Flowserve (FLS) Q1 2026 earnings summary
Event summary combining transcript, slides, and related documents.
Q1 2026 earnings summary
8 Jul, 2026Executive summary
Achieved strong adjusted operating margin expansion of 230 basis points and adjusted EPS growth of 18% year-over-year, despite Middle East disruptions and a softer start to the year.
Revenue for Q1 2026 was $1.07 billion, down 6.7% year-over-year, with bookings at $1.15 billion and backlog rising to $2.95 billion.
Aftermarket sales increased to 57% of total sales, with $680 million in bookings and continued growth in both segments.
Adjusted EPS was $0.85, benefiting from a $0.19 per share IEEPA tariff recovery, offset by $0.06 tax and $0.06 Middle East disruption.
Growth strategy is aligned to global megatrends, with continued progress toward 2030 financial targets and operational excellence.
Financial highlights
Adjusted gross margin increased 370 basis points to 37.2%, marking the 13th consecutive quarter of year-over-year expansion.
Adjusted operating margin reached 15.1%, up 230 basis points from the prior year.
Net earnings attributable to shareholders rose to $81.7 million, up 10.5% from Q1 2025.
Cash from operations improved to $6.8 million from a negative $49.9 million in Q1 2025.
SG&A expense increased 8.3% to $263.4 million, or 24.7% of sales.
Outlook and guidance
Full-year adjusted EPS guidance reaffirmed at $4.00–$4.20, representing 13% growth over 2025.
Organic sales growth for 2026 expected between -1% and +2%; total sales growth outlook is 3%-6%, including acquisitions.
Capital expenditures projected at $90–$100 million; adjusted tax rate 21–22%.
Guidance assumes mid-year close of Trillium Valves acquisition, expected to be EPS neutral for 2026.
Q2 sales expected to be down low to mid-single digits year-over-year, with earnings similar to Q1.
Latest events from Flowserve
- Q2 2026 bookings rose 26% YoY, margins expanded, and EPS guidance was raised despite Middle East headwinds.FLS
Q2 2026 - Director elections, executive pay, and auditor ratification passed; stock buyback proposal failed.FLS
AGM 2026 - Nuclear and aftermarket growth drive optimism amid operational streamlining and Middle East challenges.FLS
Bank of America’s 33th Annual Industrials, Transportation and Airlines Key Leaders Conference - 2025 saw record financial performance, strong governance, and key shareholder votes on pay and repurchases.FLS
Proxy filing - 2025 saw record margins and cash flow, with 2026 set for further growth and nuclear expansion.FLS
Q4 2025 - Raised full-year adjusted EPS guidance after strong Q3 growth, margin gains, and robust cash flow.FLS
Q3 2025 - Bookings, margins, and cash flow surged, with 2024 adjusted EPS guidance reaffirmed.FLS
Q3 2024 - Bookings and margins surged, with guidance reaffirmed and strong aftermarket performance.FLS
Q1 2025 - Q4 and FY 2024 saw strong growth in bookings, margins, and cash flow, with a positive 2025 outlook.FLS
Q4 2024