Flowserve Provides FY27 Outlook, Treads On Achieving 3D Growth Strategy

Flowserve Corp (NYSE: FLS) provided preliminary FY24 guidance and FY27 outlook at its investor day.

For FY23, Flowserve reiterated the guidance for revenue growth of 16.0% to 18.0%, adjusted EPS of $1.85 - $2.00 (vs. consensus of $1.98), and capital expenditure of $75 million - $85 million.

For FY24, the company projects a preliminary outlook for revenue growth in mid-single-digit percentages, adjusted operating margins in low-double digits (up 100 basis points Y/Y), and adjusted EPS growth of over 20%-25% Y/Y.

For FY27, Flowserve guided revenue CAGR of +5% to over $5.0 billion, adjusted operating margins of 14%-16%, and adjusted EPS of over $4.00.

As of June 30, cash and cash equivalents stood at $422.8 million. 

"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. 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." said Scott Rowe, president and CEO.

Also Read: Flowserve Acquires Velan For $245M; Provides Solid Q4 Preliminary Results

Price Action: FLS shares are trading lower by 0.23% at $39.56 on the last check Thursday.