Flowserve Q2 2026 Earnings Report

Flowserve EPS Results

• Actual EPS: $0.95
• Consensus EPS: $0.86
• Beat/Miss: Beat by +$0.09
• One Year Ago EPS: $0.91

Flowserve Revenue Results

• Actual Revenue: $1.17 billion
• Expected Revenue: $1.16 billion
• Beat/Miss: Beat by +$10.50 million
• YoY Revenue Growth: -1.60%

Flowserve Announcement Details

• Quarter: Q2 2026
• Date: 7/29/2026
• Time: After Market Closes
• Conference Call Date: Thursday, July 30, 2026
• Conference Call Time: 8:30AM ET

Flowserve (NYSE:FLS) (NYSE: FLS) is a leading provider of fluid motion and control products and services. The company designs, manufactures and services engineered and industrial pumps, mechanical seals, valves and related flow management equipment. Flowserve’s offerings are utilized across a broad spectrum of end markets, including oil and gas, power generation, chemical processing, water management, pharmaceutical and semiconductor manufacturing, as well as mining and general industrial applications.

Flowserve’s product portfolio encompasses a wide range of centrifugal and positive displacement pumps, high-performance control valves, butterfly and ball valves, as well as mechanical seals and seal support systems. In addition to its extensive equipment line, the company delivers aftermarket services such as maintenance, repair, engineering support, field service, upgrades and retrofits. This combination of original equipment and lifecycle solutions is designed to optimize customer operations, reduce downtime and extend the service life of critical assets.

Formed in 1997 through the merger of several established pump and control equipment businesses, Flowserve has built a global footprint with manufacturing facilities, service centers and sales offices in more than 50 countries. Headquartered in Irving, Texas, the company serves customers across the Americas, Europe, the Middle East, Africa and Asia-Pacific. Flowserve is led by President and Chief Executive Officer Scott Rowe, who has overseen efforts to enhance operational efficiency and expand the company’s position in key end markets through innovation and targeted acquisitions.

Flowserve Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Bookings surged 26% year over year to $1.35 billion, producing a 1.15x book-to-bill ratio and a 9% year-over-year increase in backlog excluding Trillium. Aftermarket bookings reached a record nearly $700 million, while power and energy demand remained especially strong.
• Positive Sentiment: Second-quarter execution exceeded expectations, with adjusted operating margin up 70 basis points to 15.3% and adjusted EPS rising 4% to $0.95. Management cited operational excellence, 80/20 portfolio actions, commercial discipline, and favorable mix as key drivers.
• Neutral Sentiment: Flowserve modestly lowered its full-year sales outlook because of the Middle East conflict, now expecting organic sales to decline approximately 1% and total sales to grow about 3%. However, it raised the low end of adjusted EPS guidance to $4.05-$4.20 and maintained expectations for roughly 100 basis points of operating-margin expansion and double-digit EPS growth.
• Negative Sentiment: The Middle East conflict reduced year-to-date sales by approximately $60 million, or about three percentage points of organic growth, by delaying shipments, site activity, and customer payments. Management expects similar run-rate pressure in the second half, with some projects potentially shifting from 2026 into 2027.
• Positive Sentiment: The Trillium Valves acquisition closed June 30 and strengthens Flowserve’s exposure to power generation and nuclear markets, while expanding its installed base and aftermarket opportunity. Integration and 80/20 actions are expected to generate meaningful margin improvement heading into 2027, although portfolio rationalization may weigh on Trillium sales in 2027.

Presentation

[Operator]

Good day everyone. Welcome to the Flowserve second quarter 2026 earnings call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Brian Ezzell, Vice President of Investor Relations. Please go ahead, sir.

[Brian Ezzell, VP of Investor Relations at Flowserve]

Thank you. Good morning, everyone. Welcome to Flowserve's second quarter 2026 business update. I'm joined by Scott Rowe, Flowserve's President and Chief Executive Officer, and Flowserve Chief Financial Officer, Amy Schwetz. Following Scott and Amy's prepared remarks, we'll open the call for questions. Turning to slide two, our discussion will contain forward-looking statements that are based upon information available as of today. Actual results may differ due to risks and uncertainties. Refer to additional information, including our note on non-GAAP measures in our press release, earnings presentation, and SEC filings, which are available on our website. With that, I will turn it over to Scott.

