Flowserve Corporation · NYSE:FLS
Flowserve — Q3 2026 Earnings Presentation
22 slides from Flowserve's earnings presentation, Oct 29, 2026
Slide 1: Q3 2026 Earnings Conference Call
Q3 2026 EARNINGS CONFERENCE CALL October 29, 2026
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
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 •
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
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
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
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
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
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
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
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
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 •
Slide 13: Appendix
Appendix Q3 2026 Earnings Conference Call 13
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
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
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
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),
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
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
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
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
Slide 22: Investor Relations Contact
Investor Relations Contact Olivia Webb, Director, Investor Relations [email protected]