Flowserve (FLS) Up 2.1% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Flowserve (FLS). Shares have added about 2.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Flowserve due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Flowserve's Q1 Earnings Surpass Estimates, Revenues Decrease Y/Y

Flowserve’s first-quarter 2026 adjusted earnings of 85 cents per share beat the Zacks Consensus Estimate of 82 cents. The bottom line increased 18.1% year over year.

Flowserve’s total revenues of $1.07 billion missed the consensus estimate of $1.19 billion. Also, the top line decreased 6.7% year over year. Aftermarket bookings decreased 1.2% year over year to $680.3 million, while original equipment bookings decreased 13% year over year to $467.9 million.

Total bookings amounted to $1.15 billion, reflecting a decrease of 6.4% year over year. The backlog at the end of the quarter was $2.95 billion, up 1.5% year over year.

Segmental Details

Flowserve currently has two reportable segments, Flowserve Pump Division and Flow Control Division. A brief discussion of the segments is provided below:

In the first quarter, revenues from the Flowserve Pumps Division segment were $744.5 million, down 4.9% year over year. Segmental operating income was $125.8 million, down 7.8% year over year.

Revenues from the Flow Control Division segment were $327.6 million, down 10% year over year. The segment’s operating income was $41.7 million, up 32.4% year over year.

Margin Profile

In the first quarter, Flowserve’s cost of sales decreased 11.2% year over year to $688.4 million. Gross profit rose 2.8% year over year to $379.8 million and the margin increased 330 basis points (bps) to 35.6%. Selling, general and administrative expenses were $263.4 million, up 8.3% year over year.

Operating income decreased 9.5% year over year to $119.4 million. The operating margin was 11.2%, down 30 bps year over year. The effective tax rate was 19.7%.

Flowserve’s Balance Sheet and Cash Flow

Exiting the first quarter, Flowserve had cash and cash equivalents of $792.4 million compared with $760.2 million at the end of 2025. Long-term debt (due after one year) was $1.66 billion compared with $1.53 billion reported at the end of 2025.

In the first three months of 2026, the company used net cash of $43.1 million for operating activities compared with $49.9 million cash used in the year-ago period. Capital expenditure totaled $16.9 million, up 44% year over year.

During the same period, the company used $26.7 million for distributing dividends. Flowserve did not repurchase shares in the first three months.

2026 Guidance

Flowserve has updated its 2026 outlook. The company now expects a 3-6% increase in revenues from the year-ago level compared with 5-7% expected earlier. Organic revenues are projected to decline 1% to grow 2% compared with 1-3% increase expected earlier. It currently anticipates earnings per share (on an adjusted basis) to be $4.00-$4.20.

The adjusted tax rate is projected to be approximately 21-22%. The company forecasts net interest expense to be $85 million and capital expenditure in the range of $90-$100 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -6.91% due to these changes.

VGM Scores

Currently, Flowserve has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Flowserve has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Flowserve is part of the Zacks Manufacturing - General Industrial industry. Over the past month, Crane (CR), a stock from the same industry, has gained 2.1%. The company reported its results for the quarter ended March 2026 more than a month ago.

Crane reported revenues of $696.4 million in the last reported quarter, representing a year-over-year change of +24.9%. EPS of $1.65 for the same period compares with $1.39 a year ago.

For the current quarter, Crane is expected to post earnings of $1.65 per share, indicating a change of +10.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Crane. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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