On this page of StockholderLetter.com we present the latest annual shareholder letter from FLOWSERVE CORP — ticker symbol FLS. Reading current and past FLS letters to shareholders can bring important insights into the investment thesis.
2025 Annual Report
R. SCOTT ROWE John L. Garrison President and Chief Executive Officer Non-Executive Chairman of the Board FINANCIAL HIGHLIGHTS SAFETY: TOTAL RECORDABLE RATE 0.32 0.25 0.36 0.34 0.31 TO OUR SHAREHOLDERS: Flowserve delivered another year of strong performance in 2025, building on the momentum established over the past several years and reinforcing the strength of our strategy and operating model. Through disciplined execution, continued customer focus, and the expanding impact of the Flowserve Business System, we advanced priorities while creating meaningful value for our shareholders. Sustained Momentum Through Strategy Our 3D strategy guided our growth in attractive, durable markets. In 2025, demand across these strategic areas remained strong, reflecting the resilience of our portfolio and the relevance of Flowserve s solutions in critical industries worldwide. As customers navigate complex operational and energy challenges, we are well positioned to deliver reliable, differentiated solutions that meet today s needs while preparing for the future. This strength is evident in end markets where reliability and lifecycle performance matter most. Nuclear power is one such example, where Flowserve s technical depth, installed base, and aftermarket strength align closely with customer demand, and the market remains an important area of growth for the company. The Flowserve Business System in Action The Flowserve Business System is increasingly embedded in how we operate and deliver results. Built around five disciplines People Excellence, Operational Excellence, Portfolio Excellence, Commercial Excellence, and Innovation Excellence the Business System provides a structured approach to drive consistency and performance across the enterprise. In 2025, we made measurable progress across these disciplines. Operational Excellence initiatives improved productivity and delivery performance across our facilities, while Portfolio Excellence anchored by our CORE 80/20 methodology sharpened our focus on the products that drive the greatest value. At the same time, we continued strengthening our commercial capabilities, investing in innovation, and developing our talent to support long-term competitiveness. Financial Performance Highlights Aftermarket momentum: Consecutive growth in aftermarket bookings each quarter in 2025, with fourth quarter marking our seventh consecutive quarter above $600 million. Full-year aftermarket bookings totaled $2.6 billion, up 9% year over year. Focused end-market growth: Nuclear bookings of $400 million, advancing one of our key growth areas. Execution discipline: Full mitigation of tariff impacts through targeted supply chain and pricing actions, while maintaining a high level of service for customers. Margin expansion: Flowserve achieved long-term margin targets two years ahead of plan. Driving Value and Elevating Our Impact Our performance in 2025 reflects both strategic and operational discipline. We remain focused on profitable growth, margin expansion, and strong cash flow outcomes that support sustained valued creation for our shareholders. With strong momentum, we are also looking ahead to how we further strengthen Flowserve for the future. Building on our proven strategy and the Flowserve Business System, we are refining how we articulate our focus, priorities, and long-term ambition ensuring clarity for our associates, customers, and our shareholders. This evolution is grounded in what is already working and reflects our commitment to sustaining performance while positioning the company for long-term value creation. Looking Ahead As we look forward, we remain confident in our direction and energized by the opportunities ahead. The combination of our people, our strategy, and the Flowserve Business System gives us a strong foundation to continue building momentum in 2026 and beyond. On behalf of the Board of Directors and our associates worldwide, thank you for your continued trust and support. 21 22 23 24 25 BOOKINGS in Millions 4,713 4,661 4,448 4,272 3,774 21 22 23 24 25 EARNINGS PER SHARE in US Dollars 1.44 1.42 2.14 2.64 0.96 21 22 23 24 25 OPERATING INCOME in Millions 462 271 334 400 197 21 22 23 24 25 OPERATING CASH FLOW in Millions 250 326 425 506 (40) 21 22 23 24 25 NET DEBT TO NET CAPITAL RATIO Percentage 31.1 28.8 26.0 25.8 26.6 21 22 23 24 25
With strong momentum, we are also looking ahead to how we further strengthen Flowserve for the future. Building on our proven strategy and the Flowserve Business System, we are refining how we articulate our focus, priorities, and long-term ambition ensuring clarity for our associates, customers, and our shareholders. This evolution is grounded in what is already working and reflects our commitment to sustaining performance while positioning the company for long-term value creation. R. Scott Rowe
 • shareholder letter icon 4/2/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/13/2023 FLS Stockholder Letter
 • stockholder letter icon 4/2/2024 FLS Stockholder Letter
 • stockholder letter icon 4/2/2025 FLS Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon FLS Benford's Law Stock Score = 99


