Flowserve Corporation (FLS) Bundle
Flowserve Corporation is on a strong trajectory, raising its full-year 2025 Adjusted Earnings Per Share (EPS) guidance to a range of $3.40 to $3.50, which is more than a 30% jump at the midpoint from the prior year, built on a robust $2.90 billion backlog. That kind of financial performance defintely doesn't happen by accident; it's a direct result of their foundational beliefs-but are those beliefs truly driving the execution you see, especially with aftermarket bookings consistently topping $650 million? As an investor or strategist, you need to know if their stated Vision to be the premier flow control company aligns with their Core Values of Safety and Integrity, or if it's just corporate boilerplate you can safely ignore.
Flowserve Corporation (FLS) Overview
You're looking for a clear, no-nonsense assessment of Flowserve Corporation, and the takeaway is this: the company is a critical, albeit often unseen, player in global infrastructure, and its financial engine is increasingly driven by the high-margin service side of the business. Flowserve is a multinational corporation that provides flow control products-pumps, valves, and seals-and related services essential for moving and managing fluids in the world's most demanding industries.
The company's heritage is deep, tracing back to the 1790 founding of Simpson & Thompson, but the modern Flowserve was formally established in 1997 through the merger of BW/IP and Durco International. Headquartered in Irving, Texas, Flowserve operates in over 50 countries, selling its engineered equipment and, crucially, its aftermarket services to power, oil, gas, and chemical industries. This service-oriented model, which provides recurring maintenance and replacement parts, is the defintely more stable revenue stream.
For the trailing twelve months (TTM) ending September 30, 2025, Flowserve reported total revenue of approximately $4.69 billion. This number reflects the scale of their operations as a critical infrastructure partner, manufacturing the complex equipment that keeps essential processes running globally. It's a huge, installed base that requires constant attention.
Latest Financial Performance: Q3 2025 Highlights
The latest financial results for the third quarter of 2025 (Q3 2025) confirm a strong operational trajectory, particularly in profitability and key growth markets. The company reported Q3 2025 revenue of $1.17 billion, marking a 3.6% increase year-over-year. The real story, though, is in the quality of that revenue and the margin expansion.
The strength of Flowserve's aftermarket business-the main product sales in the services segment-was a major driver, growing 6.3% year-over-year in Q3 2025. This recurring revenue is exactly what you want to see. Also, the company's focus on the resurgent Power and Nuclear end markets paid off, securing a record $140 million in nuclear awards during the quarter.
Here's the quick math on profitability: Adjusted Earnings Per Share (EPS) for Q3 2025 came in at $0.90. Management was confident enough to raise the full-year 2025 Adjusted EPS guidance to a range of $3.40 to $3.50, representing an increase of more than 30% at the midpoint versus the prior year. This margin expansion is a direct result of their operational strategy, pushing the adjusted operating margin to 14.8% in the quarter.
- Q3 2025 Revenue: $1.17 billion.
- Aftermarket Sales Growth: 6.3% year-over-year.
- Q3 2025 Adjusted EPS: $0.90.
- Full-Year 2025 Adjusted EPS Guidance: $3.40 to $3.50.
Flowserve: A Leader in Fluid Motion and Control
Flowserve is widely recognized as a leading provider of fluid motion and control products for the global infrastructure markets. They are not just a manufacturer; they are a critical infrastructure partner, supplying engineered pumps, seals, and valves that are vital to the operation of refineries, power plants, and chemical facilities worldwide. This position is cemented by their massive installed base and the high-value, non-discretionary nature of their aftermarket services.
Their recent financial success, particularly hitting an adjusted operating margin of 14.8% in Q3 2025-the second straight quarter within their long-term target range-shows the strategy is working. They are executing on their 3D Growth Strategy and the Flowserve Business System to reduce complexity and expand margins. This consistent, high-level execution is what separates the leaders from the rest. To understand the institutional conviction behind these numbers, you should read Exploring Flowserve Corporation (FLS) Investor Profile: Who's Buying and Why?
