Q4 2024 Flowserve Corp Earnings Call Transcript
Key Points
- Flowserve Corp (FLS) reported strong fourth-quarter bookings of nearly $1.2 billion, with significant growth in both original equipment and aftermarket bookings.
- Adjusted gross margins expanded by 300 basis points to 32.8%, marking the eighth consecutive quarter of year-over-year margin expansion.
- The company achieved a book-to-bill ratio of 1.0, maintaining a near-record backlog of $2.8 billion.
- Flowserve Corp (FLS) generated strong operating cash flow of $197 million in the fourth quarter.
- The MOGAS acquisition expands Flowserve Corp (FLS)'s offering and exposure to the growing mining and minerals market, enhancing diversification efforts.
- The strengthening of the US dollar created currency translation headwinds, impacting financial results.
- Higher interest expenses related to the MOGAS acquisition negatively affected earnings.
- Sales growth was muted in the quarter due to the absence of significant percentage of completion revenue from the Jafurah project, which was present in the previous year's fourth quarter.
- Adjusted EPS was negatively impacted by $0.02 due to foreign currency translation.
- The chemical market in Europe remains soft, affecting Flowserve Corp (FLS)'s performance in that region.
Good day, and welcome to the Flowserve fourth quarter and year-end 2024 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brian Ezzell, VP, Investor Relations, Treasurer and Corporate Finance. Please go ahead.
Thank you, and good morning, everyone. Welcome to Flowserve's fourth-quarter 2024 business update. I'm joined this morning by Scott Rowe, Flowserve's President and Chief Executive Officer; and Chief Financial Officer, Amy Schwetz.
Today, Scott and Amy will provide an update on our overall business performance and highlights from the quarter. Following their comments, we'll open the call for questions. I'll ask that you please keep to one question and one follow-up question and then return to the queue.
Turning to slide 2. As a reminder, our discussion will contain forward-looking statements that are based upon information available as of today. Actual results may
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