Flowserve (FLS) Q1 2026 earnings summary

Executive summary

• Achieved strong adjusted operating margin expansion of 230 basis points and adjusted EPS growth of 18% year-over-year, despite Middle East disruptions and a softer start to the year.

• Revenue for Q1 2026 was $1.07 billion, down 6.7% year-over-year, with bookings at $1.15 billion and backlog rising to $2.95 billion.

• Aftermarket sales increased to 57% of total sales, with $680 million in bookings and continued growth in both segments.

• Adjusted EPS was $0.85, benefiting from a $0.19 per share IEEPA tariff recovery, offset by $0.06 tax and $0.06 Middle East disruption.

• Growth strategy is aligned to global megatrends, with continued progress toward 2030 financial targets and operational excellence.

Financial highlights

• Adjusted gross margin increased 370 basis points to 37.2%, marking the 13th consecutive quarter of year-over-year expansion.

• Adjusted operating margin reached 15.1%, up 230 basis points from the prior year.

• Net earnings attributable to shareholders rose to $81.7 million, up 10.5% from Q1 2025.

• Cash from operations improved to $6.8 million from a negative $49.9 million in Q1 2025.

• SG&A expense increased 8.3% to $263.4 million, or 24.7% of sales.

Outlook and guidance

• Full-year adjusted EPS guidance reaffirmed at $4.00–$4.20, representing 13% growth over 2025.

• Organic sales growth for 2026 expected between -1% and +2%; total sales growth outlook is 3%-6%, including acquisitions.

• Capital expenditures projected at $90–$100 million; adjusted tax rate 21–22%.

• Guidance assumes mid-year close of Trillium Valves acquisition, expected to be EPS neutral for 2026.

• Q2 sales expected to be down low to mid-single digits year-over-year, with earnings similar to Q1.