Flowserve Corporation Reports Third Quarter 2026 Results

Flowserve Business System Delivers Strong Q3 Performance; Updates 2026 Guidance

DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, reported its financial results for the third quarter ended September 30, 2026.

Highlights:

• Bookings of $1.38 billion, up 14% on a reported basis and 8% organically versus the prior-year period
• Record aftermarket bookings of $728 million
• Operating margin of 12.5% expanded 580 basis points and adjusted¹ operating margin² of 16.5% expanded 170 basis points compared to the prior-year period
• Reported EPS of $0.81 and adjusted EPS³ of $1.07
• Raised the low end of full-year 2026 adjusted EPS³ guidance to $4.10 to $4.20
• Revised full-year 2026 organic sales guidance to down 2.5% to down 1.5% reflecting increasingly challenging conditions in the Middle East
• Backlog of $3.5 billion, up 20% year over year, the largest backlog in Flowserve’s history

Management Commentary:

"Our teams delivered another quarter of meaningful bookings growth, adjusted operating margin expansion, and higher adjusted earnings per share while navigating ongoing Middle East disruption,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “The Flowserve Business System is helping us translate solid market demand into bookings growth and stronger profitability, with a clear focus on growth, execution, and customer service. The resilience and commitment of our associates around the globe remain instrumental in our ability to deliver for our customers and shareholders.”

“With three quarters behind us, our year-to-date earnings performance and continued margin expansion support raising the low end of our adjusted EPS guidance range. At the same time, we are lowering our full-year sales growth outlook to reflect more challenging operating conditions in the Middle East, which are delaying customer activity and revenue conversion and are expected to impact fourth-quarter sales. Significant growth in our backlog, alongside healthy underlying demand across our end markets, reinforces our confidence in delivering mid-single digit organic sales CAGR through 2030, while continued operational progress supports our broader long-term financial targets. We remain focused on converting our growing backlog to sales, further reducing complexity in our operations, and continuing to deliver margin expansion to create shareholder value.”

Key Figures (unaudited):

(dollars in millions, except per share)	Q3 2026	Q3 2025	Change	YTD 2026	YTD 2025	Change
Organic Bookings			7.7%			6.1%
Acquisitions/Divestitures Impact			660 bps			270 bps
Foreign Exchange Impact			(20 bps)			150 bps
Total Bookings	$1,383.5	$1,213.0	14.1%	$3,872.5	$3,511.2	10.3%
Original Equipment Bookings	$655.8	$559.9	17.1%	$1,768.6	$1,549.0	14.2%
Aftermarket Bookings	$727.7	$653.1	11.4%	$2,103.9	$1,962.2	7.2%
Organic Sales^4			(1.2%)			(4.9%)
Acquisitions/Divestitures Impact			670 bps			260 bps
Foreign Exchange Impact			(10 bps)			140 bps
Reported Sales	$1,237.8	$1,174.4	5.4%	$3,475.2	$3,507.1	(0.9%)
Operating Margin	12.5%	6.7%	580 bps	12.2%	10.2%	200 bps
Adjusted Operating Margin	16.5%	14.8%	170 bps	15.6%	14.1%	150 bps
Earnings Per Share (EPS)	$0.81	$1.67	(51.5%)	$2.21	$2.85	(22.5%)
Adjusted Earnings Per Share (EPS)	$1.07	$0.90	18.9%	$2.87	$2.53	13.4%
Cash From Operations	$144.1	$401.8	($257.7)	$230.3	$506.1	($275.8)
Backlog	$3,471.8	$2,896.1	19.9%	$3,471.8	$2,896.1	19.9%

2026 Guidance³:

The Company updated 2026 guidance:

	Prior	Current
Organic Sales Growth	Approx. (1%)	(2.5%) to (1.5%)
Impact From Acquisitions/Divestitures	Approx. +300 bps	Approx. +350 bps
Impact From Foreign Exchange Translation	Approx. +100 bps	Approx. +100 bps
Total Sales Growth	Approx. +3%	+2% to +3%
Adjusted EPS	$4.05 to $4.20	$4.10 to $4.20
Net Interest Expense	Approx. $85 million	Approx. $85 million
Adjusted Tax Rate	21% to 22%	21% to 22%
Capital Expenditures	Approx. $100 million	Approx. $90 million

The guidance assumes tariff rates in place as of October 1, 2026, and assumes increasingly challenging conditions in the Middle East, which have been impacted by armed conflict and geopolitical instability.