Flowserve Corporation (FLS) Mission Statement
You're looking for the bedrock of Flowserve Corporation's (FLS) strategy, and honestly, it all starts with the mission. A mission statement isn't just a feel-good phrase; it's the operating manual for every capital allocation decision and every engineering spec. For Flowserve, the mission is clear: Together, We Create Extraordinary Flow Control Solutions To Make The World Better For Everyone. This statement anchors their long-term goals, from R&D spending to their focus on critical infrastructure markets like nuclear power and water management. It's a simple sentence that maps directly to their 3D Growth Strategy-Diversification, Decarbonization, and Digitization-which is driving real-world results in the 2025 fiscal year.
The mission breaks down into three actionable pillars. Understanding these gives you a clear lens for evaluating their performance, especially as their full-year 2025 Adjusted Earnings Per Share (EPS) guidance was recently raised to a range of $3.40 to $3.50. That's a significant jump, and it's defintely tied to how well they execute on these core tenets.
Pillar 1: Extraordinary Flow Control Solutions
This component is Flowserve's commitment to product quality and innovation, moving beyond just being a supplier to being a true engineering partner. Extraordinary means reliable performance in the world's most demanding environments-think high-pressure oil and gas, or nuclear power plants. It's not about selling a pump; it's about selling guaranteed uptime.
Here's the quick math on their commitment: Flowserve invested approximately $140 million in research and development (R&D) in 2024, which was about 3.4% of their sales. That investment is what fuels the next generation of their flow control systems, like smart pumps with predictive maintenance capabilities. This focus on premium, engineered products is why their adjusted operating margin expanded by 370 basis points to 14.8% in the third quarter of 2025. They are getting paid for the value of their engineering, not just the weight of the metal. This commitment to superior quality is also what drives their strong aftermarket business, which saw bookings grow over $650 million in Q3 2025.
- Invest in proprietary sealing technology.
- Ensure product reliability in extreme conditions.
- Drive margin expansion through innovation.
Pillar 2: To Make The World Better For Everyone
This is the global impact and sustainability element of the mission, focusing on industries critical to global infrastructure. Flowserve isn't making consumer goods; they are in the business of keeping the lights on, water flowing, and energy moving efficiently. The phrase 'tough challenges' speaks directly to their strategic pivot toward Decarbonization and Digitization.
A concrete example of this is their resurgent Power and Nuclear end market. In the third quarter of 2025 alone, Flowserve secured $140 million in nuclear awards. That's a clear action tied to the mission of providing essential solutions for clean energy infrastructure. They are also actively developing energy-efficient products to help customers reduce their environmental footprint, which is a core part of making the world better. The company's overall revenue, projected to be between $4.7 billion and $4.8 billion for the full year 2025, shows the massive scale of their impact on global systems. You can dive deeper into who is betting on this mission by Exploring Flowserve Corporation (FLS) Investor Profile: Who's Buying and Why?
Pillar 3: Together
The word 'Together' is the cultural glue, encompassing Flowserve's core values of Integrity, Safety, and Customer Focus. It's the human capital side of the equation, recognizing that complex engineering solutions require collaboration-internally among their 16,000 employees and externally with their customers.
Putting the customer first is non-negotiable in the industrial sector because equipment failure can cost millions per hour. Flowserve's focus on this pillar is reflected in its strong customer satisfaction rate, which stood at 92% in 2024. That number is a direct measure of their operational excellence (Flowserve Business System) and their commitment to service. Plus, their core values of Safety and Integrity are crucial for maintaining trust in high-stakes industries. If a valve fails in a chemical plant, the consequence is catastrophic, so their culture has to prioritize zero-incident operations. Taking ownership of results is how they build long-term relationships, which is why their durable aftermarket bookings are so strong.
Flowserve Corporation (FLS) Vision Statement
You're looking for a clear map of Flowserve Corporation's (FLS) strategic direction, and honestly, it all boils down to a simple, ambitious vision: to be the premier flow control company in the world. This isn't just corporate fluff; it's the financial anchor for their operational execution, especially as they're projecting strong growth for the 2025 fiscal year. The goal is to dominate a critical, often-overlooked segment of global infrastructure.
Here's the quick math on that ambition: Flowserve's latest guidance, updated in October 2025, forecasts a full-year 2025 Adjusted Earnings Per Share (EPS) at a midpoint of $3.45. That's a defintely strong signal, representing an increase of more than 30% versus the prior year's adjusted EPS, showing their strategy is paying off right now. They expect total sales growth of a positive 4% to 5% for the year, which is solid for a company with a Trailing Twelve Months (TTM) revenue of around $4.64 billion as of Q3 2025. The vision guides capital allocation, pushing them toward that $5 billion+ revenue roadmap by 2027.
