Flowserve Raises 2026 Adjusted EPS Guidance Floor to $4.10
Key Facts
Flowserve raised the floor of its 2026 adjusted EPS guidance to $4.10 from $4.05, keeping the upper end at $4.20, as it reported third-quarter results. The company posted adjusted EPS of $1.07, above the analyst consensus of $0.98, according to Investing.com. CEO Scott Rowe said teams delivered growth in bookings, expansion in adjusted operating margin and higher EPS despite ongoing disruption in the Middle East. The results showed improvements in profitability and orders as organic sales fell year over year. The company also cut its full-year organic sales outlook, citing the impact of tougher conditions in the Middle East on customer activity and revenue conversion.
Reported sales were $1.2378 billion in the third quarter, up 5.4% from $1.1744 billion in the same period of 2025, while organic sales declined 1.2%. Sales trends diverged from adjusted EPS, which rose 18.9% to $1.07 from $0.90 a year earlier. Adjusted operating margin also widened to 16.5% from 14.8%, an increase of 170 basis points. That puts profitability and margin results on a stronger footing than a year earlier, despite weaker organic sales. In another comparison, adjusted EPS topped the analyst consensus of $0.98, according to Investing.com.
Flowserve's total bookings reached $1.3835 billion, up 14.1% from $1.213 billion in the third quarter of 2025. Aftermarket bookings rose 11.4% to $727.7 million, compared with $653.1 million a year earlier. Booking growth was reflected in the backlog, which reached $3.4718 billion on September 30, 2026, up 19.9% from $2.8961 billion on the same date a year earlier. These figures point to an expanding volume of booked business, while quarterly organic sales remain in decline. Rowe said the company delivered booking growth and margin expansion during the quarter while continuing to operate amid Middle East disruption.
The company now expects 2026 organic sales to decline between 2.5% and 1.5%, while total sales are expected to grow between 2% and 3%. Flowserve tied the updated outlook to its assumption that conditions in the Middle East will remain difficult, with armed conflict and geopolitical instability affecting the operating environment. It said delayed customer activity and revenue conversion, together with lower selling and shipping activity in the region, are weighing on expected performance. The company also cited an impact on aftermarket services and products, with these factors expected to affect fourth-quarter sales. The result is a high backlog alongside delays in converting some activity into near-term sales.
Flowserve initially forecast adjusted EPS of $4.00 to $4.20 for the year on February 5, 2026, then raised the floor to $4.05 before the current update, while keeping the upper end at $4.20. Current guidance is $4.10 to $4.20, reflecting a further increase in the floor from the previous range. The company's 2026 plan includes expected capital spending of about $90 million and net interest expense of about $85 million. Third-quarter results provide context for the revision: higher EPS and margins, and rising bookings, against declining organic sales and an expected full-year drop. The company cited continued difficult conditions in the Middle East among its assumptions for the coming period.
Flowserve shares rose 3.6% in after-hours trading on Wednesday, October 28, 2026, according to Investing.com. The stock had closed at $71.81 that day, according to EL7 data. Before the results were released, the company announced that a third-quarter earnings call would be held on October 29, 2026, at 8:30 a.m. Eastern time. The call is scheduled to give management an opportunity to discuss the results and updated outlook in detail. It follows the announcement of a higher adjusted EPS guidance floor and a lower range for full-year organic sales growth.