Webcast and Conference Call Instructions:

Flowserve will host its conference call to discuss third quarter results on Thursday, October 29, 2026, at 8:30 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve’s Investor Relations website.

Upcoming Investor Conferences:

Flowserve announced its participation in the following upcoming investor conferences:

• On Wednesday, November 11, 2026, Scott Rowe and Brian Ezzell, Senior Vice President and Chief Financial Officer, will participate in investor meetings at the Baird Global Industrial Conference. Additionally, Scott Rowe will participate in a fireside chat that will begin at 1:10 p.m. Central Time (2:10 p.m. Eastern Time).
• On Wednesday, December 2, 2026, Brian Ezzell will participate in investor meetings as well as a fireside chat at the Goldman Sachs Industrials and Materials Conference that will begin at 11:30 a.m. Eastern Time.

Shareholders and other interested parties can access the live webcasts of the fireside chats on Flowserve’s Investor Relations website. Replays of the webcasts will be available after the events.

Footnotes

^1See Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) and Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) tables for a detailed reconciliation of reported results to adjusted measures.

^2Adjusted operating margin is calculated by dividing adjusted operating income by sales. Adjusted operating income is derived by excluding the adjusted items.

^3Adjusted earnings per share (EPS) excludes realignment expenses, the impact from other specific discrete and below-the-line foreign currency effects and utilizes the then-applicable foreign exchange rates and fully diluted shares. Adjusted full-year 2026 EPS guidance excludes certain other discrete items which may arise during the year.

^4Organic is defined as the change in sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions and divestitures. The impact of currency translation is calculated by translating current year results on a monthly basis at prior year exchange rates for the same period.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended September 30,
(Amounts in thousands)		2026			2025
Sales	$	1,237,773		$	1,174,434
Cost of sales		(823,393	)		(794,148	)
Gross profit		414,380			380,286
Selling, general and administrative expense		(281,937	)		(305,152	)
Gain on sale of business		16,177			—
Net earnings from affiliates		5,986			4,138
Operating income		154,606			79,272
Interest expense		(26,641	)		(18,738	)
Interest income		2,362			792
Other (expense) income, net		(8,184	)		256,220
Earnings before income taxes		122,143			317,546
(Provision for) benefit from income taxes		(15,090	)		(93,688	)
Net earnings, including noncontrolling interests		107,053			223,858
Less: net earnings attributable to noncontrolling interests		(4,015	)		(4,276	)
Net earnings attributable to Flowserve Corporation	$	103,038		$	219,582
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.81		$	1.69
Diluted		0.81			1.67
Weighted average shares - basic		127,164			130,315
Weighted average shares - diluted		127,962			131,235

Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended September 30, 2026	Gross Profit			Selling, General & Administrative Expense			Gain on Sale of Business			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate		Diluted EPS
Reported	$	414,380		$	281,937		$	16,177		$	154,606		$	(8,184	)	$	15,090		$	103,038		12.4	%	0.81
Reported as a percent of sales		33.5	%		22.8	%		1.3	%		12.5	%		-0.7	%		1.2	%		8.3	%
Realignment charges (a)		25,971			(6,018	)		(16,177	)		15,812			-			(6,260	)		22,072		-39.6	%	0.17
Acquisition and divestiture related (b)		-			(5,275	)		-			5,275			-			1,241			4,034		23.5	%	0.03
Amortization of intangible assets (c)		13,898			(6,765	)		-			20,663			-			2,874			17,789		13.9	%	0.14
Discrete items (d)		-			(7,830	)		-			7,830			1,000			190			8,640		2.2	%	0.07
Discrete tax items (e)		-			-			-			-			-			23,072			(23,072	)	0.0	%	(0.18	)
Below-the-line foreign exchange impacts (f)		-			-			-			-			5,132			442			4,690		8.6	%	0.04
Adjusted	$	454,249		$	256,049		$	-		$	204,186		$	(2,052	)	$	36,649		$	137,191		20.6	%	1.07
Adjusted as a percent of sales		36.7	%		20.7	%		0.0	%		16.5	%		-0.2	%		3.0	%		11.1	%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs and includes the gain on divestiture of our PMV Automation business (PMV) within FCD.
(b) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO), and the divestiture of PMV.
(c) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories.
(d) Charge represents the $7,972 strategic acquisition of intellectual property within FPD, an immaterial adjustment to transaction costs related to the divestiture of our asbestos-related assets and liabilities that were adjusted out in a prior period and $1,000 for non-cash pension settlement accounting losses incurred in conjunction with the U.S. pension plan.
(e) Discrete tax adjustment includes the impact from the release of a valuation allowance in Italy.
(f) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency and includes the foreign exchange loss on the Blue Chip Swap Securities transaction.
Three Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate			Diluted EPS
Reported	$	380,286		$	305,152		$	79,272		$	256,220		$	93,688		$	219,582			29.5	%	1.67
Reported as a percent of sales		32.4	%		26.0	%		6.7	%		21.8	%		8.0	%		18.7	%
Realignment charges (a)		25,481			(4,571	)		30,052			-			6,907			23,145			23.0	%	0.18
Acquisition related (b)		9			(4,243	)		4,252			-			1,000			3,252			23.5	%	0.02
Purchase accounting step-up and intangible asset amortization (c)		2,625			(1,300	)		3,925			-			1,182			2,743			30.1	%	0.02
Discrete items (d)(e)(f)		31			(30,351	)		30,382			1,500			7,499			24,383			23.5	%	0.19
Merger transaction costs (g)		-			(25,682	)		25,682			-			5,885			19,797			22.9	%	0.15
Merger termination payment (h)		-			-			-			(266,000	)		(60,957	)		(205,043	)		22.9	%	(1.56	)
Discrete tax items (i)		-			-			-			-			(24,860	)		24,860			0.0	%	0.19
Below-the-line foreign exchange impacts (j)		-			-			-			5,401			622			4,779			11.5	%	0.04
Adjusted	$	408,432		$	239,005		$	173,565		$	(2,879	)	$	30,966		$	117,498			20.3	%	0.90
Adjusted as a percent of sales		34.8	%		20.4	%		14.8	%		-0.2	%		2.6	%		10.0	%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,300 is non-cash.
(b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition.
(c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
(d) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our U.S. Qualified pension plan.
(e) Charge of $1,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our U.S. Qualified pension plan.
(f) Charge of $30,100 represents the Q3 2025 non-cash adjustment to our estimated liability for incurred by not reported asbestos claims based on an annual actuarial study.
(g) Charge represents transaction costs incurred associated with the terminated Chart Industries merger.
(h) Amount represents the Chart Industries merger termination fee paid to Flowserve.
(i) Amount represents a one-time tax charge related to enactment of the One Big Beautiful Bill Act during Q3 2025.
(j) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.

SEGMENT INFORMATION
(Unaudited)
	Three Months Ended September 30,
FLOWSERVE PUMPS DIVISION		2026			2025
(Amounts in millions, except percentages)
Bookings	$	940.1		$	819.5
Sales		830.4			800.3
Gross profit		314.3			265.8
Gross profit margin		37.8	%		33.2	%
SG&A		152.2			135.0
Segment operating income		168.0			134.9
Segment operating income as a percentage of sales		20.2	%		16.9	%
	Three Months Ended September 30,
FLOW CONTROL DIVISION		2026			2025
(Amounts in millions, except percentages)
Bookings	$	446.2		$	396.1
Sales		411.6			377.4
Gross profit		98.9			114.2
Gross profit margin		24.0	%		30.3	%
SG&A		80.9			67.8
Gain on sale of business		16.2			—
Segment operating income		34.2			46.4
Segment operating income as a percentage of sales		8.3	%		12.3	%

Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands)
Flowserve Pumps Division
Three Months Ended September 30, 2026	Gross Profit			Selling, General & Administrative Expense			Operating Income						Three Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	314,255		$	152,218		$	168,023					Reported	$	265,776		$	135,046		$	134,869
Reported as a percent of sales		37.8	%		18.3	%		20.2	%				Reported as a percent of sales		33.2	%		16.9	%		16.9	%
Realignment charges (a)		(869	)		(534	)		(335	)				Realignment charges (a)		21,628			(88	)		21,716
Discrete items (b)		-			(7,967	)		7,967					Discrete items (b)		24			(63	)		87
Amortization of intangible assets (d)		2,916			(2,276	)		5,192					Adjusted	$	287,428		$	134,895		$	156,672
Adjusted	$	316,302		$	141,441		$	180,847					Adjusted as a percent of sales		35.9	%		16.9	%		19.6	%
Adjusted as a percent of sales		38.1	%		17.0	%		21.8	%
Flow Control Division
Three Months Ended September 30, 2026	Gross Profit			Selling, General & Administrative Expense			Gain on Sale of Business			Operating Income			Three Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	98,906		$	80,889		$	16,177		$	34,194		Reported	$	114,250		$	67,810		$	46,440
Reported as a percent of sales		24.0	%		19.7	%		3.9	%		8.3	%	Reported as a percent of sales		30.3	%		18.0	%		12.3	%
Realignment charges (a)		26,840			(3,762	)		(16,177	)		14,425		Realignment charges (a)		4,386			(2,395	)		6,781
Acquisition and divestiture related (c)		-			(2,956	)		-			2,956		Acquisition related (c)		9			(4,243	)		4,252
Amortization of intangible assets (d)		10,982			(4,489	)		-			15,471		Purchase accounting step-up and intangible asset amortization (d)		2,625			(1,300	)		3,925
Adjusted	$	136,728		$	69,682		$	-		$	67,046		Discrete items (b)		5			(45	)		50
Adjusted as a percent of sales		33.2	%		16.9	%		0.0	%		16.3	%	Adjusted	$	121,275		$	59,827		$	61,448
													Adjusted as a percent of sales		32.1	%		15.9	%		16.3	%
Note: Amounts may not calculate due to rounding													Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs and includes the gain on divestiture of our PMV Automation business (PMV) within FCD.													(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,300 is non-cash.
(b) Charge represents the $7,967 strategic acquisition of intellectual property within FPD.													(b) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our U.S. Qualified pension plan.
(c) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and the divestiture of PMV with FCD.													(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.
(d) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories.													(d) Charge represents amortization of acquisition related intangible assets associated with the MOGAS acquisition.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)	Nine Months Ended September 30,
		2026			2025
Sales	$	3,475,217		$	3,507,069
Cost of sales		(2,296,270	)		(2,350,867	)
Gross profit		1,178,947			1,156,202
Selling, general and administrative expense		(811,655	)		(814,237	)
Gain on sale of business		16,177			—
Net earnings from affiliates		41,992			15,786
Operating income		425,461			357,751
Interest expense		(72,768	)		(58,166	)
Interest income		8,885			5,063
Other (expense) income, net		(13,272	)		213,958
Earnings before income taxes		348,306			518,606
Provision for income taxes		(53,299	)		(127,067	)
Net earnings, including noncontrolling interests		295,007			391,539
Less: Net earnings attributable to noncontrolling interests		(11,290	)		(16,298	)
Net earnings attributable to Flowserve Corporation	$	283,717		$	375,241
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	2.23		$	2.87
Diluted		2.21			2.85
Weighted average shares - basic		127,434			130,910
Weighted average shares - diluted		128,314			131,836

Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands, except per share data)
Nine Months Ended September 30, 2026	Gross Profit			Selling, General & Administrative Expense			Gain on Sale of Business			Net earnings from affiliates			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate		Diluted EPS
Reported	$	1,178,947		$	811,655		$	16,177		$	41,992		$	425,461		$	(13,272	)	$	53,299		$	283,717		15.3	%	2.21
Reported as a percent of sales		33.9	%		23.4	%		0.5	%		1.2	%		12.2	%		-0.4	%		1.5	%		8.2	%
Realignment charges (a)		75,452			(26,234	)		(16,177	)		-			85,509			-			6,773			78,736		7.9	%	0.61
Acquisition and divestiture related (b)(c)		-			(23,179	)		-			(27,700	)		(4,521	)		-			5,554			(10,075	)	-122.8	%	(0.08	)
Amortization of intangible assets (d)		16,454			(12,113	)		-			-			28,567			-			4,394			24,173		15.4	%	0.19
Discrete items (e)(f)		62			(8,719	)		-			-			8,781			5,576			1,491			12,866		10.4	%	0.10
Discrete tax items (g)		-			-			-			-			-			-			23,072			(23,072	)	0.0	%	(0.18	)
Below-the-line foreign exchange impacts (h)		-			-			-			-			-			2,409			255			2,154		10.6	%	0.02
Adjusted	$	1,270,915		$	741,410		$	-		$	14,292		$	543,797		$	(5,287	)	$	94,838		$	368,499		20.0	%	2.87
Adjusted as a percent of sales		36.6	%		21.3	%		0.0	%		0.4	%		15.6	%		-0.2	%		2.7	%		10.6	%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. Also includes the gain on divestiture of our PMV Automation business (PMV) within FCD.
(b) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO), and the divestiture of PMV.
(c) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO.
(d) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories.
(e) Charges represent discrete items including $523 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our U.S. Qualified pension plan, $286 of transaction costs related to the divestiture of our asbestos-related assets and liabilities and the $7,972 strategic acquisition of intellectual property within FPD.
(f) Charges include $5,576 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada.
(g) Discrete tax adjustment includes the impact from the release of a valuation allowance in Italy.
(h) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency and includes the foreign exchange loss on the Blue Chip Swap Securities transaction.
Nine Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate			Diluted EPS
Reported	$	1,156,202		$	814,237		$	357,751		$	213,958		$	127,067		$	375,241			24.5	%		2.85
Reported as a percent of sales		33.0	%		23.2	%		10.2	%		6.1	%		3.6	%		10.7	%
Realignment charges (a)		40,600			(1,481	)		42,081			-			10,096			31,985			24.0	%		0.24
Acquisition related (b)		761			(8,714	)		9,475			-			2,228			7,247			23.5	%		0.05
Purchase accounting step-up and intangible asset amortization (c)		8,742			(3,900	)		12,642			-			3,729			8,913			29.5	%		0.07
Discrete items (d)(e)(f)		106			(31,116	)		31,222			4,500			8,403			27,319			23.5	%		0.21
Merger transaction costs (g)		-			(41,197	)		41,197			-			9,534			31,663			23.1	%		0.24
Merger termination payment (h)		-			-			-			(266,000	)		(60,957	)		(205,043	)		22.9	%		(1.56	)
Discrete tax items (i)		-			-			-			-			(24,860	)		24,860			0.0	%		0.19
Below-the-line foreign exchange impacts (j)		-			-			-			36,797			5,977			30,820			16.2	%		0.23
Adjusted	$	1,206,411		$	727,829		$	494,368		$	(10,745	)	$	81,217		$	333,005			18.9	%		2.53
Adjusted as a percent of sales		34.4	%		20.8	%		14.1	%		-0.3	%		2.3	%		9.5	%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,300 is non-cash.
(b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition.
(c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
(d) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our U.S. Qualified pension plan.
(e) Charge of $4,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our U.S. Qualified pension plan.
(f) Charge of $30,100 represents the Q3 2025 non-cash adjustment to our estimated liability for incurred by not reported asbestos claims based on an annual actuarial study.
(g) Charge represents transaction costs incurred associated with the terminated Chart Industries merger.
(h) Amount represents the Chart Industries merger termination fee paid to Flowserve.
(i) Amount represents a one-time tax charge related to enactment of the One Big Beautiful Bill Act during Q3 2025.
(j) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.

