Flowserve (FLS) Stock Forecast & Price Target

Flowserve Corp has demonstrated strong financial performance with adjusted operating margins expanding by 370 basis points year-over-year to 14.8%, surpassing estimates and consensus expectations. The growth in Flowserve's project funnel across all end markets, particularly in the nuclear and power sectors, indicates a robust demand environment, supported by aftermarket bookings that increased by 6% year-over-year to $653 million. Additionally, the company's ability to generate robust free cash flow, amounting to $204 million with a 174% conversion rate, reflects efficient execution and positions Flowserve favorably for sustained growth moving forward.

Flowserve Corporation reported a decline in bookings by 13.6% year-over-year, despite maintaining a streak of over $1 billion in bookings for the 14th consecutive quarter, which resulted in a book-to-bill ratio of 0.91x, indicating fewer orders relative to shipments. The company's total core growth was -1.0%, falling significantly short of estimates, with declines in both its FPD and FCD segments, which were notably underperforming compared to projections and consensus estimates. Additionally, Flowserve has reduced its outlook for total sales and organic sales growth for the year, further reinforcing a negative financial outlook.