Flowserve Corporation Reports Second Quarter 2026 Results

About this update from Flowserve Corporation

Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, reported its financial results for the second quarter ended June 30, 2026. Highlights: Quarterly bookings of $1.35 billion, up 26% versus the prior year period, including record aftermarket bookings of $696 million Operating margin of 13.0% expanded 70 basis points and adjusted 1 operating margin 2 of 15.3% expanded 70 basis points compared to the prior year period Reported EPS of $0.77 and adjusted EPS 3 of $0.95 Updated full-year 2026 organic sales guidance to down approximately 1% reflecting the continued impact of Middle East conflict Raised the low end of adjusted EPS guidance 3 to $4.05 to $4.20 Management Commentary : "Flowserve delivered strong second quarter results, with significant bookings growth, robust operating margin expansion, and adjusted earnings per share above our initial expectations," said Scott Rowe, Flowserve's President and Chief Executive Officer. "Importantly, this marks our 14th consecutive quarter of year-over-year adjusted gross margin expansion, a reflection of the structural, durable progress we're making. These results, delivered against a dynamic market backdrop, underscore the strength of the Flowserve Business System and the power of the 3D growth strategy coupled with the commitment of our teams around the world." Rowe continued, "Demand across our end markets remains resilient, led by power, nuclear, and energy security investments. While our healthy project pipeline positions us for continued bookings growth, we are adjusting our full-year sales guidance to reflect geopolitical uncertainty in the Middle East and its expected impact on our run-rate business in the region during the second half of the year. At the same time, our strong earnings performance year to date and continued confidence in our ability to expand margins enable us to raise the low end of our full-year adjusted EPS guidance range. We remain firmly on track to deliver on our 2030 financial targets and create value for shareholders." Key Figures (unaudited) : (dollars in millions, except per share) Q2 2026   Q2 2025   Change   YTD 2026   YTD 2025   Change Original Equipment Bookings   $652.3 $453.3   43.9% $1,119.5   $990.2   13.1% Aftermarket Bookings $695.8 $620.6   12.1% $1,376.2   $1,309.2   5.1% Total Bookings   $1,348.1 $1,073.9   25.5%   $2,495.7   $2,299.4   8.5%                   Organic Sales 4         (3.3%)           (6.9%) Acquisition/Divestiture Impact       90 bps         60 bps Foreign Exchange Impact         80 bps           220 bps Reported Sales $1,169.2 $1,188.1   (1.6%) $2,237.4   $2,332.6   (4.1%)                       Operating Margin 13.0% 12.3%   70 bps 12.1%   11.9%   20 bps Adjusted Operating Margin   15.3% 14.6%   70 bps   15.2%   13.8%   140 bps Earnings Per Share (EPS) $0.77 $0.62   24.2% $1.41   $1.18   19.5% Adjusted Earnings Per Share (EPS)   $0.95 $0.91   4.4%   $1.80   $1.63   10.4% Cash From Operations   $129.2   $154.1   ($24.9)   $86.2   $104.2   ($18.0) Backlog 5   $3,336.0   $2,853.2   16.9%   $3,336.0   $2,853.2   16.9% 2026 Guidance 3 : The Company updated 2026 guidance:     Prior   Current Organic Sales Growth   (1%) to +2%   Approx. (1%) Impact From Acquisition/Divestiture   Approx. +300 bps   Approx. +300 bps Impact From Foreign Exchange Translation   Approx. +100 bps   Approx. +100 bps Total Sales Growth   +3% to +6%   Approx. +3% Adjusted EPS   $4.00 to $4.20   $4.05 to $4.20 Net Interest Expense   Approx. $85 million   Approx. $85 million Adjusted Tax Rate   21% to 22%   21% to 22% Capital Expenditures   $90 million to $100 million   Approx. $100 million The guidance assumes tariff rates in place as of July 1, 2026, and assumes current business conditions in the Middle East, which have been impacted by armed conflict and geopolitical instability, persist for the remainder of the year. Webcast and Conference Call Instructions: Flowserve will host its conference call to discuss second quarter results on Thursday, July 30, 2026, at 8:30 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve’s Investors page . Footnotes 1 See Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) and Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) tables for a detailed reconciliation of reported results to adjusted measures. 