1,402
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
111,109
 
 
$
66,044
 
 
$
45,065
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
31.1
% 
 
 
18.5
% 
 
 
12.6
% 

 Note: Amounts may not calculate due to rounding 
  

(a)
 Charges represent realignment costs incurred as a result of realignment programs of which $5,003 is non-cash. 

(b)
 Charges represent $97 of 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.

(c)
 Charges represent $9,201 of costs associated with strategic acquisition and divestiture activities including
the acquisitions of Flowserve Al Mansoori Services Company (FAMCO) and Trillium Valves within FPD and FCD, respectively. 

(d)
 Charges represent non-cash amortization of intangible assets.

(e)
 Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our
previously held equity interest in FAMCO. 

 Flowserve Pumps Division 

 

 Three Months Ended June 30, 2025

  
Gross Profit
 
 
Selling,General &AdministrativeExpense
 
 
OperatingIncome
 

 Reported

  
$
299,229
 
 
$
142,400
 
 
$
162,745
 

 Reported as a percent of sales

  
 
36.5
% 
 
 
17.4
% 
 
 
19.9
% 

 Realignment charges (a)

  
 
1,888
 
 
 
(1,749
) 
 
 
3,637
 

 Discrete items (b)

  
 
35
 
 
 
(99
) 
 
 
134
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
301,152
 
 
$
140,552
 
 
$
166,516
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
36.8
% 
 
 
17.2
% 
 
 
20.3
% 
 Flow Control Division 

 

 Three Months Ended June 30, 2025

  
Gross Profit
 
 
Selling,General &AdministrativeExpense
 
 
OperatingIncome
 

 Reported

  
$
107,694
 
 
$ 
 69,922
  
 
$ 
 37,772
  

 Reported as a percent of sales

  
 
29.0
% 
 
 
18.8
% 
 
 
10.2
% 

 Realignment charges (a)

  
 
3,217
 
 
 
3,504
 
 
 
(287
) 

 Acquisition related (c)

  
 
752
 
 
 
(3,190
) 
 
 
3,942
 

 Purchase accounting step-up and intangible asset
amortization (d)

  
 
2,642
 
 
 
(1,300
) 
 
 
3,942
 

 Discrete items (b)

  
 
5
 
 
 
(99
) 
 
 
104
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
114,310
 
 
$ 
 68,838
  
 
$ 
 45,472
  

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
30.8
% 
 
 
18.5
% 
 
 
12.2
% 

 Note: Amounts may not calculate due to rounding 
  

(a)
 Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash. 

(b)
 Charge represents 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. 

(c)
 Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.

(d)
 Charge represents amortization of step-up in value of acquired
inventories and acquisition related intangible assets associated with the MOGAS acquisition. 

  
 6 

 

 CONDENSED CONSOLIDATED STATEMENTS OF INCOME 

(Unaudited) 
 (Amounts in thousands, except per share data)

  

 
  
Six Months Ended June 30,
 

 
  
2026
 
 
2025
 

 Sales

  
$
2,237,444
 
 
$
 2,332,635
 

 Cost of sales

  
 
(1,472,877
) 
 
 
(1,556,719
) 

  
  

  

 
 
  

  

 

 Gross profit

  
 
764,567
 
 
 
775,916
 

 Selling, general and administrative expense

  
 
(529,718
) 
 
 
(509,085
) 

 Net earnings from affiliates

  
 
36,006
 
 
 
11,648
 

  
  

  

 
 
  

  

 

 Operating income

  
 
270,855
 
 
 
278,479
 

 Interest expense

  
 
(46,127
) 
 
 
(39,428
) 

 Interest income

  
 
6,523
 
 
 
4,271
 

 Other expense, net

  
 
(5,088
) 
 
 
(42,262
) 

  
  

  

 
 
  

  

 

 Earnings before income taxes

  
 
226,163
 
 
 
201,060
 

 Provision for income taxes

  
 
(38,209
) 
 
 
(33,379
) 

  
  

  

 
 
  

  

 

 Net earnings, including noncontrolling interests

  
 
187,954
 
 
 
167,681
 

 Less: Net earnings attributable to noncontrolling interests

  
 
(7,275
) 
 
 
(12,022
) 

  
  

  

 
 
  

  

 

 Net earnings attributable to Flowserve Corporation

  
$
 180,679
 
 
$
 155,659
 

  
  

