Flowserve (FLS) AI Stock Analysis

• Market Cap: $11.28B
• Dividend Yield: 1.17%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 1.52
• Revenue Growth: 3.19%
• EPS Growth: 69.89%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.11
• Shares Outstanding: 127,260,330
• 10 Day Avg. Volume: 1,732,760
• 30 Day Avg. Volume: 1,471,613
• PEG Ratio: 1.10
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 20.74
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 7.63
• Enterprise Value/Ebitda: 18.32
• 1Y Price Target: $94.44
• Price Target Upside: 6.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.13
• Revenue Forecast (FY): $5.01B

• Rating: 73 Outperform
• Price Target: $95.00 ▲(6.81% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

Overall score reflects improving financial performance (strong margin and ROE expansion) and a generally constructive earnings outlook (2026 EPS and margin expansion guidance with capital returns). The score is tempered by a stretched technical setup (overbought RSI/stochastic) and a relatively expensive valuation (P/E ~29.9 with ~1.0% yield), plus some near-term execution/timing risk in OE and backlog conversion.

Positive Factors

Margin Expansion / Profitability

Sustained, multi-year margin improvement reflects durable operational leverage from higher-margin aftermarket and product mix, showing the company can convert revenue into cash profits. Higher margins improve reinvestment ability, support buybacks, and create buffer versus cyclical top-line swings.

Recurring Aftermarket Revenue

A large and growing aftermarket (service, maintenance, spare parts) drives recurring, higher-margin revenue and steadier cash flow versus project-driven OEM sales. This strengthens customer stickiness, improves revenue predictability, and supports long-term returns and valuation resilience.

Strategic M&A and Nuclear Positioning

Targeted deals expand addressable market in mission-critical valves and nuclear service, increasing installed base and aftermarket opportunity per project. Structural exposure to nuclear and critical infrastructure can lift long-term content per project and recurring service revenue if projects proceed.

Negative Factors

Elevated Leverage

Material debt levels leave Flowserve more sensitive to economic slowdowns and rising rates, constraining flexibility for organic investment or additional M&A without increasing leverage. Servicing and refinancing risk can pressure cash allocation in downturns.

Cash Flow Volatility

Irregular operating and free cash flow, driven by working-capital swings and prior negative years, reduces predictability of self-funding capacity. Volatility can limit consistent capital returns, increase reliance on debt, and complicate funding of capex or acquisitions.

Backlog Conversion & Project Timing Risk

Lower backlog conversion and reliance on long-duration nuclear projects shifts revenue and earnings into the back half, raising execution risk. If nuclear build-outs underperform or timing slips, top-line and cash generation could be materially delayed versus plan.

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 Division (FPD) and Flow Control Division (FCD). The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines. The FCD segment provides engineered and industrial valve and automation solutions, including isolation and control valves, actuation, controls, and related equipment, as well as equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. This segment's products are used to control, direct, and manage the flow of liquids, gases, and fluids. The company primarily serves oil and gas, chemical and pharmaceuticals, power generation, and water management markets, as well as general industries, including mining and ore processing, pulp and paper, food and beverage, and other smaller applications. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was incorporated in 1912 and is headquartered in Irving, Texas.

How the Company Makes Money

Flowserve generates revenue through the sale of its extensive range of products and services, which include engineered pumps, valves, seals, and aftermarket services. The company's revenue model is built on both product sales and service contracts, with significant earnings derived from the installation, maintenance, and repair of its products. Key revenue streams include the manufacturing and distribution of fluid motion and control solutions, as well as long-term service agreements that ensure ongoing support and maintenance for customers. Flowserve has established partnerships with major players in the energy and industrial sectors, which further contribute to its revenue through collaborative projects and joint ventures. Additionally, the company benefits from a strong global presence, allowing it to tap into various regional markets and capitalize on growing demand for energy-efficient and reliable fluid management solutions.

Flowserve Financial Statement Overview

Summary

Fundamentals are improving: revenue rose to $4.73B (2025) with meaningful margin expansion (net margin ~3.6% to ~7.3%; EBIT margin ~5.4% to ~12.8%) and ROE strengthening (~7.0% to ~15.8%). Offsetting this, leverage remains notable (~$1.91B debt; D/E ~0.87) and cash flow has been volatile (notably negative OCF/FCF in 2022 and weaker FCF growth in 2025 vs. 2024).

Income Statement

Flowserve shows a solid profitability and growth profile. Annual revenue increased from $3.54B (2021) to $4.73B (2025), with margins expanding meaningfully: gross margin improved from ~30.1% (2021) to ~33.4% (2025) and net margin rose from ~3.6% to ~7.3%. Operating profitability also strengthened (EBIT margin ~5.4% to ~12.8%), supporting a clear earnings recovery. The main watch-out is volatility in reported growth rates (including declines in 2020–2021 and unusually high growth shown in 2025), which suggests the top-line trajectory has not been consistently smooth year-to-year.

