Flowserve Corporation Reports First Quarter 2024 Results and Raises Full-Year 2024 Guidance

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The raised guidance for Flowserve Corporation's full-year Adjusted EPS to $2.50-$2.70 signals robust confidence in their operational performance and future earnings potential. This adjustment, almost a 24% increase at the midpoint year-over-year, is a strong indicator of the company's resilient business model and ability to navigate market uncertainties. A closer look at the financials reveals a solid $62 million in operating cash flow, which underscores their ability to generate liquidity – a important factor in sustaining growth and potentially returning value to shareholders through dividends or share buybacks.

However, investors should be cautious about the slight decline in total bookings, a potential harbinger for future revenue streams. The currency-adjusted decrease of 1.8% might seem modest but could point to competitive pressures or market saturation. The differentiation between original equipment and aftermarket bookings, with the former witnessing a 8.8% drop and the latter a 4.6% increase on a constant currency basis, is noteworthy. This could suggest a strategic pivot or a shift in market demand towards aftermarket services, which typically offer higher margins and recurring revenue.

An analysis of Flowserve's increased gross and operating margins, which rose by 130 and 260 basis points respectively, indicates operational efficiency improvements that outpace industry norms. The focus on margin expansion through effective product management and portfolio optimization plays well into the '3D strategy' – diversification, decarbonization and digitization – that the company touts. Investors should seek to understand how these strategic initiatives position Flowserve in the context of a transforming industry that is increasingly valuing sustainable and technologically advanced solutions.

Additionally, the backlog of $2.6 billion, though slightly down from the previous year, provides visibility into future revenues and, to an extent, financial stability. The mention of strong bookings in the second quarter, propped up by recent large project awards, hints at continued operational momentum that could mitigate concerns over the current quarter's booking decline.

Flowserve's performance in sales, particularly in the original equipment and aftermarket segments, is indicative of an underlying demand for flow control products and services within the global infrastructure markets. The 10.9% increase in sales, with original equipment sales up 14.1% and aftermarket sales up 8.1% on a constant currency basis, reveals a balanced growth trajectory. However, it's essential to pinpoint the drivers of this growth, be it market recovery, expanded global footprint, or product innovation, to appraise the sustainability of these figures.

Investors should also monitor the dynamic between the segment performances – the Pumps Division versus the Flow Control Division – to understand where the core strengths lie and where the company is investing strategically. The segment operating margins provide an insight into the cost structures and profit potential of each division, which is vital for assessing future profitability.

04/29/2024 - 04:05 PM

First quarter Reported and Adjusted¹ Earnings Per Share (EPS)² of 56 cents and 58 cents, an increase of 180% and 45%, respectively, reflects continued strong operational momentum
Raised full-year 2024 Adjusted EPS guidance³ to $2.50 to $2.70, almost a 24% year-over-year increase at the midpoint
Delivered solid first quarter Bookings of $1.04 billion, including strong aftermarket activity exceeding $575 million
Adjusted Gross and Operating Margin⁴ of 31.7% and 10.9%, respectively, increased 130 and 260 basis points compared to prior year
Record first quarter Operating Cash Flow of $62 million

DALLAS--(BUSINESS WIRE)-- Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced its financial results for the first quarter ended March 31, 2024.

First Quarter 2024 Highlights (all comparisons to the 2023 first quarter, unless otherwise noted)

Reported EPS of $0.56 and Adjusted EPS of $0.58, compared to $0.20 and $0.40, respectively
- First quarter 2024 Reported EPS includes after-tax adjusted expenses of $3.2 million, comprised of realignment charges, partially offset by below-the-line foreign exchange and a reduction to reserves

Total bookings were $1.04 billion, down $19.0 million or 1.8%. On a constant currency basis⁵, total bookings were down $18.7 million or 1.8%
- Original equipment bookings were $462.5 million, down $44.5 million or 8.8%. On a constant currency basis, original equipment bookings were down $44.9 million or 8.9%
- Aftermarket bookings were $575.8 million, up $25.5 million or 4.6%. On a constant currency basis, aftermarket bookings were up $26.2 million or 4.8%
- Second quarter 2024 bookings have started strong, as indicated by the recently announced project awards valued at over $150 million

