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Flowserve Corporation’s FLS first-quarter 2025 adjusted earnings (excluding 16 cents from non-recurring items) of 72 cents per share beat the Zacks Consensus Estimate of 59 cents. The bottom line increased 24.1% year over year. Results benefited primarily from higher revenues generated in the quarter.
Flowserve’s total revenues of $1.14 billion beat the consensus estimate of $1.11 billion. The top line increased 5.2% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Aftermarket sales increased 5.1% year over year, while Original equipment sales increased 5.4% year over year.
Total bookings amounted to $1.23 billion, reflecting an increase of 18.1% year over year. The backlog at the end of the quarter was $2.9 billion, up 11.1% year over year.
Segmental Details of FLS
Flowserve currently has two reportable segments, Flowserve Pump Division and Flow Control Division. A brief discussion of the segments is provided below:
Revenues from the Flowserve Pumps Division segment were $783.1 million, up 1.8% year over year. Our estimate was $788.9 million. Bookings increased 21.2% year over year to $852.9 million. Segmental operating income was $136.5 million, up 23.1% year over year.
Revenues from the Flow Control Division segment were $364.1 million, up 13.6% year over year. Our estimate was $359.3 million. Bookings of $376.0 million increased 10.2% on a year-over-year basis. The segment’s operating income was $31.5 million, down 9.3% year over year.
Flowserve Corporation Price, Consensus and EPS Surprise
Flowserve Corporation price-consensus-eps-surprise-chart | Flowserve Corporation Quote
Margin Profile of FLS
In the first quarter, Flowserve’s cost of sales increased 3.6% year over year to $775.2 million. Gross profit increased 9% year over year to $369.3 million and the margin increased 110 basis points (bps) to 32.3%. Selling, general and administrative expenses were $243.2 million, up 6.5% year over year.
Operating income increased 16.6% year over year to $131.9 million. The operating margin was 11.5%, up 110 bps year over year. The effective tax rate was 18.3%.
Flowserve’s Balance Sheet and Cash Flow
Exiting the first quarter, Flowserve had cash and cash equivalents of $540.8 million compared with $675.4 million at the end of 2024. Long-term debt (due after one year) was $1.45 billion compared with $1.46 billion reported at the end of 2024.
In the first three months of 2025, the company used net cash of $49.9 million from operating activities against $62.3 million in cash generated in the year-ago period. Capital expenditure totaled $11.8 million, down 13.8% year over year.
During the same period, the company used $27.7 million for distributing dividends and repurchased shares worth $21.1 million.