Flowserve (FLS) Stock Forecast & Price Target

Flowserve Corp has demonstrated a significant improvement in its financial performance, with adjusted operating margins expanding by 370 basis points year-over-year to 14.8%, surpassing both estimates and consensus. The company reported robust free cash flow of $204 million, reflecting a commendable 174% conversion rate and continued strength in bookings, achieving over $1 billion for 15 consecutive quarters. Additionally, aftermarket bookings reached $653 million, marking a 6% year-over-year increase and underscoring sustained growth across various segments, particularly in the nuclear and power sectors.

Flowserve Corp reported a decline in overall bookings by 13.6% year-over-year, with a book-to-bill ratio of 0.91x, indicating reduced demand for its flow control systems. Core sales for the company also fell short of expectations, with total company core growth at -1.0%, significantly below the anticipated 3.4%, alongside declines in both its FPD and FCD segments. In addition, Flowserve has revised its total sales and organic sales growth outlook downward, further highlighting challenges in its operating environment.