2024 Q4

2023 Q4

Change

2024

2023

Change

$2,789.6

$2,695.1

3.5%

$2,789.6

$2,695.1

3.5%

$1,175.3

$1,043.6

12.6%

$4,660.8

$4,271.8

9.1%

$557.2

$490.3

13.6%

$2,238.4

$1,995.1

12.2%

$618.1

$553.3

11.7%

$2,422.4

$2,276.7

6.4%

$1,180.3

$1,165.2

1.3%

$4,557.8

$4,320.6

5.5%

(90) bps

510 bps

320 bps

90 bps

(100) bps

(50) bps

10.6%

9.4%

120 bps

10.1%

7.7%

240 bps

12.6%

10.5%

210 bps

11.8%

9.5%

230 bps

$0.59

$0.47

25.5%

$2.14

$1.42

50.7%

$0.70

$0.68

2.9%

$2.63

$2.10

25.2%

$197.3

$194.6

1.4%

$425.3

$325.8

30.5%

Target range

Organic sales growth

+3% to +5%

Impact from acquisitions

Approx. +300 bps

Impact from foreign exchange translation

Approx. (100 bps)

Total sales growth

+5% to +7%

Adjusted EPS

$3.10 to $3.30

Net interest expense

Approx. $70 million

Adjusted tax rate

Approx. 21%

Capital expenditures

$80 to $90 million

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 gross margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding the adjusted items.

³ Adjusted operating margin is calculated by dividing adjusted operating income by sales. Adjusted operating income is derived by excluding the adjusted items.

⁴ Adjusted 2025 EPS includes expected 16 cent contribution from MOGAS operations (inclusive of $7 million cost synergy benefit) and excludes potential realignment expenses, below-the-line foreign currency effects, and certain other discrete items which may arise during the year and utilizes prevailing FX rates and approximately 132 million fully diluted shares.

⁵ Adjusted 2024 EPS excludes realignment expenses, the impact from other specific discrete and below-the-line foreign currency effects and utilizes the then-applicable FX rates and approximately 132 million fully diluted shares.

⁶ Organic is defined as the change in sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions. 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.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended December 31,

(Amounts in thousands, except per share data)

2024

2023

Sales

$

1,180,348

$

1,165,179

Cost of sales

(808,234

)

(825,635

)

Gross profit

372,114

339,544

Selling, general and administrative expense

(251,966

)

(234,744

)

Net earnings from affiliates

4,557

4,663

Operating income

124,705

109,463

Interest expense

(20,481

)

(16,886

)

Interest income

1,625

1,457

Other income (expense), net

(137

)

(22,599

)

Earnings before income taxes

105,712

71,435

(Provision for) benefit from income taxes

(22,202

)

(3,991

)

Net earnings, including noncontrolling interests

83,510

67,444

Less: Net earnings attributable to noncontrolling interests

(5,969

)

(4,827

)

Net earnings attributable to Flowserve Corporation

$

77,541

$

62,617

Net earnings per share attributable to Flowserve Corporation common shareholders:

Basic

$

0.59

$

0.48

Diluted

0.59

0.47

Weighted average shares – basic

131,393

131,184

Weighted average shares – diluted

132,395

132,132

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 December 31, 2024

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

$

372,114

$

251,966

$

124,705

$

(138

)

$

22,202

$

77,541

21.0

%

0.59

Reported as a percent of sales

31.5

%

21.3

%

10.6

%

0.0

%

1.9

%

6.6

%

Realignment charges (a)

11,569

(1,570

)

13,139

-

2,849

10,290

21.7

%

0.08

Acquisition related (b)

-

(7,150

)

7,150

-

1,682

5,468

23.5

%

0.04

Purchase accounting step-up and intangible asset amortization (c)

3,067

(1,033

)

4,100

-

1,300

2,800

31.7

%

0.02

Below-the-line foreign exchange impacts (d)

-

-

-

(4,370

)

(1,423

)

(2,947

)

32.6

%

(0.02

)

Adjusted

$

386,750

$

242,213

$

149,094

$

(4,508

)

$

26,610

$

93,152

21.2

%

0.70

Adjusted as a percent of sales

32.8

%

20.5

%

12.6

%

-0.4

%

2.3

%

7.9

%

Note: Amounts may not calculate due to rounding

(a) Charges represent realignment costs incurred as a result of realignment programs of which $8,600 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) 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 December 31, 2023

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

$

339,544

$

234,744

$

109,463

$

(22,599

)

