Strong Second Quarter Performance
Flowserve delivered strong second quarter results with a 3% revenue growth and adjusted gross margins expanding 260 basis points to 34.9%. Adjusted operating margins were 14.6%, and adjusted earnings per share was $0.91.
Strategic Decision to Terminate Chart Merger
Flowserve terminated the proposed merger with Chart Industries, receiving a $266 million termination payment. The decision was deemed in the best interest of shareholders, and the capital will be evaluated for shareholder value creation.
Increased Full Year Guidance
Flowserve increased its full-year adjusted EPS guidance to $3.25 to $3.40, which at the midpoint represents an increase of more than 25% year-over-year.
Aftermarket Business Strength
The company delivered its fifth consecutive quarter of aftermarket bookings above $600 million, with a focus on growing the aftermarket business continuing to pay dividends.
Nuclear Bookings and SMR Production Order
Flowserve secured approximately $60 million in nuclear bookings and secured its first production order related to a small modular nuclear reactor.