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October 29, 2025 Q3 2025 EARNINGS CONFERENCE CALL
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2Q3 2025 Earnings Conference Call FORWARD LOOKING STATEMENT AND NON-GAAP MEASURES Safe Harbor Statement: This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition. The forward-looking statements included in this presentation are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrate new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission. All forward-looking statements included in this presentation are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement. The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. We have provided tables in the appendix that reconcile these non-GAAP measures to their corresponding GAAP-based measures.
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3Q3 2025 Earnings Conference Call Q3 2025 HIGHLIGHTS * See appendix for reconciliation to corresponding GAAP-based measure ** Comparisons are to Q3 2024 unless otherwise noted $1.2B TOTAL BOOKINGS +1% $1.2B SALES +4% 34.8% ADJUSTED GROSS MARGINS* +240 bps $0.90 ADJUSTED EPS* +45% CASH FROM OPERATIONS 14.8% ADJUSTED OPERATING MARGINS* +370 bps $402M Energy Recovery Device for the Desalination Market +125% Nuclear Main Steam Isolation Actuator
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4Q3 2025 Earnings Conference Call Q3 2025 BOOKINGS OVERVIEW ORIGINAL EQUIPMENT $ millions $589 $560 2024 Q3 2025 Q3 AFTERMARKET $615 $653 2024 Q3 2025 Q3 $ millions - Steady trends in small and medium sized project activity - Nuclear awards accelerating growth in Power end market - Leveraging capabilities and execution to drive aftermarket growth across segments - Sixth consecutive quarter of aftermarket bookings of more than $600 million Q3 BOOKINGS GROWTH BY END MARKET ENERGY: (19%) GENERAL INDUSTRIES: +7% CHEMICAL: +18%POWER: +23% <10% of total bookings from greenfield projects (5%) +6%
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5Q3 2025 Earnings Conference Call MARKET OUTLOOK ENERGY: 33% CHEMICAL: 19% POWER: 14% GENERAL INDUSTRIES: 34% • Constructive environment for industrial asset utilization driving elevated aftermarket and MRO work • Project funnel increased year over year with strength in power, nuclear, LNG, and general industrials • Steady project activity despite some timing uncertainty • For the full year, we expect our book-to-bill conversion ratio to be approximately 1.0x • Continued global investments in nuclear and traditional power generation from expansion of AI, electrification, and data center growth • Further regionalization influencing government policies to stimulate industrial capex in many countries • Broad industrial activity across a wide range of diverse industries • Chemical bookings remain steady despite slower overall growth rates • Specialty chemical build out remains healthy • Refining utilization remains steady at healthy levels • Recent increases in Middle East installed base set the stage for continued growth in Energy aftermarket * Percentages represent proportion of total bookings YTD
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6Q3 2025 Earnings Conference Call Customers / Partners FLOWSERVE NUCLEAR Main Steam Isolation Valve Safety-Related MFD Cooling Pump N-Seal Limitorque Actuator Nuclear Content Market Share Today >50% >40% ~15% Currently operating reactors with Flowserve pumps Currently operating reactors with Flowserve Main Steam Isolation Valves Currently operating reactors with Flowserve primary coolant pumps Nuclear EPC Power Operators SMR Companies Large-scale Nuclear Companies75% of the 416 nuclear reactors operating across the globe today have Flowserve content * Market share data is based on Flowserve estimates
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7Q3 2025 Earnings Conference Call POSITIONED FOR SUCCESS ACROSS NUCLEAR FLOW EQUIPMENT Sales Bookings Non-Nuclear Power Nuclear Flowserve YTD Power Mix YTD Book To Bill of 2.0x Leading To Future Sales Growth Extensive Portfolio Breadth • Rising electricity demand from AI, electrification, and industrialization • Energy security and independence • Decarbonization and clean energy • 40+ large reactors under construction in the next 10 years (North America, Europe, Middle East, India, Korea) • 30+ SMRs under construction in the next 5 years • Life extensions planned for most existing nuclear reactors worldwide Attractive Megatrend • Containment Spray Pump • Chemical & Volume Control Pump • Emergency Feedwater Pump • Essential Service Water Pump • High & Lower Pressure Safety Injection Pumps • Reactor Coolant Pump • Residual Heat Removal Pump • Main Feedwater Isolation Valve • Main Steam Isolation Valve • Makeup Line Containment Isolation Valve • Check Valve • Condensate Extraction Pump • Control Valves • Condenser Cooling Pumps • Isolation Valves • Main, Booster, & Startup Feedwater Pumps Nuclear Island * Build-out estimates based on industry data sources and publicly announced nuclear reactor investments Turbine Island Drivers of Nuclear Expansion Potential Global Build-Out
