Flowserve Corp. Reports 2021 Q3 Results

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Flowserve Corp. announced its financial results for the third quarter ended September 30, 2021.

Third quarter 2021 highlights (all comparisons to the 2020 third quarter, unless otherwise noted):

• Reported Earnings Per Share (EPS) of $0.38 and Adjusted EPS of $0.29.

  • Reported EPS includes a net after-tax adjusted gain of $12.1 million, comprised of certain discrete tax items partially offset by realignment and financing costs and below-the-line foreign exchange impacts.

• Total bookings were $911.6 million, up 13.1%, or 11.8% on a constant currency basis.

  • Original equipment bookings were $417.0 million, or 46% of total bookings, up 9.4%, or 7.9% on a constant currency basis.

  • Aftermarket bookings were $494.6 million, or 54% of total bookings, up 16.3%, or 15.3% on a constant currency basis.

• Sales were $866.1 million, down 6.3%, or 7.3% on a constant currency basis.

  • Original equipment sales were $425.2 million, down 11.3%, or 12.5% on a constant currency basis.

  • Aftermarket sales were $440.9 million, down 0.9%, or 1.8% on a constant currency basis.

• Reported gross and operating margins were 29.3% and 6.6%, respectively.

  • Adjusted gross and operating margins were 29.6% and 7.0%, respectively.

• Backlog at September 30, 2021 was $1.97 billion, up 6.2% versus December 31, 2020

“We are encouraged that the visibility into our project funnel continues to improve, including numerous energy transition related opportunities. In the third quarter, we captured a number of energy transition awards, including bio-diesel, solar power and desalination projects,” said Scott Rowe, Flowserve’s president and chief executive officer. “Additionally, our aftermarket and MRO activity are expected to remain at or near pre-pandemic levels, while our capabilities to support our customers’ decarbonization and other energy transition initiatives will further support the increased project activity we see ahead. We are confident in our near-term outlook for year-over-year bookings growth which should position Flowserve well to deliver revenue and earnings growth in 2022.”

Rowe concluded, “Flowserve’s third quarter results reflected substantial global supply chain, logistics, and labor availability issues which deferred approximately $60 million of revenue and $20 million of gross profit out of the quarter. The global nature of our business and our operations network amplified the impact of these disruptions. We strongly believe in our ability to work through these challenges to restore a more normal backlog conversion rate in the coming quarters.”

Updated 2021 guidance

Flowserve also revised and updated its guidance and those details are available on the website.