Gross margins have expanded to 37.1% in 2026Q1 from 30.0% in 2023Q4, though revenue growth has decelerated into negative territory at -6.7%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 4.65B | 4.73B | 4.56B | 4.32B | 3.62B | 3.54B | 3.73B | 3.94B | 3.83B | 3.66B | 3.99B | 4.56B | 4.88B | 4.95B | 4.75B | 4.51B | 4.03B | 4.37B | 4.47B | 3.76B | 3.06B | 2.7B | 2.64B | 2.4B | 2.25B | 1.92B | 1.54B | 1.06B | 1.08B | 1.15B | 605.45M |
| Revenue Growth % | 0.83% | 3.76% | 5.49% | 19.51% | 2.09% | -5.02% | -5.49% | 2.93% | 4.69% | -8.28% | -12.49% | -6.5% | -1.55% | 4.28% | 5.35% | 11.86% | -7.63% | -2.42% | 18.89% | 22.92% | 13.57% | 2.16% | 9.73% | 6.8% | 17.41% | 24.65% | 44.94% | -2.01% | -6% | 90.3% | 13.65% |
| Cost of Goods Sold | 3B | 3.09B | 3.09B | 3.02B | 2.62B | 2.47B | 2.56B | 2.63B | 2.59B | 2.53B | 2.69B | 3.01B | 3.16B | 3.27B | 3.17B | 2.99B | 2.61B | 2.78B | 2.89B | 2.53B | 2.05B | 1.84B | 1.76B | 1.68B | 1.57B | 1.3B | 974.34M | 658.3M | 628.5M | 664.3M | 361.35M |
| COGS % of Revenue | - | 65.4% | 67.84% | 69.96% | 72.49% | 69.88% | 68.78% | 66.75% | 67.69% | 69.05% | 67.5% | 66.07% | 64.85% | 65.93% | 66.73% | 66.28% | 64.68% | 63.58% | 64.67% | 67.33% | 67.09% | 68.18% | 66.86% | 69.95% | 69.55% | 67.95% | 63.34% | 62.03% | 58.03% | 57.65% | 59.68% |
| Gross Profit | 1.65B | 1.64B | 1.47B | 1.3B | 994.65M | 1.07B | 1.16B | 1.31B | 1.24B | 1.13B | 1.3B | 1.55B | 1.71B | 1.69B | 1.58B | 1.52B | 1.42B | 1.59B | 1.58B | 1.23B | 1.01B | 857.62M | 758.58M | 722.42M | 685.53M | 614.55M | 563.95M | 403M | 454.6M | 487.9M | 244.1M |
| Gross Margin % | 35.53% | 34.6% | 32.16% | 30.04% | 27.51% | 30.12% | 31.22% | 33.12% | 32.31% | 30.95% | 32.51% | 34.03% | 35.15% | 34.07% | 33.27% | 33.72% | 35.32% | 36.42% | 35.33% | 32.67% | 32.91% | 31.82% | 28.75% | 30.05% | 30.45% | 32.05% | 36.66% | 37.97% | 41.97% | 42.35% | 40.32% |
| Gross Profit Growth % | - | 11.62% | 12.94% | 30.48% | -6.74% | -8.38% | -10.91% | 5.52% | 9.3% | -12.7% | -16.4% | -9.47% | 1.57% | 6.78% | 3.95% | 6.79% | -10.41% | 0.59% | 28.54% | 22.05% | 17.45% | 13.06% | 5.01% | 5.38% | 11.55% | 8.97% | 39.94% | -11.35% | -6.83% | 99.88% | 13.31% |
| Operating Expenses | 1.06B | 1.02B | 950.4M | 894.04M | 801.27M | 781.43M | 804.95M | 872.67M | 928.4M | 880.17M | 872.67M | 932.3M | 948.52M | 966.83M | 932.52M | 914.08M | 838.49M | 907.85M | 984.4M | 832.26M | 782.5M | 663.23M | 596.1M | 559.55M | 493.1M | 410.56M | 417.34M | 341.1M | 331.3M | 351.8M | 169.25M |
| OpEx % of Revenue | - | 21.61% | 20.85% | 20.69% | 22.16% | 22.07% | 21.59% | 22.12% | 24.22% | 24.04% | 21.86% | 20.44% | 19.45% | 19.51% | 19.63% | 20.27% | 20.8% | 20.8% | 22.01% | 22.12% | 25.56% | 24.61% | 22.6% | 23.27% | 21.9% | 21.41% | 27.13% | 32.14% | 30.59% | 30.53% | 27.95% |
| Selling, General & Admin | 1.06B | 968.11M | 880.5M | 845.34M | 761.37M | 747.23M | 768.85M | 830.67M | 888.8M | 841.57M | 829.87M | 886.4M | 907.62M | 929.03M | 893.63M | 879.08M | 808.99M | 878.45M | 950.4M | 792.26M | 752.8M | 638.93M | 570.9M | 539.78M | 476.92M | 410.56M | 335.51M | 275.9M | 265.6M | 285.9M | 147.22M |