Balance Sheet

The balance sheet looks reasonable but moderately leveraged. Debt-to-equity improved from ~1.12 (2020) to ~0.87 (2025), indicating better capital structure over time, while equity grew to ~$2.19B (2025). Returns on equity strengthened from ~7.0% (2021) to ~15.8% (2025), consistent with improving profitability. The key weakness is that total debt remains sizable at ~$1.91B (2025), leaving the company more sensitive to downturns and financing costs than a lower-leverage peer.

Cash Flow

Cash generation is generally supportive but not fully consistent. Operating cash flow improved from $250M (2021) to $506M (2025) and free cash flow remained positive in most years, reaching $435M in 2025, with free cash flow running at ~86% of net income in 2025 (good earnings quality). However, 2022 was a clear blemish with negative operating cash flow (-$40M) and negative free cash flow (-$116M), and 2025 shows a sharp free cash flow decline versus 2024 (negative growth), signaling potential working-capital swings or elevated investment needs.

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

• Technical Analysis Sentiment: Positive
• Last Price: 88.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 88.94 is above the 20-day moving average (MA) of 83.05, above the 50-day MA of 76.79, and above the 200-day MA of 60.52, indicating a bullish trend. The MACD of 3.81 indicates Negative momentum. The RSI at 76.40 is Negative, neither overbought nor oversold. The STOCH value of 74.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLS.

Flowserve Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	78 Outperform	$17.63B	33.55	17.85%	0.79%	8.01%	2.67%
SPXC	77 Outperform	$12.04B	51.41	12.76%	―	12.60%	24.02%
DOV	75 Outperform	$31.30B	29.23	15.29%	1.04%	-5.24%	45.69%
FLS	73 Outperform	$11.28B	33.53	16.49%	1.17%	3.19%	69.89%
PNR	68 Neutral	$16.66B	25.70	17.48%	0.96%	0.83%	-1.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RRX	61 Neutral	$14.50B	52.01	4.27%	0.97%	-4.99%	22.16%

Flowserve Corporate Events

Flowserve Posts Strong 2025 Results, Announces Trillium Valves Deal

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 $400 million in nuclear awards. Reported sales grew 3.8% in 2025 to $4.73 billion, adjusted operating margin expanded to 14.8% from 11.8%, and adjusted EPS climbed 38.4% to $3.64, while cash from operations increased to $505.9 million, enabling the company to return $365 million to shareholders via dividends and repurchases. Despite a negative reported EPS in Q4 due to one-time asbestos divestiture impacts, adjusted Q4 operating margin reached 16.8% and adjusted EPS rose to $1.11, with management noting it achieved its 2027 adjusted operating margin target two years ahead of schedule. Flowserve also initiated 2026 guidance calling for 5%–7% total sales growth and adjusted EPS of $4.00–$4.20, and set 2030 targets that include mid-single-digit organic sales growth, roughly 20% adjusted operating margins and double-digit adjusted EPS growth, underscoring its confidence in healthy end markets and the momentum of its operational improvement programs. In addition, the company entered a definitive agreement on February 4, 2026, to acquire Trillium Flow Technologies’ Valves Division for $490 million in cash, a move that will expand Flowserve’s presence in nuclear, traditional power, industrial and critical infrastructure valves and actuators and is expected to be funded with a mix of cash and new debt, potentially strengthening its competitive position in mission-critical flow control applications once the deal closes, which is anticipated around mid-2026 subject to customary approvals.

The most recent analyst rating on (FLS) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve Announces Planned Board Transition as Director Departs

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 that meeting. The company said Siegel’s decision was not due to any disagreement with management or the board, and the directors expressed their appreciation for his service and contributions, signaling an orderly and non-contentious board transition for stakeholders.

The most recent analyst rating on (FLS) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve Completes Divestiture of Asbestos Liabilities

On December 11, 2025, Flowserve Corporation completed the divestiture of its legacy asbestos liabilities by selling its subsidiary BW/IP – New Mexico, Inc. to Ajax HoldCo LLC, an affiliate of Acorn Investment Partners. This transaction, which involved a total capitalization of approximately $219 million, allows Flowserve to remove these liabilities from its balance sheet and indemnifies the company from future financial exposure related to these liabilities. As a result, Flowserve expects a one-time loss of approximately $140 million in the fourth quarter of 2025, which will be excluded from adjusted earnings per share.

The most recent analyst rating on (FLS) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.