Oct 29, 2026 earnings call — Record bookings and Middle East headwinds
Bookings grew 14% year over year to $1.4 billion.
Revenue $1.2B (est $1.2B) · EPS $1.07 (est $0.98)
Key quotes
"We ended the quarter with record backlog of $3.5 billion up 4% sequentially and 20% versus the prior year period."
"The third quarter sales headwind in the Middle East of roughly $40 million was modestly larger than our expectations."
"The Flowserve business system continues to strengthen execution, accountability, and earnings power."
Analyst Q&A 7
sales funnel and backlog visibility
Q (Michael Halloran · Baird): He asked about current sales funnel strength, quoting activity, and conversion rates, including Middle East timing. He also asked what strong backlog means for 2027 and how visibility compares to prior years.
A: Management said bookings were strong with a $1.38 billion quarter and record aftermarket bookings. They said commercial excellence and account management are improving capture and conversion, and that end-market funnels—especially power and nuclear—are healthy despite Middle East timing risk. They noted a record backlog of $3.5 billion and a book-to-bill of 1.12, and management said historical backlog conversion has moved from about 90% to around 75-76% due to more nuclear work.
"Obviously, a $1.38 billion number is a big number for us with record aftermarket bookings." — Robert Scott Rowe (CEO)
aftermarket drivers and FCD margin outlook
Q (Andrew Kaplowitz · Citi): He asked what is driving record aftermarket bookings and how capture rates can improve. He also asked how FCD margins should evolve into 2027 and whether footprint moves will help.
A: They said aftermarket bookings were a record at over $700 million, driven by better account management, speed to quote/deliver, repair work, spare parts, and replacement activity. For FCD margin, they said the Middle East was about a 100-basis-points drag in the quarter, footprint consolidation and Trillium synergies should help, and structurally they expect FCD to move toward FPD margins over time.
"Record bookings in the quarter at over $700 million." — Robert Scott Rowe (CEO)
energy orders and FPD margins durability
Q (Adam Farley · Stifel): He asked about the impact of the large energy project in the quarter and the health of energy orders excluding that project. He also asked whether FPD's strong margins are sustainable and what incremental margins look like.
A: Management said the project environment was generally healthy and they had 1 large energy project greater than $50 million, but excluding that order the quarter was still healthy. They said FPD margins are strong and durable, helped by 80/20 benefits and project execution, with mix moving about 30- to 50-basis-points quarter to quarter, and they see room to expand margins while focusing on growth.
"We had 1 large project in energy that was greater than $50 million" — Robert Scott Rowe (CEO)
Middle East impact and general industries weakness
Q (Joseph Ritchie · Goldman Sachs): He asked how Middle East hostilities translated into this year's headwind and whether that could reverse to a tailwind next year, and if project cancellations are a risk. He also asked why general industries bookings fell 8% in the quarter.
A: Management said the situation is dynamic; they have a strong presence and are prioritizing safety and customer support. They said a ceasefire or hostilities settling would allow repair and replacement work—initially estimated at $50 million in Q2 but now higher—and resilience investments and normal maintenance should pick up, likely in 2027. On general industries, they said the 8% decline reflected a difficult year-ago comp and year-to-date they are down 1%, with water, mining, and pharmaceuticals active.
"What I will say is, hypothetically, you know, we do not necessarily need a peace in the Middle East for our business to start growing." — Robert Scott Rowe (CEO)
data center opportunity and refining maintenance
Q (Brett Linzey · Mizuho): He asked whether Flowserve can size its potential wallet in data centers and whether demand is driven by power plants. He also asked how much maintenance revenue was pushed from Q3 and expectations for Q4.
A: Management said data centers are an emerging opportunity tied to rising power demand and a shift toward liquid cooling; Flowserve has relevant products but is too early to size the opportunity. On refining, they would not give an exact pushed-out revenue number, saying it's hard to calculate; emergency repair and replacement demand rose while normal MRO parts and service slowed, and they expect an uplift in 2027.
"I would say we are too early to size our opportunity, but we are having different conversations than we ever had in this space." — Robert Scott Rowe (CEO)
plant consolidation and inflation actions
Q (Joseph Giordano · TD Cowen): He asked for a progress update on roofline (site) consolidation and how much has actually been done. He also asked what they are seeing on inflation and whether they can offset costs or reprice.
A: Management said historical consolidation was limited, but over the last 3 years they restarted efforts tied to the Flowserve business system; quietly they have closed 1-2 larger sites per year and now see a bigger prize as operational and portfolio excellence free capacity. On inflation, they said impact has been modest so far, procurement and supply-chain visibility help offset costs, contract terms and timely ordering help, and they can and have responded with price where needed.
"And so with those 2 levers now fully in motion and moving rapidly, we are now seeing even a bigger prize on the roofline side." — Robert Scott Rowe (CEO)
nuclear order geographies and types
Q (UBS): He asked for detail on recent nuclear awards: what geographies and what types of facilities are winning orders.
A: Management said nuclear was a bright spot with over $100 million of bookings every quarter and a strong third quarter. They said most third-quarter awards were in The United States (North America), and were predominantly life extension, uprates, and outages at existing reactors; they see near-term opportunities in Asia and Eastern Europe and a meaningful nuclear role worldwide.
"Most of the awards in the third quarter were in The United States, so in North America." — Robert Scott Rowe (CEO)