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Dec 31, 2022

Flowserve Q4 2022 Earnings Report

Reported improved operational performance, resulting in the highest quarterly revenue since 2019 and expanded year-over-year adjusted operating margin.

Key Takeaways

Flowserve Corporation reported fourth-quarter earnings with revenue of $1.04 billion, up 13.0% year-over-year. Reported EPS was $0.92 and Adjusted EPS was $0.63. Total bookings were $1.11 billion, up 14.2% year-over-year and backlog at December 31, 2022 was $2.74 billion, up 36.5% versus December 31, 2021.

Reported Earnings Per Share (EPS) of $0.92 and Adjusted EPS of $0.63

Total bookings were $1.11 billion, up 14.2%, or 19.4% on a constant currency basis

Sales were $1.04 billion, up 13.0%, or 18.6% on a constant currency basis

Backlog at December 31, 2022 was $2.74 billion, up 36.5% versus December 31, 2021, or up 39.2% on a constant currency basis

Total Revenue
$1.04B
Previous year: $919M
+13.0%
EPS
$0.63
Previous year: $0.45
+40.0%
Total Bookings
$1.11B
Previous year: $969M
+14.5%
Total Backlog
$2.74B
Previous year: $2B
+37.0%
Operating Margin
10.1%
Previous year: 9.3%
+8.6%
Gross Profit
$295M
Previous year: $267M
+10.5%
Cash and Equivalents
$435M
Previous year: $658M
-33.9%
Total Assets
$4.79B
Previous year: $4.75B
+0.9%

Flowserve

Flowserve

Forward Guidance

Flowserve reaffirms its Reported and Adjusted EPS guidance for 2023.

Positive Outlook

  • Revenue Growth Up 9.0% to 11.0%
  • Reported Earnings Per Share $1.40 - $1.65
  • Adjusted Earnings Per Share $1.50 - $1.75
  • Net Interest Expense $55 - $60 million
  • Adjusted Tax Rate 18% - 20%

Challenges Ahead

  • This outlook excludes any contribution from the expected acquisition of Velan Inc., announced previously.
  • Adjusted EPS target range also excludes expected adjusted items including realignment charges of approximately $20 million
  • Excludes the potential impact of below-the-line foreign currency effects
  • Excludes certain other discrete items which may arise during the course of the year.
  • Capital Expenditures $75 - $85 million