Flowserve Corporation Reports Third Quarter 2024 Financial Results
Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, announced its financial results for the third quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate | Comparison to Estimate |
|---|---|---|---|---|---|
| Total Revenue | $1.13 billion | $1.09 billion | +3.5% | $1.13 billion | In line |
| Reported EPS | $0.44 | $0.35 | +25.7% | $0.67 | Below |
| Adjusted EPS | $0.62 | $0.50 | +24% | N/A | N/A |
Flowserve experienced a solid third quarter with a 3.5% year-over-year revenue increase to $1.13 billion, aligning with consensus estimates. Despite facing an unfavorable impact from a discrete charge for long-term liabilities, EPS showed robust growth compared to the prior year.
Revenue Performance by Segment
| Segment | Q3 2024 ($ millions) | Q3 2023 ($ millions) | YoY Change |
|---|---|---|---|
| Original Equipment | $555.8 | $529.2 | +5.0% |
| Aftermarket | $577.3 | $565.6 | +2.1% |
Both segments demonstrated growth, with original equipment and aftermarket sales climbing 5.0% and 2.1%, respectively. These were primarily driven by increased operational efficiencies and a strong backlog.
Operational Highlights
- Achieved bookings of $1.20 billion, a 12.7% increase from the previous year, including substantial nuclear awards and remarkable levels of 3D strategy bookings.
- Significant improvements in operating cash flow, which rose to $178 million, marking a 121% year-over-year growth.
- Completion of the MOGAS Industries acquisition, enhancing Flowserve's market presence.
Management Commentary
Scott Rowe, Flowserve's President and CEO, stated, 'Our third-quarter results reflect strong operational performance, significant margin improvement, and healthy bookings. The Flowserve Business System is beginning to deliver results, propelling us toward our 2027 financial targets. With a near-record backlog and strategic acquisitions, we are confident in our ability to deliver long-term value to our shareholders.'
Forward Guidance
Flowserve reaffirmed its previously announced Adjusted EPS target range for 2024, maintaining a positive outlook despite lowering the full-year Reported EPS target range due to ongoing adjustments.
Stock Price Movement
Post-earnings release, Flowserve's stock saw a modest increase of approximately 0.53%, reflecting investor confidence in the company's strategic direction and financial health.
Flowserve's strong operational results, strategic acquisitions, and positive guidance signal continued progress and growth, aligning with its long-term goals.
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