- Establishes 2027 financial targets2 including 5%+ revenue
CAGR targeting $5.0 billion, with 14-16% adjusted operating margins
and $4+ per share of adjusted EPS
- Reaffirms 2023 full year guidance range and provides a
preliminary 2024 financial outlook2 comprised of mid-single digit
revenue growth, low double digit full-year adjusted operating
margins and expected year-over-year adjusted EPS growth of
20-25%
- Presentations to highlight company’s progress on 3D growth
strategy and innovation roadmap
Flowserve Corporation (NYSE: FLS), a leading provider of flow
control products and services for the global infrastructure
markets, will host its 2023 Analyst Day today in New York City
beginning at 8 a.m. ET.
Scott Rowe, president and chief executive officer of Flowserve,
and several members of the executive leadership team, will update
the financial community through a series of presentations
highlighting the company’s 3D growth strategy, innovation roadmap
and new technology initiatives aimed at driving accelerated growth
and shareholder value creation.
“Flowserve has demonstrated positive momentum over the last
several quarters and we are excited to update shareholders on our
plans to deliver profitable growth over the next several years,”
commented Mr. Rowe. “Our 3D growth strategy is delivering results,
and the fundamentals of our business are robust. This includes
strength across our large and growing traditional end-markets,
rapidly expanding new energy opportunities, year-to-date margin
expansion, and the benefits we are gaining from our new operating
model. These factors position Flowserve well for an expected
multi-year growth cycle, delivery of increased revenues and solid
earnings growth.”
Reaffirmed 2023 Guidance
Flowserve is reaffirming its revenue and adjusted EPS guidance
metrics for 2023, revised on August 1, 2023, as shown in the table
below:
Reaffirmed Target Range
Revenue Growth
Up 16.0% to 18.0%
Reported Earnings Per Share
$1.40 - $1.65
Adjusted Earnings Per Share1
$1.85 - $2.00
Net Interest Expense
~$60 million
Adjusted Tax Rate
~20%
Capital Expenditures
$75 - $85 million
The outlook excludes any contribution from the previously
announced pending acquisition of Velan Inc. Additionally,
Flowserve’s 2023 Adjusted EPS target range also excludes expected
adjusted items including identified realignment charges of
approximately $40 million, as well as the potential impact of
below-the-line foreign currency effects and certain other discrete
items which may arise during the course of the year, including the
potential for additional realignment expense.
Preliminary Full Year 2024
Outlook2
The company today is providing a preliminary 2024 outlook, with
official guidance expected to be initiated in February 2024,
including expectations for:
- Mid-single digit percentage revenue increase
year-over-year
- Low-double digit full-year adjusted operating margins, up ~100
basis points year-over-year, and
- Adjusted EPS growth of over 20-25% year-over-year
2027 Financial Targets2
Additionally, the company is introducing its 2027 financial
targets, which include expectations for:
- Revenue of over $5.0 billion
- Adjusted operating margins rising to between 14%-16%
- Adjusted EPS over $4.00
1 Adjusted 2023 EPS excludes identified realignment expenses,
the impact from other specific discrete items (including planned
Velan acquisition) and below-the-line foreign currency effects and
utilizes current FX rates and approximately 131.8 million fully
diluted shares. 2 Figures exclude any impact from potential
acquisitions or foreign exchange rates. Adjusted Operating Margin
and Adjusted EPS are Non-GAAP figures. Please see historical
reconciliations of GAAP to Adjusted figures and key assumptions
available in the appendix of the 2023 Analyst Day presentation.
Accessing Flowserve’s 2023 Analyst Day
webcast and materials
Flowserve will post its Analyst Day presentation to its website
before the presentation begins this morning. Additionally,
shareholders and other interested parties can register for the live
webcast, which can be accessed at www.flowserve.com under the
“Investor Relations” section or through this link.
About Flowserve Flowserve Corp. is one of the world’s
leading providers of fluid motion and control products and
services. Operating in more than 50 countries, the company produces
engineered and industrial pumps, seals and valves as well as a
range of related flow management services. More information about
Flowserve can be obtained by visiting the company’s Web site at
www.flowserve.com.
