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Sep 30, 2020

Flowserve Q3 2020 Earnings Report

Reported EPS of $0.39 and adjusted EPS of $0.50, driven by solid backlog execution and the company is tracking ahead of plan on its $100 million cost reduction program.

Key Takeaways

Flowserve Corporation announced its financial results for the third quarter ended September 30, 2020, delivering a solid operating quarter amidst pandemic-related challenges, with reported EPS of $0.39 and adjusted EPS of $0.50. The company is increasingly optimistic about market stabilization and a return to growth in 2021, supported by the Flowserve 2.0 transformation progress.

Total bookings were $806.1 million, a decrease of 21.2% (or 21.6% on a constant currency basis).

Sales reached $924.3 million, down 7.2% (or 7.7% on a constant currency basis).

Reported gross and operating margins were 30.9% and 9.4%, respectively.

Adjusted gross and operating margins were 31.5% and 10.9%, respectively.

Total Revenue
$924M
Previous year: $997M
-7.2%
EPS
$0.5
Previous year: $0.59
-15.3%
Total Bookings
$806M
Total Backlog
$2B
Operating Margin
9.4%
Gross Profit
$285M
Previous year: $334M
-14.5%
Cash and Equivalents
$921M
Previous year: $547M
+68.3%
Total Assets
$5.17B
Previous year: $4.76B
+8.6%

Flowserve

Flowserve

Flowserve Revenue by Segment

Forward Guidance

Flowserve expects the 2020 fourth quarter to largely follow the trend of highest performance for quarterly revenues, adjusted earnings and cash flow typically occurring in the fourth quarter of the year.

Positive Outlook

  • Markets have stabilized
  • Expect a return to growth in 2021
  • World recovers from the COVID pandemic
  • Continued Flowserve 2.0 transformation progress
  • Well positioned to capture growth opportunities when investment returns

Revenue & Expenses

Visualization of income flow from segment revenue to net income