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Q3 2026 EARNINGS CONFERENCE CALL October 29, 2026
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2Q3 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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 integrating 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 2026 Earnings Conference Call SUMMARY • Significant Q3 bookings growth of +14% (+8% organic) • Record aftermarket bookings of $728 million • Record backlog of $3.5 billion, up +20% • Adjusted operating margin* expansion of +170 bps, adjusted EPS* growth of +19% • Confidence in full-year mid-single digit organic bookings growth • Revised full-year 2026 guidance • Raised low end of adjusted EPS range on strong year-to-date performance • Lowered sales outlook on Middle East disruption • Advancing toward our 2030 financial targets Execution delivers; bookings build future growth * See appendix for reconciliation to corresponding GAAP-based measure Note: Comparisons are to Q3 2025 unless otherwise noted
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4Q3 2026 Earnings Conference Call Q3 2026 BOOKINGS AND BACKLOG OVERVIEW BOOKINGS $ millions 653 728 560 656 1,213 1,384 Q3 2025 Q3 2026 +17% Original Equipment Double-digit growth driven by strong commercial activity from global projects +11% Aftermarket Over $700 million of aftermarket bookings and fifth consecutive quarter greater than $650 million +14% +8% organic Original Equipment Aftermarket Note: Comparisons are to Q3 2025 unless otherwise noted 2,896 3,472 BACKLOG $ millions +20% Q3 2025 Q3 2026 +4% vs. Q2 2026 1.12x book-to-bill
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5Q3 2026 Earnings Conference Call Q3 2026 BOOKINGS AND MARKET OUTLOOK Q3 2026 End Market Mix Q3 2026 Bookings Growth YTD 2026 Bookings Growth 38% Energy +40% +25% 28% General Industries (8%) (1%) 17% Chemical Flat +3% 17% Power +23% +12% • Strong project bookings were partially offset by lower Middle East run-rate bookings • End market fundamentals remain healthy and operating environment remains favorable for global aftermarket growth • Energy growth driven by accelerating global investments in energy security and LNG • Continued strength in nuclear and traditional power; Q3 nuclear bookings of over $115 million • Expect full-year mid-single-digit organic bookings growth; YTD organic bookings +6% Mark SixTM Cryogenic Service Control Valve Supports Space Applications
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6Q3 2026 Earnings Conference Call MIDDLE EAST UPDATE Q3 2026 • Continued long-term progress while short-term has been challenged • Project bookings increased, led by large energy project awards • More challenging operating environment in late Q3, negatively impacting book and ship activity • Q3 sales negatively impacted ~$40 million, modestly larger than expected • Working capital headwind from delayed Middle East shipments and modestly slower collections Q4 2026 and Beyond • Q4 assumes current operating environment continues, with a larger sales headwind than Q3 • Project funnel remains active; anticipate some project approvals moving to 2027 • Modest rebuild bookings in Q3; total opportunity now exceeds prior ~$50 million estimate • Resilience and redundancy projects more likely in 2027 More challenging operating environment near term; medium-term opportunity remains
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7Q3 2026 Earnings Conference Call FLOWSERVE BUSINESS SYSTEM • On track for ~16% adjusted operating margin* in 2026, advancing toward 2030 target of 20% • Year three of 80/20 program, with further margin improvement expected over at least the next two years • Trillium 80/20 actions underway, with opportunities to reduce complexity and deliver synergies • Portfolio simplification and productivity gains accelerating roofline consolidation opportunities, with potential for additional cost savings * See appendix for reconciliations of historical non-GAAP measures. Reconciliations of forward-looking non-GAAP measures are not provided due to the inherent difficulty and unreasonable effort required to forecast certain amounts included in the most directly comparable GAAP measures.