Sales were $1.09 billion, up $107.2 million or 10.9%. On a constant currency basis, sales were up $104.3 million or 10.6%
- Original equipment sales were $528.6 million, up $65.2 million or 14.1%. On a constant currency basis, original equipment sales were up $62.5 million or 13.5%
- Aftermarket sales were $558.9 million, up $42.0 million or 8.1%. On a constant currency basis, aftermarket sales were up $41.8 million or 8.1%

Reported gross and operating margins were 31.2% and 10.4%, respectively, up 90 basis points and 460 basis points, respectively
- Adjusted gross and operating margins were 31.7% and 10.9%, respectively, up 130 basis points and 260 basis points, respectively

Backlog of $2.6 billion, down 3.1% compared to year-end 2023, and down 6.9% compared to March 31, 2023
- First quarter 2024 book-to-bill ratio solid at 0.95x

“We delivered strong first quarter results, with significant year-over-year growth in revenue, margins, adjusted earnings, and cash flow. We are pleased with our level of bookings during the period, primarily driven by the strength of our base business, including aftermarket and short-cycle original equipment awards,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “As anticipated, we were excited to announce winning two sizable projects this April in the Middle East, collectively valued at over $150 million which will be reflected in our second quarter results.”

Rowe concluded, “With our solid performance in the first quarter and the opportunities ahead during the year, we have increased our full-year Adjusted EPS target range to $2.50 to $2.70, a near 24% increase at the midpoint year-over-year. We are committed to building on our recent operational momentum to expand margins, including through effective product management and portfolio optimization. Our 3D strategy is delivering results, and we remain committed to further expanding our diversification, decarbonization and digitization activities in faster-growing, attractive markets. I am confident that our continued progress will enable us to create long-term value for our customers, associates, and shareholders.”

Revised 2024 Guidance³

Flowserve is raising its Adjusted EPS guidance metrics for 2024 and reaffirmed its other financial targets, as shown in the table below:


	Prior Target Range⁶	Revised Target Range
Revenue Growth	Up 4.0% to 6.0%	Reaffirmed
Reported Earnings Per Share	$2.25 - $2.45	Reaffirmed
Adjusted Earnings Per Share	$2.40 - $2.60	$2.50 - $2.70
Net Interest Expense	$60 to $65 million	Reaffirmed
Adjusted Tax Rate	~20%	Reaffirmed
Capital Expenditures	$75 - $85 million	Reaffirmed

Flowserve’s 2024 Adjusted EPS target range excludes expected adjusted items including realignment charges of approximately $30 million, as well as the potential impact of below-the-line foreign currency effects and certain other discrete items which may arise during the course of the year.

First Quarter 2024 Results Conference Call

Flowserve will host its conference call with the financial community on Tuesday, April 30^th at 11:00 AM Eastern. Scott Rowe, President and Chief Executive Officer, as well as other members of the management team will be presenting. The call can be accessed by shareholders and other interested parties at www.flowserve.com under the “Investor Relations” section.

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.

²Adjusted EPS excludes identified realignment expenses, the impact from other specific discrete items and below-the-line foreign currency effects and utilizes the then-applicable FX rates and approximately 132 million fully diluted shares.

³ Adjusted 2024 EPS excludes realignment expenses as well as the impact of below-the-line foreign currency effects and certain other discrete items which may arise during the year and utilizes March 2024 foreign exchange rates and approximately 132 million fully diluted shares.

⁴ Adjusted gross and operating margins are calculated by dividing adjusted gross profit and adjusted operating income, respectively, by revenues. Adjusted gross profit and adjusted operating income are derived by excluding the adjusted items. 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.

⁵ Constant currency is a non-GAAP financial measure. We have calculated constant currency amounts and the associated currency effects on operations by translating current year results on a monthly basis at prior year exchange rates for the same periods.