$

3,991

$

62,617

5.6

%

0.47

Reported as a percent of sales

29.1

%

20.1

%

9.4

%

-1.9

%

0.3

%

5.4

%

Realignment charges (a)

9,464

(5,949

)

15,413

-

4,534

10,879

29.4

%

0.08

Discrete asset write-downs (b)(c)

(1,254

)

-

(1,254

)

2,000

94

652

12.6

%

0.01

Acquisition related (d)

-

1,244

(1,244

)

-

(293

)

(951

)

23.6

%

(0.01

)

Below-the-line foreign exchange impacts (e)

-

-

-

16,764

(274

)

17,038

-1.6

%

0.13

Adjusted

$

347,754

$

230,039

$

122,378

$

(3,835

)

$

8,052

$

90,235

7.8

%

0.68

Adjusted as a percent of sales

29.8

%

19.7

%

10.5

%

-0.3

%

0.7

%

7.7

%

Note: Amounts may not calculate due to rounding

(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,100 is non-cash.

(b) Includes reversals of expenses that were adjusted for Non-GAAP measures in previous periods of $1,254.

(c) Charge represents a non-cash asset write-down of $2,000 associated with the impairment of an equity investment.

(d) Represents reversal of costs associated with a terminated acquisition that were adjusted for Non-GAAP measures in previous periods.

(e) 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

Three Months Ended December 31,

(Amounts in millions, except percentages)

2024

2023

Bookings

$

816.4

$

722.2

Sales

794.9

832.8

Gross profit

255.7

238.2

Gross profit margin

32.2

%

28.6

%

SG&A

131.4

149.4

Segment operating income

129.1

93.5

Segment operating income as a percentage of sales

16.2

%

11.2

%

FLOW CONTROL DIVISION

Three Months Ended December 31,

(Amounts in millions, except percentages)

2024

2023

Bookings

$

363.4

$

326.9

Sales

387.9

336.0

Gross profit

118.5

101.9

Gross profit margin

30.5

%

30.3

%

SG&A

73.9

52.1

Segment operating income

44.6

49.8

Segment operating income as a percentage of sales

11.5

%

14.8

%

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
December 31, 2024

Gross
Profit

Selling,
General &
Administrative
Expense

Operating
Income

Three Months Ended
December 31, 2023

Gross
Profit

Selling,
General &
Administrative
Expense

Operating
Income

Reported

$

255,710

$

131,402

$

129,069

Reported

$

238,213

$

149,354

$

93,522

Reported as a percent of sales

32.2

%

16.5

%

16.2

%

Reported as a percent of sales

28.6

%

17.9

%

11.2

%

Realignment charges (a)

9,890

(41

)

9,931

Realignment charges (a)

3,313

(2,537

)

5,850

Adjusted

$

265,600

$

131,361

$

139,000

Discrete asset write-downs (b)

(1,254

)

-

(1,254

)

Adjusted as a percent of sales

33.4

%

16.5

%

17.5

%

Adjusted

$

240,272

$

146,817

$

98,118

Adjusted as a percent of sales

28.9

%

17.6

%

11.8

%

Flow Control Division

Flow Control Division

Three Months Ended
December 31, 2024

Gross
Profit

Selling,
General &
Administrative
Expense

Operating
Income

Three Months Ended
December 31, 2023

Gross
Profit

Selling,
General &
Administrative
Expense

Operating
Income

Reported

$

118,503

$

73,859

$

44,592

Reported

$

101,894

$

52,056

$

49,838

Reported as a percent of sales

30.5

%

19.0

%

11.5

%

Reported as a percent of sales

30.3

%

15.5

%

14.8

%

Realignment charges (a)

1,679

(1,655

)

3,334

Realignment charges (a)

6,313

(915

)

7,228

Acquisition related (b)

-

(7,150

)

7,150

Acquisition related (c)

-

1,244

(1,244

)

Purchase accounting step-up and intangible asset amortization (c)

3,067

(1,033

)

4,100

Adjusted

$

108,207

$

52,385

$

55,822

Adjusted

$

123,249

$

64,021

$

59,176

Adjusted as a percent of sales

32.2

%

15.6

%

16.6

%

Adjusted as a percent of sales

31.8

%

16.5

%

15.3

%

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 $8,600 is non-cash.

(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,100 is non-cash.

(b) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.

(b) Represents reversals of expenses that were adjusted for Non-GAAP measures in previous periods.

(c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.

