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Q2 2026 EARNINGS CONFERENCE CALL July 30, 2026
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2Q2 2026 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: economic, political and other risks associated with our international operations, including military actions, trade embargoes, blockades or other closures of major trade lanes, 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; 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; 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; 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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3Q2 2026 Earnings Conference Call SUMMARY • Significant Q2 bookings growth and robust operating margin expansion • Disciplined execution through the Flowserve Business System • Proactively supporting Middle East customers while managing a dynamic situation • Confidence in delivering mid-single digit full-year bookings growth • 2026 guidance updated, with 2030 financial targets still on track Strong execution with bookings momentum building
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4Q2 2026 Earnings Conference Call Q2 2026 BOOKINGS OVERVIEW BOOKINGS $ millions 621 696 453 652 1,074 1,348 Q2 2025 Q2 2026 +44% Original Equipment Strong commercial activity from large engineered projects, MRO bookings in line with expectations +12% Aftermarket Nearly $700 million of aftermarket bookings and the ninth consecutive quarter greater than $600 million +26% Strong Q2 bookings including robust project bookings in all regions, partially offset by lower Middle East run-rate bookings Original Equipment Aftermarket Note: Comparisons are to Q2 2025 unless otherwise noted
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5Q2 2026 Earnings Conference Call Q2 2026 BOOKINGS AND MARKET OUTLOOK Q2 2026 End Market Mix Q2 2026 Bookings Growth YTD 2026 Bookings Growth Energy 39% +48% +17% General Industries 30% +11% +3% Chemical 18% +7% +5% Power 13% +39% +7% • 1.12x YTD book-to-bill • Fundamentals across our end markets remain healthy • Energy led Q2 growth driven by accelerating global investments in energy security and LNG • Power demand driving outsized growth in nuclear and traditional power; Q2 nuclear bookings >$110 million • Project funnel increased both sequentially and annually • Operating environment remains favorable for continued global aftermarket growth • Positioned for 2025-2030 mid-single digit organic sales CAGR target with additional potential benefits from Middle East redundancy and global energy security investments
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6Q2 2026 Earnings Conference Call MIDDLE EAST UPDATE 1st Half 2026 • Middle East bookings improved in Q2 • Strong project activity in energy security, LNG, and chemical • Q2 Middle East book and ship slowed across the business, with more impact in valves • YTD Middle East sales down ~$60 million, driving profit headwind • Working capital headwind from delayed Middle East shipments and slower collections 2nd Half 2026 and Beyond • Visibility to 2nd half Middle East project activity, with sales impact beyond 2026 • Assuming Middle East book and ship activity remains similar to 1st half for remainder of 2026 • Anticipate incremental bookings opportunities over time • ~$50 million of rebuild in Middle East for assets damaged to date • Potential larger opportunity related to redundancy and global energy security investment Middle East expected to be dynamic near-term, medium-term benefit Pumps & Valves Ready for Shipment to Middle East
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7Q2 2026 Earnings Conference Call DISCIPLINED CAPITAL ALLOCATION Shareholder Returns • $55 million of dividends year to date through June • $25 million of share repurchases in Q2, with an additional $25 million of share repurchases in July Acquisition of Trillium Flow Technologies’ Valves Division • Fully aligned with 3D strategy and power generation megatrend • Acquisition extends leadership in mission-critical flow control solutions • Enhances service capabilities and expands global installed base with high aftermarket entitlement • Flowserve Business System expected to drive margin enhancement and value-creation objectives Intentional framework guides our capital allocation decisions
