Flowserve Q2 Revenue Falls Short of Expectations, CEO Expects Robust Performance for 2027.

Flowserve reported Q2 revenue of $1.19 billion, below expectations of $1.23 billion. Despite this, the company attributed growth in sales and earnings to its 3D strategy and business systems. Flowserve has introduced its commercial excellence pillar and increased its full-year adjusted EPS guidance, reinforcing its commitment to achieving long-term goals. The company's robust performance and positive outlook have contributed to its strong financial health, with a revenue growth of 4% over the past year and an expanding operating margin.

Flowserve Corporation (NYSE: FLS) reported its financial results for the second quarter ended June 30, 2025, with mixed results that fell short of Wall Street's expectations. The company's revenue of $1.19 billion was 2.7% higher year-on-year, but it missed analysts' estimates of $1.23 billion. Despite this, Flowserve attributed its growth to the successful execution of its 3D strategy and the Flowserve Business System.

The company's non-GAAP profit of $0.91 per share was 16.7% above analysts' consensus estimates, indicating strong earnings performance. This quarter, Flowserve's operating margin expanded to 12.3%, up from 10.5% in the same quarter last year. The company also reported a robust backlog of $2.85 billion, up 6.3% year-on-year.

Flowserve's management raised its full-year adjusted EPS guidance to $3.33 at the midpoint, a 3.9% increase. This guidance reflects the company's confidence in its ability to execute its strategy and deliver on its long-term goals. Additionally, Flowserve's strong cash flow of $137.5 million, up from -$27.46 million in the same quarter last year, underscores the company's financial health.

Looking ahead, sell-side analysts expect revenue to grow 6.9% over the next 12 months, similar to its two-year rate. This projection indicates that Flowserve's products and services will face some demand challenges. However, the company's strong performance and positive outlook have contributed to its strong financial health, with a revenue growth of 4% over the past year and an expanding operating margin.

Flowserve's robust performance and positive outlook have contributed to its strong financial health, with a revenue growth of 4% over the past year and an expanding operating margin. Despite missing revenue expectations, the company's earnings beat and strong cash flow position it well for the remainder of the year. Investors should closely monitor Flowserve's ability to execute its strategy and deliver on its long-term goals.

References:
[1] https://finance.yahoo.com/news/flowserve-nyse-fls-misses-q2-111742934.html
[2] https://finance.yahoo.com/news/flowserve-corporation-reports-second-quarter-103100141.html