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8Q3 2026 Earnings Conference Call Q3 2026 INCOME STATEMENT HIGHLIGHTS * See appendix for reconciliation to corresponding GAAP-based measure Note: Comparisons are to Q3 2025 unless otherwise noted 1 Organic is defined as the change in sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions and divestitures. $1.2B SALES +5% 36.7% ADJ. GROSS MARGIN* +190 bps 16.5% ADJ. OPERATING MARGIN* +170 bps Disciplined execution drove margin expansion and double-digit adjusted EPS growth $1.07 ADJ. EPS* +19% Q3 2026 vs. Q3 2025 Sales Bridge Implied Underlying Growth ~3 pt Middle East (~3 pt) 80/20 Headwind (~1 pt) Organic Sales1 (1.2%) Acquisitions / Divestitures 670 bps Foreign Exchange (10 bps) Reported Sales +5.4%
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9Q3 2026 Earnings Conference Call Q3 2026 SEGMENT HIGHLIGHTS FCD Q3 2026 Year-Over-Year $446M 12.6%2 $412M 9.1%2 33.2% 110 bps $67M 9.1% 16.3% Flat 1.08x FPD Q3 2026 Year-Over-Year $940M 14.7%1 $830M 3.8%1 38.1% 220 bps $181M 15.4% 21.8% 220 bps 1.13x * See appendix for reconciliation to corresponding GAAP-based measure 1 FPD organic bookings grew +10.9% and organic sales declined (0.9%) 2 FCD organic bookings grew +0.8% and organic sales declined (1.3%) • Bookings growth driven by energy, power, general industries, and aftermarket • Adj. operating margin flat, including Middle East headwinds • Strong original equipment and aftermarket bookings growth driven by energy, power, and chemical • 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 Middle East operating environment negatively impacted FPD and FCD book and ship activity
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10Q3 2026 Earnings Conference Call Q3 2026 CASH FLOW AND BALANCE SHEET • $144 million of cash from operations from strong earnings and continued working capital management, partially offset by Middle East headwinds • Third quarter free cash flow-to-adjusted net earnings* of 92%1 • Expect full-year free cash flow-to-adjusted net earnings1 of ~80% • Returned $78 million to shareholders in Q3, including $50 million of share repurchases and $28 million of dividends • Board of Directors approved increasing share repurchase authorization to $500 million effective October 2026, reinforcing commitment to long-term shareholder value creation NET LEVERAGE2 1.8x 1.5x Q2 2026 Q3 2026 * See appendix for reconciliations of historical non-GAAP measures. 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 $129 $144 Q2 2026 Q3 2026
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11Q3 2026 Earnings Conference Call 2026 FULL-YEAR GUIDANCE AND Q4 2026 ASSUMPTIONS • Expect full-year adjusted operating margin* expansion of ~150 bps • Guidance reflects increasingly challenging conditions in the Middle East * See appendix for reconciliations of historical non-GAAP measures. Reconciliations of forward-looking non-GAAP measures are not provided due to the inherent difficulty and unreasonable effort required to forecast certain amounts included in the most directly comparable GAAP measures. 1 Organic growth (2.5%) to (1.5%), Acquisition/Divestiture approx. +350 bps, and Foreign Exchange approx. +100 bps. Guidance reflects tariff rates in place as of October 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. Q4 2026 Specific Assumptions • Organic sales growth of mid-single digits • Total sales growth of low double digits • Adjusted operating margin* expected to expand sequentially from Q3 Prior Current Organic Sales Growth Approximately (1%) (2.5%) to (1.5%) Total Sales Growth1 Approximately +3% +2% to +3% Adjusted EPS2* $4.05 to $4.20 $4.10 to $4.20 Net Interest Expense ~$85 million ~$85 million Adjusted Tax Rate 21% to 22% 21% to 22% Capital Expenditures ~$100 million ~$90 million 2026 Full-Year Guidance
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12Q3 2026 Earnings Conference Call SUMMARY • Significant Q3 bookings growth of +14% (+8% organic) • Record aftermarket bookings of $728 million • Record backlog of $3.5 billion, up +20% • Adjusted operating margin* expansion of +170 bps, adjusted EPS* growth of +19% • Confidence in full-year mid-single digit organic bookings growth • Revised full-year 2026 guidance • Raised low end of adjusted EPS range on strong year-to-date performance • Lowered sales outlook on Middle East disruption • Advancing toward our 2030 financial targets Execution delivers; bookings build future growth * See appendix for reconciliation to corresponding GAAP-based measure Note: Comparisons are to Q3 2025 unless otherwise noted
