Flowserve Corporation Reports $1.144 Billion Revenue in Q1 2025, 5.2% Increase Year-Over-Year

Flowserve Corporation reported a revenue of $1.144 billion for the first quarter of 2025, marking a 5.2% increase from $1.087 billion in the same period of 2024. The company's gross profit rose to $369.3 million, up from $339.0 million, resulting in a gross profit margin of 32.3%, compared to 31.2% a year earlier. Net earnings attributable to Flowserve Corporation were $73.9 million, slightly down from $74.2 million in the prior year, with earnings per share remaining stable at $0.56 for both periods. The company experienced a decrease in cash and cash equivalents, which fell to $540.8 million from $675.4 million at the end of 2024.

The financial performance reflects several operational changes, including a notable increase in selling, general, and administrative expenses (SG&A), which rose to $243.2 million from $228.4 million. This increase was attributed to higher incentive compensation, acquisition-related costs from the recent purchase of MOGAS Industries, and adjustments related to prior financial exposures. Additionally, Flowserve's interest expense increased to $19.2 million from $15.3 million, primarily due to higher outstanding debt levels.

In terms of strategic developments, Flowserve completed the acquisition of MOGAS Industries for $290 million in October 2024, which is expected to enhance its product offerings in the flow control sector. The acquisition was funded through cash and term loan financing. The company also initiated realignment programs aimed at optimizing its operations, with an estimated investment of $23 million for 2025. These programs are expected to yield annualized cost savings, although actual savings may vary.

Operationally, Flowserve reported a backlog of $2.903 billion as of March 31, 2025, an increase of 4.1% from the previous quarter. The company noted that approximately 40% of this backlog is related to aftermarket orders, which are generally higher margin compared to original equipment sales. The company’s global footprint includes approximately 16,000 employees and operations in about 50 countries, with a focus on enhancing its aftermarket services through a network of Quick Response Centers.

Looking ahead, Flowserve anticipates continued growth driven by its strategic focus on diversification, decarbonization, and digitization. The company expects to leverage its strong backlog and improved execution capabilities to achieve annual revenue growth in 2025, despite potential macroeconomic challenges such as inflation and geopolitical uncertainties. Flowserve remains committed to maintaining sufficient liquidity and access to capital, with $662.2 million available under its credit facilities as of the end of the first quarter.