Flowserve Corp
NYSE:FLS
Flowserve Corp
Flowserve Corporation, with its historical roots dating back to the early 20th century, has emerged as a formidable player in the industrial equipment sector. The company has carved out its niche by specializing in the design, manufacture, and service of flow control systems. Primarily, Flowserve is known for its extensive range of pumps, valves, and seals, crucial components that keep industries such as oil and gas, chemical processing, power generation, and water management running smoothly. Positioned as a solutions provider, Flowserve leverages its technical expertise to offer customized services that address complex challenges faced by its global clients. This focus on cutting-edge technology and industry-specific solutions enables the company to not only sell products but to embed itself as an indispensable component of long-term projects, ensuring ongoing demand and partnerships.
At the heart of Flowserve's business model is its robust aftermarket services, which constitute a substantial portion of its revenue stream. Aftermarket services involve maintenance, repair, and operational optimization of existing flow management equipment. This aspect of the business caters to clients’ needs to minimize downtime and extend the lifecycle of their investments. By offering these services, Flowserve maintains a steady flow of revenue that is less susceptible to the cyclical nature of capital equipment sales. Additionally, the company’s global supply chain and distribution network allow it to serve customers in various markets efficiently, bolstering its competitive edge. The company’s agile response to market dynamics and its relentless pursuit of operational excellence underline Flowserve’s strategic approach to sustainability and growth in an ever-evolving industrial landscape.
Flowserve Corporation, with its historical roots dating back to the early 20th century, has emerged as a formidable player in the industrial equipment sector. The company has carved out its niche by specializing in the design, manufacture, and service of flow control systems. Primarily, Flowserve is known for its extensive range of pumps, valves, and seals, crucial components that keep industries such as oil and gas, chemical processing, power generation, and water management running smoothly. Positioned as a solutions provider, Flowserve leverages its technical expertise to offer customized services that address complex challenges faced by its global clients. This focus on cutting-edge technology and industry-specific solutions enables the company to not only sell products but to embed itself as an indispensable component of long-term projects, ensuring ongoing demand and partnerships.
At the heart of Flowserve's business model is its robust aftermarket services, which constitute a substantial portion of its revenue stream. Aftermarket services involve maintenance, repair, and operational optimization of existing flow management equipment. This aspect of the business caters to clients’ needs to minimize downtime and extend the lifecycle of their investments. By offering these services, Flowserve maintains a steady flow of revenue that is less susceptible to the cyclical nature of capital equipment sales. Additionally, the company’s global supply chain and distribution network allow it to serve customers in various markets efficiently, bolstering its competitive edge. The company’s agile response to market dynamics and its relentless pursuit of operational excellence underline Flowserve’s strategic approach to sustainability and growth in an ever-evolving industrial landscape.
Revenue Growth: Flowserve reported fourth-quarter revenue of $1.2 billion, up 4% year-over-year, supported by strong aftermarket sales.
Margin Expansion: Adjusted operating margin expanded 420 basis points to 16.8%, surpassing the company’s 2027 target two years early.
EPS Surge: Adjusted EPS rose 59% to $1.11 for the quarter, reflecting strong operational execution.
Cash Flow: Operating cash flow for 2025 reached $506 million, up 19% from 2024, with a free cash flow conversion rate of 97%.
Aftermarket Strength: Aftermarket bookings grew 10% in the quarter, marking the seventh consecutive quarter above $600 million.
2026 Guidance: Management expects sales growth of 5%–7% and adjusted EPS of $4.00–$4.20 in 2026, with margin expansion of 100 basis points.
M&A Activity: Announced acquisition of Trillium’s valve and actuation business to expand presence in nuclear and traditional power markets.
Margin Durability: Management emphasized confidence in continued margin improvement, supported by operational excellence and 80/20 initiatives, even if revenue growth is muted.