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13Q3 2026 Earnings Conference Call Appendix
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14Q3 2026 Earnings Conference Call Q3 2026 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Three Months Ended September 30, 2026 Gross Profit Selling, General & Administrative Expense Gain on Sale of Business Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 414,380$ 281,937$ 16,177$ 154,606$ (8,184)$ 15,090$ 103,038$ 12.4% 0.81 Reported as a percent of sales 33.5% 22.8% 1.3% 12.5% -0.7% 1.2% 8.3% Realignment charges (a) 25,971 (6,018) (16,177) 15,812 - (6,260) 22,072 -39.6% 0.17 Acquisition and divestiture related (b) - (5,275) - 5,275 - 1,241 4,034 23.5% 0.03 Amortization of intangible assets (c) 13,898 (6,765) - 20,663 - 2,874 17,789 13.9% 0.14 Discrete items (d) - (7,830) - 7,830 1,000 190 8,640 2.2% 0.07 Discrete tax items (e) - - - - - 23,072 (23,072) 0.0% (0.18) Below-the-line foreign exchange impacts (f) - - - - 5,132 442 4,690 8.6% 0.04 Adjusted 454,249$ 256,049$ -$ 204,186$ (2,052)$ 36,649$ 137,191$ 20.6% 1.07 Adjusted as a percent of sales 36.7% 20.7% 0.0% 16.5% -0.2% 3.0% 11.1% (f) 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 and includes the foreign exchange loss on the Blue Chip Swap Securities transaction. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs and includes the gain on divestiture of our PMV Automation business (PMV) within FCD. (b) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO), and the divestiture of PMV. (c) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories. (d) Charge represents the $7,972 strategic acquisition of intellectual property within FPD, an immaterial adjustment to transaction costs related to the divestiture of our asbestos-related assets and liabilities that were adjusted out in a prior period and $1,000 for non-cash pension settlement accounting losses incurred in conjunction with the U.S. pension plan. (e) Discrete tax adjustment includes the impact from the release of a valuation allowance in Italy.
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15Q3 2026 Earnings Conference Call YTD 2026 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Nine Months Ended September 30, 2026 Gross Profit Selling, General & Administrative Expense Gain on Sale of Business Net earnings from affiliates Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 1,178,947$ 811,655$ 16,177$ 41,992$ 425,461$ (13,272)$ 53,299$ 283,717$ 15.3% 2.21 Reported as a percent of sales 33.9% 23.4% 0.5% 1.2% 12.2% -0.4% 1.5% 8.2% Realignment charges (a) 75,452 (26,234) (16,177) - 85,509 - 6,773 78,736 7.9% 0.61 Acquisition and divestiture related (b)(c) - (23,179) - (27,700) (4,521) - 5,554 (10,075) -122.8% (0.08) Amortization of intangible assets (d) 16,454 (12,113) - - 28,567 - 4,394 24,173 15.4% 0.19 Discrete items (e)(f) 62 (8,719) - - 8,781 5,576 1,491 12,866 10.4% 0.10 Discrete tax items (g) - - - - - - 23,072 (23,072) 0.0% (0.18) Below-the-line foreign exchange impacts (h) - - - - - 2,409 255 2,154 10.6% 0.02 Adjusted 1,270,915$ 741,410$ -$ 14,292$ 543,797$ (5,287)$ 94,838$ 368,499$ 20.0% 2.87 Adjusted as a percent of sales 36.6% 21.3% 0.0% 0.4% 15.6% -0.2% 2.7% 10.6% (f) Charges include $5,576 for non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada. (g) Discrete tax adjustment includes the impact from the release of a valuation allowance in Italy. (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 and includes the foreign exchange loss on the Blue Chip Swap Securities transaction. 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. Also includes the gain on divestiture of our PMV Automation business (PMV) within FCD. (b) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO), and the divestiture of PMV. (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 and step-up in value of acquired inventories. (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 U.S. Qualified pension plan, $286 of transaction costs related to the divestiture of our asbestos-related assets and liabilities and the $7,972 strategic acquisition of intellectual property within FPD.
