Flowserve Corporation Reports 3.6% Sales Increase to $1.17 Billion in Latest Quarter

Flowserve Corporation reported significant financial performance improvements in its latest quarterly results, with total sales reaching $1.17 billion for the three months ended September 30, 2025, a 3.6% increase from $1.13 billion in the same period last year. The company’s gross profit also rose to $380.3 million, up from $357.1 million, resulting in a gross profit margin of 32.4%, compared to 31.5% in the prior year. For the nine months ending September 30, 2025, sales totaled $3.51 billion, a 3.8% increase from $3.38 billion in 2024, with net earnings attributable to Flowserve Corporation increasing to $375.2 million from $205.2 million.

The company experienced notable changes in its operational metrics, particularly in selling, general, and administrative (SG&A) expenses, which increased to $305.2 million for the third quarter, up from $259 million in 2024. This rise was attributed to transaction costs related to the terminated merger with Chart Industries, increased asbestos-related costs, and acquisition-related expenses from the MOGAS acquisition. Flowserve's operating income for the third quarter decreased to $79.3 million from $103.2 million, reflecting the impact of higher SG&A costs.

Strategically, Flowserve terminated its merger agreement with Chart Industries in July 2025, receiving a $266 million termination fee, which significantly contributed to its other income for the quarter. The company also completed the acquisition of MOGAS Industries in October 2024, enhancing its product offerings in severe service valves. The integration of MOGAS is expected to create additional aftermarket opportunities, further strengthening Flowserve's market position.

In terms of operational developments, Flowserve reported a backlog of $2.90 billion as of September 30, 2025, reflecting a 3.8% increase from the previous year. The company’s global footprint includes approximately 16,000 employees and over 50 manufacturing facilities and Quick Response Centers worldwide. The aftermarket segment continues to be a significant revenue driver, accounting for approximately 53% of total sales in the latest quarter, up from 51% in the previous year.

Looking ahead, Flowserve anticipates continued growth driven by its strategic focus on diversification, decarbonization, and digitization, referred to as the "3D Strategy." The company remains optimistic about its ability to navigate macroeconomic uncertainties, including inflation and geopolitical tensions, leveraging its strong backlog and improved operational execution to achieve annual revenue growth in 2025. As of September 30, 2025, Flowserve reported cash and cash equivalents of $833.8 million, with $715.4 million available under its credit facilities, indicating a solid liquidity position to support its ongoing operations and strategic initiatives.