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Flowserve (FLS) investor relations material

Flowserve Baird 55th Annual Global Industrial Conference summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Baird 55th Annual Global Industrial Conference summary12 Nov, 2025

Business performance and strategy

  • Achieved strong Q3 results with $1.2 billion in bookings and $0.90 EPS, driven by margin expansion and a resilient, diversified business model.

  • 3D strategy (diversify, decarbonize, digitize) continues to guide growth, with less than 10% of bookings from large upstream oil and gas projects.

  • Decarbonization efforts include nuclear, LNG, and carbon capture, while digitization focuses on predictive maintenance and uptime optimization.

  • Operational and portfolio excellence, including 80/20 methodology, have reduced SKU complexity by 45% and improved margins, especially in industrial pumps.

  • Target selling and divestitures have supported 21% growth in key business units.

Nuclear market opportunity

  • Positioned as a leader in nuclear flow control, with equipment in 75% of global reactors and a $10 billion bookings target over 10 years.

  • Nuclear opportunity spans new builds, SMRs, and aftermarket, with 40 new reactors expected in the next decade and $100 million revenue potential per reactor.

  • Actively working with about 10 SMR developers, leveraging technical expertise and global certifications.

  • Current nuclear bookings exceed $400 million annually, now representing 10% of order base, with growth expected to be lumpy but upward.

  • Confident in growing entitlement in both nuclear and power islands, with a focus on long-term relationships and reliability.

Market trends and business resilience

  • Project bookings have faced headwinds from tariffs, energy prices, and geopolitical instability, especially in the Middle East and Europe.

  • Aftermarket and MRO bookings are at record levels, now less than 10% of total bookings are from large projects, increasing cycle resilience.

  • Growth in pharmaceuticals and water infrastructure in the U.S. is offsetting softness in other regions.

  • Revenue growth in 2026 is expected, though not double-digit, with acceleration anticipated beyond as large bookings and nuclear projects ramp up.

  • Shift from reliance on upstream oil and gas to more diverse and stable aftermarket and general industries, enhancing stability.

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Frequently asked questions

Serving Flow

Flowserve Corporation is an American industrial and environmental machinery company that focuses on the manufacturing and servicing of pumps, valves, seals, and automation systems. The company primarily serves industries such as oil and gas, chemical, power generation, and water management, providing critical components for industrial operations. The company is headquartered in Irving, Texas, and its shares are listed on the NYSE.

Formed Through a Merger

The earliest predecessor to the early 20th century was through the merger and development of various engineering companies. However, what we today know as Flowserve was officially formed in 1997 through the merger of BW/IP, Inc. and Durco International, Inc. After the merger, Flowserve expanded its product offerings and global reach through various acquisitions.

Heading into the new millennium, Flowserve continued to grow through a focus on technological advancements and expanding its global presence. The company invested in research and development to provide advanced solutions in fluid motion and control. It expanded its market to various sectors including oil, gas, chemical, power generation, and water management.

Serving a Variety of Sectors

The company's product portfolio is designed to cater to a broad spectrum of industries. These industries encompass oil and gas, chemical, power generation, water treatment, and various other general industrial sectors. In the oil and gas sector, Flowserve’s equipment is utilized in a range of activities from upstream exploration to downstream processing. For the power generation industry, its products are employed in both traditional and nuclear power plants, contributing to operational safety and efficiency. With a global operational footprint, Flowserve has a network of manufacturing facilities, service centers, and sales offices across over 55 countries.

Fluid and Motion Control

Flowserve Corporation specializes in a variety of fluid motion and control products, primarily focusing on pumps, valves, and mechanical seals. The pumps it manufactures are designed for diverse applications, ranging from transferring basic fluids like water and oil to handling more complex and demanding substances such as corrosive or high-temperature liquids. Their valves, including types like ball, butterfly, and control valves, are used to regulate fluid flow and pressure in industrial processes. Additionally, Flowserve's mechanical seals play a critical role in maintaining the efficiency and integrity of rotating equipment, such as pumps and compressors, by preventing leaks and minimizing friction. Some other notable companies producing products for the same industry are ITT, Xylem, and Crane Company.

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