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16Q3 2026 Earnings Conference Call Q3 2025 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Three Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 380,286$ 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% (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. (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 U.S. Qualified pension plan. (e) Charge of $1,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our U.S. Qualified pension plan. (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. (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. Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $2,300 is non-cash. (b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. (c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
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17Q3 2026 Earnings Conference Call YTD 2025 CONSOLIDATED FINANCIAL RESULTS Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Nine Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported 1,156,202$ 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. (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. (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 U.S. Qualified pension plan. (e) Charge of $4,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our U.S. 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 $5,300 is non-cash.
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18Q3 2026 Earnings Conference Call Q3 2026 AND Q3 2025 SEGMENT FINANCIAL RESULTS Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Three Months Ended September 30, 2026 Gross Profit Selling, General & Administrative Expense Operating Income Three Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported 314,255$ 152,218$ 168,023$ Reported 265,776$ 135,046$ 134,869$ Reported as a percent of sales 37.8% 18.3% 20.2% Reported as a percent of sales 33.2% 16.9% 16.9% Realignment charges (a) (869) (534) (335) Realignment charges (a) 21,628 (88) 21,716 Discrete items (b) - (7,967) 7,967 Discrete items (b) 24 (63) 87 Amortization of intangible assets (d) 2,916 (2,276) 5,192 Adjusted 287,428$ 134,895$ 156,672$ Adjusted 316,302$ 141,441$ 180,847$ Adjusted as a percent of sales 35.9% 16.9% 19.6% Adjusted as a percent of sales 38.1% 17.0% 21.8% Flow Control Division Three Months Ended September 30, 2026 Gross Profit Selling, General & Administrative Expense Gain on Sale of Business Operating Income Three Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported 98,906$ 80,889$ 16,177$ 34,194$ Reported 114,250$ 67,810$ 46,440$ Reported as a percent of sales 24.0% 19.7% 3.9% 8.3% Reported as a percent of sales 30.3% 18.0% 12.3% Realignment charges (a) 26,840 (3,762) (16,177) 14,425 Realignment charges (a) 4,386 (2,395) 6,781 Acquisition and divestiture related (c) - (2,956) - 2,956 Acquisition related (c) 9 (4,243) 4,252 Amortization of intangible assets (d) 10,982 (4,489) - 15,471 Purchase accounting step-up and intangible asset amortization (d) 2,625 (1,300) 3,925 Adjusted 136,728$ 69,682$ -$ 67,046$ Discrete items (b) 5 (45) 50 Adjusted as a percent of sales 33.2% 16.9% 0.0% 16.3% Adjusted 121,275$ 59,827$ 61,448$ Adjusted as a percent of sales 32.1% 15.9% 16.3% 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 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 U.S. Qualified pension plan. (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 and includes the gain on divestiture of our PMV Automation business (PMV) within FCD. (c) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Trillium Valves and the divestiture of PMV with FCD. (d) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories. (b) Charge represents the $7,967 strategic acquisition of intellectual property within FPD.