2 Adjusted operating margin is calculated by dividing adjusted operating income by sales. Adjusted operating income is derived by excluding the adjusted items. 3 Adjusted earnings per share (EPS) excludes realignment expenses, the impact from other specific discrete and below-the-line foreign currency effects and utilizes the then-applicable foreign exchange rates and fully diluted shares. Adjusted full-year 2026 EPS guidance excludes certain other discrete items which may arise during the year. 4 Organic is defined as the change in sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions and divestitures. The impact of currency translation is calculated by translating current year results on a monthly basis at prior year exchange rates for the same period. 5 Q2 and YTD 2026 backlog includes Trillium backlog of $225 million. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)   Three Months Ended June 30, (Amounts in thousands)   2026       2025     Sales $ 1,169,175   $ 1,188,092   Cost of sales   (784,449 )     (781,510 ) Gross profit   384,726       406,582   Selling, general and administrative expense   (266,318 )   (265,908 ) Net earnings from affiliates   33,015     5,916   Operating income   151,423     146,590   Interest expense   (25,696 )   (20,253 ) Interest income   5,023     2,526   Other expense, net   (12,087 )   (25,003 ) Earnings before income taxes   118,663     103,860   Provision for income taxes   (17,078 )   (15,636 ) Net earnings, including noncontrolling interests   101,585     88,224   Less: net earnings attributable to noncontrolling interests   (2,587 )   (6,470 ) Net earnings attributable to Flowserve Corporation $ 98,998   $ 81,754   Net earnings per share attributable to Flowserve Corporation common shareholders:     Basic $ 0.78   $ 0.62   Diluted   0.77     0.62     Weighted average shares - basic   127,644     130,846   Weighted average shares - diluted   128,358     131,599   Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data)   Three Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Net Earnings from Affiliates Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported $ 384,726   $ 266,318   $ 33,015   $ 151,423   $ (12,087 ) $ 17,078   $ 98,998   14.4 % 0.77   Reported as a percent of sales   32.9 %   22.8 %   2.8 %   13.0 %   -1.0 %   1.5 %   8.5 % Realignment charges (a)   32,979     (7,751 )   -     40,730     -     8,590     32,140   21.1 % 0.25   Acquisition and divestiture related (b)(c)   -     (9,316 )   (27,700 )   (18,384 )   -     2,163     (20,547 ) -11.8 % (0.16 ) Amortization of intangible assets (d)   1,543     (3,103 )   -     4,646     -     997     3,649   21.5 % 0.03   Discrete items (e)(f)   31     (215 )   -     246     3,076     782     2,540   23.5 % 0.02   Below-the-line foreign exchange impacts (g)   -     -     -     -     6,315     1,414     4,901   22.4 % 0.04   Adjusted $ 419,279   $ 245,933   $ 5,315   $ 178,661   $ (2,696 ) $ 31,024   $ 121,681   20.0 % 0.95   Adjusted as a percent of sales   35.9 %   21.0 %   0.5 %   15.3 %   -0.2 %   2.7 %   10.4 %   Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $5,003 is non-cash. (b) Charges represent $9,316 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO). (c) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. (d) Charges represent non-cash amortization of intangible assets. (e) Charges represent $246 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (f) Charges include $3,076 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada. (g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.     