SEGMENT INFORMATION
(Unaudited)
	Nine Months Ended September 30,
FLOWSERVE PUMPS DIVISION		2026			2025
(Amounts in millions, except percentages)
Bookings	$	2,646.3		$	2,394.8
Sales		2,389.0			2,402.4
Gross profit		880.3			833.5
Gross profit margin		36.8	%		34.7	%
SG&A		447.4			415.1
Segment operating income		474.9			434.1
Segment operating income as a percentage of sales		19.9	%		18.1	%
	Nine Months Ended September 30,
FLOW CONTROL DIVISION		2026			2025
(Amounts in millions, except percentages)
Bookings	$	1,236.0		$	1,126.1
Sales		1,096.5			1,112.9
Gross profit		296.4			322.1
Gross profit margin		27.0	%		28.9	%
SG&A		225.7			206.4
Gain on sale of business		16.2			—
Segment operating income		86.9			115.7
Segment operating income as a percentage of sales		7.9	%		10.4	%

Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands)
Flowserve Pumps Division
Nine Months Ended September 30, 2026	Gross Profit			Selling, General & Administrative Expense			Net earnings from affiliates			Operating Income			Nine Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	880,323		$	447,390		$	41,992		$	474,925		Reported	$	833,467		$	415,126		$	434,128
Reported as a percent of sales		36.8	%		18.7	%		1.8	%		19.9	%	Reported as a percent of sales		34.7	%		17.3	%		18.1	%
Realignment charges (a)		19,740			(10,067	)		-			29,807		Realignment charges (a)		26,495			(840	)		27,335
Discrete items (b)(c)		48			(8,063	)		-			8,111		Discrete items (b)		87			(287	)		374
Acquisition and divestiture related (d)(e)		-			(813	)		(27,700	)		(26,887	)	Adjusted	$	860,049		$	413,999		$	461,837
Amortization of intangible assets (f)		5,372			(5,022	)		-			10,394		Adjusted as a percent of sales		35.8	%		17.2	%		19.2	%
Adjusted	$	905,483		$	423,425		$	14,292		$	496,350
Adjusted as a percent of sales		37.9	%		17.7	%		0.6	%		20.8	%
Flow Control Division
Nine Months Ended September 30, 2026	Gross Profit			Selling, General & Administrative Expense			Gain on Sale of Business			Operating Income			Nine Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	296,399		$	225,648		$	16,177		$	86,928		Reported	$	322,131		$	206,437		$	115,694
Reported as a percent of sales		27.0	%		20.6	%		1.5	%		7.9	%	Reported as a percent of sales		28.9	%		18.5	%		10.4	%
Realignment charges (a)		55,712			(476	)		(16,177	)		40,011		Realignment charges (a)		14,704			1,230			13,474
Discrete items (b)		10			(75	)		-			85		Acquisition related (c)		761			(8,714	)		9,475
Acquisition and divestiture related (d)		-			(19,121	)		-			19,121		Purchase accounting step-up and intangible asset amortization (d)		8,742			(3,900	)		12,642
Amortization of intangible assets (f)		11,082			(7,091	)		-			18,173		Discrete items (b)		14			(208	)		222
Adjusted	$	363,203		$	198,885		$	-		$	164,318		Adjusted	$	346,352		$	194,845		$	151,507
Adjusted as a percent of sales		33.1	%		18.1	%		0.0	%		15.0	%	Adjusted as a percent of sales		31.1	%		17.5	%		13.6	%
Note: Amounts may not calculate due to rounding													Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. Also includes the gain on divestiture of our PMV Automation business (PMV) within FCD.													(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,300 is non-cash.
(b) Charges represent $229 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our U.S. Qualified pension plan.													(b) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our U.S. Qualified pension plan.
(c) Charge represents the $7,967 strategic acquisition of intellectual property within FPD.
(d) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO), and the divestiture of PMV.													(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.
(e) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO.													(d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
(f) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories.

