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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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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