Three Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported $ 406,582   $ 265,908   $ 146,590   $ (25,003 ) $ 15,636   $ 81,754     15.1 % 0.62   Reported as a percent of sales   34.2 %   22.4 %   12.3 %   -2.1 %   1.3 %   6.9 % Realignment charges (a)   5,106     1,787     3,319     -     1,318     2,001     39.7 % 0.02   Acquisition related (b)   752     (3,190 )   3,942     -     927     3,015     23.5 % 0.02   Purchase accounting step-up and intangible asset amortization (c)   2,642     (1,300 )   3,942     -     1,186     2,756     30.1 % 0.02   Discrete items (d)(e)   42     (382 )   424     1,500     453     1,471     23.5 % 0.01   Merger transaction costs (f)   -     (15,515 )   15,515     -     3,649     11,866     23.5 % 0.09   Below-the-line foreign exchange impacts (g)   -     -     -     20,023     2,910     17,113     14.5 % 0.13   Adjusted $ 415,124   $ 247,308   $ 173,732   $ (3,480 ) $ 26,079   $ 119,976     17.1 % 0.91   Adjusted as a percent of sales   34.9 %   20.8 %   14.6 %   -0.3 %   2.2 %   10.1 %   Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash. (b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. (c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. (d) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (e) Charge of $1,500 represents a pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. (f) Charge represents transaction costs incurred associated with the Chart Industries merger. (g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. SEGMENT INFORMATION (Unaudited) Three Months Ended June 30, FLOWSERVE PUMPS DIVISION   2026       2025   (Amounts in millions, except percentages)   Bookings $ 938.1   $ 723.8   Sales   814.1     818.9   Gross profit   296.1     299.2   Gross profit margin   36.4 %   36.5 % SG&A   148.0     142.4   Segment operating income   181.2     162.7   Segment operating income as a percentage of sales   22.3 %   19.9 %   Three Months Ended June 30, FLOW CONTROL DIVISION   2026       2025   (Amounts in millions, except percentages)   Bookings $ 417.1   $ 354.7   Sales   357.3     371.5   Gross profit   88.5     107.7   Gross profit margin   24.8 %   29.0 % SG&A   77.5     69.9   Segment operating income   11.0     37.8   Segment operating income as a percentage of sales   3.1 %   10.2 % Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands)   Flowserve Pumps Division Three Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Net Earnings from Affiliates Operating Income Three Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported $ 296,141   $ 148,003   $ 33,014   $ 181,151   Reported $ 299,229   $ 142,400   $ 162,745   Reported as a percent of sales   36.4 %   18.2 %   4.1 %   22.3 % Reported as a percent of sales   36.5 %   17.4 %   19.9 % Realignment charges (a)   10,521     (5,392 )   -     15,913   Realignment charges (a)   1,888     (1,749 )   3,637   Discrete items (b)   24     (48 )   -     72   Discrete items (b)   35     (99 )   134   Acquisition and divestiture related (c)(e)   -     (774 )   (27,700 )   (26,926 ) Adjusted $ 301,152   $ 140,552   $ 166,516   Amortization of intangible assets (d)   1,443     (1,801 )   -     3,244   Adjusted as a percent of sales   36.8 %   17.2 %   20.3 % Adjusted $ 308,129   $ 139,988   $ 5,314   $ 173,454   Adjusted as a percent of sales   37.8 %   17.2 %   0.7 %   21.3 %   Flow Control Division Three Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Operating Income Three Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported $ 88,546   $ 77,528   $ 11,018   Reported $ 107,694   $ 69,922   $ 37,772   Reported as a percent of sales   24.8 %   21.7 %   3.1 % Reported as a percent of sales   29.0 %   18.8 %   10.2 % Realignment charges (a)   22,458     (1,735 )   24,193   Realignment charges (a)   3,217     3,504     (287 ) Discrete items (b)   5     (20 )   25   Acquisition related (c)   752     (3,190 )   3,942   Acquisition and divestiture related (c)   -     (8,427 )   8,427   Purchase accounting step-up and intangible asset amortization (d)   2,642     (1,300 )   3,942   Amortization of intangible assets (d)   100     (1,302 )   1,402   Discrete items (b)   5     (99 )   104   Adjusted $ 111,109   $ 66,044   $ 45,065   Adjusted $ 114,310   $ 68,838   $ 45,472   Adjusted as a percent of sales   31.1 %   18.5 %   12.6 % Adjusted as a percent of sales   30.8 %   18.5 %   12.2 %     Note: Amounts may not calculate due to rounding Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $5,003 is non-cash. (a) Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash. (b) Charges represent $97 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (b) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (c) Charges represent $9,201 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Flowserve Al Mansoori Services Company (FAMCO) and Trillium Valves within FPD and FCD, respectively. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. (d) Charges represent non-cash amortization of intangible assets. (d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. (e) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data) Six Months Ended June 30,     2026       2025     Sales $ 2,237,444   $ 2,332,635   Cost of sales   (1,472,877 )     (1,556,719 ) Gross profit   764,567       775,916   Selling, general and administrative expense   (529,718 )   (509,085 ) Net earnings from affiliates   36,006     11,648   Operating income   270,855     278,479   Interest expense   (46,127 )   (39,428 ) Interest income   6,523     4,271   Other expense, net   (5,088 )   (42,262 ) Earnings before income taxes   226,163     201,060   Provision for income taxes   (38,209 )   (33,379 ) Net earnings, including noncontrolling interests   187,954     167,681   Less: Net earnings attributable to noncontrolling interests   (7,275 )   (12,022 ) Net earnings attributable to Flowserve Corporation $ 180,679   $ 155,659   Net earnings per share attributable to Flowserve Corporation common shareholders:     Basic $ 1.42   $ 1.19   Diluted   1.41     1.18       Weighted average shares - basic   127,569     131,206   Weighted average shares - diluted   128,489     132,135   Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data)   Six Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Net Earnings from Affiliates Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported $ 764,567   $ 529,718   $ 36,006   $ 270,855   $ (5,088 ) $ 38,209   $ 180,679   16.9 % 1.41   Reported as a percent of sales   34.2 %   23.7 %   1.6 %   12.1 %   -0.2 %   1.7 %   8.1 % Realignment charges (a)   49,481     (20,216 )   -     69,697     -     13,033     56,664   18.7 % 0.44   Acquisition and divestiture related (b)(c)   -     (17,904 )   (27,700 )   (9,796 )   -     4,313     (14,109 ) -44.0 % (0.11 ) Amortization of intangible assets (d)   2,556     (5,347 )   -     7,903     -     1,520     6,383   19.2 % 0.05   Discrete items (e)(f)   62     (889 )   -     951     4,576     1,301     4,226   23.5 % 0.03   Below-the-line foreign exchange impacts (g)   -     -     -     -     (2,723 )   (187 )   (2,536 ) 6.9 % (0.02 ) Adjusted $ 816,666   $ 485,362   $ 8,306   $ 339,610   $ (3,235 ) $ 58,189   $ 231,307   19.6 % 1.80   Adjusted as a percent of sales   36.5 %   21.7 %   0.4 %   15.2 %   -0.1 %   2.6 %   10.3 %   Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. (b) Charges represent $17,904 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO). (c) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. (d) Charges represent non-cash amortization of intangible assets. (e) Charges represent discrete items including $523 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan and $428 of transaction costs related to the divestiture of our asbestos-related assets and liabilities. (f) Charges include $4,576 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada. (g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.   Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported $ 775,916   $ 509,085   $ 278,479   $ (42,262 ) $ 33,379   $ 155,659     16.6 % 1.18   Reported as a percent of sales   33.3 %   21.8 %   11.9 %   -1.8 %   1.4 %   6.7 % Realignment charges (a)   15,121     3,091     12,030     -     3,189     8,841     26.5 % 0.07   Acquisition related (b)   752     (4,471 )   5,223     -     1,228     3,995     23.5 % 0.03   Purchase accounting step-up and intangible asset amortization (c)   6,117     (2,600 )   8,717     -     2,547     6,170     29.2 % 0.05   Discrete items (d)(e)   75     (765 )   840     3,000     903     2,937     23.5 % 0.02   