Research · Sep 3, 2026
[FLS] Flowserve Thesis 2026: Margin Targets Reached Early as Nuclear and Trillium Expand Pipeline
Flowserve Corporation FY25 revenue $4.73B (+4%); op income $537M (+4%); NI $346M (+22%); EPS $2.64 (+23%). FCF $435M (+26%). Q4 bookings $1.2B; aftermarket bookings +10% to $682M. Q4 total revenue +4% to $1.2B; adjusted gross margin 36%; adjusted operating margin 16.8%. Achieved long-term margin targets 2 years ahead of plan. Q4 segment performance — FPD (Pumps): adjusted gross margin +370bp to 37.1%; adjusted operating margin +350bp to 21%; bookings +8% (aftermarket +12%); sales +5% to $833M. FCD (Flow Control / Valves + Actuators): adjusted gross margin +220bp to 34%; adjusted operating margin +440bp to 19.7%; bookings declined (80/20 program + lower OE awards from project delays); aftermarket flat. Flowserve Business System (FBS) + 80/20 complexity reduction + cost performance improvements. Announced acquisition of Trillium Flow Technologies' valve + actuation business — strengthens portfolio + expands nuclear / power / other end market reach. Mogas integration ongoing. Total debt $1.91B (+13%); buyback $255M (+1,170% from $20M FY24); dividend $110M (-1%). FY26 guide: total reported sales growth 5-7%; organic sales growth 1-3%; adjusted operating margin +~100bp expansion; adjusted EPS $4.00-$4.20; capex $90-$100M; H1 revenues impacted by 80/20 + backlog composition; OE bookings accelerate H2. 2030 targets: mid-single-digit organic sales CAGR + 20% adjusted operating margin. Risks: industrial capex cycle, OE project timing, 80/20 execution, nuclear adoption pace, competitive landscape (Atlas Copco, Emerson Electric, ITT, Watts Water, Mueller Water, Curtiss-Wright, Crane), M&A integration.