Flowserve Corporation Reports Strong Fourth Quarter and Full-Year 2024 Financial Results
Introduction
Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for global infrastructure markets, announced its financial results for the fourth quarter and full year ended December 31, 2024. The company delivered robust performance, with significant growth in bookings, improved margins, and strong cash flow generation. Flowserve’s President and CEO, Scott Rowe, highlighted the company’s progress in 2024, emphasizing the launch of the Flowserve Business System and the implementation of its 3D strategy, which drove solid top-line growth, expanded margins, and increased adjusted earnings.
Key Fourth Quarter 2024 Results
- Bookings: $1.2 billion, including $618 million of aftermarket activity.
- Power Bookings: Increased by more than 40% year-over-year, with over $110 million in nuclear awards.
- Gross Margin: 31.5%, up 240 basis points from the prior year.
- Adjusted Gross Margin: 32.8%, up 300 basis points from the prior year.
- Operating Income: $125 million, up 14% year-over-year.
- Adjusted Operating Income: $149 million, up 22% year-over-year.
- Operating Cash Flow: $197 million, driven by strong earnings and working capital improvements.
- Earnings Per Share (EPS): $0.59, up 25.5% year-over-year.
- Adjusted EPS: $0.70, up 2.9% year-over-year.
Full Year 2024 Highlights
- Bookings: $4.66 billion, up 9.1% year-over-year.
- Sales: $4.558 billion, up 5.5% year-over-year.
- Operating Margin: 10.1%, up 240 basis points from the prior year.
- Adjusted Operating Margin: 11.8%, up 230 basis points from the prior year.
- Net Earnings Attributable to Flowserve Corporation: $282.8 million, up 51.2% year-over-year.
- Adjusted Net Earnings: $348.7 million, up 84.2% year-over-year.
- Operating Cash Flow: $425.3 million, up 30.5% year-over-year.
- Dividends: Authorized a quarterly cash dividend of $0.21 per share, payable on April 11, 2025.
Segment Performance
Flowserve Pumps Division
- Bookings: $3.304 billion, up 13.0% year-over-year.
- Sales: $3.159 billion, up 3.1% year-over-year.
- Gross Profit: $1.017 billion, up 12.2% year-over-year.
- Gross Margin: 32.2%, up 260 basis points from the prior year.
- Operating Income: $480.2 million, up 38.1% year-over-year.
- Adjusted Operating Income: $519.7 million, up 41.7% year-over-year.
- Adjusted Operating Margin: 16.5%, up 410 basis points from the prior year.
Flow Control Division
- Bookings: $1.371 billion, up 24.8% year-over-year.
- Sales: $1.409 billion, up 11.3% year-over-year.
- Gross Profit: $424 million, up 13.7% year-over-year.
- Gross Margin: 30.1%, up 70 basis points from the prior year.
- Operating Income: $158.3 million, up 7.0% year-over-year.
- Adjusted Operating Income: $190.7 million, up 13.4% year-over-year.
- Adjusted Operating Margin: 13.5%, up 50 basis points from the prior year.
Strategic Initiatives and Future Outlook
Flowserve’s strategic initiatives, including the launch of the Flowserve Business System and the 3D strategy, have positioned the company for continued growth. The company is focused on enhancing operational execution and reducing complexity through its 80-20 complexity reduction efforts. This focus is expected to drive long-term value for customers, shareholders, and associates.
2025 Guidance
Flowserve provided full-year 2025 guidance, including:
- Organic Sales Growth: 3% to 5%.
- Adjusted EPS: $3.10 to $3.30, representing a 22% increase at the midpoint compared to full-year 2024 adjusted EPS.
- Total Sales Growth: 5% to 7%.
- Net Interest Expense: Approximately $70 million.
- Adjusted Tax Rate: Approximately 21%.
- Capital Expenditures: $80 million to $90 million.
Scott Rowe, Flowserve’s President and CEO, commented, “We made significant progress throughout 2024, launching the Flowserve Business System and leveraging our 3D strategy to drive solid top-line growth, expand margins, increase adjusted earnings, and deliver strong cash flow. We enter 2025 with strong momentum, and we expect to build on this through enhanced operational execution and our 80-20 complexity reduction efforts. With these levers, we are well-positioned to continue creating long-term value for our customers, shareholders, and associates.”
