Flowserve Q4 sales miss estimates

Overview

• Flow control provider's Q4 sales missed analyst expectations

• Adjusted EPS for Q4 grew 58.6% yr/yr

• Company announced acquisition of Trillium Flow Technologies' Valves Division

Outlook

• Flowserve expects 2026 total sales growth of 5% to 7%

• Company projects 2026 adjusted EPS between $4.00 and $4.20

• Flowserve aims for ~20% adjusted operating margin by 2030

Result Drivers

• AFTERMARKET GROWTH - Flowserve reported a 10% increase in aftermarket bookings, contributing to strong Q4 results

• OPERATING MARGIN IMPROVEMENT - Adjusted operating margin rose to 16.8% despite asbestos divestiture impact

• FLOWERVE BUSINESS SYSTEM - Co credits Flowserve Business System for reaching operating margin targets ahead of schedule

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Flowserve Corp is $81.00, about 1.6% above its February 4 closing price of $79.76

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw6CQdXZa

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