Did Flowserve beat earnings in Q4 2025?

Flowserve beat EPS estimates by 18% ($1.11 vs $0.94 expected) but missed revenue by 3.2% ($1.22B vs $1.26B expected). The EPS beat was driven by a 420bps expansion in adjusted operating margin to 16.8%.

What was Flowserve's 2026 guidance?

Flowserve guided 2026 adjusted EPS of $4.00-$4.20, representing a 13% increase at the midpoint versus FY 2025. Total sales growth is expected at 5-7%, including 1-3% organic growth.

What acquisition did Flowserve announce?

Flowserve announced a $490M cash acquisition of Trillium Flow Technologies' Valves Division, a nuclear and power generation valve specialist with ~$200M in annual revenue. The deal is expected to close mid-2026.

FLOWSERVE (FLS)·Q4 2025 Earnings Summary

Flowserve Q4 2025: EPS Crushes Estimates +18% as Margins Hit 2027 Target Two Years Early

February 5, 2026 · by Fintool AI Agent

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Flowserve (NYSE: FLS) delivered a strong Q4 2025 with adjusted EPS of $1.11, crushing consensus estimates by 18% . While revenue of $1.22B missed estimates by 3.2%, the margin story stole the show—adjusted operating margin hit 16.8%, achieving the company's 2027 target two years early . The stock rose +2.5% in after-hours trading.

Adding to the positive momentum, Flowserve announced a strategic $490M acquisition of Trillium Flow Technologies' Valves Division, expanding its nuclear and power generation footprint .

Did Flowserve Beat Earnings?

Metric	Q4 2025 Actual	Consensus	Surprise
Revenue	$1.22B	$1.26B*	-3.2%
Adjusted EPS	$1.11	$0.94*	+18.1%
Adjusted Operating Margin	16.8%	—	+420bps YoY
GAAP EPS	($0.23)	—	Includes asbestos divestiture

*Consensus estimates from S&P Global

The stark difference between GAAP and adjusted EPS stems from a one-time $140M loss on the divestiture of asbestos-related liabilities, which removed a legacy overhang from the company's balance sheet .

Full Year 2025 Highlights:

Metric	FY 2025	FY 2024	Change
Revenue	$4.73B	$4.56B	+3.8%
Adjusted EPS	$3.64	$2.63	+38.4%
Adjusted Operating Margin	14.8%	11.8%	+300bps
Cash from Operations	$506M	$425M	+19%
Backlog	$2.87B	$2.79B	+2.8%

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What Did Management Guide?

Flowserve initiated 2026 guidance with confidence:

Metric	2026 Guidance	Commentary
Organic Sales Growth	+1% to +3%	Conservative amid healthy backlog
Acquisition Impact	~+300bps	Trillium Valves contribution
FX Impact	~+100bps	Currency tailwind
Total Sales Growth	+5% to +7%
Adjusted EPS	$4.00 - $4.20	+13% at midpoint vs FY25
Net Interest Expense	~$80M	Higher due to acquisition financing
Adjusted Tax Rate	21% - 22%
CapEx	$90M - $100M

The guidance assumes the Trillium acquisition closes mid-2026 and is roughly neutral to 2026 adjusted EPS including incremental interest expense .

2030 Long-Term Targets:

Target	Metric
Organic Sales CAGR (2025-2030)	Mid-single digit
Adjusted Operating Margin (by 2030)	~20%
Adjusted EPS CAGR (2025-2030)	Double-digit

How Did the Stock React?

Timeframe	Price	Change
Prior Close	$79.76	—
Market Close (Feb 5)	$79.02	-0.9%
After-Hours	$80.99	+2.5%

The stock has been on a tear, up 100%+ from its 52-week low of $37.34 and trading near all-time highs. The after-hours pop suggests investors are pleased with the EPS beat and forward guidance despite the revenue miss.

What Changed From Last Quarter?