Be the best, or don't bother. That's the mindset.
Vision: To be the Premier Flow Control Company
The term 'premier' in Flowserve's vision means leading in technology, service, and shareholder returns, not just market share. It drives their focus on high-margin aftermarket services, which saw bookings of over $650 million in Q3 2025 alone. This is where the real value is-servicing and maintaining the installed base (the flow control equipment already in place), which is a much stickier, more profitable business than new equipment sales. The company is actively divesting legacy asbestos liabilities, a move announced in October 2025, to free up capital and focus on growth and value-enhancing opportunities. That's a clear action tied directly to the 'premier' goal.
Flowserve's execution is centered on their 3D Growth Strategy: Diversification, Decarbonization, and Digitization. This strategy is the tactical plan for achieving the vision. For example, the Decarbonization push is already delivering, with Power bookings increasing 23% year-over-year in Q3 2025, including $140 million in nuclear awards. This growth is fueled by broader electrification trends and the increasing need for reliable, low-carbon power generation. The market is shifting, and Flowserve is positioned to capture that value.
You must invest where the world is going.
Mission: Creating Extraordinary Flow Control Solutions
The mission statement is the 'how' behind the vision: To make the world better for everyone by creating extraordinary flow control solutions to meet the world's toughest challenges. This links their industrial products-pumps, valves, and seals-to global megatrends like clean water management and energy transition. It's a purpose-driven mission that resonates with institutional owners like BlackRock and Vanguard, who increasingly prioritize Environmental, Social, and Governance (ESG) factors. Flowserve's TTM net income as of Q3 2025 was $0.453 billion, a substantial 69.05% year-over-year increase, showing that this mission-aligned strategy is driving significant financial results.
The 'extraordinary solutions' part is where the Digitization element of the 3D strategy comes in. This means using technology to move from selling just a pump to selling a predictive maintenance service. They are leveraging their Flowserve Business System (FBS), which is their operational excellence framework, to drive margin expansion and efficiency across their global footprint of over 16,000 employees. This focus on operational rigor is what allows them to deliver critical infrastructure solutions reliably, whether it's for a chemical plant or a new data center. You can dive deeper into how this all works at Flowserve Corporation (FLS): History, Ownership, Mission, How It Works & Makes Money.
The solution isn't the product; it's the uptime.
Core Values: The Cultural DNA
The core values are the non-negotiable principles that underpin the mission and vision, guiding the daily actions of the company's global workforce. The key values are Integrity, Safety, Customer Focus, and Teamwork. These aren't just posters on a wall; they translate directly into risk mitigation and business performance. For instance, prioritizing Safety and Integrity reduces operational risk and fosters long-term trust with customers in high-stakes industries like nuclear power and oil and gas.
The value of Customer Focus is evident in their performance, with third-quarter bookings hitting $1.2 billion, a clear sign that their solutions are meeting the market's needs. The company is also heavily focused on People, fostering a culture of inclusion and development, which is critical for retaining the specialized engineering talent needed to execute the 3D strategy. When you're solving the world's toughest flow control challenges, you need a stable, expert team. The operational excellence driven by these values and the FBS is what allowed Flowserve to report Q3 2025 revenue of $1.17 billion, even with mixed performance across its divisions, proving the system works.
- Uphold Integrity: Maintain ethical standards in all transactions.
- Prioritize Safety: Protect employees, customers, and the environment.
- Drive Customer Focus: Put client needs at the center of innovation.
- Foster Teamwork: Ensure collaboration across all 50+ countries.
Next Step: Finance should model the impact of the $3.45 Adjusted EPS guidance on your portfolio's FLS valuation by the end of the week.
Flowserve Corporation (FLS) Core Values
You're looking for a clear map of what drives Flowserve Corporation beyond the balance sheet, and honestly, the company's core values are the bedrock for their recent financial performance. They aren't just posters on the wall; they're directly tied to the operational wins we've seen, like the full-year 2025 Adjusted EPS guidance being raised to a midpoint of $3.45 per share.