[R. Scott Rowe, President and CEO at Flowserve]

Thank you, Brian. Good morning, everyone. Turning to slide three. I'd like to begin by thanking our associates around the world for their hard work, disciplined execution, and resilience in what remains a dynamic environment. The second quarter was marked by meaningful customer bookings, solid execution, and strong financial performance, building on the momentum of the Flowserve Business System and durable end market demand. Starting off with some key highlights. Bookings were a standout in the quarter, growing double digits year-over-year to $1.35 billion. With record bookings of almost $700 million and adjusted operating margin expanded 70 basis points to 15.3%. That performance drove adjusted earnings per share of $0.95, ahead of our expectations for the quarter.

[R. Scott Rowe, President and CEO at Flowserve]

Sales came in modestly ahead of what we outlined in April, down 2% on a reported basis and down 3% on an organic basis versus the prior year period, reflecting ongoing 80/20 actions and the continuing conflict in the Middle East. These results reflect the earnings power we have built over the last three years. Adjusted operating margin has expanded from 9.5% in 2023 to an expected roughly 16% this year, well on the way to our 2030 target of 20%. This expansion has been enabled through operational excellence, the 80/20 program and commercial excellence, all of which are strengthening execution, reducing complexity, and driving sustainable margin expansion.

[R. Scott Rowe, President and CEO at Flowserve]

With half the year behind us, we are updating our full year guidance, including modestly lowering our sales outlook due to the expected impact of the conflict in the Middle East, and raising the low end of our adjusted EPS guidance range to reflect strong year-to-date performance and confidence in the back half earnings. Taken together, I am incredibly pleased with the performance in the second quarter and encouraged by the continued progress we are making. Let's turn to bookings on slide four. Bookings in the second quarter were $1.35 billion, up 26% versus the prior year period, with a book-to-bill of 1.15 times. We were particularly pleased to see substantial growth in both original equipment and aftermarket bookings in the quarter. The second quarter performance builds our confidence in delivering mid-single-digit organic bookings growth for the full year.

[R. Scott Rowe, President and CEO at Flowserve]

Record aftermarket bookings of nearly $700 million grew 12% year-over-year and marked our ninth consecutive quarter above $600 million, as our focus on expanding the aftermarket business continues to deliver results and we drive higher capture rates across our large installed base. Original equipment bookings of roughly $650 million were up 44%, supported by strong commercial activity, a healthy project funnel, MRO bookings in line with expectations, and continued momentum in power and nuclear. We delivered this growth despite the ongoing challenges in the Middle East. The strength and breadth of our bookings this quarter reflect both the health of our end markets and the commercial discipline we are building through the business system and particularly commercial excellence.

[R. Scott Rowe, President and CEO at Flowserve]

Underpinning this momentum, our overall project pipeline remains robust and well-balanced across original equipment and aftermarket, giving us good visibility into elevated third quarter bookings and the back half of the year. That strength gives us confidence toward our long-term ambition of mid-single-digit organic sales growth. Importantly, our backlog also continues to grow, creating a runway for future sales growth. Backlog grew 6% sequentially and 9% versus the prior year period, excluding backlog from the Trillium acquisition. Moving to slide five. Growth was broad-based across end markets. In energy, bookings grew 48% in the quarter and 17% year to date, supported by large engineered project awards, including a large LNG project in the Middle East and another large LNG project in Canada. We saw stronger utilization and maintenance activity across many large process facilities around the world.

[R. Scott Rowe, President and CEO at Flowserve]

General Industries bookings grew 11% in the quarter and 3% year to date, with continued strength in sectors such as pharmaceuticals and water. We anticipate seeing further growth in areas like food and beverage, pharmaceuticals, mining and agriculture. Chemical bookings grew 7% in the quarter and 5% year to date, consistent with the modest gradual improvement we anticipated, including one large chemical project award in the Middle East. Power bookings grew 39% in the quarter and 7% year to date, driven by continued strength in both nuclear and traditional power generation. Notably, nuclear bookings were over $110 million in the quarter, including an award for new large reactors in Asia and several life extension awards in North America. We are encouraged by this performance, which reflects broad-based demand across existing reactors and new build activity that we expect to continue.