  

 
 
  

  

 

 Net earnings per share attributable to Flowserve Corporation common shareholders:

  

 

 Basic

  
$
 1.42
 
 
$
 1.19
 

 Diluted

  
 
1.41
 
 
 
1.18
 

 Weighted average shares - basic

  
 
127,569
 
 
 
131,206
 

 Weighted average shares - diluted

  
 
128,489
 
 
 
132,135
 

  
 7 

 

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

 

 Six Months Ended June 30, 2026

 
GrossProfit
 
 
Selling,General &AdministrativeExpense
 
Net Earningsfrom Affiliates
 
 
OperatingIncome
 
 
Other Income(Expense), Net
 
 
Provision For(Benefit From)Income Taxes
 
 
Net Earnings(Loss)
 
 
EffectiveTax Rate
 
 
DilutedEPS
 

 Reported

 
$
764,567
 
 
$529,718
 
$
 36,006
 
 
$
270,855
 
 
$
(5,088
) 
 
$
38,209
 
 
$
180,679
 
 
 
16.9
% 
 
 
1.41
 

 Reported as a percent of sales

 
 
34.2
% 
 
23.7%
 
 
1.6
% 
 
 
12.1
% 
 
 
-0.2
% 
 
 
1.7
% 
 
 
8.1
% 
 

 

 Realignment charges (a)

 
 
49,481
 
 
(20,216)
 
 
— 
 
 
 
69,697
 
 
 
— 
 
 
 
13,033
 
 
 
56,664
 
 
 
18.7
% 
 
 
0.44
 

 Acquisition and divestiture related (b)(c)

 
 
— 
 
 
(17,904)
 
 
(27,700
) 
 
 
(9,796
) 
 
 
— 
 
 
 
4,313
 
 
 
(14,109
) 
 
 
-44.0
% 
 
 
(0.11
) 

 Amortization of intangible assets (d)

 
 
2,556
 
 
(5,347)
 
 
— 
 
 
 
7,903
 
 
 
— 
 
 
 
1,520
 
 
 
6,383
 
 
 
19.2
% 
 
 
0.05
 

 Discrete items (e)(f)

 
 
62
 
 
(889)
 
 
— 
 
 
 
951
 
 
 
4,576
 
 
 
1,301
 
 
 
4,226
 
 
 
23.5
% 
 
 
0.03
 

 Below-the-line
foreign exchange impacts (g)

 
 
— 
 
 
— 
 
 
— 
 
 
 
— 
 
 
 
(2,723
) 
 
 
(187
) 
 
 
(2,536
) 
 
 
6.9
% 
 
 
(0.02
) 

 
  

  

 
 
  

 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

 
$
816,666
 
 
$485,362
 
$
 8,306
 
 
$
339,610
 
 
$
(3,235
) 
 
$
58,189
 
 
$
231,307
 
 
 
19.6
% 
 
 
1.80
 

 
  

  

 
 
  

 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

 
 
36.5
% 
 
21.7%
 
 
0.4
% 
 
 
15.2
% 
 
 
-0.1
% 
 
 
2.6
% 
 
 
10.3
% 
 

 

 Note: Amounts may not calculate due to rounding 

 

(a)
 Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain
associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. 

(b)
 Charges represent $17,904 of costs associated with strategic acquisition and divestiture activities including
the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO). 

(c)
 Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our
previously held equity interest in FAMCO. 

(d)
 Charges represent non-cash amortization of intangible assets.

(e)
 Charges represent discrete items including $523 of 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 and $428 of transaction costs related to the divestiture of our asbestos-related assets and liabilities. 

(f)
 Charges include $4,576 for non-cash pension settlement accounting
losses incurred in conjunction with pension plans in the United States and Canada. 

(g)
 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. 