| SG&A % of Revenue | - | 20.47% | 19.32% | 19.57% | 21.06% | 21.1% | 20.62% | 21.06% | 23.19% | 22.99% | 20.79% | 19.43% | 18.61% | 18.75% | 18.81% | 19.49% | 20.06% | 20.12% | 21.25% | 21.06% | 24.59% | 23.71% | 21.64% | 22.45% | 21.18% | 21.41% | 21.81% | 26% | 24.52% | 24.81% | 24.32% |
| Research & Development | 0 | 54.1M | 69.9M | 48.7M | 39.9M | 34.2M | 36.1M | 42M | 39.6M | 38.6M | 42.8M | 45.9M | 40.9M | 37.8M | 38.9M | 35M | 29.5M | 29.4M | 34M | 40M | 29.7M | 24.3M | 25.2M | 0 | 0 | 0 | 24.8M | 25.6M | 26.4M | 26.9M | 15.48M |
| R&D % of Revenue | - | 1.14% | 1.53% | 1.13% | 1.1% | 0.97% | 0.97% | 1.06% | 1.03% | 1.05% | 1.07% | 1.01% | 0.84% | 0.76% | 0.82% | 0.78% | 0.73% | 0.67% | 0.76% | 1.06% | 0.97% | 0.9% | 0.96% | - | - | - | 1.61% | 2.41% | 2.44% | 2.33% | 2.56% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 588.13M | 613.89M | 515.42M | 403.8M | 193.38M | 285.14M | 359.11M | 433.91M | 309.84M | 252.73M | 425M | 619.88M | 766.09M | 721.27M | 648.43M | 606.77M | 585.7M | 681.78M | 595.91M | 397.12M | 224.8M | 194.39M | 162.48M | 159.99M | 188.08M | 142.15M | 146.61M | 61.9M | 123.3M | 136.1M | 69.07M |
| Operating Margin % | 12.64% | 12.98% | 11.31% | 9.35% | 5.35% | 8.05% | 9.63% | 11% | 8.08% | 6.9% | 10.65% | 13.59% | 15.71% | 14.56% | 13.65% | 13.45% | 14.53% | 15.62% | 13.32% | 10.55% | 7.34% | 7.21% | 6.16% | 6.65% | 8.35% | 7.41% | 9.53% | 5.83% | 11.38% | 11.81% | 11.41% |
| Operating Income Growth % | - | 19.1% | 27.64% | 108.8% | -32.18% | -20.6% | -17.24% | 40.05% | 22.6% | -40.53% | -31.44% | -19.09% | 6.22% | 11.23% | 6.87% | 3.6% | -14.09% | 14.41% | 50.06% | 76.66% | 15.64% | 19.64% | 1.55% | -14.94% | 32.31% | -3.04% | 136.84% | -49.8% | -9.4% | 97.04% | 18.61% |
| EBITDA | 683.25M | 709.35M | 601.02M | 487.54M | 284.34M | 384.96M | 459.87M | 539.82M | 422.31M | 371.18M | 541.75M | 746.97M | 876.37M | 827.66M | 755.65M | 711.59M | 687M | 777.04M | 675.61M | 476.76M | 295.8M | 264.28M | 235.63M | 237.58M | 258.54M | 222.75M | 203.64M | 101.5M | 162.6M | 175.1M | 89.16M |
| EBITDA Margin % | 14.68% | 15% | 13.19% | 11.28% | 7.87% | 10.87% | 12.34% | 13.68% | 11.02% | 10.14% | 13.57% | 16.38% | 17.97% | 16.7% | 15.9% | 15.78% | 17.04% | 17.8% | 15.1% | 12.67% | 9.66% | 9.81% | 8.93% | 9.88% | 11.48% | 11.62% | 13.24% | 9.56% | 15.01% | 15.2% | 14.73% |
| EBITDA Growth % | 12.59% | 18.02% | 23.28% | 71.47% | -26.14% | -16.29% | -14.81% | 27.82% | 13.77% | -31.48% | -27.47% | -14.77% | 5.89% | 9.53% | 6.19% | 3.58% | -11.59% | 15.01% | 41.71% | 61.18% | 11.93% | 12.16% | -0.82% | -8.11% | 16.07% | 9.38% | 100.63% | -37.58% | -7.14% | 96.39% | 15.31% |
| D&A (Non-Cash Add-back) | 95.11M | 95.45M | 85.6M | 83.75M | 90.95M | 99.82M | 100.75M | 105.9M | 112.47M | 118.45M | 116.75M | 127.09M | 110.28M | 106.39M | 107.23M | 104.82M | 101.29M | 95.26M | 79.7M | 79.64M | 71M | 69.89M | 73.16M | 77.59M | 70.46M | 80.59M | 57.04M | 39.6M | 39.3M | 39M | 20.09M |
| EBIT | 588.13M | 613.89M | 455.46M | 290.67M | 200.62M | 191.21M | 258.48M | 377.41M | 234.43M | 322.74M | 273.05M | 477.64M | 793.51M | 745.93M | 655.09M | 623.94M | 564.58M | 624.8M | 641.43M | 420.19M | 252.96M | 153.59M | 146.68M | 171.5M | 184.06M | 129.16M | 146.61M | 61.9M | 123.3M | 136.1M | 81.4M |
