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Mar 31, 2023
Flowserve Q1 2023 Earnings Report
Flowserve's first quarter results were reported with adjusted EPS of $0.40 and revenue growth of 19.4%.
Key Takeaways
Flowserve Corporation reported a strong start to 2023, with revenue growth of 19.4% and adjusted operating margin of 8.3%. The company raised its full-year guidance for revenue and adjusted EPS, driven by strong MRO and Aftermarket activity and the continued success of its 3D strategy.
Achieved fifth consecutive quarter of bookings above $1 billion, with $1.06 billion delivered in the first quarter.
Revenue increased by 19.4%, with an adjusted operating margin of 8.3%.
Book-to-bill ratio of 1.08x increased backlog by 2.6%, or $71 million, to $2.8 billion sequentially.
Velan acquisition is now expected to close early in the third quarter of 2023.
Flowserve
Flowserve
Flowserve Revenue by Segment
Revenue by Segment
Original Equipment Revenue
CapyFin.comAftermarket Revenue
CapyFin.com Forward Guidance
Flowserve is raising its Revenue and Adjusted EPS guidance metrics for 2023, as well as re-affirming certain other financial metrics.
Positive Outlook
- Revenue Growth: Up 10.0% to 12.0%
- Adjusted Earnings Per Share: $1.65 - $1.85
- Net Interest Expense: $55 - $60 million (Re-affirmed)
- Adjusted Tax Rate: 18% - 20% (Re-affirmed)
- Capital Expenditures: $75 - $85 million (Re-affirmed)
Challenges Ahead
- The outlook excludes any contribution from the previously announced pending acquisition of Velan Inc.
- Adjusted EPS target range also excludes expected adjusted items including realignment charges of approximately $25 million
- Potential impact of below-the-line foreign currency effects
- Certain other discrete items which may arise during the course of the year.
- FX impact is calculated by comparing the difference between the actual average FX rates of 2023 and the year-end 2022 spot rates both as applied to our 2023 expectations, divided by the number of shares expected for 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income