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Flowserve
(NYSE:FLS)
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Rating:72Outperform
Price Target:
$77.00
â–¼(-4.42% Downside)
Action:Reiterated
Date:08/18/26
The score is driven mainly by solid profitability and improving margins (financial performance) plus a constructive earnings outlook with strong bookings and raised EPS guidance. Offsetting these positives are top-line volatility (notably the sharp TTM revenue decline) and uneven cash-flow consistency, while valuation is on the expensive side for the current growth profile.
Positive Factors
Bookings and aftermarket strength
Strong bookings and record aftermarket demand support revenue visibility beyond individual project cycles. The combination of a 1.15x book-to-bill and recurring service activity indicates healthy customer engagement and strengthens Flowserve’s installed-base-driven business model.
Negative Factors
Revenue and OE conversion weakness
The sharp revenue decline and weaker original-equipment conversion show that strong orders are not yet translating consistently into sales. Project timing, lower convertible backlog, and softer organic growth can create earnings volatility until backlog converts more reliably over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Bookings and aftermarket strength
Strong bookings and record aftermarket demand support revenue visibility beyond individual project cycles. The combination of a 1.15x book-to-bill and recurring service activity indicates healthy customer engagement and strengthens Flowserve’s installed-base-driven business model.
Read all positive factors
Flowserve Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much sales come from different regions, revealing where the company is strongest and where it is exposed to local economic cycles, commodity demand, or currency swings. For investors, geographic splits highlight diversification, growth markets, and regions that could amplify or dampen overall results.
Shows how much sales come from different regions, revealing where the company is strongest and where it is exposed to local economic cycles, commodity demand, or currency swings. For investors, geographic splits highlight diversification, growth markets, and regions that could amplify or dampen overall results.
Data provided by:
The Fly
The FlyFlowserve (FLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.19B
Dividend Yield1.2%
Average Volume (3M)1.59M
Price to Earnings (P/E)25.1
Beta (1Y)1.66
Revenue Growth-0.26%
EPS Growth29.38%
CountryUS
Employees16,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.88
Shares Outstanding127,112,780
10 Day Avg. Volume1,623,380
30 Day Avg. Volume1,590,388
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)4.12
Price to Sales (P/S)1.91
P/FCF Ratio20.74
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue2.41
Enterprise Value/Gross Profit6.87
Enterprise Value/Ebitda15.30
Forecast
1Y Price Target
$87.50Price Target Upside8.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.11
Revenue Forecast (FY)$4.87B
Flowserve Business Overview & Revenue Model
Company Description
Flowserve Corporation is a global enterprise that specializes in the conception, creation, distribution, and upkeep of industrial equipment crucial for managing fluid movement. The company extends its reach across the United States, Europe, the Mi...
How the Company Makes Money
Flowserve primarily makes money by selling engineered flow control equipment and by providing aftermarket services and replacement parts over the life of installed equipment. A major revenue stream comes from original equipment (OE) sales—customer...
Flowserve Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call was fundamentally constructive: Flowserve reported strong bookings (notably record aftermarket and outsized OE bookings), continued margin expansion (adjusted gross margin +100 bps, operating margin +70 bps), solid cash generation and disciplined capital allocation including the strategic Trillium acquisition. Key challenges are near‑term and largely external or structural — the Middle East conflict (≈$60M YTD sales impact), headwinds from 80/20 portfolio actions that temporarily depress sales, and lower OE sales conversion timing. Management reiterated confidence in back‑half acceleration, mid‑single‑digit bookings growth for the year, and raised the low end of EPS guidance, indicating that positives outweigh current headwinds.Positive Updates
Record and Strong Bookings
Total bookings of $1.35 billion in Q2, up 26% year‑over‑year, with a book‑to‑bill of 1.15x. Record aftermarket bookings of nearly $700 million (up 12% YoY) and original equipment bookings of roughly $650 million (up 44% YoY). Management expects mid‑single‑digit organic bookings growth for the full year.
Negative Updates
Sales Decline and Organic Growth Headwind
Reported Q2 sales $1.2 billion, down 2% YoY; organic sales down ~3% YoY in Q2. For the full year management now expects organic sales down approximately 1%, reflecting 80/20 actions and the Middle East disruption.
Read all updates
Q2-2026 Updates
Positive
Negative
Record and Strong Bookings
Total bookings of $1.35 billion in Q2, up 26% year‑over‑year, with a book‑to‑bill of 1.15x. Record aftermarket bookings of nearly $700 million (up 12% YoY) and original equipment bookings of roughly $650 million (up 44% YoY). Management expects mid‑single‑digit organic bookings growth for the full year.
