Flowserve Q3 Beat, but 2026 Organic Sales Guidance Cut on Middle East Weakness
FLS sits 43% above its 52-week low of $52.37.
Summary
Flowserve beat on Q3 adjusted EPS ($1.07 vs $0.98 consensus) and expanded margins, but cut 2026 organic sales guidance to down 2.5% to down 1.5% on Middle East delays while raising the low end of EPS guidance to $4.10.
Key Events · Earnings and Guidance · FLS
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Q3 Adjusted EPS Beats Consensus
Adjusted EPS of $1.07 versus $0.98 consensus, up 18.9% year over year; reported EPS was $0.81 on $1.24B of sales, up 5.4%.
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2026 Organic Sales Guidance Cut
Full-year organic sales growth guidance lowered to down 2.5% to down 1.5% from approximately (1%), reflecting increasingly challenging Middle East conditions expected to hit fourth-quarter sales.
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EPS Guidance Low End Raised
2026 adjusted EPS range narrowed and lifted to $4.10 to $4.20 from $4.05 to $4.20; capex trimmed to approximately $90 million from approximately $100 million.
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Record Backlog and Bookings
Backlog reached a record $3.5 billion, up 19.9% year over year, on Q3 bookings of $1.38 billion (up 14.1%) including record aftermarket bookings of $727.7 million.
Analysis · FLS · Technology
Flowserve delivered a clean operating quarter — adjusted EPS of $1.07 beat the $0.98 consensus and adjusted operating margin expanded 170 bps to 16.5% — but management cut full-year organic sales growth to down 2.5% to down 1.5% from roughly flat, blaming delayed customer activity and revenue conversion in the Middle East. The offset is a record $3.5 billion backlog, up 20% year over year, which supports the long-term mid-single-digit organic growth target even as near-term revenue slips. The low end of adjusted EPS guidance was raised to $4.10, so the quarter is a margin story with a revenue timing problem, not a demand collapse.
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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.