Flowserve Q3 adjusted profit beats estimates on bookings growth, market expansion

Overview

• US flow control equipment maker's Q3 sales rose 5% and met analyst expectations

• Adjusted EPS for Q3 increased 19% and beat analyst expectations

• Company raised low end of full-year adjusted EPS guidance, but cut organic sales outlook

Outlook

• Flowserve raises low end of 2026 adjusted EPS guidance to $4.10-$4.20

• Company revises 2026 organic sales guidance to down 2.5% to down 1.5%

• Company expects challenging Middle East conditions to impact Q4 sales

Result Drivers

• BOOKINGS GROWTH - Co said strong bookings, including record aftermarket bookings, supported Q3 performance despite Middle East disruption

• MARGIN EXPANSION - Adjusted operating margin rose 170 bps versus prior year, attributed to operational progress and focus on execution

• MIDDLE EAST CHALLENGES - Co said increasingly challenging conditions in the Middle East delayed customer activity and revenue conversion

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "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 Corporation is $92.00, about 29.9% above its October 27 closing price of $70.84

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Oct 28 - IDEX Q3 sales beat on increased volumes

• Oct 27 - Illinois Tool Works Inc beats Q3 EPS estimates, raises 2026 outlook

• Oct 28 - Franklin Electric Q3 sales top expectations on Cat Pumps acquisition

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(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.)