FLS Shareholder/Stockholder Letter Transcript:

2025 Annual Report

R. SCOTT ROWE
John L. Garrison
President and
Chief Executive Officer
Non-Executive Chairman
of the Board
FINANCIAL HIGHLIGHTS
SAFETY: TOTAL RECORDABLE RATE
0.32
0.25
0.36 0.34
0.31
TO OUR SHAREHOLDERS:
Flowserve delivered another year of strong performance in 2025, building on the momentum established over
the past several years and reinforcing the strength of our strategy and operating model. Through disciplined
execution, continued customer focus, and the expanding impact of the Flowserve Business System, we
advanced priorities while creating meaningful value for our shareholders.
Sustained Momentum Through Strategy
Our 3D strategy guided our growth in attractive, durable markets. In 2025, demand across these strategic
areas remained strong, reflecting the resilience of our portfolio and the relevance of Flowserve   s solutions in
critical industries worldwide. As customers navigate complex operational and energy challenges, we are well
positioned to deliver reliable, differentiated solutions that meet today   s needs while preparing for the future.
This strength is evident in end markets where reliability and lifecycle performance matter most. Nuclear power
is one such example, where Flowserve   s technical depth, installed base, and aftermarket strength align closely
with customer demand, and the market remains an important area of growth for the company.
The Flowserve Business System in Action
The Flowserve Business System is increasingly embedded in how we operate and deliver results. Built around
five disciplines   People Excellence, Operational Excellence, Portfolio Excellence, Commercial Excellence,
and Innovation Excellence   the Business System provides a structured approach to drive consistency and
performance across the enterprise.
In 2025, we made measurable progress across these disciplines. Operational Excellence initiatives improved
productivity and delivery performance across our facilities, while Portfolio Excellence   anchored by our CORE
80/20 methodology   sharpened our focus on the products that drive the greatest value. At the same time,
we continued strengthening our commercial capabilities, investing in innovation, and developing our talent to
support long-term competitiveness.
Financial Performance Highlights
    Aftermarket momentum: Consecutive growth in aftermarket bookings each quarter in 2025, with fourth
quarter marking our seventh consecutive quarter above $600 million. Full-year aftermarket bookings
totaled $2.6 billion, up 9% year over year.
    Focused end-market growth: Nuclear bookings of $400 million, advancing one of our key growth areas.
    Execution discipline: Full mitigation of tariff impacts through targeted supply chain and pricing actions,
while maintaining a high level of service for customers.
    Margin expansion: Flowserve achieved long-term margin targets two years ahead of plan.
Driving Value and Elevating Our Impact
Our performance in 2025 reflects both strategic and operational discipline. We remain focused on
profitable growth, margin expansion, and strong cash flow   outcomes that support sustained valued
creation for our shareholders.
With strong momentum, we are also looking ahead to how we further strengthen Flowserve for the future.
Building on our proven strategy and the Flowserve Business System, we are refining how we articulate our
focus, priorities, and long-term ambition   ensuring clarity for our associates, customers, and our shareholders.
This evolution is grounded in what is already working and reflects our commitment to sustaining performance
while positioning the company for long-term value creation.
Looking Ahead
As we look forward, we remain confident in our direction and energized by the opportunities ahead. The
combination of our people, our strategy, and the Flowserve Business System gives us a strong foundation to
continue building momentum in 2026 and beyond.
On behalf of the Board of Directors and our associates worldwide, thank you for your continued trust and support.
21 22 23 24 25
BOOKINGS
in Millions
4,713
4,661
4,448
4,272
3,774
21 22 23 24 25
EARNINGS PER SHARE
in US Dollars
1.44 1.42
2.14
2.64
0.96
21 22 23 24 25
OPERATING INCOME
in Millions
462
271
334
400
197
21 22 23 24 25
OPERATING CASH FLOW
in Millions
250
326
425
506
(40)
21 22 23 24 25
NET DEBT TO NET CAPITAL RATIO
Percentage
31.1
28.8
26.0
25.8
26.6
21 22 23 24 25

   With strong momentum, we are also looking ahead to how we further
strengthen Flowserve for the future. Building on our proven strategy
and the Flowserve Business System, we are refining how we articulate
our focus, priorities, and long-term ambition   ensuring clarity for our
associates, customers, and our shareholders. This evolution is grounded
in what is already working and reflects our commitment to sustaining
performance while positioning the company for long-term value creation.   
R. Scott Rowe


shareholder letter icon 4/2/2026 Letter Continued (Full PDF)
 

FLS Stockholder/Shareholder Letter (FLOWSERVE CORP) | www.StockholderLetter.com
Copyright © 2023 - 2026, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.