Merger transaction costs (f)   -     (15,515 )   15,515     -     3,649     11,866     23.5 % 0.09   Below-the-line foreign exchange impacts (g)   -     -     -     31,396     5,355     26,041     17.1 % 0.20   Adjusted $ 797,981   $ 488,825   $ 320,804   $ (7,866 ) $ 50,250   $ 215,509     18.1 % 1.63   Adjusted as a percent of sales   34.2 %   21.0 %   13.8 %   -0.3 %   2.2 %   9.2 %   Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $3,000 is non-cash. (b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. (c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. (d) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (e) Charge of $3,000 represents a pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. (f) Charge represents transaction costs incurred associated with the Chart Industries merger. (g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. SEGMENT INFORMATION (Unaudited)   FLOWSERVE PUMPS DIVISION Six Months Ended June 30, (Amounts in millions, except percentages)   2026       2025       Bookings $ 1,711.4   $ 1,576.1   Sales   1,558.6     1,602.1   Gross profit   566.1     567.7   Gross profit margin   36.3 %   35.4 % SG&A   295.2     280.1   Segment operating income   306.9     299.3   Segment operating income as a percentage of sales   19.7 %   18.7 %   FLOW CONTROL DIVISION Six Months Ended June 30, (Amounts in millions, except percentages)   2026       2025       Bookings $ 791.3   $ 730.4   Sales   684.9     735.6   Gross profit   197.5     207.9   Gross profit margin   28.9 %   28.3 % SG&A   144.8     138.6   Segment operating income   52.7     69.3   Segment operating income as a percentage of sales   7.7 %   9.4 % Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands)   Flowserve Pumps Division Six Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Net Earnings from Affiliates Operating Income Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported $ 566,068   $ 295,171   $ 36,006   $ 306,902   Reported $ 567,691   $ 280,080   $ 299,259   Reported as a percent of sales   36.3 %   18.9 %   2.3 %   19.7 % Reported as a percent of sales   35.4 %   17.5 %   18.7 % Realignment charges (a)   20,609     (9,533 )   -     30,142   Realignment charges (a)   4,867     (751 )   5,618   Discrete items (b)   48     (96 )   -     144   Discrete items (b)   63     (224 )   287   Acquisition and divestiture related (c)(e)   -     (813 )   (27,700 )   (26,887 ) Adjusted $ 572,621   $ 279,105   $ 305,164   Amortization of intangible assets (d)   2,456     (2,746 )   -     5,202   Adjusted as a percent of sales   35.7 %   17.4 %   19.0 % Adjusted $ 589,181   $ 281,983   $ 8,306   $ 315,503   Adjusted as a percent of sales   37.8 %   18.1 %   0.5 %   20.2 %   Flow Control Division Six Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Operating Income Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported $ 197,493   $ 144,759   $ 52,734   Reported $ 207,881   $ 138,627   $ 69,254   Reported as a percent of sales   28.8 %   21.1 %   7.7 % Reported as a percent of sales   28.3 %   18.8 %   9.4 % Realignment charges (a)   28,872     3,286     25,586   Realignment charges (a)   10,319     3,625     6,694   Discrete items (b)   10     (75 )   85   Acquisition related (c)   752     (4,471 )   5,223   Acquisition and divestiture related (c)   -     (16,165 )   16,165   Purchase accounting step-up and intangible asset amortization (d)   6,117     (2,600 )   8,717   Amortization of intangible assets (d)   100     (2,601 )   2,701   Discrete items (b)   9     (163 )   172   Adjusted $ 226,475   $ 129,204   $ 97,271   Adjusted $ 225,078   $ 135,018   $ 90,060   Adjusted as a percent of sales   33.1 %   18.9 %   14.2 % Adjusted as a percent of sales   30.6 %   18.4 %   12.2 %     Note: Amounts may not calculate due to rounding Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. (a) Charges represent realignment costs incurred as a result of realignment programs of which $3,000 is non-cash. (b) Charges represent $229 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (b) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (c) Charges represent $16,978 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray and Flowserve Al Mansoori Services Company (FAMCO) within FPD and Trillium Valves within FCD. