Jose Solca

Jose Solca from Citi inquired about the MOGAS integration, lessons learned, and booking opportunities, particularly given its 50% mining exposure and positive industry read-throughs. He also asked about Flowserve's mitigation of tariff impacts in 2025 and how tariffs and higher metal prices are accounted for in the 2026 guidance.

Answer

President and CEO Scott Rowe expressed excitement about MOGAS, noting its critical service ball valve technology for harsh environments (refining, chemicals, precious metals mining). He mentioned that 2025 bookings were slow but the 2026 project funnel looks healthy. Rowe described the MOGAS integration as a successful, programmatic approach using the Flowserve Business System, leading to significant margin improvements and enhanced customer service. CFO Amy Schwetz added that over 100 valve salesforce members were cross-trained on MOGAS products. Rowe confirmed that tariff impacts were fully mitigated in 2025 through supply chain repositioning, cost savings, and pricing actions, and the 2026 guidance is net of tariffs, with continued nimble actions planned.

Jose Solca inquired about the MOGUS integration, asking about lessons learned and booking opportunities, especially given its 50% mining exposure and recent positive mining read-throughs. He also asked about the 2026 guide's assumptions for tariffs and higher metal prices, and how Flowserve fully mitigated tariff impacts in 2025.

Answer

President and CEO Scott Rowe stated that MOGUS bookings were slow in 2025 but the 2026 project funnel looks healthy, particularly in precious metals mining. He highlighted a successful integration playbook using the Flowserve Business System, leading to significant margin improvements. CFO Amy Schwetz added that over 100 salesforce members were cross-trained on MOGUS and severe service products. Scott Rowe explained that 2025 tariff impacts were fully mitigated through supply chain repositioning, cost savings, and pricing actions, and the 2026 guide is net of tariffs, with continued nimble actions expected.