EarningsQ2 2026 Earnings Report
MX:FLS Q2 2026 EPS Results
Actual EPS$16.85
Consensus EPS$15.25
Beat/MissBeat by +$1.60
One Year Ago EPS$16.14
MX:FLS Q2 2026 Revenue Results
Actual Revenue$20.73B
Expected Revenue$20.55B
Beat/MissBeat by +$186.18M
YoY Revenue Growth-1.59%
Earnings Announcement Details
QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:FLS Upcoming Earnings
Flowserve's next earnings date is estimated for November 2, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:FLS Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
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.Company Guidance
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.
Margin Expansion and Profitability
Adjusted operating margin expanded 70 basis points to 15.3% in Q2. Adjusted gross margin expanded 100 basis points to 35.9% (14th consecutive quarter of YoY adjusted gross margin expansion). Adjusted EPS of $0.95, up 4% YoY and above expectations.
Segment Execution — FPD
FPD bookings $938 million (up 30% YoY). FPD sales $814 million (down 1% YoY) with adjusted gross margin of 37.8% (+100 bps YoY) and adjusted operating margin of 21.3% (+100 bps YoY). Adjusted operating income grew 4% to $173 million.
Segment Execution — FCD
FCD bookings $417 million (up 18% YoY). FCD sales $357 million (down 4% YoY) with adjusted gross margin of 31.1% (+30 bps YoY) and adjusted operating margin of 12.6% (+40 bps YoY), showing sequential progress despite regional headwinds.
Backlog, Pipeline and End‑market Breadth
Backlog grew 6% sequentially and 9% YoY (excluding Trillium). Management reported a robust 12‑month project funnel and broad‑based bookings growth across energy (bookings +48% in quarter), power (+39%), chemical (+7%), and general industries (+11%). Nuclear bookings exceeded $110 million in the quarter.
Cash Generation, Capital Allocation and Balance Sheet
Generated $129 million of cash from operations in Q2; free cash flow was ~92% of adjusted net earnings with expected full‑year conversion of ~90%. Returned $80 million to shareholders YTD (dividends $55M, repurchases $25M in quarter + additional $25M repurchased in July). Net leverage ~1.8x after issuing $500M of 5.7% senior notes to fund the Trillium acquisition.
Strategic M&A — Trillium Acquisition
Closed Trillium Valves Division on June 30. Management expects meaningful margin enhancement from 80/20 analysis, incremental adjusted operating profit dollars in 2026, and roughly neutral adjusted EPS impact in 2026 after financing costs; ~85% of Trillium sales will reside in FCD, remainder in FPD aftermarket.
Updated Guidance and Confidence in 2026 Targets
Company modestly lowered sales outlook (driven by Middle East impact) but raised the low end of adjusted EPS guidance to $4.05–$4.20 and reiterated expectation of ~100 bps full‑year adjusted operating margin expansion. Management expects organic sales down ~1% for the year but total sales growth of approx. 3% (including ~300 bps benefit from acquisitions/divestitures and ~100 bps FX).
MX:FLS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed