Flowserve Raises 2026 EPS Floor, Cuts Organic Sales Outlook

The Tip Desk · November 2, 2026 · 2 min read

The company lifted the low end of full-year adjusted EPS to $4.10–$4.20 after third-quarter adjusted earnings of $1.07 a share.

Flowserve Corporation (FLS), a provider of flow control products and services for global infrastructure markets, raised the low end of its full-year 2026 adjusted earnings guidance to $4.10 to $4.20 a share after a third quarter in which adjusted earnings reached $1.07 a share.

The company also revised full-year 2026 organic sales guidance to down 2.5% to down 1.5%, from approximately down 1% after the second quarter, citing increasingly challenging conditions in the Middle East that it said are delaying customer activity and revenue conversion and are expected to impact fourth-quarter sales. Total 2026 sales growth guidance was set at plus 2% to plus 3%, with the acquisitions-and-divestitures contribution raised to about 350 basis points from about 300.

Bookings were $1.38 billion, up 14% on a reported basis and 8% organically versus the year-ago quarter, after $1.35 billion in the second quarter. Aftermarket bookings set a record at $728 million. Original equipment bookings were $655.8 million.

Reported sales were $1.24 billion, up 5.4% from $1.17 billion a year earlier. Organic sales declined 1.2%, a narrower drop than the 4.9% organic decline in the first quarter. Operating margin was 12.5%, up 580 basis points from 6.7% a year earlier. Adjusted operating margin was 16.5%, up 170 basis points from 14.8%.

Reported earnings were $0.81 a share, down 51.5% from $1.67 a year earlier, when the year-ago quarter included a $266 million Chart Industries merger termination payment. Adjusted EPS of $1.07 was up 18.9% from $0.90.

Backlog reached $3.47 billion, up 19.9% from $2.90 billion a year earlier, which the company described as the largest in its history. Cash from operations was $144.1 million.

In the Flowserve Pumps Division, sales were $830.4 million and segment operating income was $168.0 million, for a 20.2% operating margin. In the Flow Control Division, sales were $411.6 million and segment operating income was $34.2 million, an 8.3% operating margin, including a $16.2 million gain on sale of the PMV Automation business.

President and Chief Executive Officer Scott Rowe said the company’s year-to-date earnings performance and continued margin expansion support raising the low end of the adjusted EPS range. He said significant growth in backlog, alongside demand across end markets, reinforces confidence in delivering mid-single digit organic sales CAGR through 2030.

The company said the updated guidance assumes tariff rates in place as of October 1, 2026, and assumes increasingly challenging conditions in the Middle East, which have been impacted by armed conflict and geopolitical instability.