Segment Results
(Unaudited)
Flowserve Pumps Division
(dollars in millions)	Q3 2026	Q3 2025	Change	YTD 2026	YTD 2025	Change
Organic Bookings			10.9%			6.8%
Acquisitions / Divestitures Impact			3.9%			1.8%
FX Impact (a)			(0.1%)			1.9%
Total Bookings (b)	$940	$819	14.7%	$2,646	$2,395	10.5%
Organic Sales			(0.9%)			(3.6%)
Acquisitions / Divestitures Impact			4.7%			1.2%
FX Impact (a)			0.0%			1.8%
Reported Sales (b)	$830	$800	3.8%	$2,389	$2,402	(0.6%)
Gross Margin	37.8%	33.2%	460 bps	36.8%	34.7%	210 bps
Adjusted Gross Margin (c)	38.1%	35.9%	220 bps	37.9%	35.8%	210 bps
Operating Margin	20.2%	16.9%	330 bps	19.9%	18.1%	180 bps
Adjusted Operating Margin (d)	21.8%	19.6%	220 bps	20.8%	19.2%	160 bps
Backlog (b)	$2,377	$2,007	18.5%	$2,377	$2,007	18.5%
Flow Control Division
(dollars in millions)	Q3 2026	Q3 2025	Change	YTD 2026	YTD 2025	Change
Organic Bookings			0.8%			4.8%
Acquisitions / Divestitures Impact			12.2%			4.3%
FX Impact (a)			(0.4%)			0.7%
Total Bookings (b)	$446	$396	12.6%	$1,236	$1,126	9.8%
Organic Sales			(1.3%)			(5.8%)
Acquisitions / Divestitures Impact			10.8%			3.7%
FX Impact (a)			(0.4%)			0.6%
Reported Sales (b)	$412	$377	9.1%	$1,096	$1,113	(1.5%)
Gross Margin	24.0%	30.3%	(630 bps)	27.0%	28.9%	(190 bps)
Adjusted Gross Margin (c)	33.2%	32.1%	110 bps	33.1%	31.1%	200 bps
Operating Margin	8.3%	12.3%	(400 bps)	7.9%	10.4%	(250 bps)
Adjusted Operating Margin (d)	16.3%	16.3%	-	15.0%	13.6%	140 bps
Backlog (b)	$1,105	$896	23.2%	$1,105	$896	23.2%
(a) Constant foreign exchange (FX) represents the year-over-year variance assuming Q3 and YTD 2026 results at Q3 and YTD 2025 FX rates
(b) Bookings, sales, and backlog do not include interdivision eliminations
(c) Adjusted gross margin is a non‑GAAP financial measure. Adjusted gross margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding realignment charges and other specific discrete items. See the Segment Reconciliation of Non‑GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited)
(d) Adjusted operating margin excludes realignment charges and other specific discrete items

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
	September 30,			December 31,
(Amounts in thousands, except par value)		2026			2025
ASSETS
Current assets:
Cash and cash equivalents	$	742,148		$	760,183
Accounts receivable, net of allowance for expected credit losses of $92,193 and $83,094, respectively		1,084,291			1,029,095
Contract assets, net of allowance for expected credit losses of $6,124 and $6,028, respectively		330,293			322,472
Inventories		844,122			789,898
Prepaid expenses and other		127,820			141,237
Total current assets		3,128,674			3,042,885
Property, plant, and equipment, net of accumulated depreciation of $1,242,388 and $1,224,912, respectively		574,771			566,751
Operating lease right-of-use asset, net		189,000			166,031
Goodwill		1,697,977			1,391,988
Deferred taxes		181,605			156,250
Other intangible assets, net		369,747			198,475
Other assets, net of allowance for expected credit losses of $66,210 and $66,047, respectively		205,227			185,820
Total assets	$	6,347,001		$	5,708,200
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	556,532		$	554,243
Accrued liabilities		556,768			587,475
Contract liabilities		329,380			274,669
Debt due within one year		9,895			49,868
Operating lease liabilities		38,093			35,630
Total current liabilities		1,490,668			1,501,885
Long-term debt due after one year		2,046,807			1,525,210
Operating lease liabilities		163,348			149,565
Retirement obligations and other liabilities		262,767			277,216
Contingencies (See Note 12)
Shareholders’ equity:
Preferred shares, $1.00 par value		—			—
Shares authorized — 1,000, no shares issued
Common shares, $1.25 par value		220,991			220,991
Shares authorized — 305,000
Shares issued — 176,793 and 176,793, respectively
Capital in excess of par value		504,791			508,890
Retained earnings		4,460,774			4,261,977
Treasury shares, at cost — 50,173 and 49,763 shares, respectively		(2,290,306	)		(2,231,685	)
Deferred compensation obligation		5,922			6,629
Accumulated other comprehensive loss		(590,627	)		(575,405	)
Total Flowserve Corporation shareholders' equity		2,311,545			2,191,397
Noncontrolling interests		71,866			62,927
Total equity		2,383,411			2,254,324
Total liabilities and equity	$	6,347,001		$	5,708,200

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)	Nine Months Ended September 30,
	2026		2025
Cash flows — Operating activities:
Net earnings, including noncontrolling interests	295,007		391,539
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation	61,537		58,685
Amortization of intangible and other assets	24,750		14,009
(Gain) on remeasurement of previously held equity interest	(27,700	)	—
(Gain) on sale of business	(16,177	)	—
Stock-based compensation	30,469		25,787
Loss on Blue Chip Swap Securities	3,146		—
Foreign currency, asset write downs and other non-cash adjustments	(5,446	)	(3,326	)
Change in assets and liabilities:
Accounts receivable, net	(28,684	)	(26,081	)
Inventories	(7,421	)	26,727
Contract assets, net	(8,198	)	(35,157	)
Prepaid expenses and other assets, net	15,698		(7,362	)
Accounts payable	(34,192	)	31,158
Contract liabilities	18,750		(17,857	)
Accrued liabilities	(60,582	)	(30,488	)
Retirement obligations and other liabilities	(5,779	)	31,900
Net deferred taxes	(24,897	)	46,524
Net cash flows provided by operating activities	230,281		506,058
Cash flows — Investing activities:
Capital expenditures	(51,056	)	(45,534	)
Payments for acquisitions, net of cash acquired	(517,735	)	—
Proceeds from disposal of assets	9,783		1,067
Purchases of Blue Chip Swap Securities	(52,939	)	—
Proceeds from Sales of Blue Chip Swap Securities	49,793		—
Proceeds from divestiture of business, net of cash divested	34,567		—
Affiliate investment activity	(3,960	)	—
Net cash flows (used) by investing activities	(531,547	)	(44,467	)
Cash flows — Financing activities:
Proceeds from issuance of senior notes, net of discount	499,320		—
Payments on term loan	(77,875	)	(28,125	)
Proceeds from long-term debt	74,750		—
Payment of deferred loan costs	(4,893	)	—
Proceeds under revolving credit facility	150,000		50,000
Payments under revolving credit facility	(160,000	)	(50,000	)
Proceeds under other financing arrangements	1,071		10,562
Payments under other financing arrangements	(8,058	)	(3,310	)
Payments related to tax withholding for stock-based compensation	(23,339	)	(11,584	)
Repurchases of common shares	(75,000	)	(197,920	)
Payments of dividends	(82,881	)	(82,671	)
Contingent consideration payment related to acquired business	—		(15,000	)
Other	(2,123	)	(2,899	)
Net cash flows (used) provided by financing activities	290,972		(330,947	)
Effect of exchange rate changes on cash and cash equivalents	(7,741	)	27,762
Net change in cash and cash equivalents	(18,035	)	158,406
Cash and cash equivalents at beginning of period	760,183		675,441
Cash and cash equivalents at end of period	$742,148		$833,847
Non-Cash Investing and Financing Activities:
Liabilities incurred related to acquired business, but not paid	$ 1,505		—

About Flowserve:

Flowserve Corporation is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company’s website at www.flowserve.com.

Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, blockades or other closures of major trade lanes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrating new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.