| Net Interest Income | -71.59M | -70.09M | -63.93M | -59.93M | -42.28M | -54.85M | -52.01M | -46.57M | -51.7M | -56.3M | -57.33M | -63.2M | -58.64M | -52.98M | -42.57M | -34.6M | -32.73M | -36.76M | -42.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 7.31M | 7.55M | 5.37M | 6.99M | 3.96M | 2.76M | 4.17M | 8.41M | 6.46M | 3.43M | 2.8M | 2.06M | 1.68M | 1.43M | 954K | 1.58M | 1.57M | 3.25M | 8.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 78.9M | 77.64M | 69.3M | 66.92M | 46.25M | 57.62M | 56.19M | 54.98M | 58.16M | 59.73M | 60.14M | 65.27M | 60.32M | 54.41M | 43.52M | 36.18M | 34.3M | 40.01M | 51.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -52.43M | -88.49M | -129.27M | -180.05M | -39.01M | -151.55M | -156.82M | -111.48M | -133.56M | 10.28M | -212.09M | -207.51M | -32.9M | -28.25M | -36.86M | -19.01M | -55.43M | -96.99M | -5.78M | -37.05M | -37.52M | -102.39M | -96.21M | -79.72M | -107.41M | -153.23M | -123.42M | -43.6M | -50.1M | -46.3M | -4.87M |
| Pretax Income | 535.7M | 525.4M | 386.15M | 223.75M | 154.38M | 133.59M | 202.29M | 322.43M | 176.27M | 263.01M | 212.91M | 412.37M | 733.19M | 693.02M | 611.57M | 587.75M | 530.28M | 584.79M | 590.13M | 360.07M | 187.28M | 92M | 66.27M | 73.83M | 92.07M | 25.63M | 23.18M | 18.3M | 73.2M | 89.8M | 64.15M |
| Pretax Margin % | 11.51% | 11.11% | 8.47% | 5.18% | 4.27% | 3.77% | 5.43% | 8.17% | 4.6% | 7.18% | 5.33% | 9.04% | 15.03% | 13.99% | 12.87% | 13.03% | 13.15% | 13.4% | 13.19% | 9.57% | 6.12% | 3.41% | 2.51% | 3.07% | 4.09% | 1.34% | 1.51% | 1.72% | 6.76% | 7.79% | 10.6% |
| Income Tax | 158.98M | 155.6M | 84.93M | 18.56M | -43.64M | -2.59M | 61.42M | 80.07M | 51.22M | 258.68M | 75.29M | 148.92M | 208.31M | 204.7M | 160.77M | 158.52M | 141.6M | 156.46M | 147.72M | 104.29M | 73.24M | 37.09M | 39.47M | 20.95M | 31.67M | 9.28M | 7.88M | 6.1M | 25.5M | 38.2M | 20.9M |
| Effective Tax Rate % | 29.68% | 29.61% | 21.99% | 8.3% | -28.27% | -1.94% | 30.36% | 24.83% | 29.06% | 98.35% | 35.36% | 36.11% | 28.41% | 29.54% | 26.29% | 26.97% | 26.7% | 26.75% | 25.03% | 28.97% | 39.11% | 40.32% | 59.56% | 28.37% | 34.4% | 36.19% | 33.97% | 33.33% | 34.84% | 42.54% | 32.58% |
| Net Income | 354.02M | 346.25M | 282.76M | 186.74M | 188.69M | 125.95M | 130.42M | 253.67M | 119.67M | 2.65M | 145.06M | 267.67M | 518.82M | 485.53M | 448.34M | 428.58M | 388.29M | 427.89M | 442.41M | 255.77M | 115.03M | 11.84M | 24.2M | 98.31M | 53.02M | -1.5M | 13.24M | 12.2M | 48.9M | 51.6M | 43.25M |
| Net Margin % | 7.61% | 7.32% | 6.2% | 4.32% | 5.22% | 3.56% | 3.5% | 6.43% | 3.12% | 0.07% | 3.63% | 5.87% | 10.64% | 9.8% | 9.44% | 9.5% | 9.63% | 9.8% | 9.89% | 6.8% | 3.76% | 0.44% | 0.92% | 4.09% | 2.36% | -0.08% | 0.86% | 1.15% | 4.51% | 4.48% | 7.14% |
| Net Income Growth % | 25.34% | 22.45% | 51.42% | -1.03% | 49.81% | -3.43% | -48.59% | 111.97% | 4412.48% | -98.17% | -45.81% | -48.41% | 6.86% | 8.3% | 4.61% | 10.38% | -9.25% | -3.28% | 72.97% | 122.35% | 871.96% | -51.09% | -75.38% | 85.4% | 3642.08% | -111.31% | 8.53% | -75.05% | -5.23% | 19.3% | 41.01% |
