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Flowserve
(NYSE:FLS)
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Rating:71Outperform
Price Target:
$88.00
â–²(21.55% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by improving profitability/returns but tempered by material top-line volatility and inconsistent cash conversion. Technicals are favorable with a clear uptrend and positive momentum, while valuation is less compelling at a ~26x P/E with a modest dividend. Recent guidance and execution commentary are constructive, but geopolitical and near-term demand/cash headwinds keep the overall score in the low 70s.
Positive Factors
Aftermarket Recurring Revenue
A robust, steady aftermarket stream reduces top-line cyclicality by providing recurring demand from maintenance, spare parts and service. Consistently high aftermarket bookings support predictable revenue, higher lifetime customer value, cross-sell opportunities and durable margin support versus lumpy OEM project sales.
Negative Factors
Material Revenue Volatility
A large trailing revenue drop highlights sensitivity to project timing, OEM cycles and backlog conversion. Persistent top-line volatility can strain fixed-cost absorption, make margin targets harder to sustain, and increase the risk that operating improvements may be offset by weaker demand in industrial end markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftermarket Recurring Revenue
A robust, steady aftermarket stream reduces top-line cyclicality by providing recurring demand from maintenance, spare parts and service. Consistently high aftermarket bookings support predictable revenue, higher lifetime customer value, cross-sell opportunities and durable margin support versus lumpy OEM project sales.
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
$10.28B
Dividend Yield1.06%
Average Volume (3M)1.87M
Price to Earnings (P/E)28.1
Beta (1Y)1.64
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. Volume1,817,134
30 Day Avg. Volume1,871,447
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$88.50Price Target Upside22.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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 for its installed base. (1) Original equipment sales: The company generates revenue from manufacturing and sel...
Flowserve Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call presents a constructive view: strong operational execution drove significant margin expansion, EPS growth and aftermarket momentum while management maintained full-year guidance and highlighted a robust project funnel (including nuclear awards) and a healthy balance sheet. However, meaningful near-term headwinds remain—principally the Middle East conflict, an early-year softness in run-rate OEM bookings and temporary cash/working capital draw—creating short-term uncertainty. Management emphasized mitigation actions (supply-chain repositioning, Flowserve Business System and 80/20) and expects the second half to improve, signaling confidence in delivering the full-year targets despite quarter-to-date disruptions.Positive Updates
Adjusted Margin Expansion and EPS Growth
Adjusted operating margin expanded by 230 basis points to 15.1% and adjusted gross margin increased 370 basis points to 37.2% (13th consecutive quarter of YoY adjusted gross margin expansion). Adjusted EPS was $0.85, an 18% increase versus Q1 2025.
Negative Updates
Quarterly Revenue and Bookings Declines
Q1 revenue was $1.1 billion, down 7% year-over-year; total bookings were $1.15 billion, down 6% versus prior year. Original equipment revenue declined 18% year-over-year, and FCD revenue declined 10% while FPD revenue declined 5%.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted Margin Expansion and EPS Growth
Adjusted operating margin expanded by 230 basis points to 15.1% and adjusted gross margin increased 370 basis points to 37.2% (13th consecutive quarter of YoY adjusted gross margin expansion). Adjusted EPS was $0.85, an 18% increase versus Q1 2025.
Read all positive updates
Company Guidance
Flowserve reaffirmed 2026 guidance with adjusted EPS of $4.00–$4.20 (midpoint ≈13% growth vs. 2025) and about 100 bps of adjusted operating margin expansion, targeting total sales growth of 3%–6% (organic sales −1% to +2%, including ~300 bps benefit from acquisitions such as the expected midyear Trillium close) and calling for mid‑single‑digit bookings growth; the outlook assumes roughly $0.07 of ongoing Middle East impact and that disruptions don’t materially escalate. Management noted Q1 results that underpin the guide — adjusted EPS $0.85 (Q1 net +$0.07 from unanticipated items: $0.19 tariff benefit, −$0.06 Latin America tax, −$0.06 Middle East), adjusted operating margin 15.1% (+230 bps), adjusted gross margin 37.2% (+370 bps), bookings $1.15B (−6%) with book‑to‑bill 1.07x and aftermarket bookings $680M — and said Q2 sales are expected down low‑ to mid‑single digits with Q2 earnings similar to Q1, full‑year free‑cash‑flow conversion ≥90% of adjusted net earnings, and net leverage about 1.2x (credit facility extended and revolver increased).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
Positive
72.40
Price Trends
74.42
Positive
74.77
Positive
74.53
Positive
Market Momentum
2.26
Negative
65.67
Neutral
81.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLS, the sentiment is Positive. The current price of 72.4 is below the 20-day moving average (MA) of 74.34, below the 50-day MA of 74.42, and below the 200-day MA of 74.53, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 81.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLS.
Flowserve Risk Analysis
Flowserve disclosed 56 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 | $19.39B | 42.29 | 10.35% | 0.75% | 28.07% | -19.95% | |
71 Outperform | $10.28B | 28.11 | 16.63% | 1.19% | -0.26% | 29.38% | |
69 Neutral | $10.86B | 38.75 | 12.37% | ― | 20.63% | 27.00% | |
67 Neutral | $28.07B | 24.92 | 15.00% | 1.03% | 7.56% | -49.98% | |
64 Neutral | $10.73B | 16.40 | 17.13% | 1.69% | -2.15% | 8.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $11.49B | 35.43 | 4.74% | 0.66% | 3.50% | 29.04% |
* Industrials Sector Average
FLS
Flowserve
80.95
27.67
51.93%
DOV
Dover
208.07
27.13
15.00%
ITT
ITT
216.53
47.11
27.81%
PNR
Pentair
65.77
-41.92
-38.93%
RRX
Regal Rexnord
172.90
19.63
12.81%
SPXC
SPX
218.18
26.30
13.71%
Flowserve Corporate Events
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...
Business Operations and StrategyM&A Transactions
Flowserve Completes Acquisition of Trillium Valves Division
Positive
Jun 30, 2026
On June 30, 2026, Flowserve completed its $490 million all-cash acquisition of Trillium Flow Technologies’ Valves Division, excluding the French operations. The deal brings a nearly 200-year legacy valve and actuation portfolio used in nucle...
Business Operations and StrategyFinancial Disclosures
Flowserve Reaffirms 2026 Outlook Amid Activist Pressure
Positive
May 28, 2026
On May 28, 2026, Flowserve Corporation reaffirmed its full-year 2026 guidance and underscored the strength of its portfolio and operations in response to public statements from activist investor Starboard Value. The company highlighted 860 basis p...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Flowserve Streamlines Board and Confirms Governance Decisions
Positive
May 15, 2026
Flowserve Corporation’s board of directors amended the company’s by-laws, effective May 14, 2026, to reduce the size of the board from eleven to nine directors, signaling a streamlined governance structure that could affect board dynam...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Flowserve Issues Notes to Fund Trillium Valves Acquisition
Positive
May 12, 2026
On May 12, 2026, Flowserve Corporation issued $500 million of 5.700% senior notes due May 15, 2036, under its existing senior indenture framework with U.S. Bank Trust Company as trustee. The notes, which carry semi-annual interest payments startin...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Flowserve Issues Senior Notes to Finance Trillium Acquisition
Positive
May 6, 2026
On May 5, 2026, Flowserve Corporation entered into an underwriting agreement with a syndicate led by BofA Securities, J.P. Morgan Securities and Mizuho Securities for the offering of $500 million of 5.700% senior notes due 2036, with closing expec...
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.