Flowserve (FLS) Q1 2025 earnings summary

Executive summary

• Bookings grew 18.1% year-over-year to $1.2 billion, with sales up 5.2% to $1.145 billion, driven by strong original equipment and record aftermarket demand, including nearly $690 million in aftermarket bookings and over $100 million in nuclear awards for the third consecutive quarter.

• Adjusted EPS rose nearly 25% to $0.72, with adjusted gross margin expanding 180 basis points to 33.5% and adjusted operating margin reaching 12.8%.

• Operating income increased 17% to $132 million; adjusted operating income up 24% to $147 million year-over-year.

• The MOGAS acquisition was completed, expanding the valve portfolio and contributing to sales and margin growth; integration is ahead of schedule.

• Full-year 2025 guidance reaffirmed, with expectations for stronger earnings in the second half despite macroeconomic uncertainty and tariff headwinds.

Financial highlights

• Total bookings reached $1.2 billion, up 18% year-over-year, with a book-to-bill ratio of 1.07.

• Sales were $1.145 billion, up 5.2% from Q1 2024.

• Adjusted operating income was $147 million, up 24% year-over-year; adjusted operating margin rose to 12.8%.

• Cash from operations was negative $49.9 million, mainly due to higher working capital and incentive compensation timing.

• $49 million returned to shareholders in Q1 via dividends and share repurchases.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: organic growth of 3%-5%, total sales growth of 5%-7%, and adjusted EPS of $3.10-$3.30.

• Second quarter expected to be similar or slightly better than Q1, with earnings weighted toward the second half due to backlog and synergy realization.

• Guidance reflects estimated impact of new tariffs, net of mitigating actions, and assumes steady economic conditions.

• Capital expenditures projected at $80-$90 million; adjusted tax rate approx. 21%.