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8Q2 2026 Earnings Conference Call Q2 2026 INCOME STATEMENT HIGHLIGHTS * See appendix for reconciliation to corresponding GAAP-based measure Note: Comparisons are to Q2 2025 unless otherwise noted $1.2B SALES (2%) 35.9% ADJ. GROSS MARGIN* +100 bps 15.3% ADJ. OPERATING MARGIN* +70 bps Disciplined execution drove strong financial results $0.95 ADJ. EPS* +4% Q2 2026 vs. Q2 2025 Sales Bridge Implied Underlying Growth ~1 pt Middle East (~2 pt) 80/20 Headwind (~2 pt) Organic Sales (3.3%) Acquisition / Divestiture 90 bps Foreign Exchange 80 bps Reported Sales (1.6%)
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9Q2 2026 Earnings Conference Call Q2 2026 SEGMENT HIGHLIGHTS FCD Q2 2026 Year-Over-Year $417M 17.6% $357M (3.8%) 31.1% 30 bps $45M (0.9%) 12.6% 40 bps 1.17x FPD Q2 2026 Year-Over-Year $938M 29.6% $814M (0.6%) 37.8% 100 bps $173M 4.2% 21.3% 100 bps 1.15x * See appendix for reconciliation to corresponding GAAP-based measure • Bookings growth driven by nuclear, energy, and aftermarket • Middle East run-rate negatively impacted, driving sales headwind • Adj. margin expansion progressing despite Middle East headwinds • Bookings growth driven by energy security and industrial investments • Continued improvement in aftermarket capture rates • Adj. margin expansion on mix benefits, 80/20, and improved project execution Bookings Sales Adjusted Gross Margin* Adjusted Operating Income* Adjusted Operating Margin* Book-to-Bill
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10Q2 2026 Earnings Conference Call Q2 2026 CASH FLOW AND BALANCE SHEET • $129 million of cash from operations driven by higher earnings and working capital management • Second quarter free cash flow-to-adjusted net earnings* of 92%1 • Expect full-year free cash flow-to-adjusted net earnings1 of ~90% • Issued $500 million of 5.7% senior notes due 2036 • Net proceeds used to fund Trillium acquisition • Net leverage2 of 1.8x, providing flexibility for capital allocation choices NET LEVERAGE2 1.3x 1.8x Q2 2025 Q2 2026 * See appendix for reconciliation to corresponding GAAP-based measure 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. 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. See appendix for definition of Adjusted EBITDA. Net leverage, net debt and adjusted EBITDA are non-GAAP figures. OPERATING CASH FLOW $ millions $154 $129 Q2 2025 Q2 2026
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11Q2 2026 Earnings Conference Call 2026 FULL-YEAR GUIDANCE Prior Current Organic Sales Growth (1%) to +2% Approximately (1%) Total Sales Growth1 +3% to +6% Approximately +3% Adjusted EPS2 $4.00 to $4.20 $4.05 to $4.20 Net Interest Expense ~$85 million ~$85 million Adjusted Tax Rate 21% to 22% 21% to 22% Capital Expenditures $90-$100 million ~$100 million • Expect full-year adjusted operating margin expansion of ~100 bps • +300 bps of sales benefit from acquisition / divestiture (consistent with prior guidance), following June 30th closure of Trillium acquisition • Expected split of Trillium sales by segment: 85% FCD, 15% FPD • Organic sales guidance updated to assume current Middle East business conditions persist for the remainder of 2026 • Adjusted EPS guidance mid-point increased on strong execution of the Flowserve Business System despite Middle East volume headwind *See appendix for historical reconciliation of GAAP-based measures 1 Organic growth approx. (1%), Acquisition/Divestiture approx. +300 bps, and Foreign Exchange approx. +100 bps. Guidance reflects tariff rates in place as of July 1, 2026 2 2026 Adjusted EPS guidance includes expected contribution from acquisitions and divestitures and excludes potential realignment expenses, below-the-line foreign currency effects, and certain other discrete items which may arise during the year and utilizes fully diluted shares 2026 Full-Year Guidance