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19Q3 2026 Earnings Conference Call YTD 2026 AND 2025 SEGMENT FINANCIAL RESULTS Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Nine Months Ended September 30, 2026 Gross Profit Selling, General & Administrative Expense Net earnings from affiliates Operating Income Nine Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported 880,323$ 447,390$ 41,992$ 474,925$ Reported 833,467$ 415,126$ 434,128$ Reported as a percent of sales 36.8% 18.7% 1.8% 19.9% Reported as a percent of sales 34.7% 17.3% 18.1% Realignment charges (a) 19,740 (10,067) - 29,807 Realignment charges (a) 26,495 (840) 27,335 Discrete items (b)(c) 48 (8,063) - 8,111 Discrete items (b) 87 (287) 374 Acquisition and divestiture related (d)(e) - (813) (27,700) (26,887) Adjusted 860,049$ 413,999$ 461,837$ Amortization of intangible assets (f) 5,372 (5,022) - 10,394 Adjusted as a percent of sales 35.8% 17.2% 19.2% Adjusted 905,483$ 423,425$ 14,292$ 496,350$ Adjusted as a percent of sales 37.9% 17.7% 0.6% 20.8% Flow Control Division Nine Months Ended September 30, 2026 Gross Profit Selling, General & Administrative Expense Gain on Sale of Business Operating Income Nine Months Ended September 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Reported 296,399$ 225,648$ 16,177$ 86,928$ Reported 322,131$ 206,437$ 115,694$ Reported as a percent of sales 27.0% 20.6% 1.5% 7.9% Reported as a percent of sales 28.9% 18.5% 10.4% Realignment charges (a) 55,712 (476) (16,177) 40,011 Realignment charges (a) 14,704 1,230 13,474 Discrete items (b) 10 (75) - 85 Acquisition related (c) 761 (8,714) 9,475 Acquisition and divestiture related (d) - (19,121) - 19,121 Purchase accounting step-up and intangible asset amortization (d) 8,742 (3,900) 12,642 Amortization of intangible assets (f) 11,082 (7,091) - 18,173 Discrete items (b) 14 (208) 222 Adjusted 363,203$ 198,885$ -$ 164,318$ Adjusted 346,352$ 194,845$ 151,507$ Adjusted as a percent of sales 33.1% 18.1% 0.0% 15.0% Adjusted as a percent of sales 31.1% 17.5% 13.6% 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 U.S. Qualified pension plan. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. Note: Amounts may not calculate due to rounding (f) Charges represent non-cash amortization of intangible assets and step-up in value of acquired inventories. (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. Also includes the gain on divestiture of our PMV Automation business (PMV) within FCD. (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 U.S. Qualified pension plan. (d) Charges represent costs associated with strategic acquisition and divestiture activities including the acquisitions of Greenray, Trillium Valves and Flowserve Al Mansoori Services Company (FAMCO), and the divestiture of PMV. (c) Charge represents the $7,967 strategic acquisition of intellectual property within FPD. (e) Adjustment represents a $27,700 gain recognized in Net earnings from affiliates on the remeasurement of our previously held equity interest in FAMCO.
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20Q3 2026 Earnings Conference Call 2026 SEGMENT BOOKINGS AND SALES Note: Amounts may not calculate due to rounding (a) Foreign exchange (FX) impact reflects a year-over-year change in foreign currency translation. (b) Organic is defined as the change excluding the impacts of foreign currency translation and acquisitions and divestitures. (c) Bookings and sales do not include interdivision eliminations. (Unaudited) Bookings (dollars in millions) Q3 2026 Q3 2025 Reported Change Acquisitions / Divestitures Impact FX Impact (a) Organic (b) Change YTD 2026 YTD 2025 Reported Change Acquisitions / Divestitures Impact FX Impact (a) Organic (b) Change Flowserve Pumps