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Dec 31, 2023

Flowserve Q4 2023 Earnings Report

Reported solid results driven by strong operational performance and aftermarket awards.

Key Takeaways

Flowserve Corporation reported strong Q4 2023 results, with adjusted EPS of $0.68 and revenue of $1.17 billion, a 12.1% increase year-over-year. Total bookings were $1.04 billion. The company initiated full year 2024 guidance, including revenue growth between 4%-6% and Adjusted EPS of $2.40 to $2.60.

Reported EPS was $0.47, and Adjusted EPS was $0.68.

Total bookings reached $1.04 billion, with aftermarket awards exceeding $550 million.

Sales increased to $1.17 billion, up 12.1% year-over-year.

The quarterly cash dividend increased by 5% to $0.21 per share, and the stock repurchase authorization was replenished to $300 million.

Total Revenue
$1.17B
Previous year: $1.04B
+12.1%
EPS
$0.68
Previous year: $0.63
+7.9%
Total Bookings
$1.04B
Previous year: $1.11B
-6.3%
Operating Margin
9.4%
Previous year: 10.1%
-6.9%
Adjusted Operating Margin
10.5%
Previous year: 10.8%
-2.8%
Gross Profit
$340M
Previous year: $295M
+15.0%
Cash and Equivalents
$546M
Previous year: $435M
+25.5%
Free Cash Flow
$175M
Total Assets
$5.11B
Previous year: $4.79B
+6.6%

Flowserve

Flowserve

Flowserve Revenue by Segment

Forward Guidance

Flowserve initiated full year 2024 guidance, including revenue growth between 4%-6% and Reported and Adjusted EPS of $2.25 to $2.45 and $2.40 to $2.60, respectively.

Positive Outlook

  • Revenue Growth Up 4.0% to 6.0%
  • Reported Earnings Per Share $2.25 to $2.45
  • Adjusted Earnings Per Share $2.40 to $2.60
  • Intend to increase the conversion percentage of strong $2.7 billion backlog
  • Expand operating margins through improved operational excellence and enhanced product management.

Challenges Ahead

  • Net Interest Expense $60 to $65 million
  • Adjusted Tax Rate ~20%
  • Capital Expenditures $75 to $85 million
  • Excludes realignment charges of approximately $30 million
  • Potential impact of below-the-line foreign currency effects and certain other discrete items

Revenue & Expenses

Visualization of income flow from segment revenue to net income