UBS reiterates Buy rating on Flowserve stock amid leadership change

Investing.com - UBS has reiterated its Buy rating and $65.00 price target on Flowserve Corp. (NYSE:FLS), currently trading at $57.03, following the announcement of a leadership change in the company’s Flow Control Division. The company, with a market cap of $7.45 billion and trailing twelve-month revenue of $4.65 billion, has shown strong financial performance.

Flowserve announced that Alice DeBiasio will become the new President of the Flow Control Division (FCD), joining the company in mid-October. Kirk Wilson, the current FCD President, will remain with Flowserve through the end of 2025 to ensure a smooth transition.

DeBiasio joins Flowserve from CARR where she served as a general manager, leading multiple business segments including Truck Trailer Americas, Sensitech, and Digital Solutions.

UBS suggests this leadership change reflects FCD’s slower progress toward long-term margin targets. The firm noted that in 2023, Flowserve management established margin targets of 16%-18% by 2027 for both its FPD and FCD segments.

While the FPD segment has effectively reached this target and is on track for approximately 18.5% in 2025, the FCD segment has lagged behind, remaining in the 13-14% range, according to UBS.

In other recent news, Flowserve Corporation reported its second-quarter 2025 earnings, exceeding analyst expectations with an adjusted earnings per share (EPS) of $0.91, compared to the projected $0.78. However, the company’s revenue of $1.19 billion did not meet the forecasted $1.23 billion, resulting in a shortfall. In addition to its earnings report, Flowserve announced a quarterly cash dividend of $0.21 per share, payable on October 10, 2025, to shareholders of record as of September 26, 2025.

Furthermore, Flowserve has appointed Alice DeBiasio as the new President of its Flow Control Division, effective October 13, 2025. DeBiasio brings experience from her previous role as Vice President, General Manager at Carrier Corporation. These developments reflect Flowserve’s ongoing strategic initiatives and financial activities.

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