(c) Represents reversal of costs associated with a terminated acquisition that were adjusted for Non-GAAP measures in previous periods.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Year Ended December 31,

(Amounts in thousands, except per share data)

2024

2023

2022

Sales

$

4,557,806

$

4,320,577

$

3,615,120

Cost of sales

(3,123,560

)

(3,043,749

)

(2,620,825

)

Gross profit

1,434,246

1,276,828

994,295

Selling, general and administrative expense

(978,037

)

(961,169

)

(815,545

)

Loss on sale of business

(12,981

)

-

-

Net earnings from affiliates

19,051

17,894

18,469

Operating income

462,279

333,553

197,219

Interest expense

(69,301

)

(66,924

)

(46,247

)

Interest income

5,371

6,991

3,963

Other income (expense), net

(12,194

)

(49,870

)

(559

)

Earnings before income taxes

386,155

223,750

154,376

(Provision for) benefit from income taxes

(84,929

)

(18,562

)

43,639

Net earnings, including noncontrolling interests

301,226

205,188

198,015

Less: Net earnings attributable to noncontrolling interests

(18,467

)

(18,445

)

(9,326

)

Net earnings attributable to Flowserve Corporation

$

282,759

$

186,743

$

188,689

Net earnings per share attributable to Flowserve Corporation common shareholders:

Basic

$

2.15

$

1.42

$

1.44

Diluted

2.14

1.42

1.44

Weighted average shares – basic

131,488

131,117

130,630

Weighted average shares – diluted

132,356

131,931

131,315

Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)

(Amounts in thousands, except per share data)

Twelve Months Ended December 31, 2024

Gross
Profit

Selling,
General &
Administrative
Expense

Loss on
Sale of
Business

Operating
Income

Other
Income
(Expense),
Net

Provision
For (Benefit
From)
Income
Taxes

Net
Earnings
(Loss)

Effective Tax
Rate

Diluted
EPS

Reported

$

1,434,246

$

978,037

$

12,981

$

462,279

$

(12,194

)

$

84,929

$

282,759

22.0

%

2.14

Reported as a percent of sales

31.5

%

21.5

%

0.3

%

10.1

%

-0.3

%

1.9

%

6.2

%

Realignment charges (a)

31,576

(4,939

)

(12,981

)

49,496

-

4,884

44,612

9.9

%

0.34

Discrete items (b)(c)(d)

2,700

(7,500

)

-

10,200

-

2,869

7,331

28.1

%

0.06

Acquisition related (e)

-

(9,944

)

-

9,944

-

2,340

7,604

23.5

%

0.06

Discrete asset write-downs (f)(g)

-

(1,795

)

-

1,795

3,567

1,342

4,020

25.0

%

0.03

Purchase accounting step-up and intangible asset amortization (h)

3,067

(1,033

)

-

4,100

-

1,300

2,800

31.7

%

0.02

Below-the-line foreign exchange impacts (i)

-

-

-

-

(2,302

)

(1,912

)

(390

)

83.1

%

(0.00

)

Adjusted

$

1,471,589

$

952,826

$

-

$

537,814

$

(10,929

)

$

95,752

$

348,736

20.7

%

2.63

Adjusted as a percent of sales

32.3

%

20.9

%

0.0

%

11.8

%

-0.2

%

2.1

%

7.7

%

Note: Amounts may not calculate due to rounding

(a) Charges represent realignment costs incurred as a result of realignment programs of which $33,700 is non-cash.

(b) Charge represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.

(c) Charge represents a one-time $5,000 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan.

(d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.

(e) Charge represents acquisition and integration related costs associated with the MOGAS acquisition.

(f) Charge represents a $1,795 non-cash write-down of a software asset.

(g) Charge represents a $3,567 non-cash write-down of a debt investment.

(h) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.

(i) 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.

Twelve Months Ended December 31, 2023

Gross
Profit

Selling,
General &
Administrative
Expense

Operating
Income

Other
Income
(Expense),
Net

Provision
For (Benefit
From) Income
Taxes

Net Earnings
Attributable
to
Noncontrolling Interests

Net
Earnings
(Loss)

Effective
Tax Rate

Diluted
EPS

Reported

$

1,276,828

$

961,169

$

333,553

$

(49,870

)

$

18,562

$

18,445

$

186,743

8.3

%

1.42

Reported as a percent of sales

29.6

%

22.2

%

7.7

%

-1.2

%

0.4

%

0.4

%

4.3

%

Realignment charges (a)