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8Q3 2025 Earnings Conference Call FLOWSERVE NUCLEAR OPPORTUNITY Nuclear Flow Control Opportunity of $10B+ Over the Next Decade Power Bookings Evolution • New Build Opportunity Overview • $100M+ per new large reactor (≈1 GW) • $20–80M+ per new SMR (≈300 MW) • Recurring Aftermarket Advantage • Recurring annual revenue from a global installed base ~$100M+ • 5,000+ pumps and 15,000+ valves across 300+ reactors • $10–30M+ per reactor restart, refurbishment or life extension • Growth Drivers • Accelerating through deep technical partnerships with reactor/SMR developers, EPC, and operators Significant Nuclear Growth Potential Current 5-10 Year Illustration Non-Nuclear Power Nuclear Aftermarket New SMRs New Large Reactors
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9Q3 2025 Earnings Conference Call* See appendix for reconciliation to corresponding GAAP-based measure. Note: 2024 Q3 includes $0.07 expense charge resulting from an actuarial-determined assessment of certain long-term liabilities Q3 2025 OVERVIEW SALES $ millions ADJ. EPS* $1,133 $1,174 $0.62 $0.90 2024 Q3 2025 Q3 2024 Q3 2025 Q3 Revenue growth across segments driven by robust aftermarket activity Growth strategy and strong execution of Flowserve Business System drove significant adjusted EPS* growth 11.1% 14.8% 2024 Q3 2025 Q3 Second consecutive quarter within the long-term target range of 14-16% 32.4% 34.8% 2024 Q3 2025 Q3 Eleventh consecutive quarter of year-over-year expansion ADJ. GROSS MARGIN* ADJ. OPERATING MARGIN* +4% +240bps +370bps +45%
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10Q3 2025 Earnings Conference Call Q3 2025 SEGMENT HIGHLIGHTS FCD Year-Over-Year $396.1 24.4% $377.4 6.9% 32.1% 220 bps 16.3% 230 bps 1.05x FPD Q3 2025 Year-Over-Year Bookings $819.5 (7.6%) Revenue $800.3 2.3% Adjusted Gross Margin* 35.9% 220 bps Adjusted Operating Margin* 19.6% 320 bps Book-to-Bill 1.02x 2027 Adj. Operating Margin* Target * See appendix for reconciliation to corresponding GAAP-based measure Q3 2025 16% - 18% 16% - 18% • Strong aftermarket bookings growth, offset by timing of larger engineered projects • Continued margin expansion driven by 80/20 and strong execution • Exceptional bookings growth, with strong conversion to revenue • Margin improvements leading to performance in-line with 2027 long-term targets
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11Q3 2025 Earnings Conference Call FLOWSERVE BUSINESS SYSTEM Industrial Pumps: 80/20 Actions in 2025 • Industrial Pump business unit gross margin improvement of 150 basis points YTD • ~45% SKU reduction in original equipment offering • 21% bookings growth YTD within Target Selling initiative • Divested non-strategic gear pump product line in Q3
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12Q3 2025 Earnings Conference Call Q3 2025 CASH FLOW • $402 million of cash from operations in Q3 driven by higher earnings, strong working capital management, and merger termination payment ($266 million less transaction fees and taxes) • Third quarter free cash flow-to-adjusted net earnings of 174%1 • $281 million of cash returned to shareholders year-to-date, with $173 million returned in the third quarter • Net leverage2 of 0.9x, providing significant flexibility for capital allocation choices YTD OPERATING CASH FLOW $ millions YTD SHAREHOLDER RETURN3 $228 $506 2024 Q3 2025 Q3 1 Free cash flow conversion is defined as free cash flow (cash flows from operating activities less capital expenditures) divided by adjusted net earnings. Free cash flow conversion is a non-GAAP figure. Free cash flow removes estimated impact from merger termination payment less transaction fees and taxes. 2 Net leverage is defined as net debt divided by trailing twelve months adjusted EBITDA. Net debt is the sum of short- and long-term debt less cash. Adjusted EBITDA is the sum of adjusted operating income, depreciation and amortization. Net leverage, net debt and adjusted EBITDA are non-GAAP figures. 3 Shareholder return is defined as the sum of dividends and repurchase of common shares. $ millions 2024 Q3 2025 Q3 $83 $83 $20 $198 Share Repurchase Dividends $103 $281
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13Q3 2025 Earnings Conference Call ASBESTOS TRANSACTION Improved Financial Profile With Increased Focus on Allocating Capital To Growth TRANSACTION SUMMARY • Flowserve is divesting of a subsidiary that holds legacy asbestos liabilities to an affiliate of Acorn Investment Partners (“Acorn”) • Acorn provides administration and indemnification for all legacy asbestos liabilities • Removal of all asbestos obligations, related insurance assets, and associated deferred tax assets from Flowserve’s balance sheet • Well-capitalized entity, with Flowserve contributing $199 million in cash, and Acorn contributing $20 million in cash • One-time loss of approximately $135 million expected in Q41 BENEFITS Removal of legacy liability Simplified capital structure Ability to focus capital allocation on growth Improved cash flow Reduced volatility 1 Includes certain transaction costs; Final one-time loss subject to customary closing adjustments as of the final close date.