 

 Six Months Ended June 30, 2025

  
GrossProfit
 
 
Selling,General &AdministrativeExpense
 
 
OperatingIncome
 
 
Other Income(Expense), Net
 
 
Provision For(Benefit From)Income Taxes
 
 
Net Earnings(Loss)
 
 
Effective TaxRate
 
 
DilutedEPS
 

 Reported

  
$
775,916
 
 
$
509,085
 
 
$
278,479
 
 
$
(42,262
) 
 
$
33,379
 
 
$
155,659
 
 
 
16.6
% 
 
 
1.18
 

 Reported as a percent of sales

  
 
33.3
% 
 
 
21.8
% 
 
 
11.9
% 
 
 
-1.8
% 
 
 
1.4
% 
 
 
6.7
% 
 

 

 Realignment charges (a)

  
 
15,121
 
 
 
3,091
 
 
 
12,030
 
 
 
— 
 
 
 
3,189
 
 
 
8,841
 
 
 
26.5
% 
 
 
0.07
 

 Acquisition related (b)

  
 
752
 
 
 
(4,471
) 
 
 
5,223
 
 
 
— 
 
 
 
1,228
 
 
 
3,995
 
 
 
23.5
% 
 
 
0.03
 

 Purchase accounting step-up and intangible asset
amortization (c)

  
 
6,117
 
 
 
(2,600
) 
 
 
8,717
 
 
 
— 
 
 
 
2,547
 
 
 
6,170
 
 
 
29.2
% 
 
 
0.05
 

 Discrete items (d)(e)

  
 
75
 
 
 
(765
) 
 
 
840
 
 
 
3,000
 
 
 
903
 
 
 
2,937
 
 
 
23.5
% 
 
 
0.02
 

 Merger transaction costs (f)

  
 
— 
 
 
 
(15,515
) 
 
 
15,515
 
 
 
— 
 
 
 
3,649
 
 
 
11,866
 
 
 
23.5
% 
 
 
0.09
 

 Below-the-line
foreign exchange impacts (g)

  
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
31,396
 
 
 
5,355
 
 
 
26,041
 
 
 
17.1
% 
 
 
0.20
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
797,981
 
 
$
488,825
 
 
$
320,804
 
 
$
(7,866
) 
 
$
50,250
 
 
$
215,509
 
 
 
18.1
% 
 
 
1.63
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
34.2
% 
 
 
21.0
% 
 
 
13.8
% 
 
 
-0.3
% 
 
 
2.2
% 
 
 
9.2
% 
 

 

  

Note:
 Amounts may not calculate due to rounding 

 

(a)
 Charges represent realignment costs incurred as a result of realignment programs of which $3,000 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)
 Charge represents 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. 

(e)
 Charge of $3,000 represents a pension settlement accounting loss incurred in conjunction with the freeze of our
US Qualified pension plan. 

(f)
 Charge represents transaction costs incurred associated with the Chart Industries merger.

(g)
 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. 

  
 8 

 

 SEGMENT INFORMATION 

(Unaudited) 
  

 FLOWSERVE PUMPS DIVISION

  
Six Months Ended June 30,
 

(Amounts in millions, except percentages)
  
2026
 
 
2025
 

 Bookings

  
$
1,711.4
 
 
$
1,576.1
 

 Sales

  
 
1,558.6
 
 
 
1,602.1
 

 Gross profit

  
 
566.1
 
 
 
567.7
 

 Gross profit margin

  
 
36.3
% 
 
 
35.4
% 

 SG&A

  
 
295.2
 
 
 
280.1
 

 Segment operating income

  
 
306.9
 
 
 
299.3
 

 Segment operating income as a percentage of sales

  
 
19.7
% 
 
 
18.7
% 

 FLOW CONTROL DIVISION

  
Six Months Ended June 30,
 

(Amounts in millions, except percentages)
  
2026
 
 
2025
 

 Bookings

  
$
 791.3
 
 
$
 730.4
 

 Sales

  
 
684.9
 
 
 
735.6
 

 Gross profit

  
 
197.5
 
 
 
207.9
 

 Gross profit margin

  
 
28.9
% 
 
 
28.3
% 

 SG&A

  
 
144.8
 
 
 
138.6
 

 Segment operating income

  
 
52.7
 
 
 
69.3
 

 Segment operating income as a percentage of sales

  
 
7.7
% 
 
 
9.4
% 

  
 9 

 

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

Flowserve Pumps Division 
  

 Six Months Ended June 30, 2026

  
Gross Profit
 
 
Selling,General &AdministrativeExpense
 
 
Net Earningsfrom Affiliates
 
 
OperatingIncome
 

 Reported

  
$
566,068
 
 
$
295,171
 
 
$
 36,006
 
 
$
306,902
 

 Reported as a percent of sales

  
 
36.3
% 
 
 
18.9
% 
 
 
2.3
% 
 
 
19.7
% 

 Realignment charges (a)