Positive Developments:

Margins accelerated — Q4 adjusted operating margin of 16.8% was the best quarter of the year, up from 14.8% in Q3
Aftermarket bookings surged — Up 10.4% YoY to $682M, with full-year aftermarket bookings up 9.2%
Nuclear momentum continued — ~$400M in nuclear awards for full year 2025, positioning for the nuclear renaissance
Asbestos liability eliminated — Divested legacy asbestos assets/liabilities, removing an overhang despite the $140M one-time charge

Areas to Watch:

Original Equipment bookings declined — Down 5.5% YoY in Q4 and 7.6% for full year
Flow Control Division bookings soft — FCD bookings down 9.1% YoY in Q4
Tariff uncertainty — Guidance assumes tariff rates as of February 1, 2026

Segment Performance

Segment Breakdown

Flowserve Pumps Division (FPD)

Metric	Q4 2025	Q4 2024	Change
Revenue	$833M	$795M	+4.8%
Gross Margin	36.6%	32.2%	+440bps
Adj. Operating Margin	21.0%	17.5%	+350bps
Bookings	$884M	$816M	+8.2%

FPD's 36.6% gross margin was a quarterly record, driven by favorable mix and operational improvements from the Flowserve Business System .

Flow Control Division (FCD)

Metric	Q4 2025	Q4 2024	Change
Revenue	$392M	$388M	+0.9%
Gross Margin	31.5%	30.5%	+100bps
Adj. Operating Margin	19.7%	15.3%	+440bps
Bookings	$330M	$363M	-9.1%

FCD's margin expansion was impressive despite softer bookings, with the MOGAS integration contributing to operational improvements .

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Strategic Acquisition: Trillium Flow Technologies' Valves Division

In a separate announcement, Flowserve signed a definitive agreement to acquire Trillium Flow Technologies' Valves Division for $490M in cash .

Deal Highlights:

Attribute	Detail
Purchase Price	$490M cash
Valuation	~12.3x 2025 Adjusted EBITDA
Target Revenue	~$200M annually
Target Margins	High-teens adjusted EBITDA
Expected Close	Mid-2026
Financing	Cash on hand + additional debt

Strategic Rationale:

Nuclear positioning — TVD has 200,000+ installed valve units, including assets in 115 operating nuclear reactors
Combined nuclear reach — Flowserve + TVD will serve 300+ nuclear reactors worldwide
High aftermarket entitlement — Large installed base generates recurring, high-margin demand
Power generation focus — Strengthens position in conventional and emerging power markets including small modular reactors

CEO Scott Rowe commented: "TVD's products and capabilities are highly complementary to our portfolio and will enhance our ability to meet future demand in nuclear, traditional power, and more broadly across the industrial landscape."

Management Credibility Check

Flowserve has been executing well on its "3D Growth Strategy" and Flowserve Business System:

Commitment	Status
2027 Adjusted Operating Margin Target	✅ Achieved 2 years early (16.8% in Q4)
Aftermarket Growth Focus	✅ +9.2% FY25 bookings
Nuclear Expansion	✅ ~$400M in nuclear awards FY25
Cash Return to Shareholders	✅ $365M via dividends + buybacks
Operational Excellence	✅ Margin expansion every quarter

Forward Catalysts

Catalyst	Timing	Impact
Q4 2025 Earnings Call	February 6, 2026	More detail on guidance and acquisition
Trillium Close	Mid-2026	Accretive to adj. operating income
Nuclear Award Pipeline	Ongoing	Growing SMR and traditional nuclear demand
2030 Target Progress	Annual	~20% operating margin, double-digit EPS CAGR

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Key Risks Flagged

Management highlighted several risk factors in the filing :

Tariff uncertainty — Guidance assumes tariff rates as of February 1, 2026
Global supply chain — Continued inflationary pressures on manufacturing costs
Acquisition integration — MOGAS and Trillium integrations require execution
OE bookings softness — Original equipment orders declining, offset by aftermarket strength
FX volatility — Significant international exposure including hyperinflationary markets

The Bottom Line

Flowserve delivered an impressive Q4 with a massive EPS beat driven by margin expansion that exceeded even its own multi-year targets. The Trillium acquisition strengthens its nuclear positioning at an attractive time as power demand accelerates. While revenue missed and OE bookings are soft, the aftermarket strength and operational execution provide confidence in the 2026 outlook.

The key question heading into the earnings call: Can Flowserve sustain these margins, and what does the nuclear pipeline look like for 2026 and beyond?

Earnings call scheduled for February 6, 2026 at 10:00 AM ET. View full transcript when available.

View Flowserve company page | View 8-K filing