Q1 2025 Flowserve Corp Earnings Call Transcript
Key Points
- Flowserve Corp (FLS) reported an 18% increase in bookings, reaching $1.2 billion, demonstrating strong demand for its products.
- The company achieved a 5% revenue growth and expanded adjusted gross margins by 180 basis points to 33.5%.
- Adjusted operating margins improved to 12.8%, with adjusted earnings per share increasing by nearly 25% to $0.72.
- Record aftermarket bookings of almost $690 million, marking the fourth consecutive quarter above $600 million, highlight the success of Flowserve's aftermarket business strategy.
- Flowserve's nuclear bookings exceeded $100 million for the third consecutive quarter, with power bookings up more than 45% year-over-year, indicating robust demand in critical industries.
- The current tariff environment introduces uncertainty, with an estimated annualized gross impact of $90 million to $100 million before mitigation.
- Macroeconomic uncertainties pose potential risks to Flowserve Corp (FLS)'s outlook, particularly in the second half of 2025.
- The company faces challenges in managing the impact of tariffs on imported materials, such as castings and forgings, which are sourced from China, India, and Mexico.
- Flowserve Corp (FLS) is experiencing limited project deferrals in select industries like mining and renewables, which could impact future bookings.
- The timing of tariff impacts and mitigating actions may lead to mismatched margins, particularly affecting the flow control side of the business more than pumps.
Good day, and welcome to the Flowserve first quarter 2025 earnings call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Brian Ezzell, Vice President, Treasurer and Investor Relations and Corporate Finance. Please go ahead.
Thank you, and good morning, everyone. Welcome to Flowserve's first quarter 2025 business update. I'm joined by Scott Rowe, Flowserve's President and Chief Executive Officer; and our Chief Financial Officer, Amy Schwetz. Following Scott and Amy's prepared remarks, we'll open the call for questions.
Turning to slide 2. Our discussion will contain forward-looking statements that are based upon information available as of today. Actual results may differ due to risks and uncertainties, refer to additional information, including our note on non-GAAP measures in our press release, earnings presentation and SEC filings, which are available on our website.
With that, I will turn it over
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