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12Q2 2026 Earnings Conference Call Y/Y ORGANIC SALES: H1 TO H2 ACCELERATION 2ND HALF 2026 ASSUMPTIONS • Abatement of 1st half sales headwinds • 80/20 headwind more pronounced in 1st half • Q1 MRO softness returned to expected levels in Q2 • Expect organic sales growth acceleration in 2nd half • Larger backlog • Aftermarket growth • Anticipate similar Middle East headwind • Trillium sales benefit from strong backlog in advance of applying 80/20 program • Q3 specific assumptions • Organic sales roughly flat year-over-year • Mid-single digit total sales growth year-over-year • Adj. operating margin expected to expand modestly from Q2 • Adj. EPS expected to be similar to Q2, including the impact of higher effective tax rate (7%) H1 2026 Organic ~2% 80/20 Headwind ~2% Q1 MRO Headwind (3%) H1 Implied Underlying Organic with ME Headwind Larger Backlog & Aftermarket Growth 5% H2 2026 Organic Q2 ending backlog +9% year-over-year excluding Trillium *See appendix for historical reconciliation of GAAP-based measures
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13Q2 2026 Earnings Conference Call SUMMARY • Significant Q2 bookings growth and robust operating margin expansion • Disciplined execution through the Flowserve Business System • Proactively supporting Middle East customers while managing a dynamic situation • Confidence in delivering mid-single digit full-year bookings growth • 2026 guidance updated, with 2030 financial targets still on track Strong execution with bookings momentum building
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14Q2 2026 Earnings Conference Call Appendix
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15Q2 2026 Earnings Conference Call Q2 2026 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 June 30, 2026 Gross Profit Selling, General & Administrative Expense Net earnings from affiliates Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 384,726$ 266,318$ 33,015$ 151,423$ (12,087)$ 17,078$ 98,998$ 14.4% 0.77 Reported as a percent of sales 32.9% 22.8% 2.8% 13.0% -1.0% 1.5% 8.5% Realignment charges (a) 32,979 (7,751) - 40,730 - 8,590 32,140 21.1% 0.25 Acquisition and divestiture related (b)(c) - (9,316) (27,700) (18,384) - 2,163 (20,547) -11.8% (0.16) Amortization of intangible assets (d) 1,543 (3,103) - 4,646 - 997 3,649 21.5% 0.03 Discrete items (e)(f) 31 (215) - 246 3,076 782 2,540 23.5% 0.02 Below-the-line foreign exchange impacts (g) - - - - 6,315 1,414 4,901 22.4% 0.04 Adjusted 419,279$ 245,933$ 5,315$ 178,661$ (2,696)$ 31,024$ 121,681$ 20.0% 0.95 Adjusted as a percent of sales 35.9% 21.0% 0.5% 15.3% -0.2% 2.7% 10.4% Note: Amounts may not calculate due to rounding (f) Charges include $3,076 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada. (g) 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 $5,003 is non-cash. (b) Charges represent $9,316 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO). (c) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. (d) Charges represent non-cash amortization of intangible assets. (e) Charges represent $246 of non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
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16Q2 2026 Earnings Conference Call YTD 2026 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Six Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Net earnings from affiliates Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 764,567$ 529,718$ 36,006$ 270,855$ (5,088)$ 38,209$ 180,679$ 16.9% 1.41 Reported as a percent of sales 34.2% 23.7% 1.6% 12.1% -0.2% 1.7% 8.1% Realignment charges (a) 49,481 (20,216) - 69,697 - 13,033 56,664 18.7% 0.44 Acquisition and divestiture related (b)(c) - (17,904) (27,700) (9,796) - 4,313 (14,109) -44.0% (0.11) Amortization of intangible assets (d) 2,556 (5,347) - 7,903 - 1,520 6,383 19.2% 0.05 Discrete items (e)(f) 62 (889) - 951 4,576 1,301 4,226 23.5% 0.03 Below-the-line foreign exchange impacts (g) - - - - (2,723) (187) (2,536) 6.9% (0.02) Adjusted 816,666$ 485,362$ 8,306$ 339,610$ (3,235)$ 58,189$ 231,307$ 19.6% 1.80 Adjusted as a percent of sales 36.5% 21.7% 0.4% 15.2% -0.1% 2.6% 10.3% (e) Charges represent discrete items including $523 of 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 and $428 of transaction costs related to the divestiture of our asbestos-related assets and liabilities. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale-leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. (b) Charges represent $17,904 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO). (c) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. (d) Charges represent non-cash amortization of intangible assets. (f) Charges include $4,576 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada. (g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.
