stockrowWhat it does
Flowserve Corporation makes and services equipment that moves, controls and contains liquids and gases in industrial processes. Founded in 1997, the company is headquartered in Irving. Robert Scott Rowe is its president and chief executive officer.
Its products include pumps, which move materials through a system; valves, which control or direct their flow; and mechanical seals, which help prevent leakage from rotating equipment. Flowserve also sells automation equipment and monitoring technology that help customers operate and assess the condition of their equipment.
Customers use these products in energy, chemicals, power generation and general industries, including water management, pharmaceuticals and mining. Flowserve sells to equipment users as well as engineering, procurement and construction firms, other equipment manufacturers and distributors. Its equipment can be part of a new plant or a replacement or upgrade at an existing facility.
The business extends beyond the initial equipment sale. Flowserve supplies replacement parts and provides installation, repair, diagnostics and maintenance through its manufacturing facilities and network of Quick Response Centers. Its RedRaven system monitors equipment and provides operating information to customers. The company had approximately 16,000 employees globally as of December 31, 2025.
How it makes money
Flowserve earns revenue from original equipment and from aftermarket parts and services. Its Pumps Division designs, makes and services custom-engineered and pre-configured pumps, pump systems, mechanical seals and auxiliary equipment. The Flow Control Division makes isolation and control valves, valve automation products and related equipment, and provides services for them.
Original equipment orders range from standardized products to engineered equipment for large projects. Project orders can come directly from customers or through contractors working on new construction or facility improvements. Flowserve defines short-cycle orders as those booked and generally shipped within six months of receipt; they typically include standardized products, parts or services.
After installation, equipment periodically needs maintenance, repair and replacement parts. Flowserve uses its manufacturing facilities and Quick Response Centers to provide those products and services, including diagnostics, upgrades and asset management. Aftermarket work is generally a higher-margin business than original equipment. It is not guaranteed recurring revenue: maintenance activity and the timing of customer orders can change from quarter to quarter.
Flowserve primarily sells through its own sales force, supplemented by distributors and representatives. Its pricing and order selection reflect factors such as the application and contractual terms. The company also adjusts prices in response to cost pressures; during 2025 it used pricing adjustments, supply-chain repositioning and cost management to help mitigate tariffs and inflation.
Total bookings were $4.7 billion in 2025 and $1.4 billion in the third quarter of 2026. In that quarter, aftermarket bookings were $728 million and original equipment bookings were $656 million.
Customers and how it sells
Flowserve sells products and services to over 10,000 customers. These include engineering, procurement and construction firms, original equipment manufacturers, distributors and end users. Sales to engineering firms and equipment manufacturers are typically associated with large project orders and critical applications, while distributors and direct customers also purchase parts and services.
Its end markets span energy, chemicals, power generation and general industries. General industries include mining, food and beverage, pharmaceuticals, water management and other applications, as well as sales to distributors whose end customers may operate in Flowserve’s other primary industries. General industries represented approximately 34% of bookings in 2025, energy approximately 33%, chemicals approximately 19% and power generation approximately 14%.
Flowserve reaches customers primarily through employees assigned to regions, industries or products, with distributors and sales representatives supplementing direct sales. Its Pumps Division has manufacturing facilities in North America, Europe, Asia Pacific and Latin America. The company also operates through foreign joint ventures in Chile, India, Saudi Arabia, South Korea and the United Arab Emirates.
The service network supports customers locally. The Pumps Division’s Quick Response Centers provide installation, repair, diagnostics and other services, including quick-response work in its major markets.
Suppliers and costs
Flowserve manufactures equipment across its pump and flow-control operations and purchases a substantial volume of raw materials from outside sources. These include ferrous and non-ferrous metals, machined castings, forgings, fasteners and motors, as well as silicon, carbon faces, gaskets and fluoropolymer components. Metal castings for pumps, valves and seals come from qualified foundries, although Flowserve remains vertically integrated in castings for certain product families.
Materials used in products for nuclear power generation must come from suppliers qualified under industry standards and government regulations. Flowserve considers its supply channels for those materials adequate and does not anticipate difficulty obtaining them.
Manufacturing, purchased materials, personnel and the service network are part of the company’s operating structure. Some operating expenses are fixed, so changes in sales volumes can affect quarterly operating income. In 2025, U.S. tariffs and other inflationary pressures affected operating costs. Flowserve responded with pricing adjustments, supply-chain changes and cost management. It also continues to simplify its product portfolio and consolidate facilities, including moving some work to lower-cost sites within the same region or hemisphere.
