Flowserve Q2 2026: $99M Net Income, TVD Acquisition Closed, Backlog Hits $3.3B
FLS sits 42% above its 52-week low of $48.71.
Summary
Flowserve posted Q2 net income of $99M, closed the $490M TVD acquisition, and grew backlog to $3.3B. Realignment charges and FCD margin pressure are offset by a FAMCO remeasurement gain and tariff refunds.
Key Events · Earnings and Guidance · FLS
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Q2 Earnings: $99M Net Income
Net earnings attributable to Flowserve were $99.0 million, or $0.77 per diluted share, on sales of $1.17 billion. Operating income rose 3% to $151.4 million, helped by a $27.7 million gain on remeasurement of the previously held FAMCO equity interest.
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TVD Acquisition Closed
The $490 million acquisition of Trillium Flow Technologies' Valves Division closed June 30, 2026, adding $322 million in goodwill and $140 million in intangible assets. The deal was funded by the $500 million 5.70% senior notes issued in May.
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IEEPA Tariff Refund Boost
Flowserve recognized a $35.4 million receivable for IEEPA tariff refunds, with $30.4 million reversing cost of sales in Q1. Through June 30, $20.9 million in cash refunds were received, with substantially all collected by July 29.
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Backlog Surges to $3.3B
Backlog increased 16.3% from year-end to $3.3 billion, driven by a 25.5% YoY jump in Q2 bookings. Aftermarket represented 58% of sales, up from 53% a year ago.
Analysis · FLS · Technology
Flowserve delivered solid Q2 results with net income of $99 million and diluted EPS of $0.77, driven by a $27.7 million gain on the FAMCO acquisition and a $35.4 million IEEPA tariff refund. The $490 million Trillium Valves Division acquisition closed on June 30, funded by the $500 million senior notes issued in May, adding $322 million in goodwill and expanding the valve portfolio. Backlog surged 16% to $3.3 billion on strong bookings, while realignment charges of $70 million year-to-date weigh on margins but are expected to yield $140 million in annual savings. The amended $1 billion credit facility and $731 million cash position provide ample liquidity. Against a backdrop of activist investor engagement and Middle East disruptions, the quarter shows execution on M&A and cost initiatives, though FCD margins compressed sharply.
At the time of this filing, FLS was trading at $69.00 on NYSE in the Technology sector, with a market capitalization of approximately $8.9B. The 52-week trading range was $48.71 to $92.41. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.