Financial Data and Key Metrics - Revenue for Q2 2024 was $1.15 billion, a 7% increase year-over-year [5][10] - Adjusted gross margin increased by 200 basis points to 32.3%, and adjusted operating margin increased by 210 basis points to 12.5% [5][10] - Adjusted earnings per share (EPS) increased by over 40% to $0.73 [10] - Bookings reached $1.25 billion, a 12% increase year-over-year and 20% sequential growth, with a book-to-bill ratio of 1.08x [10] - Backlog grew by $70 million sequentially to $2.7 billion [10] Business Line Performance - The aftermarket business achieved record bookings of $614 million, marking the seventh consecutive quarter above $550 million [17][78] - The chemicals market saw $272 million in bookings, a 14% year-over-year increase, driven by a major petrochemical project in Saudi Arabia [46] - Power generation bookings were $153 million, a 34% increase year-over-year, with nuclear activity contributing over $70 million [27] - The mining sector is expected to grow, with current efforts contributing roughly $100 million annually, and plans to expand through organic and inorganic strategies [28] Market Performance - Oil and gas generated the highest dollar growth, with a 22% year-over-year increase, driven by large projects in the Middle East [23] - Middle East bookings grew significantly due to three large projects, while Europe and Asia-Pacific saw slight declines [24] - The project funnel increased by 8% year-over-year, with strong visibility into opportunities in the Middle East and other regions [24] Strategic Direction and Industry Competition - The company is focused on operational and product excellence, aiming for 100-200 basis points of margin improvement by 2027 [12][65] - The 3D strategy (Decarbonization, Diversification, Digitization) represents over 25% of total bookings, with a focus on energy transition and digital solutions [45][48] - The acquisition of in-process R&D for submerged cryogenic pumps in LNG aims to strengthen the company's position in the energy transition market [18][96] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, with a focus on margin expansion and operational improvements [21][60] - The company expects a stronger second half of 2024, with adjusted EPS guidance raised to $2.60-$2.75, representing a 27% increase year-over-year [29][31] - The macro environment remains favorable, driven by global megatrends such as energy transition, decarbonization, and digitization [48] Other Important Information - The company launched a product excellence program, with early progress expected to show results in late 2024 and 2025 [12][65] - Red Raven, the company's IoT offering, is gaining traction, with 2,250 assets instrumented and positive customer feedback [110][130] - The company is actively managing pricing, with a 4-5% price increase announced at the beginning of the year, and improved project pricing environments [126][127] Q&A Session Summary Question: Gross margin trends and FCD performance [131][143] - The company is focused on operational and product excellence to expand margins, with a target of 150 basis points or more in 2024 [143] - FCD's gross margins are impacted by product mix, but improvements are expected in the second half of the year [162] Question: Aftermarket business sustainability [17][78] - The aftermarket business is expected to remain strong, driven by high utilization rates and pent-up demand, with a focus on improving capture rates [78][118] Question: LNG and cryogenic pump acquisition [96][158] - The acquisition of cryogenic pump technology is expected to generate $50 million in annual revenue by 2026-2027, with potential for additional market share in LNG [96][158] Question: Nuclear and power generation outlook [102][120] - Nuclear power generation is expected to grow, with strong visibility into life extensions and new projects in Europe and North America [102][120] - Power demand is increasing, driven by electrification and data center growth, with a 20% increase in power bookings year-over-year [120][124] Question: Pricing environment [126][127] - The company has improved pricing discipline, with a 4-5% price increase and better project pricing environments [126][127] Question: Red Raven adoption and digital capabilities [110][130] - Red Raven adoption is progressing, with 2,250 assets instrumented and positive customer feedback, leading to repeat orders and increased aftermarket opportunities [110][130]

Hans-Peter Merten Author - SEC EDGAR Data Author - SEC EDGAR Data REVISED 2024 ADJUSTED EPS' GUIDANCE 2023 2024 2027 · Updated quidance 27% above 2023 adjusted EP $4.3B $4.5B $5.0B Revenue Substantial progress towards 2027 targets Adiusted 9.5% Opportunities for margin Operating >11.5% 14 - 16% expansion include Margin" operational and product excellence Adjusted $2.10 $2.67 >$4.00 EPS An interesting quarter $1,156.9 $1,080. $154.9 5570.0 $142.5 $130.3 $115.6 $580.0 $72.6 $51.2 $290.0 $2.244.4 $2,500.0 $2,0 ...

For the quarter ended June 2024, Flowserve (FLS) reported revenue of $1.16 billion, up 7.1% over the same period last year. EPS came in at $0.73, compared to $0.52 in the year-ago quarter. Here is how Flowserve performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Sales- FPD: $810.61 million compared to the $797.94 million average estimate based on four analysts. The reported number represents a change of +5.9% year over year. Sales- FCD: ...

This quarterly report represents an earnings surprise of 15.87%. A quarter ago, it was expected that this company that makes pumps, valves and other parts for the oil and gas industries would post earnings of $0.47 per share when it actually produced earnings of $0.58, delivering a surprise of 23.40%. Flowserve, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $1.16 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.09%. This compa ...

Exhibit 99.1 DALLAS, July 29, 2024 – Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced its financial results for the second quarter ended June 30, 2024. • Second quarter 2024 Reported EPS includes after-tax adjusted expenses of $23.7 million, comprised of realignment charges and write-down of investment among other items • Total bookings were $1.25 billion, up $135.1 million or 12.2%. On a constant currency basi ...

FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to FLOWSERVE CORPORATION (Exact name of registrant as specified in its charter) | --- | --- | --- | |----------------------------------------------------------------|----------------|-------------------------------------------| | | | | | Secu ...

Wall Street analysts expect Flowserve (FLS) to post quarterly earnings of $0.63 per share in its upcoming report, which indicates a year-over-year increase of 21.2%. Revenues are expected to be $1.12 billion, up 3.9% from the year-ago quarter. Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong corr ...

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2024, Flowserve reported EPS of $0.58 versus consensus estimate of $0.47 while it beat the consensus revenue estimate by 4.81%. Flowserve may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the c ...

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. As such, the Zacks rating upgrade for Flowserve is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Flowserve imply an imp ...

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price level ...