Flowserve Reports Strong Q4 and Full-Year 2025 Results, Sets 2026 Guidance and 2030 Financial Targets
Flowserve Corporation (NYSE: FLS), a global leader in flow control products and services for critical infrastructure markets, today announced its financial results for the fourth quarter and full year ended December 31, 2025. The company reported solid growth across key metrics, driven by its 3D Growth Strategy, effective execution of the Flowserve Business System, and strong demand in end markets including nuclear, industrial, and commercial sectors.
Fourth Quarter and Full-Year 2025 Highlights
Flowserve achieved total bookings of $1.21 billion in the fourth quarter of 2025, representing a 2.9% increase compared to $1.18 billion in the same period in 2024. Original equipment bookings reached $526.6 million, slightly down 5.5% year-over-year, while aftermarket bookings surged 10.4% to $682.3 million, highlighting continued strong customer demand for service and replacement solutions.
Operating performance reflected a fourth-quarter reported operating margin of 3.5%, impacted by a one-time charge related to the asbestos divestiture. On an adjusted basis, operating margin expanded to 16.8%, up 420 basis points compared to Q4 2024. Reported earnings per share (EPS) for the quarter were ($0.23), including the one-time items, while adjusted EPS grew to $1.11, an increase of 58.6% over the prior year.
For the full year, Flowserve delivered total bookings of $4.71 billion, with approximately $400 million from nuclear-related awards. Total reported sales grew 3.8% to $4.73 billion, reflecting a combination of organic growth, acquisitions, and favorable foreign exchange impacts. The company generated $506 million in cash from operations, supported by strong earnings and disciplined working capital management, returning $365 million to shareholders through dividends and share repurchases. Adjusted operating margin for the year improved to 14.8%, up 300 basis points from 2024, while adjusted EPS rose 38.4% to $3.64.
Strategic Initiatives and Acquisition
During the year, Flowserve announced a definitive agreement to acquire Trillium Flow Technologies’ Valves Division, a leading provider of mission-critical valves and actuators serving nuclear, industrial, and critical infrastructure markets. The acquisition is expected to close mid-2026 and will strategically expand Flowserve’s product offerings while maintaining neutral impact on adjusted EPS for the year, even including incremental financing costs.
Management Commentary
Scott Rowe, President and Chief Executive Officer of Flowserve, commented:
We delivered outstanding financial results in the fourth quarter and for the full year 2025. Our global team’s dedication and disciplined execution of the Flowserve Business System has been instrumental in achieving our 2027 adjusted operating margin target two years ahead of schedule. With healthy end markets, expanding power generation opportunities, and continued operational momentum, we are confident in our 2026 guidance and long-term financial targets. We remain focused on driving value for our associates, customers, and shareholders.”
2026 Guidance
Flowserve initiated full-year 2026 guidance, projecting total sales growth of 5% to 7%, driven by organic growth of 1% to 3%, approximately 300 basis points from the Trillium acquisition, and around 100 basis points from foreign exchange translation. Adjusted EPS is expected to range from $4.00 to $4.20, representing a 13% increase at the midpoint compared to 2025 adjusted EPS. The company anticipates net interest expense of roughly $80 million, an adjusted tax rate of 21% to 22%, and capital expenditures between $90 million and $100 million. Guidance assumes the acquisition of Trillium’s Valves Division closes mid-year and that current tariff levels remain in effect.
2030 Financial Targets
Looking further ahead, Flowserve introduced ambitious 2030 financial targets designed to deliver sustained growth and operational excellence:
- Organic Sales CAGR (2025-2030): Mid-single digit growth
- Adjusted Operating Margin: Approximately 20%
- Adjusted EPS CAGR (2025-2030): Double-digit growth
These targets reflect Flowserve’s strategic focus on expanding high-value end markets, optimizing operational performance through the Flowserve Business System, and disciplined execution across all business units.
Key Financial Metrics (Unaudited)
| Metric | Q4 2025 | Q4 2024 | Change | FY 2025 | FY 2024 | Change |
|---|---|---|---|---|---|---|
| Original Equipment Bookings | $526.6M | $557.2M | -5.5% | $2,068.5M | $2,238.4M | -7.6% |
| Aftermarket Bookings | $682.3M | $618.1M | 10.4% | $2,644.5M | $2,422.4M | 9.2% |
| Total Bookings | $1,208.9M | $1,175.3M | 2.9% | $4,713.0M | $4,660.8M | 1.1% |
| Reported Sales | $1,222.2M | $1,180.3M | 3.5% | $4,729.3M | $4,557.8M | 3.8% |
| Operating Margin | 3.5% | 10.6% | -710bps | 8.5% | 10.1% | -160bps |
| Adjusted Operating Margin | 16.8% | 12.6% | +420bps | 14.8% | 11.8% | +300bps |
| Earnings Per Share | ($0.23) | $0.59 | -139% | $2.64 | $2.14 | 23.4% |
| Adjusted EPS | $1.11 | $0.70 | 58.6% | $3.64 | $2.63 | 38.4% |
| Cash from Operations | ($0.2M) | $197.3M | – | $505.9M | $425.3M | $80.6M |
| Backlog | $2,867.8M | $2,789.6M | 2.8% | $2,867.8M | $2,789.6M | 2.8% |
Flowserve will host a conference call to discuss the fourth quarter and full-year results on Friday, February 6, at 10:00 a.m. Eastern Time. Shareholders and interested parties can access the webcast on Flowserve’s Investors page.
Conclusion
Flowserve’s strong performance in 2025, combined with a clear strategy for growth, disciplined operational execution, and strategic acquisitions, positions the company for continued success in 2026 and beyond. With robust guidance and ambitious 2030 targets, Flowserve demonstrates a commitment to delivering long-term value to shareholders while driving innovation and reliability in critical infrastructure markets.
