• Second quarter Reported and Adjusted¹ Earnings Per Share (EPS)² of 55 cents and 73 cents, an increase of 41% and 40%, respectively, driven by strong operational execution

• Bookings of $1.25 billion were the highest quarterly level since 2014 and includes record aftermarket activity of more than $610 million

• Adjusted Gross and Operating Margins³ of 32.3% and 12.5%, respectively, increased 200 and 210 basis points compared to prior year

• Raised full-year 2024 Adjusted EPS guidance⁴ to $2.60 to $2.75

Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced its financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 Highlights (all comparisons to the 2023 second quarter, unless otherwise noted)

• Reported EPS of $0.55 and Adjusted EPS of $0.73, compared to $0.39 and $0.52, respectively
  • Second quarter 2024 Reported EPS includes after-tax adjusted expenses of $23.7 million, comprised of realignment charges and write-down of investment among other items
• Total bookings were $1.25 billion, up $135.1 million or 12.2%. On a constant currency basis⁵, total bookings were up $144.2 million or 13.0%
  • Original equipment bookings were $632.1 million, up $112.0 million or 21.5%. On a constant currency basis, original equipment bookings were up $115.2 million or 22.2%
  • Aftermarket bookings were $614.0 million, up $23.1 million or 3.9%. On a constant currency basis, aftermarket bookings were up $29.0 million or 4.9%
• Sales were $1.16 billion, up $76.5 million or 7.1%. On a constant currency basis, sales were up $83.7 million or 7.7%
  • Original equipment sales were $566.4 million, up $48.5 million or 9.4%. On a constant currency basis, original equipment sales were up $51.0 million or 9.8%
  • Aftermarket sales were $590.5 million, up $28.0 million or 5.0%. On a constant currency basis, aftermarket sales were up $32.7 million or 5.8%
• Reported gross and operating margins were 31.6% and 10.5%, respectively, up 170 basis points and 160 basis points, respectively
  • Adjusted gross and operating margins were 32.3% and 12.5%, respectively, up 200 basis points and 210 basis points, respectively
• Backlog of $2.7 billion was up 2.8% sequentially with a second quarter book-to-bill of 1.08x

“Our second quarter results further solidify the momentum we have generated over the last several quarters. We delivered meaningful sequential and year-over-year improvements in bookings, revenue and margins driven by our operational excellence program and the effectiveness of organizational design changes implemented last year. We achieved significant bookings of $1.25 billion during the quarter, which included a healthy mix of record quarterly aftermarket bookings and large project bookings,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “With accelerating operational performance, our constructive end markets, and a renewed focus on product management, we believe we are well positioned to deliver on our long-term targets.”

Rowe concluded, “With our strong financial and operating performance year-to-date, combined with our outlook for the rest of the year and confidence in our execution, we have increased our full-year Adjusted EPS guidance for 2024. Our 3D strategy continues to accelerate our growth, and we remain committed to further capitalizing on opportunities that will deliver long-term value creation for our customers, associates, and shareholders.”

Revised 2024 Guidance⁴

Flowserve is raising its Adjusted EPS guidance metrics for 2024 and reaffirmed most other financial targets, as shown in the table below:

Flowserve’s 2024 Adjusted EPS target range excludes expected adjusted items including realignment charges of approximately $45 million, as well as the potential impact of below-the-line foreign currency effects and certain other discrete items which may arise during the course of the year.

Second Quarter 2024 Results Conference Call

Flowserve will host its conference call with the financial community on Tuesday, July 30^th at 10:00 AM Eastern. Scott Rowe, President and Chief Executive Officer, as well as other members of the management team will be presenting. The call can be accessed by shareholders and other interested parties at www.flowserve.com under the “Investors” section.

About Flowserve

Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company’s Web site at www.flowserve.com.

Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics or changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; any continued volatile regional and global economic conditions resulting from the COVID-19 pandemic on our business and operations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela and Argentina; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.

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