21,012

(45,025

)

66,037

-

14,949

-

51,088

22.6

%

0.39

Discrete asset write-downs (b)(c)(d)(e)

715

(3,955

)

4,670

2,000

1,611

-

5,059

24.2

%

0.04

Acquisition related (f)

-

(7,247

)

7,247

-

1,704

-

5,543

23.5

%

0.04

Below-the-line foreign exchange impacts (g)

-

-

-

41,092

2,395

-

38,697

5.8

%

0.29

Correction of prior period errors (h)

-

-

-

-

-

(3,559

)

3,559

0.0

%

0.03

Discrete tax benefit (i)

-

-

-

-

13,000

-

(13,000

)

0.0

%

(0.10

)

Adjusted

$

1,298,555

$

904,942

$

411,507

$

(6,778

)

$

52,221

$

14,886

$

277,689

15.1

%

2.10

Adjusted as a percent of sales

30.1

%

20.9

%

9.5

%

-0.2

%

1.2

%

0.3

%

6.4

%

Note: Amounts may not calculate due to rounding

(a) Charges represent realignment costs incurred as a result of realignment programs of which $9,701 is non-cash.

(b) Charge represents a further expense of $1,834 associated with a sales contract that was initially adjusted out of Non-GAAP measures in 2017.

(c) Includes reversals of expenses that were adjusted for Non-GAAP measures in previous periods of $81.

(d) Charge represents a $2,917 non-cash write-down of a licensing agreement.

(e) Charge represents a non-cash asset write-down of $2,000 associated with the impairment of an equity investment.

(f) Charges represent costs associated with a terminated acquisition.

(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.

(h) Represents the amount to correct the cumulative impact of immaterial prior period errors.

(i) Represents a discrete tax benefit due to release of tax valuation allowance on the net deferred tax assets in a foreign jurisdiction. The associated tax expense was adjusted out on Non-GAAP measures in 2015.

SEGMENT INFORMATION

(Unaudited)

FLOWSERVE PUMPS DIVISION

Year Ended December 31,

(Amounts in millions, except percentages)

2024

2023

Bookings

$

3,304.3

$

2,941.2

Sales

3,158.6

3,064.5

Gross profit

1,017.0

906.8

Gross profit margin

32.2

%

29.6

%

SG&A

556.2

575.8

Segment operating income

480.2

348.9

Segment operating income as a percentage of sales

15.2

%

11.4

%

FLOW CONTROL DIVISION

Year Ended December 31,

(Amounts in millions, except percentages)

2024

2023

Bookings

$

1,370.7

$

1,345.9

Sales

1,409.3

1,266.0

Gross profit

424.0

372.8

Gross profit margin

30.1

%

29.4

%

SG&A

252.7

224.8

Loss on sale of business

(13.0

)

-

Segment operating income

158.3

148.0

Segment operating income as a percentage of sales

11.2

%

11.7

%

Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)

(Amounts in thousands)

Flowserve Pumps Division

Twelve Months Ended
December 31, 2024

Gross
Profit

Selling,
General & Administrative
Expense

Operating
Income

Twelve Months Ended
December 31, 2023

Gross
Profit

Selling,
General & Administrative
Expense

Operating
Income

Reported

$

1,017,048

$

556,225

$

480,216

Reported

$

906,775

$

575,792

$

348,867

Reported as a percent of sales

32.2

%

17.6

%

15.2

%

Reported as a percent of sales

29.6

%

18.8

%

11.4

%

Realignment charges (a)

30,727

(1,078

)

31,805

Realignment charges (a)

10,797

(14,533

)

25,330

Discrete items (b)(c)(d)

1,700

(6,000

)

7,700

Discrete asset write-downs (b)(c)(d)

715

(3,955

)

4,670

Adjusted

$

1,049,475

$

549,147

$

519,721

Adjusted

$

918,287

$

557,304

$

378,867

Adjusted as a percent of sales

33.2

%

17.4

%

16.5

%

Adjusted as a percent of sales

30.0

%

18.2

%

12.4

%

Flow Control Division

Flow Control Division

Twelve Months Ended
December 31, 2024

Gross
Profit

Selling,
General &
Administrative
Expense

Loss on Sale
of Business

Operating
Income

Twelve Months Ended
December 31, 2023

Gross
Profit

Selling,
General &
Administrative
Expense

Operating
Income

Reported

$

423,973

$

252,675

$

12,981

$

158,265

Reported

$

372,808

$

224,774

$

148,034

Reported as a percent of sales

30.1

%

17.9

%

0.9

%

11.2

%

Reported as a percent of sales

29.4

%

17.8

%

11.7

%

Realignment charges (a)