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14Q3 2025 Earnings Conference Call UPDATED 2025 FULL-YEAR GUIDANCE 2025 Guidance Organic Sales Growth Up 3% - 4% Up ~2% Total Sales Growth [1] Up 5% - 6% Up 4% - 5% Adjusted EPS [2] $3.25 - $3.40 $3.40 - $3.50 Net Interest Expense ~$70 million ~$70 million Adjusted Tax Rate ~20% ~20% Capital Expenditures $80 - $90 million ~$75 million 1 Organic growth ~2%, Acquisitions approx. +200 bps, and Foreign Exchange approx. +50 bps 2 2025 Adjusted EPS guidance includes expected 8 cent contribution from Mogas operations and excludes potential realignment expenses, below-the-line foreign currency effects, annual assessment of actuarial-determined asbestos liabilities, which is typically performed in the third quarter, and certain other discrete items which may arise during the year and utilizes foreign exchange rates of the prior 30-day period and approximately 131 million fully diluted shares 3 See appendix for historical reconciliation of GAAP-based measures Prior Current • Adjusted EPS2 guidance midpoint: - 31% growth versus last year - Equates to 64% growth in adjusted EPS3 since 2023 • Expect full-year adjusted operating margin3 expansion of 200 - 250 basis points
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15Q3 2025 Earnings Conference Call Q3 SUMMARY Increased Full-Year 2025 Earnings Guidance, Supported By Strong Backlog, Improved Execution And Margin Expansion • Strong third quarter and year-to-date results • FPD, FCD, and consolidated results meeting or exceeding long-term adjusted operating margin targets • Aftermarket franchise driving continued growth • Record nuclear bookings in the quarter, with significant long-term opportunity in overall Power market • 80/20 program delivering margin expansion, leading to sales growth over time • Strategic allocation of capital to enhance shareholder value
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16Q3 2025 Earnings Conference Call Appendix
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17Q3 2025 Earnings Conference Call TARIFF UPDATE CURRENT ASSUMPTIONSJULY ASSUMPTIONS • China at 30% • Canada at 25% • Mexico at 25% • European Union at 10% • India at 10% • Other reciprocal tariffs of 10-36% CONTEXT & MITIGATING ACTIONS • Two-thirds of revenue is outside the United States • Implemented price increases this year and variable pricing as required • All product revenue now on CORE, our 80/20 framework, reducing product complexity and sourcing • Continue shifting to alternative sourcing and leveraging regional structure • China at 30% • Canada at 35% • Mexico at 25% • European Union at 15% • India at 50% • Other reciprocal tariffs at 10-36% • 232 derivative tariffs at 50% We estimate the annualized gross impact of tariffs to be approximately $80 million, which we expect to fully offset through mitigating actions 1 Tariff rates shown herein exclude Section 301 tariffs U.S. import tariffs in place remainder of year1
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18Q3 2025 Earnings Conference Call Q3 2025 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Three Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 380,286$ 305,152$ 79,272$ 256,220$ 93,688$ 219,582$ 29.5% 1.67 Reported as a percent of sales 32.4% 26.0% 6.7% 21.8% 8.0% 18.7% Realignment charges (a) 25,481 (4,571) 30,052 - 6,907 23,145 23.0% 0.18 Acquisition related (b) 9 (4,243) 4,252 - 1,000 3,252 23.5% 0.02 Purchase accounting step-up and intangible asset amortization (c) 2,625 (1,300) 3,925 - 1,182 2,743 30.1% 0.02 Discrete items (d)(e)(f) 31 (30,351) 30,382 1,500 7,499 24,383 23.5% 0.19 Merger transaction costs (g) - (25,682) 25,682 - 5,885 19,797 22.9% 0.15 Merger termination payment (h) - - - (266,000) (60,957) (205,043) 22.9% (1.56) Discrete tax items (i) - - - - (24,860) 24,860 0.0% 0.19 Below-the-line foreign exchange impacts (j) - - - 5,401 622 4,779 11.5% 0.04 Adjusted 408,432$ 239,005$ 173,565$ (2,879)$ 30,966$ 117,498$ 20.3% 0.90 Adjusted as a percent of sales 34.8% 20.4% 14.8% -0.2% 2.6% 