Flowserve Corp (FLS)
NYSE:FLS
Top Page
Flowserve
(NYSE:FLS)
Select Model
Select Model
Rating:66Neutral
Price Target:
$80.00
▼(-3.26% Downside)
Action:DowngradedDate:03/16/26
The score is driven primarily by improving financial performance (strong multi-year margin and profitability gains with better leverage) and constructive 2026 guidance with aftermarket strength and margin expansion. Offsetting this, the technical setup is weak with clear downside momentum (price below key moving averages; negative MACD), and valuation is only average with a 26x P/E and modest yield.
Positive Factors
Margin Expansion
Flowserve delivered sustained, multi-year margin improvement driven by operational execution and mix shift. Higher and expanding gross/EBIT margins are durable because they reflect structural cost and productivity gains and better product mix, supporting stronger earnings power through cycles.
Negative Factors
Elevated Absolute Debt
Despite improved leverage ratios, the company carries nearly $2B of debt, which increases sensitivity to slower demand or higher rates. High absolute debt constrains strategic flexibility, raises interest exposure, and makes downside scenarios more painful for cash flow and investment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Flowserve delivered sustained, multi-year margin improvement driven by operational execution and mix shift. Higher and expanding gross/EBIT margins are durable because they reflect structural cost and productivity gains and better product mix, supporting stronger earnings power through cycles.
Read all positive factors
Flowserve (FLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.52B
Dividend Yield1.17%
Average Volume (3M)1.64M
Price to Earnings (P/E)26.1
Beta (1Y)1.58
Revenue Growth3.19%
EPS Growth69.89%
CountryUS
Employees16,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.11
Shares Outstanding127,260,330
10 Day Avg. Volume1,449,236
30 Day Avg. Volume1,639,405
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)4.12
Price to Sales (P/S)1.91
P/FCF Ratio20.74
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit7.20
Enterprise Value/Ebitda17.27
Forecast
1Y Price Target
$93.67Price Target Upside13.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)4.14
Revenue Forecast (FY)$5.01B
Flowserve Business Overview & Revenue Model
Company Description
Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. It operates in two segments, Flowserve Pump Div...
How the Company Makes Money
Flowserve makes money by selling engineered flow-control equipment and by providing aftermarket parts and services over the installed life of that equipment. Revenue is primarily generated through (1) original equipment sales and (2) aftermarket o...
Flowserve Key Performance Indicators (KPIs)
Flowserve Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution with significant margin expansion, robust free cash flow, disciplined capital returns, and strategic M&A that enhance aftermarket and nuclear exposure. These positive developments and clear targets outweigh near-term revenue headwinds tied to OE project timing, a lower backlog conversion profile driven by longer nuclear projects, and softer FCD bookings. Management provided constructive 2026 guidance and reiterated long-term targets, while acknowledging front-half cadence risk and dependence on nuclear/power market execution.Positive Updates
Strong Margin Expansion and EPS Growth
Adjusted gross margin reached 36% in Q4, up 320 basis points year-over-year; adjusted operating margin expanded 420 basis points to 16.8%, exceeding the company's 2027 target range. Adjusted EPS for the quarter was $1.11, a 59% increase versus prior year; full-year adjusted EPS growth was ~38%.
Negative Updates
Softness in Original Equipment and Project Timing
Original equipment (OE) revenues declined ~2% in the quarter; OE bookings were muted due to customer delays and timing of material receipts on percentage-of-completion projects. Company estimates ~50 basis points of Q4 revenue headwind from POC project timing, with impacts expected to persist into H1 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Margin Expansion and EPS Growth
Adjusted gross margin reached 36% in Q4, up 320 basis points year-over-year; adjusted operating margin expanded 420 basis points to 16.8%, exceeding the company's 2027 target range. Adjusted EPS for the quarter was $1.11, a 59% increase versus prior year; full-year adjusted EPS growth was ~38%.
