Q2 2026 Flowserve Corp Earnings Call Transcript
Key Points
- Record aftermarket bookings of nearly $700 million, marking the ninth consecutive quarter above $600 million and demonstrating strong capture rates across the installed base.
- Adjusted operating margin expanded 70 basis points to 15.3%, driven by operational excellence, 80/20 actions, and commercial discipline.
- Bookings grew 26% year-over-year to $1.35 billion, with broad-based growth across energy, power, chemical, and general industrial end markets.
- Nuclear bookings exceeded $110 million in the quarter, including awards for new large reactors in Asia and life extension projects in North America.
- The Trillium Valve acquisition closed on June 30, enhancing capabilities in power generation and expanding the installed base with high aftermarket entitlement.
- Organic sales declined 3% year-over-year, impacted by ongoing 80/20 portfolio actions and the conflict in the Middle East.
- Middle East sales declined approximately $60 million year-to-date, creating a 3-percentage-point headwind to organic sales growth.
- FCD segment margins were moderated by lower Middle East run-rate volumes and a challenging executional environment in the region.
- The company modestly lowered its full-year organic sales growth outlook to approximately negative 1% due to the Middle East disruption.
- Working capital was negatively impacted by delayed shipments and elongated payment cycles from Middle East customers.
Good day, everyone, and welcome to the Flowserve second quarter 2026 earnings call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Mr. Brian Ezell, Vice President of Investor Relations. Please go ahead, sir.
Thank you, and good morning, everyone. Welcome to Flowserve's second quarter 2026 business update. I'm joined by Scott Rowe, Flowserve's President and Chief Executive Officer; and Flowserve 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 to Scott.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
