Flowserve Reports Strong Q2 Earnings, Raises 2024 Outlook

Flowserve Corporation, a key player in the flow control products and services industry, has reported a strong performance for the second quarter, exceeding analyst expectations and increasing its full-year adjusted earnings forecast for 2024.

The company announced an adjusted earnings per share (EPS) of $0.73 for the second quarter, surpassing the analyst estimate of $0.63 by $0.10. Revenue for the period reached $1.16 billion, also exceeding consensus expectations of $1.13 billion.

Compared to the same quarter last year, Flowserve’s performance showed a remarkable improvement, with adjusted EPS rising by 40% and reported EPS increasing by 41%. The company’s success has been attributed to its operational excellence and strategic organizational adjustments, reflected in a 7.1% sales increase over the second quarter of 2023.

Bookings experienced significant growth, hitting $1.25 billion, the highest quarterly level since 2014, largely driven by record aftermarket activity exceeding $610 million. Adjusted gross and operating margins also improved, increasing by 200 and 210 basis points, respectively, compared to the previous year.

Scott Rowe, Flowserve’s President and CEO, credited the strong quarter to the company’s sustained momentum, highlighting substantial gains in bookings, revenue, and margins. Rowe expressed confidence in Flowserve’s ability to achieve its long-term objectives, backed by improved operational performance and strategic product management.

Given the company’s solid financial results and optimistic outlook for the rest of the year, Flowserve has raised its full-year adjusted EPS guidance for 2024 to a range of $2.60 to $2.75. This revision underscores the company’s ongoing commitment to growth and long-term value creation for its stakeholders.

Flowserve’s updated full-year guidance for 2024 reinforces its revenue growth target of 4.0% to 6.0% while maintaining most other financial objectives. The adjusted tax rate is now anticipated to be around 21%, with capital expenditures projected at $75 to $85 million.