  
 
20,609
 
 
 
(9,533
) 
 
 
— 
 
 
 
30,142
 

 Discrete items (b)

  
 
48
 
 
 
(96
) 
 
 
— 
 
 
 
144
 

 Acquisition and divestiture related (c)(e)

  
 
— 
 
 
 
(813
) 
 
 
(27,700
) 
 
 
(26,887
) 

 Amortization of intangible assets (d)

  
 
2,456
 
 
 
(2,746
) 
 
 
— 
 
 
 
5,202
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
589,181
 
 
$
281,983
 
 
$
 8,306
 
 
$
315,503
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
37.8
% 
 
 
18.1
% 
 
 
0.5
% 
 
 
20.2
% 
 Flow Control
Division 
  

 Six Months Ended June 30, 2026

  
Gross Profit
 
 
Selling,General &AdministrativeExpense
 
 
OperatingIncome
 

 Reported

  
$
197,493
 
 
$
144,759
 
 
$
52,734
 

 Reported as a percent of sales

  
 
28.8
% 
 
 
21.1
% 
 
 
7.7
% 

 Realignment charges (a)

  
 
28,872
 
 
 
3,286
 
 
 
25,586
 

 Discrete items (b)

  
 
10
 
 
 
(75
) 
 
 
85
 

 Acquisition and divestiture related (c)

  
 
— 
 
 
 
(16,165
) 
 
 
16,165
 

 Amortization of intangible assets (d)

  
 
100
 
 
 
(2,601
) 
 
 
2,701
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
226,475
 
 
$
129,204
 
 
$
97,271
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
33.1
% 
 
 
18.9
% 
 
 
14.2
% 
  

Note:
 Amounts may not calculate due to rounding 

 

(a)
 Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain
associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. 

(b)
 Charges represent $229 of 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. (c) Charges
represent $16,978 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray and Flowserve Al Mansoori Services Company (FAMCO) within FPD and Trillium Valves within FCD. 

(d)
 Charges represent non-cash amortization of intangible assets.

(e)
 Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our
previously held equity interest in FAMCO. 

 Flowserve Pumps Division 

 

 Six Months Ended June 30, 2025

  
Gross Profit
 
 
Selling,General &AdministrativeExpense
 
 
OperatingIncome
 

 Reported

  
$
567,691
 
 
$
280,080
 
 
$
299,259
 

 Reported as a percent of sales

  
 
35.4
% 
 
 
17.5
% 
 
 
18.7
% 

 Realignment charges (a)

  
 
4,867
 
 
 
(751
) 
 
 
5,618
 

 Discrete items (b)

  
 
63
 
 
 
(224
) 
 
 
287
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
572,621
 
 
$
279,105
 
 
$
305,164
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
35.7
% 
 
 
17.4
% 
 
 
19.0
% 

 Flow Control Division 
  

 Six Months Ended June 30, 2025

  
Gross Profit
 
 
Selling,General &AdministrativeExpense
 
 
OperatingIncome
 

 Reported

  
$
207,881
 
 
$
138,627
 
 
$
69,254
 

 Reported as a percent of sales

  
 
28.3
% 
 
 
18.8
% 
 
 
9.4
% 

 Realignment charges (a)

  
 
10,319
 
 
 
3,625
 
 
 
6,694
 

 Acquisition related (c)

  
 
752
 
 
 
(4,471
) 
 
 
5,223
 

 Purchase accounting step-up and intangible asset amortization (d)

  
 
6,117
 
 
 
(2,600
) 
 
 
8,717
 

 Discrete items (b)

  
 
9
 
 
 
(163
) 
 
 
172
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted

  
$
225,078
 
 
$
135,018
 
 
$
90,060
 

  
  

  

 
 
  

  

 
 
  

  

 

 Adjusted as a percent of sales

  
 
30.6
% 
 
 
18.4
% 
 
 
12.2
% 

 Note: Amounts may not calculate due to rounding 
  

(a)
 Charges represent realignment costs incurred as a result of realignment programs of which $3,000 is non-cash.

(b)
 Charge represents 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. 

(c)
 Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.

(d)
 Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible
assets associated with the MOGAS acquisition. 

