Flowserve (FLS) Stock Forecast & Price Target

Flowserve Corp demonstrated a strong financial performance characterized by an expansion in adjusted operating margins, which increased by 370 basis points year-over-year to 14.8%, surpassing both estimates and consensus. The company also exhibited significant growth in its project funnel, particularly within the nuclear and power sectors, alongside a continued upward trend in aftermarket bookings, which reached $653 million, reflecting a 6% year-over-year increase. Furthermore, Flowserve achieved robust free cash flow of $204 million, with a remarkable 174% conversion, and maintained a strong order book, marking its 15th consecutive quarter with over $1 billion in bookings, highlighting its operational strength and market positioning.

Flowserve Corp experienced a notable decline in its bookings, which fell by 13.6% year-over-year, resulting in a book-to-bill ratio of 0.91x, indicating that the company's incoming orders were not sufficient to support its sales. Additionally, total company core growth recorded a negative 1.0%, significantly trailing behind the anticipated growth of 3.4%, with both its FPD and FCD segments showing disappointing core sales declines of -0.3% and -2.4%, respectively. Furthermore, Flowserve has lowered its total and organic sales growth outlook for the year, suggesting ongoing challenges in maintaining revenue momentum.