10.0% Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $2,300 is non-cash. (b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. (c) Charge represents amortization of acquisition related intangible assets associated with the MOGAS acquisition. (d) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (e) Charge of $1,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. (j) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. (g) Charge represents transaction costs incurred associated with the terminated Chart Industries merger. (f) Charge of $30,100 represents the Q3 2025 non-cash adjustment to our estimated liability for incurred by not reported asbestos claims based on an annual actuarial study. (h) Amount represents the Chart Industries merger termination fee paid to Flowserve. (i) Amount represents a one-time tax charge related to enactment of the One Big Beautiful Bill Act during Q3 2025.
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19Q3 2025 Earnings Conference Call YTD 2025 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Nine Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 1,156,202$ 814,237$ 357,751$ 213,958$ 127,067$ 375,241$ 24.5% 2.85 Reported as a percent of sales 33.0% 23.2% 10.2% 6.1% 3.6% 10.7% Realignment charges (a) 40,600 (1,481) 42,081 - 10,096 31,985 24.0% 0.24 Acquisition related (b) 761 (8,714) 9,475 - 2,228 7,247 23.5% 0.05 Purchase accounting step-up and intangible asset amortization (c) 8,742 (3,900) 12,642 - 3,729 8,913 29.5% 0.07 Discrete items (d)(e)(f) 106 (31,116) 31,222 4,500 8,403 27,319 23.5% 0.21 Merger transaction costs (g) - (41,197) 41,197 - 9,534 31,663 23.1% 0.24 Merger termination payment (h) - - - (266,000) (60,957) (205,043) 22.9% (1.56) Discrete tax items (i) - - - - (24,860) 24,860 0.0% 0.19 Below-the-line foreign exchange impacts (j) - - - 36,797 5,977 30,820 16.2% 0.23 Adjusted 1,206,411$ 727,829$ 494,368$ (10,745)$ 81,217$ 333,005$ 18.9% 2.53 Adjusted as a percent of sales 34.4% 20.8% 14.1% -0.3% 2.3% 9.5% (f) Charge of $30,100 represents the Q3 2025 non-cash adjustment to our estimated liability for incurred by not reported asbestos claims based on an annual actuarial study. (e) Charge of $4,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $5,300 is non-cash. (b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. (c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. (d) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (g) Charge represents transaction costs incurred associated with the terminated Chart Industries merger. (h) Amount represents the Chart Industries merger termination fee paid to Flowserve. (i) Amount represents a one-time tax charge related to enactment of the One Big Beautiful Bill Act during Q3 2025. (j) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.
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20Q3 2025 Earnings Conference Call Q3 2024 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Three Months Ended September 30, 2024 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 357,067$ 259,025$ 103,192$ (5,920)$ 18,739$ 58,382$ 22.8% 0.44 Reported as a percent of sales 31.5% 22.9% 9.1% -0.5% 1.7% 5.2% Realignment charges (a) 6,813 (2,142) 8,955 - (246) 9,201 -2.7% 0.07 Discrete items (b)(c) 2,700 (9,500) 12,200 - 2,869 9,331 23.5% 0.07 Acquisition related (d) - (1,694) 1,694 - 399 1,295 23.6% 0.01 Below-the-line foreign exchange impacts (e) - - - 3,184 (467) 3,651 -14.8% 0.03 Adjusted 366,580$ 245,689$ 126,041$ (2,736)$ 21,294$ 81,860$ 19.7% 0.62 Adjusted as a percent of sales 32.4% 21.7% 11.1% -0.2% 1.9% 7.2% Note: Amounts may not calculate due to rounding (d) Charge represents acquisition-related costs associated with the MOGAS acquisition. (e) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. (a) Charges represent realignment costs incurred as a result of realignment programs of which $5,100 is non-cash. (b) Charge represents a one-time $5,000 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (c) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.