⁶ Prior target range was provided as of February 20, 2024.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
							Three Months Ended March 31,
(Amounts in thousands, except per share data)							2024									2023

Sales							$				1,087,479					$	980,305
Cost of sales											(748,511	)					(683,475	)
Gross profit											338,968						296,830
Selling, general and administrative expense											(228,418	)					(244,268	)
Net earnings from affiliates											2,529						4,624
Operating income											113,079						57,186
Interest expense											(15,317	)					(16,211	)
Interest income											1,169						1,494
Other income (expense), net											(874	)					(8,020	)
Earnings (loss) before income taxes											98,057						34,449
Provision for income taxes											(20,142	)					(4,453	)
Net earnings (loss), including noncontrolling interests											77,915						29,996
Less: Net earnings attributable to noncontrolling interests											(3,695	)					(3,230	)
Net earnings (loss) attributable to Flowserve Corporation							$				74,220					$	26,766

Net earnings (loss) per share attributable to Flowserve Corporation common shareholders:
Basic							$				0.56					$	0.20
Diluted											0.56						0.20

Weighted average shares – basic											131,510						130,930
Weighted average shares – diluted											132,368						131,754

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 March 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	$	338,968		$	228,418		$	113,079		$	(874	)	$	20,142		$	74,220		20.5	%		0.56
Reported as a percent of sales		31.2	%		21.0	%		10.4	%		-0.1	%		1.9	%		6.8	%
Realignment charges (a)		5,673			(1,494	)		7,167			-			723			6,444		10.1	%		0.05
Discrete item (b)		-			2,000			(2,000	)		-			-			(2,000	)	0.0	%		(0.02	)
Below-the-line foreign exchange impacts (c)		-			-			-			(1,323	)		(51	)		(1,273	)	3.8	%		(0.01	)
Adjusted	$	344,641		$	228,924		$	118,246		$	(2,197	)	$	20,814		$	77,392		20.4	%		0.58
Adjusted as a percent of sales		31.7	%		21.1	%		10.9	%		-0.2	%		1.9	%		7.1	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $800 is non-cash.

(b) Represents a reduction to reserves associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.

(c) 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 March 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	$	296,830		$	244,268		$	57,186		$	(8,020	)	$	4,453		$	26,766		12.9	%	$	0.20
Reported as a percent of sales		30.3	%		24.9	%		5.8	%		-0.8	%		0.5	%		2.7	%
Realignment charges (a)		202			(16,677	)		16,879			-			3,184			13,695		18.9	%		0.10
Discrete asset write-downs (b)(c)		1,173			(2,917	)		4,090			-			1,038			3,052		25.4	%		0.02
Acquisition related (d)		-			(3,096	)		3,096			-			822			2,274		26.6	%		0.02
Below-the-line foreign exchange impacts (e)		-			-			-			7,406			549			6,857		7.4	%		0.05
Adjusted	$	298,205		$	221,578		$	81,251		$	(614	)	$	10,046		$	52,644		15.2	%	$	0.40
Adjusted as a percent of sales		30.4	%		22.6	%		8.3	%		-0.1	%		1.0	%		5.4	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $7,597 is non-cash.

(b) Charge represents a further $1,173 non-cash write-down of inventory associated with a customer sales contract that was determined to be uncollectible and adjusted out for Non-GAAP measures in a previous period.

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

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

(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 March 31,
(Amounts in millions, except percentages)	2024			2023
Bookings	$	703.5		$	728.5
Sales		769.4			700.1
Gross profit		247.9			221.4
Gross profit margin		32.2	%		31.6	%
SG&A		139.7			147.0
Segment operating income		110.9			79.1
Segment operating income as a percentage of sales		14.4	%		11.3	%

FLOW CONTROL DIVISION	Three Months Ended March 31,
(Amounts in millions, except percentages)	2024			2023
Bookings	$	341.1		$	332.0
Sales		320.5			281.6
Gross profit		92.7			80.3
Gross profit margin		28.9	%		28.5	%
SG&A		58.0			61.8
Segment operating income		34.7			18.5
Segment operating income as a percentage of sales		10.8	%		6.6	%