1,077

(3,095

)

(12,981

)

17,153

Realignment charges (a)

10,576

(11,393

)

21,969

Discrete item (b)

800

(400

)

-

1,200

Acquisition related (e)

-

(7,247

)

7,247

Acquisition related (e)

-

(9,944

)

-

9,944

Adjusted

$

383,384

$

206,134

$

177,250

Purchase accounting step-up and intangible asset amortization (f)

3,067

(1,033

)

-

4,100

Adjusted as a percent of sales

30.3

%

16.3

%

14.0

%

Adjusted

$

428,917

$

238,203

$

-

$

190,662

Adjusted as a percent of sales

30.4

%

16.9

%

0.0

%

13.5

%

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 $33,700 is non-cash.

(a) Charges represent realignment costs incurred as a result of realignment programs of which $9,701 is non-cash.

(b) Charge represents a one-time $3,700 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan.

(b) Charge represents a further expense of $1,834 associated with a sales contract that was initially reserved for in 2017.

(c) Charge represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.

(c) Includes reversals of expenses that were adjusted for Non-GAAP measures in previous periods of $81.

(d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.

(d) Charge represents a $2,917 non-cash write-down of a licensing agreement.

(e) Charge represents acquisition and integration related costs associated with the MOGAS acquisition.

(e) Charges represent costs associated with a terminated acquisition.

(f) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.

Fourth Quarter and Full Year 2024 - Segment Results

(dollars in millions, comparison vs. 2023 fourth quarter and full year, unaudited)

FPD

FCD

4th Qtr

Full Year

4th Qtr

Full Year

Bookings

$

816.4

$

3,304.3

$

363.4

$

1,370.7

- vs. prior year

94.2

13.0

%

363.1

12.3

%

36.5

11.2

%

24.8

1.8

%

- on constant currency

106.6

14.8

%

388.8

13.2

%

38.0

11.6

%

29.1

2.2

%

Sales

$

794.9

$

3,158.6

$

387.9

$

1,409.3

- vs. prior year

-37.9

-4.6

%

94.1

3.1

%

51.9

15.4

%

143.3

11.3

%

- on constant currency

-27.4

-3.3

%

113.0

3.7

%

53.0

15.8

%

145.5

11.5

%

Gross Profit

$

255.7

$

1,017.0

$

118.5

$

424.0

- vs. prior year

7.3

%

12.2

%

16.3

%

13.7

%

Gross Margin (% of sales)

32.2

%

32.2

%

30.5

%

30.1

%

- vs. prior year (in basis points)

360 bps

260 bps

20 bps

70 bps

Operating Income

$

129.1

$

480.2

$

44.6

$

158.3

- vs. prior year

35.6

38.1

%

131.3

37.6

%

-5.2

-10.4

%

10.3

7.0

%

- on constant currency

37.2

39.8

%

136.5

39.1

%

-5.2

-10.4

%

11.3

7.6

%

Operating Margin (% of sales)

16.2

%

15.2

%

11.5

%

11.2

%

- vs. prior year (in basis points)

500 bps

380 bps

(330) bps

(50) bps

Adjusted Operating Income *

$

139.0

$

519.7

$

59.2

$

190.7

- vs. prior year

40.9

41.7

%

140.8

37.2

%

3.4

6.1

%

13.4

7.6

%

- on constant currency

42.5

43.4

%

146.0

38.5

%

3.4

6.2

%

14.4

8.1

%

Adj. Oper. Margin (% of sales)*

17.5

%

16.5

%

15.3

%

13.5

%

- vs. prior year (in basis points)

570 bps

410 bps

(130) bps

(50) bps

Backlog

$

1,930.4

$

869.6

* Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges and other specific discrete items

CONSOLIDATED BALANCE SHEETS

(Unaudited)

December 31,

December 31,

(Amounts in thousands, except par value)

2024

2023

ASSETS

Current assets:

Cash and cash equivalents

$

675,441

$

545,678

Accounts receivable, net of allowance for expected credit losses of $79,059 and $80,013, respectively

