FLS FLOWSERVE CORP

Overview and Growth

FLOWSERVE CORP generated $4.73B of revenue in fiscal 2025, with net income of $346.25M and an operating cash inflow of $505.88M. At $4.73B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 3.8% from $4.56B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $2.64, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 23.4% from $2.14 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 0.83x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $1.58B as gross profit before recognizing operating expenses and other items. Gross margin was 33.4%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $399.92M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 8.5% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $346.25M, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 7.3% margin after operating costs and the remaining recognized items. The company recognized $155.60M of income tax for the period, completing the transition from pretax income to net income. Return on period-end equity was 15.4%, relating annual net income to the equity capital on the balance sheet. Return on period-end assets was 6.1%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

Total assets were $5.71B, supported by $3.45B of liabilities and $2.25B of shareholder equity. At period end, current assets of $3.04B compared with current liabilities of $1.50B, defining the company’s short-term resource position. At 2.03x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $760.18M, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 50.6%, excluding receivables and other current assets. Total debt was $1.58B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.7x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 27.6%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 60.5%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 13.3%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 3.8% from $5.50B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

The company reported $505.88M of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 1.46x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $70.93M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 14.0% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $434.96M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 9.2% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 7.6% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.