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 March 31, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income			Three Months Ended March 31, 2023	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	247,938		$	139,710		$	110,894		Reported	$	221,427		$	146,979		$	79,073
Reported as a percent of sales		32.2	%		18.2	%		14.4	%	Reported as a percent of sales		31.6	%		21.0	%		11.3	%
Realignment charges (a)		5,044			(1,041	)		6,085		Realignment charges (a)		390			(2,050	)		2,440
Discrete item (b)		-			2,000			(2,000	)	Discrete asset write-downs (b)(c)		1,173			(2,917	)		4,090
Adjusted	$	252,982		$	140,669		$	114,979		Adjusted	$	222,990		$	142,012		$	85,603
Adjusted as a percent of sales		32.9	%		18.3	%		14.9	%	Adjusted as a percent of sales		31.9	%		20.3	%		12.2	%

Flow Control Division

Three Months Ended March 31, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income			Three Months Ended March 31, 2023	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	92,695		$	57,987		$	34,708		Reported	$	80,293		$	61,759		$	18,534
Reported as a percent of sales		28.9	%		18.1	%		10.8	%	Reported as a percent of sales		28.5	%		21.9	%		6.6	%
Realignment charges (a)		767			(114	)		881		Realignment charges (a)		11			(8,906	)		8,917
Adjusted	$	93,462		$	57,873		$	35,589		Acquisition related (d)		-			(3,096	)		3,096
Adjusted as a percent of sales		29.2	%		18.1	%		11.1	%	Adjusted	$	80,304		$	49,757		$	30,547
										Adjusted as a percent of sales		28.5	%		17.7	%		10.8	%

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 $800 is non-cash.										(a) Charges represent realignment costs incurred as a result of realignment programs of which $7,597 is non-cash.
(b) Represents a reduction to reserves associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.										(b) Charge represents a further $1,173 non-cash write-down of inventory associated with a customer sales contract that was determined to be uncollectible and adjusted out for Non-GAAP measures in a previous period.
										(c) Charge represents a $2,917 non-cash write-down of a licensing agreement.
										(d) Charges represent costs associated with a terminated acquisition.




First Quarter - Segment Results
(dollars in millions, comparison vs. 2023 first quarter, unaudited)

	FPD					FCD
	1st Qtr					1st Qtr
Bookings	$	703.5				$	341.1
- vs. prior year		-25.0		-3.4	%		9.1		2.7	%
- on constant currency		-25.5		-3.5	%		9.9		3.0	%

Sales	$	769.4				$	320.5
- vs. prior year		69.3		9.9	%		38.9		13.8	%
- on constant currency		66.1		9.4	%		39.2		13.9	%

Gross Profit	$	247.9				$	92.7
- vs. prior year		12.0	%				15.4	%

Gross Margin (% of sales)		32.2	%				28.9	%
- vs. prior year (in basis points)	60 bps					40 bps

Operating Income	$	110.9				$	34.7
- vs. prior year		31.8		40.2	%		16.2		87.6	%
- on constant currency		32.1		40.7	%		16.5		88.9	%

Operating Margin (% of sales)		14.4	%				10.8	%
- vs. prior year (in basis points)	310 bps					420 bps

Adjusted Operating Income *	$	115.0				$	35.6
- vs. prior year		29.4		34.3	%		5.1		16.7	%
- on constant currency		29.7		34.7	%		5.4		17.7	%

Adj. Oper. Margin (% of sales)*		14.9	%				11.1	%
- vs. prior year (in basis points)	270 bps					30 bps

Backlog	$	1,784.2				$	841.7

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


CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
	March 31,			December 31,
(Amounts in thousands, except par value)	2024			2023

ASSETS
Current assets:
Cash and cash equivalents	$	531,981		$	545,678
Accounts receivable, net of allowance for expected credit losses of $78,305 and $80,013, respectively		914,357			881,869
Contract assets, net of allowance for expected credit losses of $4,986 and $4,993, respectively		287,058			280,228
Inventories		883,341			879,937
Prepaid expenses and other		149,840			116,065
Total current assets		2,766,577			2,703,777
Property, plant and equipment, net of accumulated depreciation of $1,162,548 and $1,158,451, respectively		499,499			506,158
Operating lease right-of-use assets, net		163,183			156,430
Goodwill		1,173,368			1,182,225
Deferred taxes		215,216			218,358
Other intangible assets, net		119,355			122,248
Other assets, net of allowance for expected credit losses of $66,357 and $66,864, respectively		212,727			219,523
Total assets	$	5,149,925		$	5,108,719

