Flowserve 10-Q Details Q3 Beat: EPS $0.81, Cash Flow Halved, Debt Up to $2.06B
FLS sits 43% above its 52-week low of $52.37.
Summary
Flowserve's Q3 10-Q confirms the $0.81 EPS and $1.24B sales already reported, but reveals nine-month operating cash flow halved to $230.3M and debt rose to $2.06B after the $500M note issue funded the TVD acquisition.
Key Events · Earnings and Guidance · FLS
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Q3 EPS $0.81 on $1.24B Sales
Net earnings attributable to Flowserve were $103.0M, or $0.81 per diluted share, on sales of $1,237.8M, up 5.4% year over year; operating income nearly doubled to $154.6M from $79.3M.
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Operating Cash Flow Halved
Nine-month operating cash flow fell to $230.3M from $506.1M a year earlier, driven by working capital outflows including $60.6M from accrued liabilities and $34.2M from accounts payable.
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Debt Rises to $2.06B
Total debt and finance leases rose to $2,056.7M from $1,575.1M at December 31, 2025, including $494.6M of new 5.70% 2036 Senior Notes issued May 12, 2026 to fund the $490M TVD acquisition.
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FCD Margin Collapses on Charges
Flow Control Division gross margin fell to 24.0% from 30.3% on $22.5M of realignment charges and higher intangible amortization; segment operating income dropped 26.3% to $34.2M.
Analysis · FLS · Technology
The headline numbers were already out this evening, but the full 10-Q shows what the press release glossed over: operating cash flow fell to $230.3M for the first nine months from $506.1M a year ago, and total debt climbed to $2,056.7M from $1,575.1M at year-end after the $500M 2036 note issue funded the TVD deal. Segment detail is mixed — FPD margin expanded to 37.8% while FCD gross margin collapsed to 24.0% from 30.3% on $22.5M of realignment charges, and FCD operating income fell 26.3%. The 12.4% effective tax rate flatters EPS via a one-time $23.1M Italian valuation-allowance release, so the quality of the beat is weaker than the $0.81 headline suggests. Backlog of $3.5B (up 21% from year-end) is the offsetting positive.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 31.1% of the 1661 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FLS was trading at $74.89 on NYSE in the Technology sector, with a market capitalization of approximately $9.1B. The 52-week trading range was $52.37 to $92.41. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.