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Investing.com - Flowserve Corporation (NYSE:FLS) on Tuesday reported second quarter adjusted earnings that surpassed analyst expectations, prompting the company to raise its full-year outlook.
The flow control products provider saw its shares rise 2.06% following the announcement.
The company reported second quarter adjusted earnings per share of $0.91, exceeding the analyst consensus of $0.78 by $0.13.
Revenue came in at $1.19 billion, slightly below the consensus estimate of $1.23 billion, but still representing a 2.7% increase compared to the same quarter last year.
Flowserve’s performance was driven by strong margin expansion, with adjusted gross margin improving to 34.9%, up 260 basis points from the prior year period.
Adjusted operating margin also expanded to 14.6%, an increase of 210 basis points compared to last year’s second quarter.
"Our strong second quarter results reflect the successful ongoing execution of our 3D strategy and the Flowserve Business System," said Scott Rowe, Flowserve’s President and Chief Executive Officer.
"We delivered another quarter of sales and earnings growth while also expanding margins, reflecting the resilience of our business model and progress on our operating initiatives."
The company reported solid bookings of $1.1 billion, including $621 million in aftermarket bookings. Cash flow from operations was particularly strong at $154 million, driven by enhanced earnings generation.
Based on its performance through the first half of the year, Flowserve raised its full-year 2025 adjusted EPS guidance from $3.10-$3.30 to $3.25-$3.40, which exceeds the analyst consensus of $3.23.
This new guidance represents an increase of more than 25% at the midpoint compared to last year.
In a separate announcement, Flowserve terminated its previously announced merger agreement with Chart Industries , Inc. (NYSE:GTLS) after Chart received what it deemed a "superior proposal" from Baker Hughes (NASDAQ:BKR).
As a result, Flowserve will receive a $266 million termination payment.
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