976,739

881,869

Contract assets, net

298,906

280,228

Inventories

828,254

879,937

Prepaid expenses and other

116,157

116,065

Total current assets

2,895,497

2,703,777

Property, plant and equipment, net

539,703

506,158

Operating lease right-of-use assets, net

159,400

156,430

Goodwill

1,293,795

1,182,225

Deferred taxes

221,742

218,358

Other intangible assets, net

188,604

122,248

Other assets, net

200,580

219,523

Total assets

$

5,499,321

$

5,108,719

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

545,310

$

547,824

Accrued liabilities

561,486

504,430

Contract liabilities

282,170

287,697

Debt due within one year

44,059

66,243

Operating lease liabilities

33,559

32,382

Total current liabilities

1,466,584

1,438,576

Long-term debt due after one year

1,460,132

1,167,307

Operating lease liabilities

149,838

138,665

Retirement obligations and other liabilities

371,055

389,120

Shareholders’ equity:

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

502,045

506,525

Retained earnings

4,025,750

3,854,717

Treasury shares, at cost – 45,688 and 45,885 shares, respectively

(2,007,869

)

(2,014,474

)

Deferred compensation obligation

8,172

7,942

Accumulated other comprehensive loss

(741,424

)

(639,601

)

Total Flowserve Corporation shareholders' equity

2,007,665

1,936,100

Noncontrolling interests

44,047

38,951

Total equity

2,051,712

1,975,051

Total liabilities and equity

$

5,499,321

$

5,108,719

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Year Ended December 31,

(Amounts in thousands)

2024

2023

2022

Cash flows – Operating activities:

Net earnings, including noncontrolling interests

$

301,226

$

205,188

$

198,015

Adjustments to reconcile net earnings to net cash provided (used) by operating activities:

Depreciation

75,849

73,464

77,636

Amortization of intangible and other assets

9,749

10,283

13,317

Loss on sale of business

12,981

-

-

Stock-based compensation

30,474

27,808

25,530

Foreign currency, asset write downs and other non-cash adjustments

24,172

(17,331

)

(27,758

)

Change in assets and liabilities, net of businesses acquired:

Accounts receivable, net

(74,886

)

4,744

(152,011

)

Inventories

47,915

(59,831

)

(147,492

)

Contract assets, net

(20,197

)

(41,149

)

(41,768

)

Prepaid expenses and other assets, net

7,610

7,825

17,461

Accounts payable

(11,756

)

53,065

78,968

Contract liabilities

(18,706

)

26,837

61,684

Accrued liabilities

54,479

59,213

(5,226

)

Retirement obligations and other

1,456

38,497

(1,430

)

Net deferred taxes

(15,058

)

(62,841

)

(136,936

)

Net cash flows provided (used) by operating activities

425,308

325,772

(40,010

)

Cash flows – Investing activities:

Capital expenditures

(81,019

)

(67,359

)

(76,287

)

Payments for acquisition, net of cash acquired

(305,924

)

-

-

Proceeds from disposal of assets

2,244

2,057

4,422

Payments for disposition of business

(2,555

)

-

-

Proceeds from termination of cross-currency swap

-

-

66,004

Net affiliate investment activity

40

(3,278

)

(225

)

Net cash flows provided (used) by investing activities

(387,214

)

(68,580

)

(6,086

)

Cash flows – Financing activities:

Proceeds from term loan

366,000

-

-

Payments on term loan

(95,375

)

(40,000

)

(32,500

)

Proceeds under revolving credit facility

100,000

280,000

45,000

Payments under revolving credit facility

(100,000

)

(280,000

)

(45,000

)

Proceeds under other financing arrangements

1,437

1,114

1,733

Payments under other financing arrangements

(1,455

)

(2,604

)

(1,790

)

Payments related to tax withholding for stock-based compensation

(9,581

)

(6,245

)

(4,683

)

Repurchases of common shares

(20,070

)

-

-

Payments of dividends

(110,440

)

(104,955

)

(104,549

)

Other

(13,021

)

(324

)

(8,223

)

Net cash flows provided (used) by financing activities

117,495

(153,014

)

(150,012

)

Effect of exchange rate changes on cash

(25,826

)

6,529

(27,373

)

Net change in cash and cash equivalents

129,763

110,707

(223,481

)

Cash and cash equivalents at beginning of year

545,678

545,678

658,452

Cash and cash equivalents at end of year

$

675,441

$

656,385

$

434,971

Income taxes paid (net of refunds)

$

81,172

$

119,275

$

60,085

Interest paid

66,809

64,865

41,629

Non-Cash Investing and Financing Activities:

Contingent liabilities incurred related to acquired business, but not paid

$

15,000

$

-

-