Slide 1: Q2 2024 Earnings Conference Call
Q2 2024 EARNINGS CONFERENCE CALL July 30, 2024
Slide 2: Forward Looking Statement and Non-GAAP Measures
FORWARD LOOKING STATEMENT AND NON-GAAP MEASURES Safe Harbor Statement: This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions o
Slide 3: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS TOTAL BOOKINGS 3D BOOKINGS REVENUE GROWTH $1.25B Over 25% 7.1% Record aftermarket bookings 3D Strategy delivered Strong revenue growth driven and large project activity meaningful bookings by original equipment sales ADJUSTED GROSS ADJUSTED OPERATING ADJUSTED EPS* MARGINS* MARGINS
Slide 4: Q2 2024 Overview
Q2 2024 OVERVIEW BOOKINGS SALES OPERATING CASH FLOW ADJUSTED EPS* $ millions $ millions $ millions 12% 7% $1,246 $62 $1,157 $1,111 $1,080 $1,087 40% $1,038 $0.73 $24 $0.58 ($13) $0.52 2023 Q2 2024 Q1 2024 Q2 2023 Q2 2024 Q1 2024 Q2 2023 Q2 2024 Q1 2024 Q2 2023 Q2 2024 Q1 2024 Q2 Balanced mix of larg
Slide 5: Q2 2024 Bookings Mix
Q2 2024 BOOKINGS MIX OIL & GAS: 40% ORIGINAL EQUIPMENT • High asset utilization continues to drive elevated aftermarket activity $ millions • Natural gas and LNG investments remain strong • Strong Middle East project activity with liquid-to-chemicals, gas-to-liquids and industry 22% diversification
Slide 6: Q2 2024 Sales Mix
Q2 2024 SALES MIX ORIGINAL EQUIPMENT $ millions Geographic Mix Revenue Growth 9% $566 $518 $529 18% 49% 49% 48% 42% Europe Q2: 7% 17% North America 2023 Q2 2024 Q1 2024 Q2 Q2: 5% 16% Asia Pacific Q2: 5% AFTERMARKET Middle East $ millions 7% & Africa 5% Q2: 11% $591 Latin America $563 $559 Q2: 13% 52
Slide 7: Q2 2024 Segment Highlights
Q2 2024 SEGMENT HIGHLIGHTS FPD FCD As Reported Year-Over-Year As Reported Year-Over-Year Bookings $898.8 18.3% $349.2 (2.9)% Revenue $812.2 6.1% $347.7 9.4% Adjusted Gross Margin* 32.9% 300 bps 30.6% 30 bps Adjusted Operating Margin* 16.9% 370 bps 13.4% 10 bps Book-to-Bill 1.11x 1.0x Exceptional res
Slide 8: Technology Developments
TECHNOLOGY DEVELOPMENTS Liquified Natural Gas (LNG) Hydrogen Fueling LNG Pump Liquid Hydrogen Pump • LNG bookings approaching $100 million on an annual basis • Acquired Chart’s hydrogen distribution pumping technology in the third quarter of 2022 • Acquisition of submerged cryogenic LNG pumping tech
Slide 9: Flowserve 3D Growth Strategy in Action
FLOWSERVE 3D GROWTH STRATEGY IN ACTION DIVERSIFY – Enabling Innovative DECARBONIZE – Building DIGITIZE – Customer Saves Plastic Recycling Hydrogen Fueling Capabilities Millions by Avoiding Downtime • Awarded an order to support the • Received an order to support liquid • RedRaven predictive analytic
Slide 10: Revised 2024 Adjusted EPS Guidance
REVISED 2024 ADJUSTED EPS* GUIDANCE 2023 2024 2027 (Updated Guidance at Midpoint) Analyst Day Targets • Updated guidance 27% above 2023 adjusted EPS* $ 4.3B 5% $4.5B $5.0B Revenue (20% increase Growth compared to prior year) • Substantial progress towards 2027 targets Adjusted Operating 9.5% >200 >1
Slide 11: Key Takeaways
KEY TAKEAWAYS • Outstanding second quarter results driven by improved execution • Year-to-date performance, combined with our outlook for the rest of the year, provides confidence to increase our full-year Adjusted EPS* guidance to $2.60 to $2.75 • Bookings of $1.25 billion driven by higher project
Slide 12: Appendix
Appendix Q2 2024 Earnings Conference Call 12
Slide 13: Q2 2024 Consolidated Financial Results
Q2 2024 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Selling, General & Loss on Provision For Net Administrative Sale of Operating Other Incom
Slide 14: YTD 2024 Consolidated Financial Results
YTD 2024 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Selling, General Provision For Net & Administrative Loss on Sale Operating Other Income
Slide 15: Q2 2023 Consolidated Financial Results
Q2 2023 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Other Selling, General & Income Provision For Administrative Operating (Expense), (Benefi
Slide 16: YTD 2023 Consolidated Financial Results
YTD 2023 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Selling, General Provision For & Administrative Operating Other Income (Benefit From) Ne
Slide 17: Q2 2024 and Q2 2023 Segment Financial Results
Q2 2024 AND Q2 2023 SEGMENT FINANCIAL RESULTS Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Selling, General Selling, General & Administrative Operating & Administrative Operati
Slide 18: YTD 2024 and 2023 Segment Financial Results
YTD 2024 AND 2023 SEGMENT FINANCIAL RESULTS Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Selling, General Selling, General & Administrative Operating & Administrative Operating
Slide 19: 2024 and 2023 Segment Bookings and Sales Mix
2024 AND 2023 SEGMENT BOOKINGS AND SALES MIX Flowserve Pumps Division ($ millions) Q2 2024 Q2 2023 Delta (%) Constant YTD 2024 YTD 2023 Delta (%) Constant FX (%)* FX (%)* 378 251 51% 51% 588 503 17% 17% OE 42% 33% 900 bps 37% 34% 300 bps Bookings Mix ** 521 509 2% 3% 1,014 985 3% 4% AM 58% 67% (900)
Slide 20: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Tarek Zeni 972.443.6560 469.420.4045 jroueche@flowserve.com tzeni@flowserve.com