Division Original Equipment 334$ 268$ 24.6% 0.7% (0.4%) 24.3% 887$ 731$ 21.3% 0.1% 1.6% 19.6% Aftermarket 606$ 551$ 10.0% 5.4% 0.1% 4.5% 1,759$ 1,664$ 5.7% 2.4% 2.0% 1.3% FPD Total Bookings (c) 940$ 819$ 14.7% 3.9% (0.1%) 10.9% 2,646$ 2,395$ 10.5% 1.8% 1.9% 6.8% Flow Control Division Original Equipment 323$ 292$ 10.6% 10.6% (0.3%) 0.3% 883$ 821$ 7.6% 3.8% 0.6% 3.2% Aftermarket 123$ 104$ 19.0% 16.2% (0.2%) 3.0% 353$ 305$ 15.8% 5.5% 1.2% 9.1% FCD Total Bookings (c) 446$ 396$ 12.6% 12.2% (0.4%) 0.8% 1,236$ 1,126$ 9.8% 4.3% 0.7% 4.8% Sales (dollars in millions) Q3 2026 Q3 2025 Reported Change Acquisitions / Divestitures Impact FX Impact (a) Organic (b) Change YTD 2026 YTD 2025 Reported Change Acquisitions / Divestitures Impact FX Impact (a) Organic (b) Change Flowserve Pumps Division Original Equipment 251$ 278$ (9.7%) 0.7% (0.4%) (10.0%) 708$ 845$ (16.2%) (1.5%) 1.3% (16.0%) Aftermarket 579$ 522$ 10.9% 6.8% 0.2% 3.9% 1,681$ 1,557$ 7.9% 2.7% 2.1% 3.1% FPD Reported Sales (c) 830$ 800$ 3.8% 4.7% 0.0% (0.9%) 2,389$ 2,402$ (0.6%) 1.2% 1.8% (3.6%) Flow Control Division Original Equipment 293$ 274$ 6.9% 9.5% (0.4%) (2.2%) 792$ 824$ (3.9%) 3.2% 0.2% (7.3%) Aftermarket 119$ 103$ 15.1% 14.5% 0.1% 0.5% 304$ 289$ 5.2% 5.2% 1.4% (1.4%) FCD Reported Sales (c) 412$ 377$ 9.1% 10.8% (0.4%) (1.3%) 1,096$ 1,113$ (1.5%) 3.7% 0.6% (5.8%)
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21Q3 2026 Earnings Conference Call ADJUSTED EBITDA RECONCILIATION Consolidated Reconciliations of Net Income to Adjusted EBITDA (Unaudited) (Amounts in thousands) Three Months Ended March 31, Three Months Ended June 30, Three Months Ended September 30, Three Months Ended March 31, Three Months Ended June 30, Three Months Ended September 30, 2026 2026 2026 2025 2025 2025 Net earnings attributable to Flowserve Corporation 81,681$ 98,998$ 103,038$ 73,905$ 81,754$ 219,582$ Add back: Depreciation expense 20,329 20,085 21,123 18,831 19,864 19,990 Amortization expense 3,731 4,172 16,847 5,571 4,018 4,420 Interest expense, net 18,931 20,673 24,279 17,430 17,727 17,946 Provision for (benefit from) income taxes 21,131 17,078 15,090 17,743 15,636 93,688 Stock-based compensation 10,716 9,879 9,874 8,656 10,166 6,965 Realignment charges (a) 28,967 40,730 15,812 8,711 3,319 30,052 Acquisition and divestiture related 8,588 (18,384) 5,275 1,281 3,942 4,252 Discrete items (b) 1,928 3,076 8,830 1,500 1,500 31,622 Merger transaction costs (c) - - - - 15,515 25,682 Merger termination payment (d) - - - - - (266,000) Below-the-line foreign exchange impacts (e) (9,038) 6,315 5,132 11,373 20,023 5,401 Non-Controlling Interest 4,688 2,587 4,015 5,552 6,470 4,276 Adjusted EBITDA 191,652$ 205,208$ 229,315$ 170,553$ 199,934$ 197,876$ Adjusted as a percent of sales 17.9% 17.6% 18.5% 14.9% 16.8% 16.8% Note: Amounts may not calculate due to rounding (a) Realignment charges are defined as costs incurred as part of actions taken to reposition our business, including items such as professional fees, severance, relocation, travel, facility set-up and other costs. (b) Discrete items include non-cash pension settlement accounting losses incurred in conjunction with pension plans in the United States and Canada in 2025 and 2026 and a non-cash adjustment to our estimated liability for incurred but not reported asbestos claims based on an annual actuarial study in 2025. (c) 2025 charge represents transaction costs incurred associated with the terminated Chart Industries merger. (d) 2025 amount represents the Chart Industries merger termination fee paid to Flowserve. (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.
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Olivia Webb, Director, Investor Relations investorrelations@flowserve.com Investor Relations Contact