FLOWSERVE (FLS)

• Flowserve, a provider of flow control products and services, is partnering with Aalo Atomics.
• Flowserve is supplying pumps, valves, and seals to Aalo Atomics for its fully modular nuclear plants (XMRs).
• Aalo Atomics is on track to achieve criticality for its Aalo-X (XMR) nuclear reactor in 2026.

• Flowserve Corporation acquired U.K.-based Greenray Turbine Solutions, Ltd., a provider of aftermarket products and services for industrial gas turbines.
• The acquisition was completed for approximately $72 million in cash and is projected to add about $25 million of revenue annually.
• This strategic move expands Flowserve's aftermarket capabilities, providing access to product expertise and durable revenue, while leveraging Flowserve's global network.

• Flowserve Corporation completed the divestiture of BW/IP - New Mexico, Inc., a subsidiary holding its legacy asbestos liabilities and related insurance assets, to an affiliate of Acorn Investment Partners on December 11, 2025.
• Flowserve contributed $199 million in cash and insurance assets to capitalize BW/IP, while the buyer contributed $20 million.
• As a result of the divestiture, Flowserve has no further financial exposure to the transferred liabilities and is fully indemnified.
• The company expects a one-time loss of approximately $140 million in the fourth quarter of 2025, which will be excluded from adjusted earnings per share.

• Flowserve Corporation completed the divestiture of BW/IP - New Mexico, Inc., a subsidiary holding asbestos liabilities and related insurance assets, to an affiliate of Acorn Investment Partners.
• Flowserve contributed $199 million in cash and insurance assets to BW/IP's capitalization, and now has no further financial exposure to these transferred liabilities, being fully indemnified.
• The company anticipates a one-time loss of approximately $140 million in the fourth quarter of 2025, which will be excluded from adjusted earnings per share.

• Flowserve's CFO, Amy Schwetz, projects a positive demand environment for 2026, anticipating double-digit growth in the power market, particularly nuclear, and continued strength in the energy aftermarket.
• The company identifies a $10 billion+ bookings opportunity in the nuclear sector over the next decade, encompassing new builds, life extensions, and Small Modular Reactors (SMRs), with first SMR bookings occurring in 2025.
• Flowserve's aftermarket business has demonstrated sustained strength, achieving a $600 million run rate for the past six quarters and exceeding $650 million in two of the last three quarters, attributed to a 2023 reorganization and commercial focus.
• For 2026, Flowserve expects continued growth and margin expansion, with accelerated margin improvement anticipated in the FCD segment and ongoing enhancements in the FPD segment.
• Flowserve plans to remain opportunistic with share repurchases and disciplined yet active in M&A, targeting strategic acquisitions that enhance its portfolio in attractive end markets and leverage its aftermarket capabilities.

• Flowserve anticipates a positive demand environment for 2026, with double-digit growth expected in the power market, driven by its nuclear portfolio, and continued strength in the energy aftermarket.
• The company identifies a $10 billion+ bookings opportunity in the nuclear market over the next decade, encompassing new builds (approximately $100 million per reactor), life extensions/restarts (approximately $30 million+ per event), and Small Modular Reactors (SMRs), with Flowserve holding a strong competitive position.
• Aftermarket bookings have consistently exceeded $600 million for the last six quarters, with two of the last three quarters over $650 million, attributed to a 2023 reorganization and focus on commercial excellence.
• For 2026, Flowserve expects positive growth and is highly confident in its ability to continue expanding margins through operational improvements and 80/20 initiatives, leading to strong earnings growth.
• Flowserve plans to remain opportunistic with share repurchases and disciplined yet active in M&A to enhance its portfolio, particularly in attractive end markets like nuclear and general industries.

• Purpose Investments' Longevity Pension Fund is raising its distribution levels for all six of its F-series and A-series cohorts in 2026, marking the second consecutive increase.
• This increase is driven by a strong year of portfolio returns, achieving a 9.92% net return as of September 30, 2025, which kept funding levels above target.
• The fund's Income Policy limits distribution level increases to a 3% cap year over year during the early years of each cohort's lifecycle.

The annual distribution per unit for 2025 and 2026 for both F-series and A-series cohorts is detailed below:

• Flowserve reported strong Q3 results with $1.2 billion in bookings and $0.90 in EPS, attributing continued margin expansion to its Flowserve Business System, particularly the 80/20 methodology which has led to 150 basis points of margin improvement in one business unit and a 45% SKU reduction.
• The company's 3D strategy (diversify, decarbonize, digitize) is successfully reducing reliance on upstream oil and gas, with less than 10% of Q3 bookings coming from large projects, and the aftermarket business is growing at an "incredible rate".
• Flowserve anticipates a $10 billion bookings prize over the next 10 years in the nuclear market, expecting to book over $400 million in this space this year, leveraging its equipment in 75% of all reactors.
• In capital allocation, Flowserve deployed approximately $200 million in share repurchases in Q3 and early Q4 following a $266 million breakup fee from the terminated Chart deal, and paid $200 million to dispose of its asbestos liability.

• Flowserve reported strong Q3 2025 results with $1.2 billion in bookings and 4% revenue growth, alongside significant margin expansion, with adjusted gross margins increasing 240 basis points to 34.8% and adjusted operating margins reaching 14.8% ,.
• The company raised its 2025 adjusted EPS guidance for the second time to $3.40-$3.50, representing a 31% increase from last year at the midpoint , and expects over 200 basis points of margin improvement for the full year.
• Flowserve returned $173 million to shareholders in Q3 2025, including $145 million in share repurchases, and announced an agreement to divest its legacy asbestos liabilities to enhance capital allocation ,.
• The company highlighted nuclear power as a compelling multi-year growth opportunity, with record Q3 nuclear bookings of over $140 million and an estimated $10+ billion nuclear flow control opportunity over the next decade ,.

• Flowserve reported strong Q3 2025 financial results, with sales of $1.2 billion (+4% year-over-year) and Adjusted EPS of $0.90 (+45% year-over-year). Adjusted gross margins expanded to 34.8% and adjusted operating margins reached 14.8%.
• The company generated $402 million in cash from operations in Q3 2025, a 125% increase from Q3 2024, and returned $173 million to shareholders during the quarter.
• Flowserve increased its full-year 2025 Adjusted EPS guidance to a range of $3.40 - $3.50.
• A strategic divestiture of a subsidiary holding legacy asbestos liabilities was announced, involving a $199 million cash contribution from Flowserve and an expected one-time loss of approximately $135 million in Q4.