Overview

* Flowserve ( FLS ) Q3 sales rose 3.6% yr/yr but missed analysts' expectations

* Company increased full-year 2025 adjusted EPS guidance

* Flowserve ( FLS ) to divest legacy asbestos liabilities, focusing on growth opportunities

Outlook

* Flowserve ( FLS ) raises full-year 2025 adjusted EPS guidance to $3.40-$3.50

* Company expects full-year total sales growth of 4% to 5%

Result Drivers

* AFTERMARKET GROWTH - Aftermarket bookings grew 6% to over $650 mln, driving revenue growth

* POWER SECTOR DEMAND - Power bookings increased 23% yr/yr, with $140 mln in nuclear awards

* MARGIN EXPANSION - Adjusted operating margin expanded 370 bps to 14.8%, aided by strategic initiatives

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $1.17 $1.20

bln bln (11

Analysts

)

Q3 Gross $380.29

Profit mln

Q3 $79.27

Operatin mln

g Income

Q3 $317.55

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

* Wall Street's median 12-month price target for Flowserve Corp ( FLS ) is $65.50, about 19.4% above its October 27 closing price of $52.82

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)