Flowserve Corporation · NYSE:FLS

Flowserve — Q3 2026 Earnings Presentation

22 slides from Flowserve's earnings presentation, Oct 29, 2026

  1. Slide 1: Q3 2026 Earnings Conference Call

    Q3 2026 EARNINGS CONFERENCE CALL October 29, 2026

  2. 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the

  3. Slide 3: Summary

    SUMMARY • Significant Q3 bookings growth of +14% (+8% organic) • Record aftermarket bookings of $728 million • Record backlog of $3.5 billion, up +20% • Adjusted operating margin* expansion of +170 bps, adjusted EPS* growth of +19% • Confidence in full-year mid-single digit organic bookings growth •

  4. Slide 4: Bookings and Backlog Overview

    Q3 2026 BOOKINGS AND BACKLOG OVERVIEW BOOKINGS BACKLOG $ millions $ millions +14% +8% organic +20% 1,384 3,472 1,213 2,896 +17% Original Equipment 656 Double-digit growth driven by 560 strong commercial activity from global projects +11% Aftermarket Over $700 million of aftermarket bookings and fift

  5. Slide 5: Bookings and Market Outlook

    Q3 2026 BOOKINGS AND MARKET OUTLOOK Q3 2026 Q3 2026 YTD 2026 End Market Mix Bookings Growth Bookings Growth 38% Energy +40% +25% 28% General Industries (8%) (1%) 17% Chemical Flat +3% 17% Power +23% +12% • Strong project bookings were partially offset by lower Middle East run-rate bookings • End mar

  6. Slide 6: Middle East Update

    MIDDLE EAST UPDATE Q3 2026 Q4 2026 and Beyond • Continued long-term progress while short-term • Q4 assumes current operating environment has been challenged continues, with a larger sales headwind than Q3 • Project bookings increased, led by large energy project awards • Project funnel remains activ

  7. Slide 7: Flowserve Business System

    FLOWSERVE BUSINESS SYSTEM • On track for ~16% adjusted operating margin* in 2026, advancing toward 2030 target of 20% • Year three of 80/20 program, with further margin improvement expected over at least the next two years • Trillium 80/20 actions underway, with opportunities to reduce complexity an

  8. Slide 8: Income Statement Highlights

    Q3 2026 INCOME STATEMENT HIGHLIGHTS SALES ADJ. GROSS MARGIN* Q3 2026 vs. Q3 2025 Sales Bridge $1.2B 36.7% Implied Underlying Growth ~3 pt Middle East (~3 pt) +5% +190 bps 80/20 Headwind (~1 pt) Organic Sales1 (1.2%) ADJ. OPERATING ADJ. EPS* MARGIN* Acquisitions / Divestitures 670 bps Foreign Exchang

  9. Slide 9: Segment Highlights

    Q3 2026 SEGMENT HIGHLIGHTS FPD FCD Q3 2026 Year-Over-Year Q3 2026 Year-Over-Year Bookings $940M 14.7%1 $446M 12.6%2 Sales $830M 3.8%1 $412M 9.1%2 Adjusted Gross Margin* 38.1% 220 bps 33.2% 110 bps Adjusted Operating Income* $181M 15.4% $67M 9.1% Adjusted Operating Margin* 21.8% 220 bps 16.3% Flat Bo

  10. Slide 10: Cash Flow and Balance Sheet

    Q3 2026 CASH FLOW AND BALANCE SHEET OPERATING CASH FLOW $ millions • $144 million of cash from operations from strong earnings and continued working capital management, partially offset by Middle East headwinds $129 $144 • Third quarter free cash flow-to-adjusted net earnings* of 92%1 Q2 2026 Q3 202

  11. Slide 11: 2026 Full-Year Guidance and Q4 2026 Assumptions

    2026 FULL-YEAR GUIDANCE AND Q4 2026 ASSUMPTIONS 2026 Full-Year Guidance Prior Current Q4 2026 Specific Assumptions Organic Sales Growth Approximately (1%) (2.5%) to (1.5%) Total Sales Growth1 Approximately +3% +2% to +3% • Organic sales growth of mid-single digits Adjusted EPS2* $4.05 to $4.20 $4.10

  12. Slide 12: Summary

    SUMMARY • Significant Q3 bookings growth of +14% (+8% organic) • Record aftermarket bookings of $728 million • Record backlog of $3.5 billion, up +20% • Adjusted operating margin* expansion of +170 bps, adjusted EPS* growth of +19% • Confidence in full-year mid-single digit organic bookings growth •

  13. Slide 13: Appendix

    Appendix Q3 2026 Earnings Conference Call 13

  14. Slide 14: Q3 2026 Consolidated Financial Results

    Q3 2026 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 Gross & Administrative Gain on Sale Operating Other Income

  15. Slide 15: YTD 2026 Consolidated Financial Results

    YTD 2026 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) Provision For Selling, General (Benefit & Administrative Gain on Sale Net earnings Opera

  16. Slide 16: Q3 2025 Consolidated Financial Results

    Q3 2025 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

  17. Slide 17: YTD 2025 Consolidated Financial Results

    YTD 2025 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 Other Income Provision For Gross & Administrative Operating (Expense),

  18. Slide 18: Q3 2026 and Q3 2025 Segment Financial Results

    Q3 2026 AND Q3 2025 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

  19. Slide 19: YTD 2026 and 2025 Segment Financial Results

    YTD 2026 AND 2025 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 Net earnings Operating Administrat

  20. Slide 20: 2026 Segment Bookings and Sales

    2026 SEGMENT BOOKINGS AND SALES (Unaudited) Bookings Reported Acquisitions / Organic (b) Reported Acquisitions / Organic (b) (dollars in millions) Q3 2026 Q3 2025 Change Divestitures Impact FX Impact (a) Change YTD 2026 YTD 2025 Change Divestitures Impact FX Impact (a) Change Flowserve Pumps Divisio

  21. Slide 21: Adjusted EBITDA Reconciliation

    ADJUSTED EBITDA RECONCILIATION Consolidated Reconciliations of Net Income to Adjusted EBITDA (Unaudited) (Amounts in thousands) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended March 31, June 30, September 30, March 31, June 30, Septem

  22. Slide 22: Investor Relations Contact

    Investor Relations Contact Olivia Webb, Director, Investor Relations [email protected]

Flowserve — Q3 2026 Earnings Presentation on 6ix