- Revenue$4.7B
- Cost of revenue−$3.1B
- Selling, general and administrative−$1.1B
- Other operating costs−$119.4M
- Operating income$399.9M
Competitive position
Flowserve competes in fragmented pump, mechanical-seal and valve markets. Its named pump and seal competitors include Sulzer Pumps, Ebara, Eagle Burgmann, John Crane, Weir Group, ITT Industries and KSB. Named valve competitors include Emerson Electric, Cameron International, Baker Hughes, Rotork, Valmet, IMI and Crane. Flowserve says competition in pumps and seals depends on delivery times, application knowledge, price, product breadth, contract terms, installation history and quality.
Flowserve’s market research indicates that the top 10 global valve manufacturers collectively comprise less than 15% of the total valve market. The company identifies its product range, installed equipment, customer relationships, technology and service capabilities as sources of competitive advantage.
Our reading: The installed base and local service network provide a meaningful advantage in customized equipment, because customers need ongoing parts and maintenance and value quick response. That advantage is less secure in standard products, where common standards make replacement easier.
Our reading: Application expertise and the ability to supply pumps, seals and valves together support Flowserve’s position in complex projects, but the fragmented markets and importance of price and delivery limit the strength of that advantage. Patents and trademarks support the business, although Flowserve does not expect the expiration of any individual patent to have a material adverse effect.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Sulzer Pumps | Pumps and mechanical seals | Medium |
| Ebara Corp. | Pumps and mechanical seals | Medium |
| Eagle Burgmann | Mechanical seals | Medium |
| John Crane Inc. | Pumps and mechanical seals | Medium |
| Weir Group Plc | Pumps and mechanical seals | Medium |
| ITT Industries | Pumps and mechanical seals | Medium |
| KSB SE & Co. KGaA | Pumps and mechanical seals | Medium |
| Emerson Electric Co. | Valves | Medium |
Growth opportunities
Flowserve’s growth strategy focuses on diversification, decarbonization and digitization. It is pursuing business in nuclear power, power generation, water, specialty chemicals and vacuum and seal technologies, alongside its traditional markets. Its energy-transition products and services address applications including liquefied natural gas, hydrogen, carbon capture and renewables.
The company is also investing in monitoring and diagnostics. RedRaven connects equipment monitoring with its service network, while the Energy Advantage Program uses engineering and analysis to identify potential efficiency improvements in flow-control systems. Flowserve says these newer products and services have not required a material investment of its assets and were not otherwise material to the business.
In the third quarter of 2026, power bookings benefited from nuclear and traditional power projects. Flowserve views data-center liquid cooling as an emerging opportunity, but says it is too early to size its opportunity. It is also seeking more aftermarket work from equipment already installed at customer sites.
Flowserve ended the third quarter of 2026 with backlog of $3.5 billion. The company expects full-year 2026 total sales to grow 2% to 3%, while organic sales decline 1.5% to 2.5%. It says the outlook reflects lower short-cycle activity in the Middle East and some impact on global aftermarket activity as process industries operate at high utilization. Bookings and backlog do not guarantee comparable future revenue because contracts can be modified or canceled.
- $3.5BFY2021
- $3.6BFY2022
- $4.3BFY2023
- $4.6BFY2024
- $4.7BFY2025
Structural risks
- Customer spending: Demand depends on customers’ capital investment and maintenance spending, which can be affected by economic conditions, energy demand and access to capital. Customers operating at high utilization have deferred some maintenance and larger turnarounds, affecting short-cycle activity.
- Middle East disruption: Flowserve said conflict and restricted customer site access affected deliveries and product and service work. Some projects in its pipeline shifted into 2027, and the company expects continued near-term headwinds.
- International operations and trade: Political and economic instability, sanctions, tariffs, export controls and currency movements can affect operations. U.S. tariffs and other inflationary pressures affected costs in 2025.
- Order conversion: Project bookings can be modified or canceled, and the time between booking and revenue recognition varies. Nuclear approval and booking timing can be difficult to anticipate.
- Integration and operations: Acquisitions can require Flowserve to integrate systems, processes and geographically dispersed operations. Integration can divert management attention and introduce information-security vulnerabilities.
- Financial obligations: Changes in pension investment performance or assumptions can affect pension obligations and expense. Flowserve must also comply with leverage and interest-coverage covenants under its lending arrangements.
Bottom line
Our reading
Flowserve combines project-driven equipment sales with parts and services for equipment already installed at customer sites. Its local service network and customized products support that aftermarket business, while standard products face easier replacement. Growth depends on both new investment and maintenance spending; the Middle East disruption shows how site access and order timing can delay sales even as backlog grows.