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17Q2 2026 Earnings Conference Call Q2 2025 CONSOLIDATED FINANCIAL RESULTS
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18Q2 2026 Earnings Conference Call YTD 2025 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 775,916$ 509,085$ 278,479$ (42,262)$ 33,379$ 155,659$ 16.6% 1.18 Reported as a percent of sales 33.3% 21.8% 11.9% -1.8% 1.4% 6.7% Realignment charges (a) 15,121 3,091 12,030 - 3,189 8,841 26.5% 0.07 Acquisition related (b) 752 (4,471) 5,223 - 1,228 3,995 23.5% 0.03 Purchase accounting step-up and intangible asset amortization (c) 6,117 (2,600) 8,717 - 2,547 6,170 29.2% 0.05 Discrete items (d)(e) 75 (765) 840 3,000 903 2,937 23.5% 0.02 Merger transaction costs (f) - (15,515) 15,515 - 3,649 11,866 23.5% 0.09 Below-the-line foreign exchange impacts (g) - - - 31,396 5,355 26,041 17.1% 0.20 Adjusted 797,981$ 488,825$ 320,804$ (7,866)$ 50,250$ 215,509$ 18.1% 1.63 Adjusted as a percent of sales 34.2% 21.0% 13.8% -0.3% 2.2% 9.2% (d) Charge represents 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 $3,000 represents a pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. (f) Charge represents transaction costs incurred associated with the Chart Industries merger. (g) 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. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $3,000 is non-cash. (b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. (c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
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19Q2 2026 Earnings Conference Call Q2 2026 AND Q2 2025 SEGMENT FINANCIAL RESULTS Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Three Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Net earnings from affiliates Operating Income Three Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported 296,141$ 148,003$ 33,014$ 181,151$ Reported 299,229$ 142,400$ 162,745$ Reported as a percent of sales 36.4% 18.2% 4.1% 22.3% Reported as a percent of sales 36.5% 17.4% 19.9% Realignment charges (a) 10,521 (5,392) - 15,913 Realignment charges (a) 1,888 (1,749) 3,637 Discrete items (b) 24 (48) - 72 Discrete items (b) 35 (99) 134 Acquisition and divestiture related (c)(e) - (774) (27,700) (26,926) Adjusted 301,152$ 140,552$ 166,516$ Amortization of intangible assets (d) 1,443 (1,801) - 3,244 Adjusted as a percent of sales 36.8% 17.2% 20.3% Adjusted 308,129$ 139,988$ 5,314$ 173,454$ Adjusted as a percent of sales 37.8% 17.2% 0.7% 21.3% Flow Control Division Three Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Operating Income Three Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported 88,546$ 77,528$ 11,018$ Reported 107,694$ 69,922$ 37,772$ Reported as a percent of sales 24.8% 21.7% 3.1% Reported as a percent of sales 29.0% 18.8% 10.2% Realignment charges (a) 22,458 (1,735) 24,193 Realignment charges (a) 3,217 3,504 (287) Discrete items (b) 5 (20) 25 Acquisition related (c) 752 (3,190) 3,942 Acquisition and divestiture related (c) - (8,427) 8,427 Purchase accounting step-up and intangible asset amortization (d) 2,642 (1,300) 3,942 Amortization of intangible assets (d) 100 (1,302) 1,402 Discrete items (b) 5 (99) 104 Adjusted 111,109$ 66,044$ 45,065$ Adjusted 114,310$ 68,838$ 45,472$ Adjusted as a percent of sales 31.1% 18.5% 12.6% Adjusted as a percent of sales 30.8% 18.5% 12.2% (e) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $5,003 is non-cash. (b) Charges represent $97 of 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) Charges represent $9,201 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Flowserve Al Mansoori Services Company (FAMCO) and Trillium Valves within FPD and FCD, respectively. (d) Charges represent non-cash amortization of intangible assets. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash. (b) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. (d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
