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Jun 30, 2023
Flowserve Q2 2023 Earnings Report
Flowserve's Q2 2023 earnings were reported, with raised full-year revenue and adjusted EPS guidance.
Key Takeaways
Flowserve Corporation reported strong second-quarter results, with revenue growth of 22.5% and an adjusted operating margin of 10.4%. The company raised its full-year revenue and adjusted EPS guidance range due to strong year-to-date results and increased expectations for the remainder of the year. Total bookings were $1.11 billion, and backlog increased to $2.84 billion.
Reported EPS grew 15% year-over-year to $0.39, and adjusted EPS grew 73% year-over-year to $0.52.
Achieved sixth consecutive quarter with bookings above $1 billion, with Q2 bookings at $1.1 billion, driven by aftermarket growth of 12.3%.
Generated revenue growth of 22.5% with an adjusted operating margin of 10.4%, an increase of 320 bps year-over-year.
Backlog of $2.84 billion increased 3.9%, or $108 million, versus 2022 year-end, supported by 1.03x book-to-bill in the second quarter.
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.
Positive Outlook
- Revenue Growth Up 16.0% to 18.0%
- Adjusted Earnings Per Share $1.85 - $2.00
- Adjusted Tax Rate ~20%
- Net Interest Expense ~$60 million
- Capital Expenditures $75 - $85 million
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 identified realignment charges of approximately $40 million
- potential impact of below-the-line foreign currency effects
- certain other discrete items which may arise during the course of the year
- potential for additional realignment expense
Revenue & Expenses
Visualization of income flow from segment revenue to net income