Flowserve 2025 Q2 Earnings Strong Performance as Net Income Rises 15%

Flowserve (FLS) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. Flowserve's quarterly performance exceeded expectations as it demonstrated robust growth in both sales and net income. The company's updated guidance reflects confidence in continued strong financial health, with adjusted EPS targets raised from $3.10-$3.30 to $3.25-$3.40. This positive outlook supports Flowserve's strategic execution and positions them well to achieve their long-term objectives.

Revenue

The total revenue for Flowserve increased by 2.7% to $1.19 billion in 2025 Q2, compared to $1.16 billion in 2024 Q2.

Earnings/Net Income

Flowserve's EPS rose by 12.7% to $0.62 in 2025 Q2 from $0.55 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $88.22 million in 2025 Q2, marking 15.4% growth from $76.45 million in 2024 Q2. The EPS performance indicates healthy financial results.

Price Action

The stock price of Flowserve has dropped 3.60% during the latest trading day, has climbed 4.33% during the most recent full trading week, and has jumped 8.33% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Flowserve shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days delivered moderate returns but underperformed the benchmark. With a compound annual growth rate (CAGR) of 11.27%, the strategy trailed the benchmark by 17.32 percentage points. The maximum drawdown of 0% and a Sharpe ratio of 0.33 indicated low risk but conservative returns. While the strategy yielded positive results, it was unable to match the benchmark's performance, suggesting that investors may be seeking higher returns elsewhere despite Flowserve's steady quarter-over-quarter growth. Investors might need to consider additional factors or strategies to enhance returns and better align with broader market performance.

CEO Commentary

“Our strong second quarter results reflect the successful ongoing execution of our 3D strategy and the Flowserve Business System,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. He highlighted that the company delivered sales and earnings growth while expanding margins, showcasing the resilience of its business model. Rowe expressed encouragement regarding the momentum through the first half of the year and confidence in executing at a high level across business environments. He emphasized the company’s positioning to achieve its long-term targets and create value for shareholders and stakeholders.

Guidance

Flowserve updated its full-year 2025 outlook, increasing the Adjusted EPS guidance range from $3.10-$3.30 to $3.25-$3.40. The company anticipates organic sales growth of 3% to 4%, with total sales growth expected to be between 5% and 6%. The adjusted tax rate is projected to be approximately 20%, while net interest expense is expected to remain around $70 million. Capital expenditures are guided to range from $80 million to $90 million, reflecting the company's strategic commitments.

Additional News

Flowserve Corporation announced the termination of its merger agreement with Chart Industries, Inc. The termination followed Flowserve's Board decision not to submit a revised merger offer after Chart's Board deemed a proposal from Baker Hughes as superior. As a result, Flowserve will receive a $266 million termination payment. Additionally, Flowserve's Board elected John Garrison as Independent Chairman following David E. Roberts' departure. In dividend news, Flowserve declared a quarterly cash dividend of $0.21 per share, payable on July 11, 2025, to shareholders of record as of June 27, 2025. This dividend reflects Flowserve's ongoing commitment to returning value to its shareholders.