| Net Income (Continuing) | 376.71M | 369.8M | 301.23M | 205.19M | 198.01M | 136.18M | 140.88M | 246.94M | 125.05M | 4.33M | 135.53M | 264.02M | 519.43M | 488.32M | 450.8M | 429.23M | 388.68M | 428.33M | 442.41M | 255.77M | 114.04M | 51.42M | 25.88M | 50.48M | 45.5M | -10.49M | 15.31M | 12.2M | 47.7M | 51.6M | 43.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 67.95M | 62.93M | 44.05M | 38.95M | 33.61M | 33.03M | 30.33M | 25.6M | 18.46M | 16.37M | 20.96M | 17.26M | 10.28M | 6.74M | 4.26M | 8.42M | 10.01M | 5.63M | 6.43M | 7.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.75 | 2.64 | 2.14 | 1.42 | 1.44 | 0.96 | 1.00 | 1.81 | 0.91 | 0.02 | 1.01 | 1.93 | 3.72 | 3.41 | 2.84 | 2.55 | 2.29 | 2.53 | 2.58 | 1.49 | 0.67 | 0.10 | 0.16 | 0.27 | 0.16 | -0.01 | 0.12 | 0.11 | 0.41 | 0.42 | 0.59 |
| EPS Growth % | 26.17% | 23.36% | 50.7% | -1.39% | 50% | -4% | -44.75% | 98.9% | 4450% | -98.02% | -47.67% | -48.12% | 9.09% | 20.07% | 11.37% | 11.35% | -9.49% | -1.94% | 73.15% | 122.39% | 570% | -37.5% | -40.74% | 68.75% | 1330.77% | -110.83% | 9.09% | -73.17% | -2.38% | -28.81% | 43.9% |
| EPS (Basic) | - | 2.66 | 2.15 | 1.42 | 1.44 | 0.97 | 1.00 | 1.82 | 0.91 | 0.02 | 1.02 | 1.94 | 3.75 | 3.43 | 2.86 | 2.57 | 2.32 | 2.55 | 2.61 | 1.51 | 0.69 | 0.10 | 0.16 | 0.27 | 0.16 | -0.01 | 0.12 | 0.11 | 0.41 | 0.42 | 0.59 |
| Diluted Shares Outstanding | 128.62M | 130.98M | 132.36M | 131.93M | 131.31M | 130.86M | 131.05M | 131.72M | 131.27M | 131.18M | 130.97M | 133.81M | 137.84M | 142.43M | 157.97M | 168.31M | 169.25M | 169.09M | 171.54M | 172.05M | 170.84M | 170.74M | 166.95M | 165.41M | 152.36M | 115.4M | 113.53M | 113.57M | 121.46M | 122.77M | 73.39M |
| Basic Shares Outstanding | 127.49M | 130M | 131.49M | 131.51M | 130.63M | 130.31M | 130.4M | 131.03M | 130.82M | 130.57M | 130.43M | 133.07M | 136.91M | 141.6M | 156.85M | 166.63M | 167.29M | 167.52M | 169.8M | 169.39M | 167.52M | 165.23M | 165.21M | 165.41M | 152.36M | 113.74M | 113.53M | 113.57M | 119.69M | 122.69M | 73.39M |
| Dividend Payout Ratio | - | 31.66% | 39.06% | 56.2% | 55.41% | 83.05% | 79.86% | 39.25% | 83.07% | 3741.82% | 67.38% | 34.99% | 16.41% | 15.84% | 16.45% | 16.23% | 16.37% | 13.84% | 11.64% | 10.04% | - | - | - | - | - | - | - | 173.77% | 45.6% | 50.58% | 29.13% |
Cyclical End-Market Exposure
According to the most recent quarterly data, Flowserve's revenue growth has shifted into negative territory at -6.7% in 2026Q1, marking a notable departure from the positive, albeit modest, growth trends observed throughout 2024 and 2025 as the company navigates a challenging global industrial demand environment.
The recent contraction suggests that the company's reliance on large-scale, long-cycle project bookings may be experiencing a lull in conversion. Investors should monitor whether this deceleration reflects a broader slowdown in energy and chemical CAPEX spending or merely a timing mismatch in project revenue recognition.
As reported in financial statements, Flowserve achieved a gross margin of 37.1% in 2026Q1, representing a steady improvement from the 30.0% levels seen in late 2023, which suggests that recent supply chain optimization and pricing initiatives are successfully offsetting inflationary pressures on raw material inputs.