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	549,515		$	547,824
Accrued liabilities		547,382			504,430
Contract liabilities		279,216			287,697
Debt due within one year		66,428			66,243
Operating lease liabilities		31,635			32,382
Total current liabilities		1,474,176			1,438,576
Long-term debt due after one year		1,152,336			1,167,307
Operating lease liabilities		144,740			138,665
Retirement obligations and other liabilities		382,461			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		483,963			506,525
Retained earnings		3,900,922			3,854,717
Treasury shares, at cost – 45,372 and 45,885 shares, respectively		(1,992,404	)		(2,014,474	)
Deferred compensation obligation		6,767			7,942
Accumulated other comprehensive loss		(666,259	)		(639,601	)
Total Flowserve Corporation shareholders' equity		1,953,980			1,936,100
Noncontrolling interests		42,232			38,951
Total equity		1,996,212			1,975,051
Total liabilities and equity	$	5,149,925		$	5,108,719


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three Months Ended March 31,
(Amounts in thousands)	2024			2023

Cash flows – Operating activities:
Net earnings (loss), including noncontrolling interests	$	77,915		$	29,996
Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities:
Depreciation		19,326			18,928
Amortization of intangible and other assets		2,254			2,663
Stock-based compensation		8,657			9,953
Foreign currency, asset write downs and other non-cash adjustments		1,189			(2,728	)
Change in assets and liabilities:
Accounts receivable, net		(39,687	)		(26,249	)
Inventories		(11,452	)		(70,721	)
Contract assets, net		(8,051	)		4,325
Prepaid expenses and other assets, net		(16,001	)		(16,019	)
Accounts payable		5,053			7,008
Contract liabilities		(6,372	)		32,676
Accrued liabilities		30,917			35,374
Retirement obligations and other		(2,426	)		9,477
Net deferred taxes		935			(8,095	)
Net cash flows provided (used) by operating activities		62,257			26,588
Cash flows – Investing activities:
Capital expenditures		(13,610	)		(15,318	)
Other		24			(1,138	)
Net cash flows provided (used) by investing activities		(13,586	)		(16,456	)
Cash flows – Financing activities:
Payments on term loan		(15,000	)		(10,000	)
Proceeds under other financing arrangements		72			78
Payments under other financing arrangements		(25	)		(1,515	)
Repurchases of common shares		(2,549	)		-
Payments related to tax withholding for stock-based compensation		(8,857	)		(5,850	)
Payments of dividends		(27,654	)		(26,229	)
Other		(201	)		(303	)
Net cash flows provided (used) by financing activities		(54,214	)		(43,819	)
Effect of exchange rate changes on cash and cash equivalents		(8,154	)		3,442
Net change in cash and cash equivalents		(13,697	)		(30,245	)
Cash and cash equivalents at beginning of period		545,678			434,971
Cash and cash equivalents at end of period	$	531,981		$	404,726

About Flowserve

Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company’s Web site at www.flowserve.com.

Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics or changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; any continued volatile regional and global economic conditions resulting from the COVID-19 pandemic on our business and operations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela and Argentina; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240429424747/en/

Investor Contacts:

Jay Roueche, Vice President, Investor Relations & Treasurer, (972) 443-6560

Tarek Zeni, Director, Investor Relations, (469) 420-4045

Media Contact:

Wes Warnock, Vice President, Marketing, Communications & Public Affairs, (972) 443-6900

Source: Flowserve Corporation

Flowserve Corporation Reports First Quarter 2024 Results and Raises Full-Year 2024 Guidance

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Flowserve Corporation Reports First Quarter 2024 Results and Raises Full-Year 2024 Guidance

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