Slide 1: Q3 2024 Earnings Conference Call
Q3 2024 EARNINGS CONFERENCE CALL October 29, 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: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS TOTAL BOOKINGS 3D BOOKINGS REVENUE GROWTH $1.20B 3.5% 34% Strong aftermarket activity Record levels of bookings Revenue growth driven by and project awards from our 3D Strategy original equipment sales ADJUSTED GROSS ADJUSTED EPS* CASH FROM MARGINS* OPERATIONS 32.4% $0.62 $178M In
Slide 4: Q3 2024 Overview
Q3 2024 OVERVIEW BOOKINGS SALES ADJUSTED EPS* OPERATING CASH FLOW $ millions $ millions $ millions 13% 4% 24% 121% $1,204 $1,133 $178 $1,067 $1,246 $1,095 $1,157 ** $0.69 $0.62 $0.73 $81 $0.50 ($13) 2023 Q3 2024 Q2 2024 Q3 2023 Q3 2024 Q2 2024 Q3 2023 Q3 2024 Q2 2024 Q3 2023 Q3 2024 Q2 2024 Q3 Secon
Slide 5: Q3 2024 Bookings Mix
Q3 2024 BOOKINGS MIX OIL & GAS: 38% ORIGINAL EQUIPMENT • Elevated utilization of process industries continues to drive strong aftermarket activity $ millions 21% • Middle East project activity remains above historical levels • Decarbonization of existing infrastructure is driving capital spending $5
Slide 6: Significant Opportunities in the Power Market
SIGNIFICANT OPPORTUNITIES IN THE POWER MARKET Nuclear Traditional Power • Power bookings have historically averaged between $400 to $500 million dollars annually Flowserve N-Seal Flowserve DHTW pump seal • Macro factors support projections for power demand to grow significantly over the next decade
Slide 7: Q3 2024 Sales Mix
Q3 2024 SALES MIX ORIGINAL EQUIPMENT $ millions Geographic Mix 5% Revenue Growth* $566 $556 $529 18% 49% 49% 48% 39% Europe Q3: 6% 18% North America 2023 Q3 2024 Q2 2024 Q3 Q3: (1%) 17% Asia Pacific Q3: 2% AFTERMARKET Middle East $ millions 2% 8% & Africa Q3: 11% $577 Latin America $566 $591 Q3: 11%
Slide 8: Q3 2024 Segment Highlights
Q3 2024 SEGMENT HIGHLIGHTS FPD FCD Q3 2024 Year-Over-Year Q3 2024 Year-Over-Year Bookings $886.6 20.7% $318.4 (3.7)% Revenue $782.1 2.1% $353.1 6.8% Adjusted Gross Margin* 33.7% 410 bps 29.9% 10 bps Adjusted Operating Margin* 16.4% 410 bps 14.0% (70) bps Book-to-Bill 1.13x 0.90x • Improved execution
Slide 9: MOGAS Acquisition
MOGAS ACQUISITION Closing Celebration • MOGAS acquisition supports 3D strategy and is expected to deliver value enhancing capital allocation • Diversified revenue of roughly $200 million balanced between mining and process industries • EBITDA margins accretive to our current FCD Day 1 celebration at
Slide 10: Flowserve 3D Growth Strategy in Action
FLOWSERVE 3D GROWTH STRATEGY IN ACTION DIVERSIFY – Delivering DECARBONIZE – Enabling Clean DIGITIZE – Optimizing Flow in Pharmaceutical Support Nuclear Power Food & Beverage • Awarded an order to supply vacuum • Received contract to provide pumps and • Awarded a 3-year contract to monitor pumps for
Slide 11: Reaffirmed 2024 Adjusted EPS Guidance
REAFFIRMED 2024 ADJUSTED EPS GUIDANCE 2023 2024 2027 (Guidance at Midpoint) Analyst Day Targets • Year-to-date revenue growth of 7% with near-record $ 4.3B backlog of $2.8 billion Revenue (20% increase 5% $4.5B $5.0B compared to prior year) Growth • Through nine months of 2024, adjusted operating ma
Slide 12: Key Takeaways
KEY TAKEAWAYS • Strong third quarter results underpinned by operational momentum and supportive end markets • Bookings of $1.2 billion comprised of robust aftermarket activity, project awards and record activity levels from our 3D strategy • Enhanced third quarter cash from operations of $178 millio
Slide 13: Appendix
Appendix Q3 2024 Earnings Conference Call 13
Slide 14: Q3 2024 Consolidated Financial Results
Q3 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 & Administrative Operating Other Income (Benefit From) Net
Slide 15: 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 & Administrative Loss on Sale of Operating Other Income (
Slide 16: Q3 2023 Consolidated Financial Results
Q3 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) Earnings Selling, General Provision For Attributable to & Administrative Operating Other
Slide 17: 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) Other Earnings Selling, General Income Provision For Attributable to & Administrative Op
Slide 18: Q3 2024 and Q3 2023 Segment Financial Results
Q3 2024 AND Q3 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 19: 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 Administrative Operating Nine Mont
Slide 20: 2024 and 2023 Segment Bookings and Sales Mix
2024 AND 2023 SEGMENT BOOKINGS AND SALES MIX Flowserve Pumps Division ($ millions) Q3 2024 Q3 2023 Delta (%) Constant YTD 2024 YTD 2023 Delta (%) Constant FX (%)* FX (%)* 358 234 53% 54% 946 736 29% 29% OE 40% 32% 800 bps 38% 33% 500 bps Bookings Mix ** 529 501 6% 6% 1,543 1,486 4% 5% AM 60% 68% (80
Slide 21: Investor Relations Contacts
Investor Relations Contacts Brian Ezzell Tarek Zeni 469.420.3222 469.420.4045 bezzell@flowserve.com tzeni@flowserve.com