Q4 Guidance
Q: Why wide Q4 earnings guidance range?
A: Management expects Q4 earnings to land near the midpoint of guidance. A lower ramp in revenue—primarily due to reduced POC sales from the Jafurah project—leads to a wider range, though stronger book-to-ship activity could push outcomes upward. " "

Free Cash Flow
Q: What drives free cash flow improvements?
A: Improved working capital efficiency, notably a 9-day reduction in the cash conversion cycle through faster inventory turns, has led to strong free cash flow conversion nearing 85%, with efforts underway to reach best-in-class levels. "

MOGAS Acquisition
Q: MOGAS acquisition contribution in the near term?
A: The acquisition, which brings about $200 million in annual revenue, is expected to yield approximately $15 million in cost synergies by the end of Year 2. Initial Q1 impact is minimal with clearer results anticipated in 2025 once integration details solidify. " "

Order Backlog
Q: How sustainable is the $1B order streak?
A: Management is focused on selectivity—winning projects that deliver attractive margins—which has sustained an order streak consistently above $1 billion per quarter, underscoring strong demand and disciplined project selection. "

FCD Margins
Q: What about FCD margin and booking challenges?
A: Although FCD has experienced a booking decline, management is actively driving margin expansion through cost‐out initiatives and expects an improved sales mix with more emphasis on higher-margin aftermarket activity. "

Power Markets
Q: How will power trends affect future growth?
A: A robust long-term outlook is anticipated for the power segment—with steady demand in traditional and nuclear power driven by baseload needs, emerging energy projects, and data center growth—supporting future revenue growth. "

Portfolio Review
Q: How is the 80/20 portfolio review progressing?
A: The firm has launched a data-driven portfolio excellence program aimed at trimming complexity to achieve 100–200 basis points of margin gains by refining its product mix and shedding non-core offerings. "

Aftermarket Capture
Q: What is the opportunity in aftermarket capture?
A: With current capture rates in the 30–40% range, management sees significant potential to boost aftermarket share by enhancing speed and service quality, which is crucial given its stable installed base. "

European Rebound
Q: Is Europe showing signs of a rebound?
A: While challenges persist in Europe’s chemical market, management highlighted emerging opportunities as customers adjust operations, suggesting a gradual improvement in the region’s performance. "

Nuclear SMRs
Q: What’s the outlook for SMRs versus traditional nuclear?
A: Although SMRs are promising, they remain in the early, developmental stage and are not expected to significantly impact Flowserve for at least a decade, whereas traditional nuclear activities continue to flourish. "

Regulatory Impact
Q: Could fewer regulations boost energy project activity?
A: Management noted that while some customers favor less regulation—especially in oil and gas—there remains a mix of views; overall, the company will maintain its strategic approach regardless of regulatory shifts. "

Water Markets
Q: What drove notable water market bookings?
A: Strong water-related bookings of around $90 million were driven by projects in flood control and industrial wastewater management in North America and the Middle East. "

Asbestos Management
Q: How is Flowserve handling asbestos liabilities?
A: The company routinely manages its asbestos exposure with an annual true-up charge of $0.07, a non‑cash adjustment that is carefully monitored and kept internally rather than packaged externally. " "

2025 Outlook
Q: What is the outlook for the 2025 framework?
A: Building on its 2027 targets, management anticipates steady momentum from improved margins and growth initiatives across segments, with full-year details expected in the next earnings update. "