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20Q2 2026 Earnings Conference Call YTD 2026 AND 2025 SEGMENT FINANCIAL RESULTS Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Six Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Net earnings from affiliates Operating Income Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported 566,068$ 295,171$ 36,006$ 306,902$ Reported 567,691$ 280,080$ 299,259$ Reported as a percent of sales 36.3% 18.9% 2.3% 19.7% Reported as a percent of sales 35.4% 17.5% 18.7% Realignment charges (a) 20,609 (9,533) - 30,142 Realignment charges (a) 4,867 (751) 5,618 Discrete items (b) 48 (96) - 144 Discrete items (b) 63 (224) 287 Acquisition and divestiture related (c)(e) - (813) (27,700) (26,887) Adjusted 572,621$ 279,105$ 305,164$ Amortization of intangible assets (d) 2,456 (2,746) - 5,202 Adjusted as a percent of sales 35.7% 17.4% 19.0% Adjusted 589,181$ 281,983$ 8,306$ 315,503$ Adjusted as a percent of sales 37.8% 18.1% 0.5% 20.2% Flow Control Division Six Months Ended June 30, 2026 Gross Profit Selling, General & Administrative Expense Operating Income Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported 197,493$ 144,759$ 52,734$ Reported 207,881$ 138,627$ 69,254$ Reported as a percent of sales 28.8% 21.1% 7.7% Reported as a percent of sales 28.3% 18.8% 9.4% Realignment charges (a) 28,872 3,286 25,586 Realignment charges (a) 10,319 3,625 6,694 Discrete items (b) 10 (75) 85 Acquisition related (c) 752 (4,471) 5,223 Acquisition and divestiture related (c) - (16,165) 16,165 Purchase accounting step-up and intangible asset amortization (d) 6,117 (2,600) 8,717 Amortization of intangible assets (d) 100 (2,601) 2,701 Discrete items (b) 9 (163) 172 Adjusted 226,475$ 129,204$ 97,271$ Adjusted 225,078$ 135,018$ 90,060$ Adjusted as a percent of sales 33.1% 18.9% 14.2% Adjusted as a percent of sales 30.6% 18.4% 12.2% Note: Amounts may not calculate due to rounding (e) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO. (a) Charges represent realignment costs incurred as a result of realignment programs, net of a $5,300 gain associated with a sale- leaseback transaction related to a FCD facility, and of which $5,234 is non-cash. (b) Charges represent $229 of 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) Charges represent $16,978 of costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray and Flowserve Al Mansoori Services Company (FAMCO) within FPD and Trillium Valves within FCD. (d) Charges represent non-cash amortization of intangible assets. 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 $3,000 is non-cash. (b) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.
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21Q2 2026 Earnings Conference Call 2026 SEGMENT BOOKINGS AND SALES Note: Amounts may not calculate due to rounding (a) Foreign exchange (FX) impact reflects a year-over-year change in foreign currency translation. (b) Organic is defined as the change excluding the impacts of foreign currency translation and acquisitions and divestitures. (c) Bookings and sales do not include interdivision eliminations.
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22Q2 2026 Earnings Conference Call ADJUSTED EBITDA RECONCILIATION Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs, including items such as facility closure, severance, and professional services. (b) Discrete items include non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada. (d) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency. (c) 2025 charge represents transaction costs incurred associated with the proposed Chart Industries merger. Reconciliations of Net Income to Adjusted EBITDA (Unaudited) (Amounts in thousands) Three Months Ended March 31, Three Months Ended June 30, Three Months Ended March 31, Three Months Ended June 30, 2026 2026 2025 2025 Net earnings attributable to Flowserve Corporation 81,681$ 98,998$ 73,905$ 81,754$ Add back: Depreciation expense 20,329 20,085 18,831 19,864 Amortization expense 3,731 4,172 5,571 4,018 Interest expense, net 18,931 20,673 17,430 17,727 Provision for income taxes 21,131 17,078 17,743 15,636 Stock-based compensation 10,716 9,879 8,656 10,166 Realignment charges (a) 28,967 40,730 8,711 3,319 Acquisition and divestiture related 8,588 (18,384) 1,281 3,942 Discrete items (b) 1,928 3,076 1,500 1,500 Merger transaction costs (c) - - - 15,515 Below-the-line foreign exchange impacts (d) (9,038) 6,315 11,373 20,023 Non-Controlling Interest 4,688 2,587 5,552 6,470 Adjusted EBITDA 191,652$ 205,208$ 170,553$ 199,934$ Adjusted as a percent of sales 17.9% 17.6% 14.9% 16.8%
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Brian Ezzell, Vice President, Investor Relations, Treasurer & Corporate Finance Olivia Webb, Director, Investor Relations investorrelations@flowserve.com Investor Relations Contacts