Exceptional Financial Performance
Flowserve delivered exceptional results across bookings, margin expansion, earnings, and cash flow. Adjusted EPS guidance increased to $3.40 to $3.50, representing a 31% increase from last year and over 60% increase from 2023. Adjusted gross margins increased by 240 basis points to 34.8%, and adjusted operating margins were 14.8%.
Strong Aftermarket Growth
Aftermarket bookings exceeded $600 million for the sixth consecutive quarter, with some quarters seeing bookings above $650 million. This segment continues to deliver strong performance and growth opportunities.
Nuclear Segment Success
Flowserve achieved over $140 million in nuclear bookings, marking a record for the company. The company is well-positioned in the nuclear space with content in over 75% of the world's approximately 400 nuclear reactors.
Mogas Integration and Performance
The Mogas acquisition contributed to a 3% growth in revenue, with operating margins for Mogas being accretive to FCD. The integration and implementation of the Flowserve Business System are yielding positive results.
Legacy Asbestos Liabilities Divestment
Flowserve reached an agreement to divest its legacy asbestos liabilities, simplifying its capital structure and reducing volatility. This transaction is expected to improve annual cash flow by $15 million to $20 million.