Read all positive updates
Company Guidance
Flowserve updated 2026 guidance calling for organic sales of about -1% (with ~300 bps net benefit from acquisitions/divestitures and ~100 bps FX tailwind for roughly +3% reported sales), raised the low end of adjusted EPS guidance to $4.05–$4.20 (still targeting double‑digit adjusted EPS growth) and reiterated ~100 bps of full‑year adjusted operating margin expansion; management expects mid‑single‑digit organic bookings for the year, back‑half organic sales of ~5% (Q3 roughly flat organic and mid‑single‑digit total sales growth) with Q3 margins modestly above Q2, and full‑year free cash flow conversion of ~90% of adjusted net earnings. For context, Q2 bookings were $1.35 billion (up 26% YoY) with a 1.15x book‑to‑bill and record aftermarket bookings nearly $700 million (up 12%), OE bookings ~ $650 million (up 44%), backlog +6% sequential / +9% YoY excluding Trillium; Q2 adjusted operating margin was 15.3% (up 70 bps), adjusted gross margin 35.9% (up 100 bps), adjusted EPS $0.95, cash from operations $129 million, Q2 free cash flow conversion 92% of adjusted net earnings, net leverage ~1.8x, and the Trillium acquisition (closed June 30) is expected to expand adjusted operating profit dollars in 2026 while being roughly EPS neutral after financing.Flowserve Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
68
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.63B | 4.73B | 4.56B | 4.32B | 3.62B | 3.54B |
| Gross Profit | 1.63B | 1.64B | 1.47B | 1.30B | 994.65M | 1.07B |
| EBITDA | 730.36M | 698.50M | 541.05M | 374.42M | 291.58M | 291.03M |
| Net Income | 371.27M | 346.25M | 282.76M | 186.74M | 188.69M | 125.95M |
Balance Sheet | ||||||
| Total Assets | 6.32B | 5.71B | 5.50B | 5.11B | 4.79B | 4.75B |
| Cash, Cash Equivalents and Short-Term Investments | 731.01M | 760.18M | 675.44M | 545.68M | 434.97M | 658.45M |
| Total Debt | 2.32B | 1.76B | 1.69B | 1.40B | 1.46B | 1.50B |
| Total Liabilities | 3.99B | 3.45B | 3.45B | 3.13B | 2.93B | 2.91B |
| Stockholders Equity | 2.26B | 2.19B | 2.01B | 1.94B | 1.82B | 1.80B |
Cash Flow | ||||||
| Free Cash Flow | 411.44M | 434.96M | 344.29M | 258.41M | -116.30M | 195.18M |
| Operating Cash Flow | 487.84M | 505.88M | 425.31M | 325.77M | -40.01M | 250.12M |
| Investing Cash Flow | -641.37M | -125.16M | -387.21M | -68.58M | -6.09M | -59.48M |
| Financing Cash Flow | 262.23M | -326.93M | 117.50M | -153.01M | -150.01M | -599.71M |
Flowserve Technical Analysis
Negative
80.56
Price Trends
76.41
Negative
74.61
Negative
75.97
Negative
Market Momentum
-1.11
Positive
44.47
Neutral
26.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLS, the sentiment is Negative. The current price of 80.56 is above the 20-day moving average (MA) of 73.33, above the 50-day MA of 76.41, and above the 200-day MA of 75.97, indicating a bearish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 26.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLS.
Flowserve Risk Analysis
Flowserve disclosed 28 risk factors in its most recent earnings report. Flowserve reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flowserve Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $18.00B | 39.33 | 10.35% | 0.75% | 28.07% | -19.95% | |
72 Outperform | $9.19B | 25.10 | 16.63% | 1.20% | -0.26% | 29.38% | |
70 Outperform | $17.27B | 33.61 | 12.91% | 1.24% | 7.32% | 12.36% | |
68 Neutral | $1.95B | 31.35 | 14.79% | 1.03% | 4.18% | 19.92% | |
67 Neutral | $25.43B | 22.61 | 15.00% | 1.10% | 7.56% | -49.98% | |
65 Neutral | $11.83B | 35.36 | 16.19% | 0.49% | 13.85% | 8.45% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
FLS
Flowserve
72.28
22.67
45.70%
DOV
Dover
188.83
29.30
18.37%
GRC
Gorman-Rupp Company
73.99
29.54
66.46%
IEX
IDEX
234.29
75.63
47.67%
ITT
ITT
201.37
31.21
18.34%
CR
Crane Company
204.75
26.91
15.13%
Flowserve Corporate Events
Business Operations and StrategyExecutive/Board Changes
Flowserve Announces CFO Transition and Leadership Continuity Plan
Neutral
Sep 14, 2026
On September 14, 2026, Flowserve announced that Senior Vice President and Chief Financial Officer Amy B. Schwetz has resigned to take a role at another public company and will remain through September 30, 2026 to support the transition. The compan...
Business Operations and StrategyExecutive/Board Changes
Flowserve adds Ajay Agrawal to expanded board
Positive
Aug 5, 2026
On August 4, 2026, Flowserve’s board approved an amendment to its by-laws to increase the number of directors from nine to ten, effective August 5, 2026. The move expands governance capacity as the company pursues its growth strategy across ...
Business Operations and StrategyFinancial Disclosures
Flowserve Raises EPS Outlook Despite Softer Sales
Positive
Jul 29, 2026
On July 29, 2026, Flowserve reported strong second-quarter 2026 results, highlighted by total bookings of $1.35 billion, up 26% year on year, and record aftermarket bookings of $696 million. Operating margin rose to 13.0%, adjusted operating margi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.