# Flowserve Corporation (FLS) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/FLS/thesis · /stocks/FLS/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: FLS
step: "04"
title: Financial Snapshot — 3-Year P&L, Margins, EPS
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Income Statement Summary (USD Millions)

| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Revenue | $4,126 | $4,375 | $4,542 |
| YoY Growth | — | +6.0% | +3.8% |
| Gross Profit | $1,247 | $1,380 | $1,465 |
| Gross Margin | 30.2% | 31.5% | 32.2% |
| Adj. EBIT | ~$545 | ~$630 | ~$700 |
| Adj. EBIT Margin | ~13.2% | ~14.4% | ~15.4% |
| GAAP Operating Income | ~$370 | ~$480 | ~$550 |
| GAAP EBIT Margin | ~9.0% | ~11.0% | ~12.1% |
| Net Interest Expense | ~($100) | ~($90) | ~($85) |
| Adj. Pre-tax Income | ~$445 | ~$540 | ~$615 |
| Tax Rate (adj.) | ~21–23% | ~21–22% | ~21–22% |
| Adj. Net Income | ~$345 | ~$420 | ~$480 |
| GAAP Net Income | ~$200 | ~$310 | ~$375 |
| Diluted Shares (M) | ~133 | ~132 | ~131 |
| Adj. Diluted EPS | ~$2.59 | ~$3.18 | ~$3.66 |
| GAAP Diluted EPS | ~$1.50 | ~$2.35 | ~$2.86 |

*Note: Figures are approximations based on public filings and earnings releases. Adjusted metrics exclude restructuring/realignment charges, amortization of acquired intangibles, and certain other items.*

#### Key Margin Analysis

##### Gross Margin Progression
- FY2022: 30.2% — Recovering from supply chain disruption and labor cost inflation
- FY2023: 31.5% — +130bps — Pricing actions, mix shift toward aftermarket, easing input costs
- FY2024: 32.2% — +70bps — Continued aftermarket mix improvement; higher-margin project completions

**Gross margin target under FLS 2.0**: 33–35% (full transformation maturity). Pathway requires continued aftermarket growth and volume leverage.

##### EBIT Margin Bridge FY2022 → FY2024
- **+130bps** — Gross margin expansion (pricing + mix)
- **+80bps** — SG&A leverage (fixed cost absorption on higher revenue)
- **+30bps** — R&D efficiency (rationalized investment)
- **+130bps** — One-time restructuring charges declining
- **Net**: ~+220bps adj. EBIT margin improvement over 2 years

##### Adj. EBIT Margin Target
- FLS 2.0 Phase 1 target (achieved ~2021): 12–13%
- FLS 2.0 Phase 2 target (achieved ~2023): 14–15%
- FLS 2.0 Phase 3 target (in progress): 17–18%
- Current (FY2024): ~15.4%
- Gap remaining: ~160–260bps to reach target range midpoint

#### EPS Growth Analysis

| Period | Adj. EPS | YoY Growth |
|---|---|---|
| FY2021 | ~$1.92 | — |
| FY2022 | ~$2.59 | +35% |
| FY2023 | ~$3.18 | +23% |
| FY2024 | ~$3.66 | +15% |

Strong EPS growth was driven by both operational margin expansion and modest share buyback activity. The growth rate is decelerating as the easier restructuring benefits have been captured and organic revenue growth normalizes.

**FY2025E Consensus**: ~$3.90–4.10 Adj. EPS (11–12% growth)

#### Restructuring / Non-Recurring Items

The gap between GAAP and Adjusted metrics is meaningful and declining:

| Item | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Restructuring / realignment | ~($85) | ~($65) | ~($45) |
| Amortization of intangibles | ~($75) | ~($75) | ~($75) |
| Other (gain/loss on divestitures, etc.) | Varies | Varies | Varies |

The declining restructuring charge is itself a sign that FLS 2.0 is maturing — most of the heavy lifting (facility closures, headcount reductions) is done.

#### EBITDA and Free Cash Flow

| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Adj. EBITDA | ~$680 | ~$780 | ~$860 |
| Adj. EBITDA Margin | ~16.5% | ~17.8% | ~18.9% |
| D&A | ~$135 | ~$150 | ~$160 |
| Capex | ~($130) | ~($120) | ~($130) |
| Free Cash Flow (FCF) | ~$280 | ~$380 | ~$450 |
| FCF Conversion (% of Adj. Net Income) | ~81% | ~90% | ~94% |

FCF conversion has been improving as working capital headwinds from revenue growth have partially normalized and restructuring cash costs have declined.

#### Dividend and Capital Returns

- Annual dividend: $0.80/share (~$105M total)
- Dividend yield: ~1.4–1.6% at typical trading prices
- Dividend payout ratio: ~22% of Adj. Net Income — conservative, well-covered
- Share buybacks: moderate (~$50–100M/year in FY2023–2024)

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/FLS/fundamental

## Navigation

- Overview: /stocks/FLS
- Financials (this page): /stocks/FLS/financials
- Thesis: /stocks/FLS/thesis
- Investment Memo: /stocks/FLS/memo
- Coverage universe: /stocks