Flowserve Corporation Reports Decline in Sales and Profitability for Q2 and First Half of 2026

Flowserve Corporation reported its financial results for the second quarter and first half of 2026, revealing a decline in sales and profitability compared to the previous year. For the three months ended June 30, 2026, the company generated sales of $1.169 billion, a decrease of 1.6% from $1.188 billion in the same period of 2025. Gross profit also fell to $384.7 million, down from $406.6 million, resulting in a gross profit margin of 32.9%, compared to 34.2% a year earlier. Net earnings attributable to Flowserve Corporation increased to $99.0 million, or $0.78 per share, from $81.8 million, or $0.62 per share, in the prior year, driven by a significant rise in net earnings from affiliates.

In the first half of 2026, Flowserve's sales totaled $2.237 billion, down 4.1% from $2.333 billion in the first half of 2025. Gross profit for this period decreased to $764.6 million, with a gross profit margin of 34.2%, up from 33.3% in the previous year. The company reported net earnings of $180.7 million, or $1.42 per share, compared to $155.7 million, or $1.19 per share, in the same period of 2025. The increase in net earnings was attributed to a $27.7 million gain from the remeasurement of a previously held equity interest in Flowserve Al Mansoori Services Company.

Significant operational developments included the acquisition of Trillium Flow Technologies' Valves Division for $490 million, which is expected to enhance Flowserve's product offerings in critical infrastructure applications. Additionally, Flowserve acquired the remaining 51% interest in Flowserve Al Mansoori Services Company for $34.5 million, making it a wholly owned subsidiary. The company also announced the divestiture of PMV Automation for $35 million, which is anticipated to close in the third quarter of 2026.

Flowserve's backlog increased to $3.3 billion as of June 30, 2026, reflecting a 16.3% rise from the end of 2025, driven by strong bookings in the energy and power generation sectors. The company reported bookings of $1.348 billion for the second quarter, a 25.5% increase year-over-year. However, the company faced challenges in certain regions, particularly in the Middle East, where geopolitical tensions have impacted operations and demand. Flowserve continues to monitor these conditions and implement mitigation strategies to address potential disruptions.

Looking ahead, Flowserve remains cautiously optimistic about its growth prospects, supported by a solid backlog and ongoing operational improvements. The company plans to leverage its global footprint and flexible supply chain to navigate the current macroeconomic uncertainties, including inflationary pressures and potential tariff impacts. With $731 million in cash and $763 million available under its credit facilities, Flowserve is well-positioned to meet its liquidity needs and pursue strategic initiatives throughout 2026.