This margin expansion appears to indicate that the company is gaining better control over its cost-to-serve, particularly within its high-margin aftermarket segment. However, maintaining these levels will likely require continued discipline in managing the mix between lower-margin original equipment and more profitable service-based revenue streams.
Based on the provided income statement data, Flowserve's operating margin of 13.6% in 2026Q1 indicates that while the company is scaling, operating income growth is not consistently outpacing gross profit gains, suggesting that SG&A expenses remain a significant drag on overall profitability and efficiency.
The fluctuation in operating margins, which dipped as low as 9.0% in 2025Q3, implies that the company's fixed-cost base remains substantial. Further rationalization of the manufacturing footprint may be necessary to demonstrate true operating leverage and improve the conversion of gross profit into bottom-line earnings.
Analysis of the reported figures reveals significant earnings volatility, highlighted by a net loss of $29.0 million in 2025Q4 followed by a sharp recovery, which suggests that non-operating items and tax adjustments are frequently distorting the underlying quality of the company's quarterly net income results.
The presence of stock-based compensation, which reached $10.7 million in 2026Q1, further complicates the assessment of true cash-generative earnings. Investors should look past these headline fluctuations to focus on normalized operating cash flow to better gauge the sustainability of the company's current earnings power.
While recent margin improvements are evident, a critical view suggests that Flowserve's reliance on long-lead-time projects creates a risk of margin compression if cost-plus pricing cannot be effectively enforced against rising specialized alloy costs, potentially undermining the gains achieved over the last several quarters.
Short-sellers may focus on the company's historical difficulty in hitting margin targets and the potential for project-related cost overruns to erode profitability. The market may be overestimating the durability of the aftermarket annuity if global industrial activity continues to soften, warranting a cautious outlook on future margin expansion.
Quick answers to the most common questions about buying FLS stock.
For fiscal year 2025, Flowserve Corporation (FLS) reported total revenue of $4.73B. This represents a 681.1% increase compared to $605.5M in 1996.
Flowserve Corporation (FLS) is profitable, generating $346.2M in net income for the fiscal year ending 2025 with a net profit margin of 7.3%.
Flowserve Corporation (FLS) reported an operating income of $613.9M, resulting in an operating profit margin of 13.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Flowserve Corporation (FLS) generated $1.64B in gross profit for the year, representing a gross profit margin of 34.6%. This demonstrates the company's core pricing power and production efficiency.