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21Q3 2025 Earnings Conference Call YTD 2024 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Nine Months Ended September 30, 2024 Gross Profit Selling, General & Administrative Expense Loss on Sale of Business Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 1,062,132$ 726,070$ 12,981$ 337,575$ (12,057)$ 62,728$ 205,218$ 22.4% 1.55 Reported as a percent of sales 31.4% 21.5% 0.4% 10.0% -0.4% 1.9% 6.1% Realignment charges (a) 20,007 (3,369) (12,981) 36,357 - 2,035 34,322 5.6% 0.26 Discrete items (b)(c)(d) 2,700 (7,500) - 10,200 - 2,869 7,331 28.1% 0.06 Acquisition related (e) - (2,794) - 2,794 - 658 2,136 23.6% 0.02 Discrete asset write-downs (f)(g) - (1,795) - 1,795 3,567 1,342 4,020 25.0% 0.03 Below-the-line foreign exchange impacts (h) - - - - 2,068 (489) 2,557 -23.6% 0.02 Adjusted 1,084,839$ 710,612$ -$ 388,721$ (6,422)$ 69,143$ 255,584$ 20.5% 1.93 Adjusted as a percent of sales 32.1% 21.0% 0.0% 11.5% -0.2% 2.0% 7.6% Note: Amounts may not calculate due to rounding (g) Charge represents a $3,567 non-cash write-down of a debt investment. (h) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. (f) Charge represents a $1,795 non-cash write-down of a software asset. (a) Charges represent realignment costs incurred as a result of realignment programs of which $25,100 is non-cash. (b) Charge represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022. (c) Charge represents a one-time $5,000 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology. (e) Charge represents acquisition-related costs associated with the MOGAS acquisition.
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22Q3 2025 Earnings Conference Call Q3 2025 AND Q3 2024 SEGMENT FINANCIAL RESULTS Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Three Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Three Months Ended September 30, 2024 Gross Profit Selling, General & Administrative Expense Operating Income Reported 265,776$ 135,046$ 134,869$ Reported 253,185$ 149,060$ 109,274$ Reported as a percent of sales 33.2% 16.9% 16.9% Reported as a percent of sales 32.4% 19.1% 14.0% Realignment charges (a) 21,628 (88) 21,716 Realignment charges (a) 8,415 (716) 9,131 Discrete items (b) 24 (63) 87 Discrete items (b)(c) 1,700 (8,000) 9,700 Adjusted 287,428$ 134,895$ 156,672$ Adjusted 263,300$ 140,344$ 128,105$ Adjusted as a percent of sales 35.9% 16.9% 19.6% Adjusted as a percent of sales 33.7% 17.9% 16.4% Flow Control Division Three Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Three Months Ended September 30, 2024 Gross Profit Selling, General & Administrative Expense Operating Income Reported 114,250$ 67,810$ 46,440$ Reported 106,503$ 59,790$ 46,713$ Reported as a percent of sales 30.3% 18.0% 12.3% Reported as a percent of sales 30.2% 16.9% 13.2% Realignment charges (a) 4,386 (2,395) 6,781 Realignment charges (a) (1,590) (1,379) (211) Acquisition related (c) 9 (4,243) 4,252 Discrete items (b) 800 (400) 1,200 Purchase accounting step-up and intangible asset amortization (d) 2,625 (1,300) 3,925 Acquisition related (d) - (1,694) 1,694 Discrete items (b) 5 (45) 50 Adjusted 105,713$ 56,317$ 49,396$ Adjusted 121,275$ 59,827$ 61,448$ Adjusted as a percent of sales 29.9% 15.9% 14.0% Adjusted as a percent of sales 32.1% 15.9% 16.3% Note: Amounts may not calculate due to rounding (b) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (a) Charges represent realignment costs incurred as a result of realignment programs of which $2,300 is non-cash. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. (d) Charge represents amortization of acquisition related intangible assets associated with the MOGAS acquisition. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $5,100 is non-cash. (b) Charge represents a one-time $3,700 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (c) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology. (d) Charge represents acquisition-related costs associated with the MOGAS acquisition.