The four core values-Integrity, Safety, Customer Focus, and Teamwork-are the lens through which we should view their strategic moves, especially the execution of the Flowserve Business System (FBS), which is all about operational excellence. It's a defintely straightforward way to connect culture to cash flow.
Integrity
Integrity means upholding ethical standards and transparency in every interaction, which is a massive liability mitigator in a global, heavy-industry business like this. For 2025, the most concrete example of this value in action is the announced transaction to divest legacy asbestos liabilities. This isn't just a clean-up; it's a strategic move that removes a long-term, unpredictable financial overhang, allowing management to focus capital allocation priorities on growth opportunities instead.
Here's the quick math: by taking this decisive action on a historical risk, Flowserve is signaling a commitment to a cleaner, more predictable financial future, which is exactly what investors want to see from a governance perspective. It gives them more opportunity for capital allocation than ever before. Integrity is about keeping your promises, and sometimes, it's about cleaning up the past to secure the future. The company's focus on Governance and Risk Management is a clear sign of this value in practice.
- Divest legacy asbestos liabilities to free up capital.
- Prioritize growth-enhancing capital allocation.
Safety
Prioritizing the health and safety of employees, customers, and the environment is non-negotiable in the flow control industry. This value is explicitly covered under Flowserve's Core Responsibility pillar within their Environmental, Social, and Governance (ESG) strategy. It's a direct operational cost-saver, too: fewer incidents mean less downtime and lower insurance premiums.
The company's commitment to safety extends to the environment through operational excellence, like increasing water-use efficiency in their manufacturing. Many of their facilities recycle process water in closed-loop product test systems, which minimizes freshwater use. That's a real-world commitment to safety and sustainability, which are two sides of the same coin in industrial operations. Safety is simply smart business.
- Minimize freshwater use via closed-loop systems.
- Support safe water, sanitation, and hygiene (WASH) at all facilities.
Customer Focus
Customer Focus means putting the customer's needs at the forefront of decision-making, and you see this in the strong demand for their aftermarket services. The company reported its sixth consecutive quarter of aftermarket bookings exceeding $600 million in Q3 2025, with total aftermarket bookings over $650 million in that quarter alone. That stickiness shows customers trust Flowserve for mission-critical maintenance and support.
Also, the company's 3D growth strategy-Decarbonization, Diversification, and Digitization-is a direct response to customer needs in the energy transition. For example, their Power bookings increased 23% year-over-year in Q3 2025, securing $140 million in nuclear awards during that quarter. This is a strong signal they are aligning their product portfolio with the evolving, high-growth needs of their customer base, especially in the resurgent nuclear and data center segments. The $2.90 billion backlog at the end of Q3 2025 confirms this customer confidence.
- Bookings in the Power segment grew 23% year-over-year in Q3 2025.
- Secured $140 million in nuclear awards in Q3 2025.
- Aftermarket bookings exceeded $650 million in Q3 2025.
Teamwork
Teamwork is about fostering collaboration and mutual respect among employees, and this is the engine behind the operational improvements. The Flowserve Business System, which is driving higher adjusted gross margins, is a testament to the collective effort of the associates (the company's term for employees). When a team executes well, margins expand.
In Q3 2025, the adjusted gross margin expanded by 240 basis points versus the prior year period, reaching 34.8%. That kind of margin expansion doesn't happen by accident; it's the direct result of a global team working together on initiatives like the 80/20 complexity reduction program and the full integration of the recently acquired Mogas business. The team is what turns strategy into a trailing twelve-month (TTM) revenue of $4.687 billion as of Q3 2025. Improved execution is a team sport. For a deeper look at the company's history and business model, you can check out Flowserve Corporation (FLS): History, Ownership, Mission, How It Works & Makes Money.
- Adjusted gross margin expanded 240 basis points to 34.8% in Q3 2025.
- Execution of the 80/20 complexity reduction program.
To be fair, managing a global workforce of approximately 16,000 people across over 50 countries is a massive undertaking, but the consistent execution and margin improvement show the values are translating into results.
Next step: You should dig into the Q4 2025 earnings call transcript to see how the execution of the 80/20 program directly impacted the final full-year margin figures.

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