  
 10 

 

 Segment Results 

(Unaudited) 
 Flowserve Pumps Division

  

 (dollars in millions)

  
Q2 2026
 
 
Q2 2025
 
 
Change
 
 
YTD 2026
 
 
YTD 2025
 
 
Change
 

 Organic Bookings

  

 

 
 
26.8
% 
 

 

 
 
5.0
% 

 Acquisition / Divestiture Impact

  

 

 
 
1.1
% 
 

 

 
 
0.7
% 

 FX Impact (a)

  

 

 
 
1.7
% 
 

 

 
 
2.9
% 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Total Bookings (b)

  
$
938
 
 
$
724
 
 
 
29.6
% 
 
$
1,711
 
 
$
1,576
 
 
 
8.6
% 

 Organic Sales

  

 

 
 
(3.2
%) 
 

 

 
 
(6.3
%) 

 Acquisition / Divestiture Impact

  

 

 
 
1.4
% 
 

 

 
 
0.9
% 

 FX Impact (a)

  

 

 
 
1.2
% 
 

 

 
 
2.7
% 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Reported Sales (b)

  
$
814
 
 
$
819
 
 
 
(0.6
%) 
 
$
1,559
 
 
$
1,602
 
 
 
(2.7
%) 

 Gross Margin

  
 
36.4
% 
 
 
36.5
% 
 
 
(10 bps
) 
 
 
36.3
% 
 
 
35.4
% 
 
 
90 bps
 

 Adjusted Gross Margin (c)

  
 
37.8
% 
 
 
36.8
% 
 
 
100 bps
 
 
 
37.8
% 
 
 
35.7
% 
 
 
210 bps
 

 Operating Margin

  
 
22.3
% 
 
 
19.9
% 
 
 
240 bps
 
 
 
19.7
% 
 
 
18.7
% 
 
 
100 bps
 

 Adjusted Operating Margin (d)

  
 
21.3
% 
 
 
20.3
% 
 
 
100 bps
 
 
 
20.2
% 
 
 
19.0
% 
 
 
120 bps
 

 Backlog (b)

  
$
2,204
 
 
$
1,981
 
 
 
11.3
% 
 
$
2,204
 
 
$
1,981
 
 
 
11.3
% 

Flowserve Control Division
  

 

 

 

 

 

 (dollars in millions)

  
Q2 2026
 
 
Q2 2025
 
 
Change
 
 
YTD 2026
 
 
YTD 2025
 
 
Change
 

 Organic Bookings

  

 

 
 
17.3
% 
 

 

 
 
6.9
% 

 Acquisition / Divestiture Impact

  

 

 
 
0.0
% 
 

 

 
 
0.0
% 

 FX Impact (a)

  

 

 
 
0.3
% 
 

 

 
 
1.4
% 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Total Bookings (b)

  
$
417
 
 
$
355
 
 
 
17.6
% 
 
$
791
 
 
$
730
 
 
 
8.3
% 

 Organic Sales

  

 

 
 
(3.8
%) 
 

 

 
 
(7.9
%) 

 Acquisition / Divestiture Impact

  

 

 
 
0.0
% 
 

 

 
 
0.0
% 

 FX Impact (a)

  

 

 
 
0.0
% 
 

 

 
 
1.0
% 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

 Reported Sales (b)

  
$
357
 
 
$
371
 
 
 
(3.8
%) 
 
$
685
 
 
$
736
 
 
 
(6.9
%) 

 Gross Margin

  
 
24.8
% 
 
 
29.0
% 
 
 
(420 bps
) 
 
 
28.8
% 
 
 
28.3
% 
 
 
50 bps
 

 Adjusted Gross Margin (c)

  
 
31.1
% 
 
 
30.8
% 
 
 
30 bps
 
 
 
33.1
% 
 
 
30.6
% 
 
 
250 bps
 

 Operating Margin

  
 
3.1
% 
 
 
10.2
% 
 
 
(710 bps
) 
 
 
7.7
% 
 
 
9.4
% 
 
 
(170 bps
) 

 Adjusted Operating Margin (d)

  
 
12.6
% 
 
 
12.2
% 
 
 
40 bps
 
 
 
14.2
% 
 
 
12.2
% 
 
 
200 bps
 

 Backlog (b)

  
$
1,154
 
 
$
881
 
 
 
30.9
% 
 
$
1,154
 
 
$
881
 
 
 
30.9
% 

  

(a)
 Constant foreign exchange (FX) represents the year-over-year variance assuming 2026 results at 2025 FX rates