Read all positive updates
Company Guidance
Flowserve guided to 2026 reported sales growth of 5%–7% (organic 1%–3%), including ~100 bps benefit from foreign exchange and roughly 300 bps benefit from the Greenray and assumed mid‑year Trillium Valves close, and expects bookings to grow mid‑single digits; adjusted operating margin is forecast to expand ~100 bps for the full year with adjusted EPS of $4.00–$4.20 (midpoint ≈ +13% vs. 2025) and an adjusted tax rate of 21%–22%; management expects to convert ~76% of current backlog into 2026 revenue (with OE activity accelerating in 2H), Q1 to be the lowest quarter and roughly 40% of full‑year EPS to be earned in H1, plans capital expenditures of $90–$100M, will at minimum repurchase shares to offset dilution (with ~$200M of buyback capacity remaining), and assumes Trillium will boost adjusted operating income while being neutral to adjusted EPS due to financing costs.Flowserve Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.73B | 4.56B | 4.32B | 3.62B | 3.54B |
| Gross Profit | 1.58B | 1.47B | 1.30B | 994.65M | 1.07B |
| EBITDA | 698.59M | 541.05M | 374.42M | 291.58M | 291.03M |
| Net Income | 346.25M | 282.76M | 186.74M | 188.69M | 125.95M |
Balance Sheet | |||||
| Total Assets | 5.71B | 5.50B | 5.11B | 4.79B | 4.75B |
| Cash, Cash Equivalents and Short-Term Investments | 760.18M | 675.44M | 545.68M | 434.97M | 658.45M |
| Total Debt | 1.91B | 1.69B | 1.40B | 1.46B | 1.50B |
| Total Liabilities | 3.45B | 3.45B | 3.13B | 2.93B | 2.91B |
| Stockholders Equity | 2.19B | 2.01B | 1.94B | 1.82B | 1.80B |
Cash Flow | |||||
| Free Cash Flow | 434.96M | 344.29M | 258.41M | -116.30M | 195.18M |
| Operating Cash Flow | 505.88M | 425.31M | 325.77M | -40.01M | 250.12M |
| Investing Cash Flow | -125.16M | -387.21M | -68.58M | -6.09M | -59.48M |
| Financing Cash Flow | -326.93M | 117.50M | -153.01M | -150.01M | -599.71M |
Flowserve Technical Analysis
Positive
82.70
Price Trends
80.07
Negative
75.60
Positive
64.97
Positive
Market Momentum
-1.35
Negative
52.28
Neutral
85.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLS, the sentiment is Positive. The current price of 82.7 is above the 20-day moving average (MA) of 74.54, above the 50-day MA of 80.07, and above the 200-day MA of 64.97, indicating a neutral trend. The MACD of -1.35 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 85.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLS.
Flowserve Risk Analysis
Flowserve disclosed 28 risk factors in its most recent earnings report. Flowserve reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flowserve Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $18.08B | 28.23 | 16.15% | 0.79% | 8.01% | 2.67% | |
76 Outperform | $10.58B | 30.59 | 13.29% | ― | 12.60% | 24.02% | |
70 Outperform | $29.22B | 24.49 | 14.76% | 1.04% | -5.24% | 45.69% | |
68 Neutral | $14.63B | 26.14 | 17.48% | 0.96% | 0.83% | -1.32% | |
66 Neutral | $10.52B | 26.05 | 15.81% | 1.17% | 3.19% | 69.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $13.58B | 36.68 | 4.18% | 0.97% | -4.99% | 22.16% |
* Industrials Sector Average
FLS
Flowserve
82.70
38.71
87.99%
DOV
Dover
216.69
52.62
32.07%
ITT
ITT
210.08
85.73
68.94%
PNR
Pentair
90.53
7.35
8.84%
RRX
Regal Rexnord
204.15
97.94
92.21%
SPXC
SPX
212.22
76.95
56.89%
Flowserve Corporate Events
Business Operations and StrategyExecutive/Board Changes
Flowserve Expands Board With Appointment of Brian Savoy
Positive
Mar 16, 2026
On March 16, 2026, Flowserve’s board elected Brian D. Savoy, Chief Financial Officer and Executive Vice President of Duke Energy, to its board of directors and appointed him to the Audit Committee and the Technology, Innovation and Risk Comm...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Flowserve Posts Strong 2025 Results, Announces Trillium Valves Deal
Positive
Feb 5, 2026
On February 5, 2026, Flowserve reported strong financial results for the fourth quarter and full year 2025, with Q4 bookings rising to $1.2 billion driven by 10% aftermarket growth, and full-year bookings reaching $4.7 billion, including about $40...
Executive/Board Changes
Flowserve Announces Planned Board Transition as Director Departs
Neutral
Dec 30, 2025
On December 29, 2025, Flowserve Corporation announced that director Kenneth I. Siegel informed the board he will not stand for re-election at the company’s 2026 annual meeting of shareholders and will continue to serve as a director until th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.