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. (d) Charges represent non-cash amortization of intangible assets. (d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. (e) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. Segment Results             (Unaudited)                         Flowserve Pumps Division                         (dollars in millions) Q2 2026 Q2 2025 Change   YTD 2026 YTD 2025 Change Organic Bookings     26.8%     5.0% Acquisition / Divestiture Impact     1.1%     0.7% FX Impact (a)     1.7%       2.9% Total Bookings (b) $938 $724 29.6% $1,711 $1,576 8.6%             Organic Sales     (3.2%)     (6.3%) Acquisition / Divestiture Impact     1.4%     0.9% FX Impact (a)     1.2%       2.7% Reported Sales (b) $814 $819 (0.6%) $1,559 $1,602 (2.7%)             Gross Margin 36.4% 36.5% (10 bps) 36.3% 35.4% 90 bps Adjusted Gross Margin (c) 37.8% 36.8% 100 bps 37.8% 35.7% 210 bps Operating Margin 22.3% 19.9% 240 bps 19.7% 18.7% 100 bps Adjusted Operating Margin (d) 21.3% 20.3% 100 bps 20.2% 19.0% 120 bps Backlog (b) $2,204 $1,981 11.3% $2,204 $1,981 11.3%                         Flowserve Control Division                         (dollars in millions) Q2 2026 Q2 2025 Change   YTD 2026 YTD 2025 Change Organic Bookings     17.3%     6.9% Acquisition / Divestiture Impact     0.0%     0.0% FX Impact (a)     0.3%       1.4% Total Bookings (b) $417 $355 17.6% $791 $730 8.3%             Organic Sales     (3.8%)     (7.9%) Acquisition / Divestiture Impact     0.0%     0.0% FX Impact (a)     0.0%       1.0% Reported Sales (b) $357 $371 (3.8%) $685 $736 (6.9%)             Gross Margin 24.8% 29.0% (420 bps) 28.8% 28.3% 50 bps Adjusted Gross Margin (c) 31.1% 30.8% 30 bps 33.1% 30.6% 250 bps Operating Margin 3.1% 10.2% (710 bps) 7.7% 9.4% (170 bps) Adjusted Operating Margin (d) 12.6% 12.2% 40 bps 14.2% 12.2% 200 bps Backlog (b) $1,154 $881 30.9% $1,154 $881 30.9%             (a) Constant foreign exchange (FX) represents the year-over-year variance assuming 2026 results at 2025 FX rates (b) Bookings, sales, and backlog do not include interdivision eliminations (c) Adjusted gross margin is a non‑GAAP financial measure. Adjusted gross margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding realignment charges and other specific discrete items. See the Segment Reconciliation of Non‑GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) (d) Adjusted operating margin excludes realignment charges and other specific discrete items CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, (Amounts in thousands, except par value)   2026     2025       ASSETS Current assets: Cash and cash equivalents $ 731,007   $ 760,183   Accounts receivable, net of allowance for expected credit losses of $89,364 and $83,094, respectively   1,056,706     1,029,095   Contract assets, net of allowance for expected credit losses of $5,871 and $6,028, respectively   340,234     322,472   Inventories   832,537     789,898   Prepaid expenses and other   158,642     141,237   Total current assets   3,119,126     3,042,885   Property, plant, and equipment, net of accumulated depreciation of $1,233,503 and $1,224,912, respectively   595,446     566,751   Operating lease right-of-use asset, net   170,716     166,031   Goodwill   1,744,877     1,391,988   Deferred taxes   160,395     156,250   Other intangible assets, net   345,231     198,475   Other assets, net of allowance for expected credit losses of $66,209 and $66,047, respectively   184,497     185,820   Total assets $ 6,320,288   $ 5,708,200     LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 543,323   $ 554,243   Accrued liabilities   561,747     587,475   Contract liabilities   293,864     274,669   Debt due within one year   12,741     49,868   Operating lease liabilities   37,330     35,630   Total current liabilities   1,449,005     1,501,885   Long-term debt due after one year   2,122,423     1,525,210   Operating lease liabilities   145,851     149,565   Retirement obligations