(b)
 Bookings, sales, and backlog do not include interdivision eliminations 

(c)
 Adjusted gross margin is a non-GAAP financial measure. Adjusted gross
margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding realignment charges and other specific discrete items. See the Segment Reconciliation of Non-GAAP
Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) 

(d)
 Adjusted operating margin excludes realignment charges and other specific discrete items 

  
 11 

 

 CONDENSED CONSOLIDATED BALANCE SHEETS 

(Unaudited) 
  

(Amounts in thousands, except par value)
  
June 30,2026
 
 
December 31,2025
 

 ASSETS

  

 

 Current assets:

  

 

 Cash and cash equivalents

  
$
 731,007
 
 
$
 760,183
 

 Accounts receivable, net of allowance for expected credit losses of $89,364 and $83,094,
respectively

  
 
1,056,706
 
 
 
1,029,095
 

 Contract assets, net of allowance for expected credit losses of $5,871 and $6,028,
respectively

  
 
340,234
 
 
 
322,472
 

 Inventories

  
 
832,537
 
 
 
789,898
 

 Prepaid expenses and other

  
 
158,642
 
 
 
141,237
 

  
  

  

 
 
  

  

 

 Total current assets

  
 
3,119,126
 
 
 
3,042,885
 

 Property, plant, and equipment, net of accumulated depreciation of $1,233,503 and $1,224,912,
respectively

  
 
595,446
 
 
 
566,751
 

 Operating lease
right-of-use asset, net

  
 
170,716
 
 
 
166,031
 

 Goodwill

  
 
1,744,877
 
 
 
1,391,988
 

 Deferred taxes

  
 
160,395
 
 
 
156,250
 

 Other intangible assets, net

  
 
345,231
 
 
 
198,475
 

 Other assets, net of allowance for expected credit losses of $66,209 and $66,047,
respectively

  
 
184,497
 
 
 
185,820
 

  
  

  

 
 
  

  

 

 Total assets

  
$
6,320,288
 
 
$
 5,708,200
 

  
  

  

 
 
  

  

 

 LIABILITIES AND EQUITY

  

 Current liabilities:

  

 

 Accounts payable

  
$
 543,323
 
 
$
 554,243
 

 Accrued liabilities

  
 
561,747
 
 
 
587,475
 

 Contract liabilities

  
 
293,864
 
 
 
274,669
 

 Debt due within one year

  
 
12,741
 
 
 
49,868
 

 Operating lease liabilities

  
 
37,330
 
 
 
35,630
 

  
  

  

 
 
  

  

 

 Total current liabilities

  
 
1,449,005
 
 
 
1,501,885
 

 Long-term debt due after one year

  
 
2,122,423
 
 
 
1,525,210
 

 Operating lease liabilities

  
 
145,851
 
 
 
149,565
 

 Retirement obligations and other liabilities Contingencies (See Note 12)

  
 
275,552
 
 
 
277,216
 

 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

  
 
494,925
 
 
 
508,890
 

 Retained earnings

  
 
4,385,914
 
 
 
4,261,977
 

 Treasury shares, at cost — 49,532 and 49,763 shares, respectively

  
 
(2,241,970
) 
 
 
(2,231,685
) 

 Deferred compensation obligation

  
 
7,015
 
 
 
6,629
 

 Accumulated other comprehensive loss

  
 
(607,263
) 
 
 
(575,405
) 

  
  

  

 
 
  

  

 

 Total Flowserve Corporation shareholders’ equity

  
 
2,259,612
 
 
 
2,191,397
 

 Noncontrolling interests

  
 
67,845
 
 
 
62,927
 

  
  

  

 
 
  

  

 

 Total equity

  
 
2,327,457
 
 
 
2,254,324
 

  
  

  

 
 
  

  

 

 Total liabilities and equity

  
$
6,320,288
 
 
$
 5,708,200
 

  
  

  

 
 
  

  

 

  
 12 

 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

(Unaudited) 
  

 
  
Six Months EndedJune 30,
 

(Amounts in thousands)
  
2026
 
 
2025
 

 Cash flows — Operating activities:

  

 

 Net earnings, including noncontrolling interests

  
$
 187,954
 
 
$
 167,681
 

 Adjustments to reconcile net earnings to net cash provided by operating activities

  

 

 Depreciation

  
 
40,414
 
 
 
