Overview

* Flowserve ( FLS ) Q2 sales miss analyst expectations, adjusted EPS beats estimates, per LSEG data

* Company increases full-year 2025 adjusted EPS guidance, reflecting strategic confidence

* Flowserve ( FLS ) terminates merger with Chart Industries, receives $266 mln termination payment

Outlook

* Flowserve ( FLS ) raises full-year 2025 adjusted EPS guidance to $3.25-$3.40

* Company expects 2025 organic sales growth of 3% to 4%

* Flowserve ( FLS ) sees total sales growth of 5% to 6% for 2025

* Company maintains capital expenditures guidance at $80 mln to $90 mln

Result Drivers

* 3D GROWTH STRATEGY - Strong qtr results attributed to successful execution of 3D Growth Strategy and Flowserve Business System, per CEO Scott Rowe

* MARGIN EXPANSION - Operating margin increased by 180 basis points and adjusted operating margin by 210 basis points compared to last year

* AFTERMARKET BOOKINGS - Durable aftermarket bookings reached $621 mln, contributing to overall sales growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.19 $1.23

bln bln (11

Analysts

)

Q2 Beat $0.91 $0.78

Adjusted (11

EPS Analysts

)

Q2 Gross $406.58

Profit mln

Q2 $146.59

Operatin mln

g Income

Q2 $103.86

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 $64.50, about 14.9% above its July 28 closing price of $54.86

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(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.)