Flowserve Corporation's Strong Earnings Report Highlights

• Flowserve Corporation (NYSE:FLS) reported an earnings per share (EPS) of $0.91, surpassing the estimated $0.77.
• The company demonstrated a significant earnings surprise of +16.67% compared to the same quarter last year.
• Despite slightly missing revenue estimates, Flowserve showed strong financial health with a robust gross margin of 34.2% and a low debt-to-equity ratio of 0.10.

Flowserve Corporation, listed on the NYSE under the symbol FLS, is a key player in the manufacturing industry, focusing on flow control products like pumps and valves for the oil and gas sectors. On July 29, 2025, Flowserve reported earnings per share (EPS) of $0.91, exceeding the estimated $0.77. This performance highlights the company's ability to surpass market expectations.

The company's earnings report for the second quarter of 2025 reveals a significant earnings surprise of +16.67%, as highlighted by Zacks. This is a notable improvement from the $0.73 EPS reported in the same quarter last year. Flowserve's consistent ability to exceed EPS estimates, as seen in two of the past four quarters, underscores its operational efficiency.

Despite the strong earnings, Flowserve's revenue for the quarter was $1.19 billion, slightly below the estimated $1.23 billion. However, this still represents an increase from the $1.16 billion reported a year ago. The company's solid bookings of $1.1 billion, with $621 million from aftermarket bookings, demonstrate its strong market presence and demand for its products.

Flowserve's financial health is further supported by a robust gross margin of 34.2% and an adjusted gross margin of 34.9%, both up by 260 basis points from the previous year. The company's price-to-earnings (P/E) ratio of 24.63 and price-to-sales ratio of 1.55 reflect the market's positive valuation of its earnings and sales.

The company's financial stability is evident in its low debt-to-equity ratio of 0.10 and a current ratio of 2.10, indicating a strong ability to meet short-term liabilities. With an enterprise value to sales ratio of 1.46 and an enterprise value to operating cash flow ratio of 14.12, Flowserve maintains a solid financial position, appealing to investors and analysts alike.