38,695
 

 Amortization of intangible and other assets

  
 
7,903
 
 
 
9,589
 

 (Gain) on remeasurement of previously held equity interest

  
 
(27,700
) 
 
 
— 
 

 Stock-based compensation

  
 
20,595
 
 
 
18,822
 

 Foreign currency, asset write downs and other non-cash
adjustments

  
 
(17,314
) 
 
 
(6,211
) 

 Change in assets and liabilities:

  

 

 Accounts receivable, net

  
 
6,859
 
 
 
(22,631
) 

 Inventories

  
 
(4,294
) 
 
 
14,208
 

 Contract assets, net

  
 
(11,161
) 
 
 
(28,930
) 

 Prepaid expenses and other assets, net

  
 
17,984
 
 
 
13,589
 

 Accounts payable

  
 
(52,347
) 
 
 
(10,414
) 

 Contract liabilities

  
 
(10,439
) 
 
 
(15,254
) 

 Accrued liabilities

  
 
(80,798
) 
 
 
(84,466
) 

 Retirement obligations and other liabilities

  
 
9,801
 
 
 
2,196
 

 Net deferred taxes

  
 
(1,291
) 
 
 
7,338
 

  
  

  

 
 
  

  

 

 Net cash flows provided by operating activities

  
 
86,166
 
 
 
104,212
 

  
  

  

 
 
  

  

 

 Cash flows — Investing activities:

  

 

 Capital expenditures

  
 
(33,807
) 
 
 
(28,340
) 

 Payments for acquisitions, net of cash acquired

  
 
(517,735
) 
 
 
— 
 

 Proceeds from disposal of assets

  
 
9,865
 
 
 
867
 

 Affiliate investment activity

  
 
(2,000
) 
 
 
— 
 

  
  

  

 
 
  

  

 

 Net cash flows (used) by investing activities

  
 
(543,677
) 
 
 
(27,473
) 

  
  

  

 
 
  

  

 

 Cash flows — Financing activities:

  

 

 Proceeds from issuance of senior notes

  
 
499,320
 
 
 
—
 

 Payments on term loan

  
 
(77,875
) 
 
 
(18,750
) 

 Proceeds from long-term debt

  
 
74,750
 
 
 
— 
 

 Payment of deferred loan costs

  
 
(4,893
) 
 
 
— 
 

 Proceeds under revolving credit facility

  
 
150,000
 
 
 
50,000
 

 Payments under revolving credit facility

  
 
(100,000
) 
 
 
(50,000
) 

 Proceeds under other financing arrangements

  
 
998
 
 
 
3,072
 

 Payments under other financing arrangements

  
 
(5,266
) 
 
 
(1,231
) 

 Repurchases of common shares

  
 
(25,000
) 
 
 
(52,797
) 

 Payments related to tax withholding for stock-based compensation

  
 
(23,011
) 
 
 
(11,337
) 

 Payments of dividends

  
 
(54,838
) 
 
 
(55,209
) 

 Contingent consideration payment related to acquired business

  
 
— 
 
 
 
(15,000
) 

 Other

  
 
529
 
 
 
(3,192
) 

  
  

  

 
 
  

  

 

 Net cash flows (used) provided by financing activities

  
 
434,714
 
 
 
(154,444
) 

  
  

  

 
 
  

  

 

 Effect of exchange rate changes on cash and cash equivalents

  
 
(6,379
) 
 
 
31,467
 

  
  

  

 
 
  

  

 

 Net change in cash and cash equivalents

  
 
(29,176
) 
 
 
(46,238
) 

 Cash and cash equivalents at beginning of period

  
 
760,183
 
 
 
675,441
 

  
  

  

 
 
  

  

 

 Cash and cash equivalents at end of period

  
$
 731,007
 
 
$
 629,203
 

  
  

  

 
 
  

  

 

  
 13 

 

 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. 

Flowserve Contacts 
 Investor Contacts:
[email protected] 
 Brian Ezzell, Vice President, Investor Relations, Treasurer & Corporate Finance 

Olivia Webb, Director, Investor Relations   

Media Contact: [email protected] 
 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: economic, political and other risks associated with our international operations, including military actions, trade embargoes, blockades or other closures of major
trade lanes, 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; global supply chain disruptions and the
current inflationary environment 

  
 14 

 

 
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; 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; 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. 
 ###

  
 15