Flowserve Q2 sales fall on Middle East conflict impact

Overview

• U.S. flow control supplier's Q2 sales slightly beat analyst expectations

• Adjusted EPS for Q2 rose 4% yr/yr

Outlook

• Flowserve now expects 2026 organic sales to decline about 1%

• Company raises low end of 2026 adjusted EPS guidance to $4.05-$4.20

• Company says Middle East conflict expected to weigh on second-half sales

Result Drivers

• STRONG BOOKINGS - Co reported 26% yr/yr increase in total bookings, with record aftermarket bookings and 44% growth in original equipment bookings

• MARGIN EXPANSION - Adjusted operating margin rose 70 bps yr/yr to 15.3%, reflecting ongoing cost and efficiency initiatives

• MIDDLE EAST IMPACT - Co cited continued impact of Middle East conflict as reason for lowering full-year organic sales guidance

Company press release: ID:nBw8wNyhra

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery equipment peer group is "buy"

• Wall Street's median 12-month price target for Flowserve Corp is $91.00, about 23.9% above its July 28 closing price of $73.43

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 29 - IDEX beats Q2 sales, adjusted EPS estimates, raises FY outlook

• July 28 - Xylem raises annual profit forecast as AI growth lifts demand for water-treatment equipment

• July 28 - Expro Group Q2 adjusted EPS misses estimates on Middle East conflict

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)