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what it is
Flowserve makes the pumps, valves, and seals that keep nasty industrial liquids moving through factories, refineries, and power plants.
how it gets paid
Last year Flowserve made $4.7B in revenue. Oil & gas was the main engine at $1.74B, or 37% of sales.
why it's growing
Revenue grew 3.8% last year. Q4 2025 revenue was $1.22B, and this was the fourth straight earnings beat.
what just happened
Flowserve beat expectations by 20.65%, with Q4 adjusted earnings of $1.11 versus $0.92 expected.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
60/100 earnings predictability — reasonably predictable
20.8x trailing p/e — priced about right
1.2% dividend yield — cash in your pocket every quarter
14.0% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
Flowserve makes the pumps, valves, and seals that keep nasty industrial liquids moving through factories, refineries, and power plants.
When a refinery or chemical plant moves corrosive fluids, a bad pump is downtime, leaks, and a very bad day. Flowserve sits inside that pain, and 69% of 2024 sales came from its pump division, which gives it a large installed base for parts and service. With about 16,000 employees and 40% of sales in North America, you are buying reach and maintenance relevance, not magic.
How they make money
$4.7B
annual revenue · their business grew +3.8% last year
Oil & gas
$1.74B
General industrial
$1.22B
Chemical
$0.89B
Power generation
$0.61B
Water treatment
$0.24B
The products that matter
moves critical fluids
Pumps
part of $4.7B revenue
pumps are central to the business, but this snapshot does not break out their revenue separately. that is the catch: you are underwriting the full portfolio, not a single star product.
core hardware
controls industrial flow
Valves
supports 16.5% margin
valves help support the 16.5% operating margin, but disclosure stays thin. until you get a cleaner mix view, margin is the scoreboard you have.
mission-critical
prevents leakage and failure
Mechanical Seals
tied to installed base
mechanical seals matter because replacement demand can make an industrial business steadier than new equipment alone. the evidence here is indirect: 10.9% net margin on $4.7B suggests service and parts are doing some of the stabilizing work.
aftermarket angle
Key numbers
$3.75
fy2026 eps est
$6B
fy2028 rev est
20.8x
trailing p/e
1.2%
dividend yield
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $1.4B (14% of capital)
- net profit margin 10.9% — keeps 11 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in FLS 3 years ago → it's now worth $25,410.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Flowserve beat expectations by 20.65%, with Q4 adjusted earnings of $1.11 versus $0.92 expected.
Q4 2025 revenue was $1.22B, and this was the fourth straight earnings beat. The quiet part loud: the market is rewarding margin improvement more than top-line growth.
$1.22B
revenue
$1.11
eps
33.0%
gross margin
the number that mattered
The 20.65% earnings beat mattered because Flowserve's stock is being priced like a margin story, and management delivered another proof point.
-
flowserve will not merge with chart industries.the deal was canceled after chart received a superior $13.6 billion cash acquisition offer from baker hughes. flowserve will receive a $266 million termination payment following the decision not to revise its own offer.
-
nonetheless, the stock price has continued to ascend.
-
indeed, fls shares are up over 55% in the past six months.
-
third-quarter results showed clear evidence of durable earnings power, as net profits per share rose 45%, gross margins expanded 240 basis points, as did operating margins, well ahead of prior-year levels.
-
strong aftermarket growth, accelerating nuclear and power bookings, and disciplined execution under the flowserve business system probably improved confidence in the sustainability of recent operational performance.
source: company earnings report, 2026
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What could go wrong
flowserve is being graded on improvement now. the main risk is simple: orders slow before the margin work is fully baked in.
high
end-market spending in energy and process industries cools off
flowserve sells into industrial systems customers expand when budgets are open. with revenue up only 3.8% on a $4.7B base, a spending pause would show up faster than the current multiple suggests.
if orders soften, the bull case loses its growth bridge and has to rely on margin alone
med
valuation slips back toward the cited $66 consensus target
one referenced consensus target sits at $66 while the stock trades at $71.63. after a move from $10,000 to $25,410 over 3 years, you do not need broken fundamentals for the stock to cool off.
that is the cleanest near-term reset risk on the page
med
thin disclosure makes the $6B revenue path harder to verify
this snapshot gives you total revenue, but no real segment split inside the $4.7B business. that leaves you with less visibility into what is supposed to drive the fy2028 estimate to $6B.
when disclosure is thin, execution misses can stay hidden longer than you want
med
margin gives back the gains that made the story work
the page gives you a 16.5% operating margin, 10.9% net margin, and a stock near the top of its range. those facts belong together. if margin stops improving, the stock loses the number that made investors patient.
what would change our mind: margin slipping below 16.5% while growth stays around 3.8%
near term, the visible risk is a stock at $71.63 drifting back toward $66. longer term, the real test is whether flowserve gets from $4.7B to $6B without letting margin discipline fade.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
the next update on revenue versus margin
if growth stays around 3.8%, you need margin expansion to keep doing the heavy lifting.
metric
16.5% operating margin
that is the number holding the story together. if it slips, 20.8x earnings stops looking forgiving.
trend
institutional buying streak
278 buyers versus 223 sellers in 3q2025 extended net buying to 3 straight quarters. you want that sponsorship to keep showing up.
risk
the gap between price and consensus
the stock is $71.63 while one cited consensus target is $66. if results stop improving, that gap can close the wrong way.
Analyst rankings
earnings predictability
60 / 100
in human-speak, analysts think the business is readable but not smooth. you should expect some operational noise.
risk rank
3
that means safer than roughly half the market. not fragile, not a bunker.
forward valuation
19.1x
based on the $3.75 fy2026 eps estimate, you are paying for continued execution rather than buying a forgotten industrial.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 278 buyers vs. 223 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$50
$137
$72
current price
$94
target midpoint · +31% from current · 3-5yr high: $115 (+60% · 13% ann'l return)
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