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23Q3 2025 Earnings Conference Call YTD 2025 AND 2024 SEGMENT FINANCIAL RESULTS Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Nine Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Nine Months Ended September 30, 2024 Gross Profit Selling, General & Administrative Expense Operating Income Reported 833,467$ 415,126$ 434,128$ Reported 761,338$ 424,824$ 351,146$ Reported as a percent of sales 34.7% 17.3% 18.1% Reported as a percent of sales 32.2% 18.0% 14.9% Realignment charges (a) 26,495 (840) 27,335 Realignment charges (a) 20,837 (1,037) 21,874 Discrete items (b) 87 (287) 374 Discrete items (b)(c)(d) 1,700 (6,000) 7,700 Adjusted 860,049$ 413,999$ 461,837$ Adjusted 783,875$ 417,787$ 380,720$ Adjusted as a percent of sales 35.8% 17.2% 19.2% Adjusted as a percent of sales 33.2% 17.7% 16.1% Flow Control Division Nine Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Nine Months Ended September 30, 2024 Gross Profit Selling, General & Administrative Expense Loss on Sale of Business Operating Income Reported 322,131$ 206,437$ 115,694$ Reported 305,469$ 178,816$ 12,981$ 113,672$ Reported as a percent of sales 28.9% 18.5% 10.4% Reported as a percent of sales 29.9% 17.5% 1.3% 11.1% Realignment charges (a) 14,704 1,230 13,474 Realignment charges (a) (602) (1,440) (12,981) 13,819 Acquisition related (c) 761 (8,714) 9,475 Discrete item (b) 800 (400) - 1,200 Purchase accounting step-up and intangible asset amortization (d) 8,742 (3,900) 12,642 Acquisition related (e) - (2,794) - 2,794 Discrete items (b) 14 (208) 222 Adjusted 305,667$ 174,182$ -$ 131,485$ Adjusted 346,352$ 194,845$ 151,507$ Adjusted as a percent of sales 29.9% 17.1% 0.0% 12.9% Note: Amounts may not calculate due to rounding (d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. (a) Charges represent realignment costs incurred as a result of realignment programs of which $5,300 is non-cash. (b) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. (e) Charge represents acquisition-related costs associated with the MOGAS acquisition. (c) Charge represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $25,100 is non-cash. (b) Charge represents a one-time $3,700 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.
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24Q3 2025 Earnings Conference Call 2025 AND 2024 SEGMENT BOOKINGS AND SALES MIX 1 Constant foreign exchange (FX) represents the year-over-year variance assuming 2025 results at 2024 FX rates 2 OE and AM represent original equipment and aftermarket, respectively 3 Gross bookings and sales do not include interdivision eliminations Flowserve Pumps Division ($ millions) Q3 2025 Q3 2024 Delta (%) Constant FX (%)1 YTD 2025 YTD 2024 Delta (%) Constant FX (%) $268 $358 -25% -27% $732 $946 -23% -23% 33% 40% (700) bps 31% 38% (700) bps $551 $529 4% 2% $1,663 $1,543 8% 8% 67% 60% 700 bps 69% 62% 700 bps $278 $283 -2% -3% $844 $871 -3% -3% 35% 36% (100) bps 35% 37% (200) bps $522 $499 5% 3% $1,558 $1,493 4% 4% 65% 64% 100 bps 65% 63% 200 bps Flow Control Division ($ millions) Q3 2025 Q3 2024 Delta (%) Constant FX (%) YTD 2025 YTD 2024 Delta (%) Constant FX (%) $293 $232 26% 26% $822 $743 11% 11% 74% 73% 100 bps 73% 74% (100) bps $103 $86 20% 18% $304 $265 15% 14% 26% 27% (100) bps 27% 26% 100 bps $273 $274 0% -1% $823 $784 5% 5% 72% 78% (600) bps 74% 77% (300) bps $104 $79 32% 30% $290 $237 22% 22% 28% 22% 600 bps 26% 23% 300 bps Bookings Mix OE AM Sales Mix OE AM Bookings Mix3 OE2 AM2 Sales Mix3 OE AM
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Brian Ezzell bezzell@flowserve.com Olivia Webb owebb@flowserve.com Investor Relations Contacts