and other liabilities   275,552     277,216   Contingencies (See Note 12) Shareholders’ equity: Preferred shares, $1.00 par value   —     —   Shares authorized — 1,000, no shares issued Common shares, $1.25 par value   220,991     220,991   Shares authorized — 305,000 Shares issued — 176,793 and 176,793, respectively Capital in excess of par value   494,925     508,890   Retained earnings   4,385,914     4,261,977   Treasury shares, at cost — 49,532 and 49,763 shares, respectively   (2,241,970 )   (2,231,685 ) Deferred compensation obligation   7,015     6,629   Accumulated other comprehensive loss   (607,263 )   (575,405 ) Total Flowserve Corporation shareholders' equity   2,259,612     2,191,397   Noncontrolling interests   67,845     62,927   Total equity   2,327,457     2,254,324   Total liabilities and equity $ 6,320,288   $ 5,708,200   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (Amounts in thousands)   2026       2025       Cash flows — Operating activities:     Net earnings, including noncontrolling interests $ 187,954   $ 167,681           Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation   40,414     38,695   Amortization of intangible and other assets   7,903     9,589   (Gain) on remeasurement of previously held equity interest   (27,700 )   —   Stock-based compensation   20,595     18,822   Foreign currency, asset write downs and other non-cash adjustments   (17,314 )   (6,211 ) Change in assets and liabilities:   Accounts receivable, net   6,859     (22,631 ) Inventories   (4,294 )   14,208   Contract assets, net   (11,161 )   (28,930 ) Prepaid expenses and other assets, net   17,984     13,589   Accounts payable   (52,347 )   (10,414 ) Contract liabilities   (10,439 )   (15,254 ) Accrued liabilities   (80,798 )   (84,466 ) Retirement obligations and other liabilities   9,801     2,196   Net deferred taxes   (1,291 )   7,338   Net cash flows provided by operating activities   86,166     104,212   Cash flows — Investing activities:     Capital expenditures   (33,807 )   (28,340 ) Payments for acquisitions, net of cash acquired   (517,735 )   —   Proceeds from disposal of assets   9,865     867   Affiliate investment activity   (2,000 )   —   Net cash flows (used) by investing activities   (543,677 )   (27,473 ) Cash flows — Financing activities:     Proceeds from issuance of senior notes   499,320     —   Payments on term loan   (77,875 )   (18,750 ) Proceeds from long-term debt   74,750     —   Payment of deferred loan costs   (4,893 )   —   Proceeds under revolving credit facility   150,000     50,000   Payments under revolving credit facility   (100,000 )   (50,000 ) Proceeds under other financing arrangements   998     3,072   Payments under other financing arrangements   (5,266 )   (1,231 ) Repurchases of common shares   (25,000 )   (52,797 ) Payments related to tax withholding for stock-based compensation   (23,011 )   (11,337 ) Payments of dividends   (54,838 )   (55,209 ) Contingent consideration payment related to acquired business   —     (15,000 ) Other   529     (3,192 ) Net cash flows (used) provided by financing activities   434,714     (154,444 ) Effect of exchange rate changes on cash and cash equivalents   (6,379 )   31,467   Net change in cash and cash equivalents   (29,176 )   (46,238 ) Cash and cash equivalents at beginning of period   760,183     675,441   Cash and cash equivalents at end of period $ 731,007   $ 629,203   About Flowserve: Flowserve Corporation is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company’s website at www.flowserve.com . Safe Harbor Statement : This news release 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 of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition. The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, blockades or other closures of major trade lanes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrate new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission. All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement. The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729051430/en/

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