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Dec 31, 2021

Flowserve Q4 2021 Earnings Report

Flowserve reported mixed results with sales declining but bookings increasing, driven by aftermarket growth and strategic initiatives.

Key Takeaways

Flowserve Corporation reported Q4 2021 results with revenue of $919.5 million, a decrease of 6.7% year-over-year, but total bookings increased by 17.5% to $969.1 million. Reported EPS was $0.13, and adjusted EPS was $0.45. The company's backlog at the end of the year was $2.0 billion, up 8.0% year-over-year.

Total bookings increased 17.5% year-over-year, reaching $969.1 million.

Year-end backlog was $2.0 billion, up 8.0% compared to the previous year.

Reported EPS was $0.13, while adjusted EPS reached $0.45.

The company is launching a new growth strategy focused on diversification, decarbonization, and digitization.

Total Revenue
$919M
Previous year: $985M
-6.7%
EPS
$0.45
Previous year: $0.53
-15.1%
Total Bookings
$969M
Previous year: $825M
+17.5%
Total Backlog
$2B
Previous year: $1.9B
+5.3%
Operating Margin
9.3%
Previous year: 9.7%
-4.1%
Gross Profit
$267M
Previous year: $295M
-9.6%
Cash and Equivalents
$658M
Previous year: $1.1B
-39.9%
Total Assets
$4.75B
Previous year: $5.31B
-10.6%

Flowserve

Flowserve

Flowserve Revenue by Segment

Forward Guidance

Flowserve provided its Reported and Adjusted EPS guidance for 2022, as well as certain other financial metrics.

Positive Outlook

  • Revenue Growth Up 7.0% to 9.0%
  • Reported Earnings Per Share $1.65 - $1.85
  • Adjusted Earnings Per Share $1.70 - $1.90
  • Adjusted Tax Rate 20% - 22%
  • Capital Expenditures $70 - $80 million

Challenges Ahead

  • Net Interest Expense $45 - $50 million
  • Flowserve’s 2022 Adjusted EPS target range excludes expected adjusted items including realignment charges of approximately $10 million
  • The potential impact of below-the-line foreign currency effects
  • Certain other discrete items which may arise during the course of the year.
  • The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income