Safe Harbor Statement: This news release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, which are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995, as
amended. Words or phrases such as, "may," "should," "expects,"
"could," "intends," "plans," "anticipates," "estimates,"
"believes," "forecasts," "predicts" or other similar expressions
are intended to identify forward-looking statements, which include,
without limitation, earnings forecasts, statements relating to our
business strategy and statements of expectations, beliefs, future
plans and strategies and anticipated developments concerning our
industry, business, operations and financial performance and
condition
The forward-looking statements included in this news release are
based on our current expectations, projections, estimates and
assumptions. These statements are only predictions, not guarantees.
Such forward-looking statements are subject to numerous risks and
uncertainties that are difficult to predict. These risks and
uncertainties may cause actual results to differ materially from
what is forecast in such forward-looking statements, and include,
without limitation, the following: the impact of the global
outbreak of COVID-19 on our business and operations; global supply
chain disruptions and the current inflationary environment could
adversely affect the efficiency of our manufacturing and increase
the cost of providing our products to customers; a portion of our
bookings may not lead to completed sales, and our ability to
convert bookings into revenues at acceptable profit margins;
changes in global economic conditions and the potential for
unexpected cancellations or delays of customer orders in our
reported backlog; our dependence on our customers’ ability to make
required capital investment and maintenance expenditures; if we are
not able to successfully execute and realize the expected financial
benefits from any restructuring and realignment initiatives, our
business could be adversely affected; the substantial dependence of
our sales on the success of the oil and gas, chemical, power
generation and water management industries; the adverse impact of
volatile raw materials prices on our products and operating
margins; economic, political and other risks associated with our
international operations, including military actions, trade
embargoes, epidemics or pandemics or changes to tariffs or trade
agreements that could affect customer markets, particularly North
African, Latin American, Asian and Middle Eastern markets and
global oil and gas producers, and non-compliance with U.S.
export/re-export control, foreign corrupt practice laws, economic
sanctions and import laws and regulations; increased aging and
slower collection of receivables, particularly in Latin America and
other emerging markets; our exposure to fluctuations in foreign
currency exchange rates, including in hyperinflationary countries
such as Venezuela and Argentina; potential adverse consequences
resulting from litigation to which we are a party, such as
litigation involving asbestos-containing material claims;
expectations regarding acquisitions and the integration of acquired
businesses; the potential adverse impact of an impairment in the
carrying value of goodwill or other intangible assets; our
dependence upon third-party suppliers whose failure to perform
timely could adversely affect our business operations; the highly
competitive nature of the markets in which we operate;
environmental compliance costs and liabilities; potential work
stoppages and other labor matters; access to public and private
sources of debt financing; our inability to protect our
intellectual property in the U.S., as well as in foreign countries;
obligations under our defined benefit pension plans; our internal
control over financial reporting may not prevent or detect
misstatements because of its inherent limitations, including the
possibility of human error, the circumvention or overriding of
controls, or fraud; the recording of increased deferred tax asset
valuation allowances in the future or the impact of tax law changes
on such deferred tax assets could affect our operating results; our
information technology infrastructure could be subject to service
interruptions, data corruption, cyber-based attacks or network
security breaches, which could disrupt our business operations and
result in the loss of critical and confidential information;
ineffective internal controls could impact the accuracy and timely
reporting of our business and financial results; and other factors
described from time to time in our filings with the Securities and
Exchange Commission.
All forward-looking statements included in this news release are
based on information available to us on the date hereof, and we
assume no obligation to update any forward-looking statement.
###
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version on businesswire.com: https://www.businesswire.com/news/home/20230928035908/en/
Investor Contacts: Jay Roueche, Vice President, Investor
Relations & Treasurer, (972) 443-6560 Mike Mullin, Director,
Investor Relations, (214) 697-8568 Media Contacts: Wes Warnock,
Vice President, Corporate Communications & Public Affairs,
(972) 443-6900
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