Slide 1: Q4 2024 Earnings Conference Call
Q4 2024 EARNINGS CONFERENCE CALL February 19, 2025
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: Q4 2024 Highlights
Q4 2024 HIGHLIGHTS TOTAL BOOKINGS 3D BOOKINGS Nuclear Bookings $1.2B 31% $110M Strong aftermarket activity Solid bookings from our 3D Second consecutive quarter and project awards Strategy of bookings more than $100M ADJUSTED GROSS ADJUSTED EPS* CASH FROM MARGINS* OPERATIONS 32.8% $0.70 $197M Increa
Slide 4: Bookings
Q4 2024 BOOKINGS ORIGINAL EQUIPMENT $ millions • Total bookings growth of 13% versus the $589 14% prior year period, with book-to-bill of 1.0x 49% $557 $490 47% 47% • Power bookings were up more than 40% 2023 Q4 2024 Q3 2024 Q4 AFTERMARKET • Third consecutive quarter of aftermarket $ millions bookin
Slide 5: Year in Review
YEAR IN REVIEW • Meaningfully grew bookings, margins, adjusted EPS and operating cash flow • Launched Flowserve Business System • Introduced 11 new products • Acquired in-progress cryogenic pumps R&D • Completed Mogas acquisition Cryogenic pumps R&D acquisition for the LNG industry Q4 2024 Earnings
Slide 6: 3D Growth Strategy
3D GROWTH STRATEGY DIVERSIFY | DECARBONIZE | DIGITIZE DIVERSIFICATION • Strong growth in cycle- 9% Bookings resilient markets Growth* • M&A to support market diversification DECARBONIZATION • Energy transition 36% • Nuclear activity driven by Bookings Growth* power demand DIGITIZATION • Differentiat
Slide 7: Market Outlook
MARKET OUTLOOK OIL & GAS: • Consistent downstream utilization rates continue driving strong aftermarket and MRO activity • Decarbonization spending ongoing, with strong carbon capture activity • Market outlook remains constructive • Middle East projects continue to progress for projects, MRO and aft
Slide 8: Innovation
INNOVATION • Introduced 11 new products during the year • Collaborating with others, pioneering the world’s first molten salts energy storage plant • Up to 80% emissions reduction with Gaspac® ZE Expanded Solutions Offering Gaspac® ZE dry gas mechanical seal • Expanded capabilities of our Solutions
Slide 9: Flowserve Business System
FLOWSERVE BUSINESS SYSTEM • Business System enabling consistent execution across five critical functional disciplines and our seven business units • Operational excellence is increasing our productivity and enhancing product margins • Portfolio excellence, our 80/20 framework, is helping to optimize
Slide 10: Q4 2024 Overview
Q4 2024 OVERVIEW SALES ADJ. GROSS MARGIN* ADJ. OPERATING MARGIN* ADJ. EPS* $ millions 1% 210 bps 3% $1,180 300 bps $1,165 $1,133 32.4% 12.6% $0.70 32.8% $0.68 11.1% $0.62 10.5% 29.8% 2023 Q4 2024 Q3 2024 Q4 2023 Q4 2024 Q3 2024 Q4 2023 Q4 2024 Q3 2024 Q4 2023 Q4 2024 Q3 2024 Q4 Modest sales growth w
Slide 11: Q4 2024 FPD Segment
Q4 2024 FPD SEGMENT FPD Results Q4 2024 Year-Over-Year • Broad-based bookings growth with book-to-bill above 1.0x Bookings $816.4 13.0% • Sales declined, as expected, from Revenue $794.9 (4.6%) phasing of large projects and currency impacts Adjusted Gross Margin* 33.4% 450 bps • Exceptional adjusted
Slide 12: Q4 2024 FCD Segment
Q4 2024 FCD SEGMENT FCD Results Q4 2024 Year-Over-Year • Strong bookings growth across general industries and oil & gas end markets Bookings $363.4 11.2% Revenue $387.9 15.4% • Sales increased from both organic growth and Mogas acquisition Adjusted Gross Margin* 31.8% (40) bps • Solid sequential imp
Slide 13: Q4 2024 Cash Flow
Q4 2024 CASH FLOW OPERATING CASH FLOW $ millions • Strong fourth quarter cash flow performance, $195 $197 49% driving robust full-year operating cash flow of $425 million $178 2023 Q4 2024 Q3 2024 Q4 • Free cash flow of $344 million, with free cash FULL-YEAR FREE CASH FLOW* flow conversion* of nearl
Slide 14: 2025 Guidance Assumptions
2025 GUIDANCE ASSUMPTIONS Guidance Metric [1] 2025 Guidance Organic Growth Up 3.0% - 5.0% 2025 represents another meaningful step towards delivering on our long- Total Sales Growth [2] Up 5.0% - 7.0% term targets Adjusted EPS [3] $3.10 - $3.30 Revenues Adj. Operating Adj. EPS* Margin* Net Interest E
Slide 15: Purposeful Capital Allocation
PURPOSEFUL CAPITAL ALLOCATION Guiding Principles INVEST TO GROW ACQUISITIONS • Capital allocation based on highest long-term return • Accelerate 3D Strategy • Growth and margin expansion CAPEX • Strong financial returns • Free cash flow conversion • New product development and diversification target
Slide 16: Journey to 2027 Targets
JOURNEY TO 2027 TARGETS 2023 2024 2025 2027 (Guidance at Midpoint) Analyst Day Targets • Strong backlog and supportive end markets enabling growth Revenue $ 4.3B $ 4.6B 6% $4.8B $5.0B (+20%) (+5%) Growth • Further opportunities for margin expansion through Flowserve Business System Adjusted Operatin
Slide 17: Appendix
Appendix Q4 2024 Earnings Conference Call 17
Slide 18: Q4 2024 Consolidated Financial Results
Q4 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 19: FY 2024 Consolidated Financial Results
FY 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 (B
Slide 20: Q4 2023 Consolidated Financial Results
Q4 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) Net
Slide 21: FY 2023 Consolidated Financial Results
FY 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 Ope
Slide 22: Q4 2024 and Q4 2023 Segment Financial Results
Q4 2024 AND Q4 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 23: FY 2024 and 2023 Segment Financial Results
FY 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 24: 2024 and 2023 Segment Bookings and Sales Mix
2024 AND 2023 SEGMENT BOOKINGS AND SALES MIX Flowserve Pumps Division ($ millions) Q4 2024 Q4 2023 Delta (%) Constant FY 2024 FY 2023 Delta (%) Constant FX (%)1 FX (%) 2 $285 $241 18% 21% $1,230 $974 26% 27% OE 3 35% 33% 200 bps 37% 33% 400 bps Bookings Mix $531 $481 10% 12% $2,074 $1,967 5% 6% AM2
Slide 25: Investor Relations Contacts
Investor Relations Contacts Brian Ezzell Tarek Zeni 469.420.3222 469.420.4045 bezzell@flowserve.com tzeni@flowserve.com