News

Flow control equipment manufacturer Flowserve (NYSE:FLS) reported Q1 CY2025 results beating Wall Street’s revenue expectations , with sales up 5.2% year on year to $1.14 billion. Its non-GAAP profit of $0.72 per share was 19.6% above analysts’ consensus estimates.

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Flowserve (FLS) Q1 CY2025 Highlights:

StockStory’s Take

Flowserve’s first quarter results were shaped by robust aftermarket demand and strong execution across its business systems. CEO Scott Rowe credited the company's performance to high service levels in its aftermarket division, which secured a major nuclear power plant upgrade, and to operational improvements from the 80-20 complexity reduction program. CFO Amy Schwetz noted that early-year price increases and disciplined cost control further supported margin expansion, while the integration of recent acquisitions, such as MOGAS, contributed positively to earnings.

Management’s forward-looking guidance remains cautious, with attention to the evolving tariff environment and macroeconomic uncertainties. Rowe explained that Flowserve’s global manufacturing footprint and ability to shift sourcing are central to mitigating tariff impacts, but he acknowledged that sustained uncertainty or further trade policy changes could pressure future bookings. Schwetz reiterated guidance for margin expansion, attributing confidence to operational levers and ongoing benefits from the Flowserve Business System, while emphasizing the company’s readiness to respond quickly if conditions deteriorate.

Key Insights from Management’s Remarks

Flowserve’s first quarter was influenced by high aftermarket activity, strong nuclear sector orders, and progress in operational initiatives. Management highlighted several factors impacting both the quarter’s performance and the company’s outlook amid a shifting trade landscape.

Drivers of Future Performance

Looking ahead, Flowserve’s performance will depend on its ability to navigate tariffs, maintain momentum in aftermarket and nuclear markets, and continue operational improvements.

Top Analyst Questions

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) the effectiveness of Flowserve’s tariff mitigation strategies and whether pricing actions hold amid potential customer resistance, (2) the pace of margin expansion and working capital improvement from operational programs, and (3) ongoing momentum in aftermarket and nuclear bookings, which underpin revenue visibility. Progress on MOGAS integration and additional supply chain adjustments will also be key markers.

Flowserve currently trades at a forward P/E ratio of 15.8×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report .

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