AI-extracted from the 10-Q filed 2026-07-29 — Q2 2026 (six months ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
H1 2026 sales of $2.24B declined 4.1% YoY amid Middle East disruptions, but operating income margin improved to 12.1% and backlog grew 16.3% to $3.3B.
Biggest Revenue Drivers
Flowserve Pumps Division (FPD)$1,556.1M-2.7% YoY
Decreased original equipment sales into Middle East, Asia Pacific, and Europe, partially offset by aftermarket growth and new acquisitions.
Flow Control Division (FCD)$681.3M-6.9% YoY
Decreased original equipment sales driven by reductions in Asia Pacific and Europe, partially offset by power generation bookings growth.
Biggest Revenue Drivers
Total revenue: $2,237.4M-4.1% YoY
Flowserve Pumps Division (FPD)$1,556.1M-2.7% YoY
Decreased original equipment sales into Middle East, Asia Pacific, and Europe, partially offset by aftermarket growth and new acquisitions.
Flow Control Division (FCD)$681.3M-6.9% YoY
Decreased original equipment sales driven by reductions in Asia Pacific and Europe, partially offset by power generation bookings growth.
Largest Expense Items
Cost of sales$1,472.9M-5.4% YoY
Reduced by IEEPA tariff refunds of $30.4M and product rationalization under Portfolio Excellence, offset by realignment charges of $49.5M and Middle East disruptions.
Selling, general and administrative expense$529.7M+4.0% YoY
Increased by realignment charges of $20.2M, acquisition/integration costs of $13.4M for Greenray, TVD and FAMCO acquisitions, and higher amortization on intangible assets.
Interest expense$46.1M+17.0% YoY
Higher outstanding debt from $500M senior notes issuance in May 2026 and increased borrowings.
Margins: Gross profit margin improved 90 basis points to 34.2% YoY, driven by Flowserve Business System execution, complexity reduction, and IEEPA tariff refunds of $30.4M, despite $34.4M in realignment charges and Middle East disruptions. Operating margin of 12.1% improved 20 basis points YoY despite realignment costs.
Watch Items from the Filing
Middle East conflict causing significant disruptions: decreased revenue into Middle East of $55.4M (H1) and $18.2M (Q2) in FPD due to reduced demand and supply chain impacts; prolonged conflicts could worsen margins and lead times.
Realignment Programs expected to cost $170M total (2025 programs), with $69.7M incurred YTD through June 2026; anticipated savings of $140M annualized, execution risk remains.
Acquisitions totaling $517.7M in H1 2026: TVD ($491.2M), FAMCO ($34.5M), Greenray ($72.4M in Dec 2025); TVD goodwill of $322.4M creates integration execution risk.
IEEPA tariff refund of $35.4M recognized in Q1 2026; $20.9M cash received YTD through June; remaining $14.5M still pending with timing uncertain; Phase 3 claims timing not yet established.
Backlog of $3.3B at June 30, 2026 increased 16.3% from December 31, 2025, providing revenue visibility; 41.1% is aftermarket orders, supporting margin stability.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About FLOWSERVE CORP (FLS): stock profile, AI score and financials
FLOWSERVE CORP (FLS) stock profile, AI quality score, and SEC EDGAR financial data, a Industrials sector company. 13F Pro's AI-powered ranking engine scores FLS at 70.7/100 on a composite quality score built from its SEC filings, placing it at rank #198 of 3,064 stocks — the top 10% of the AI-ranked universe. FLS scores in the top quartile across revenue growth (96.8), institutional flow (92.9), revenue scale (76.3). Based on the latest XBRL financial filings (Q2 2026), FLOWSERVE CORP reports net income of $99.0M, free cash flow of $112.3M. Top institutional holders of FLS by reported 13-F value include BlackRock, VANGUARD PORTFOLIO MANAGEMENT, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. FLS trades on the NYSE exchange and files with the SEC under CIK 30625. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate FLS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for FLOWSERVE CORP directly from SEC EDGAR.