[R. Scott Rowe, President and CEO at Flowserve]

We remain optimistic about the growth in the nuclear sector for years to come. The underlying fundamentals across our end markets remain healthy. Our 12-month project funnel expanded again this quarter, both sequentially and year-over-year. The operating environment also remains favorable for continued global aftermarket growth. These trends reinforce our confidence in the durability of demand and keep us well-positioned to deliver on our 2030 targets. As noted last quarter, we believe the broader environment and recent volatility in the Middle East has the potential to drive increased investment in energy security and diversification activities globally, providing another potential long-term tailwind for Flowserve. While it's too early to accurately gauge the potential size of incremental energy security investments, we believe the next few years could see more spending in areas of historical Flowserve strength, like downstream refining, storage facilities, LNG, and pipelines.

[R. Scott Rowe, President and CEO at Flowserve]

Our diversification within the 3D strategy has positioned the company to manage through dynamic market conditions more effectively. We are encouraged by the bookings trends from the second quarter. Turning to the Middle East on slide six. Consistent with the situation we described at the end of the first quarter, conditions in the region were a headwind in the second quarter, primarily affecting operational activity at customer sites and the timing of customers' willingness to accept equipment deliveries. The pictures on the slide show pumps and valves at Flowserve facilities awaiting approval to ship into the Middle East region. We have seen no change in cancellation rates in the region, which remains immaterial. As you can see from the pictures, it has become more challenging to determine exactly when product deliveries may occur.

[R. Scott Rowe, President and CEO at Flowserve]

Year-to-date, Middle East sales have declined approximately $60 million, an approximate three percentage point headwind to organic sales. Given the nature of our installed base in the region, these headwinds are having a disproportionate impact on FCD as book and ship valve activity has slowed. While FPD has seen some negative impact related to parts and repairs, the larger project backlog in this segment continues to convert to sales. Our number 1 priority remains the safety of our associates across the region. We continue to support our customers as they manage in this dynamic environment. As we have done since the conflict began, we continue to be nimble in our support of our region, leveraging our global presence to best serve our Middle Eastern customers.

[R. Scott Rowe, President and CEO at Flowserve]

Looking to the second half of 2026, we continue to anticipate healthy project bookings in the Middle East, though the majority is expected to come from projects that will not convert to sales in 2026. There is also further potential for some large projects originally anticipated in 2026 to push into 2027. Regarding the rebuilding of damaged assets, we have seen some modest restoration activity in certain customer sites. The magnitude thus far has been limited. Our teams are working with customers and, in some cases, performing site assessments to determine the level of restoration activity that may be needed. While it's too early to know with certainty, we continue to view rebuild as an incremental bookings opportunity of approximately $50 million in late 2026 and into 2027. We will continue to work with our customers to help them restore and restart their assets as quickly as possible.

[R. Scott Rowe, President and CEO at Flowserve]

Looking beyond the second half of 2026 for the Middle East, we see sizable incremental opportunities in the 2027 to 2030 timeframe. We're already having discussions with customers about expanding capacity and building redundancy in assets like pipelines and storage facilities, which have the potential to provide additional growth tailwinds for Flowserve. As one of the leading suppliers of flow control solutions in the region, with a large installed base and a long legacy of customer relationships, we believe we are prepared to respond quickly and support our customers as these opportunities develop. Let's move to capital allocation on slide seven. Our intentional discipline framework continues to guide our capital allocation decisions, balancing reinvestment in business, strategic M&A, and direct returns to shareholders. We continue to see M&A as an important and attractive way to create shareholder value by growing the business, diversifying our end markets, and expanding our margins.

[R. Scott Rowe, President and CEO at Flowserve]

We closed the Trillium Valves Division acquisition on June 30th, and I would like to extend a warm welcome to the Trillium associates around the world. We're excited for you to be part of the Flowserve team. The Trillium acquisition is fully aligned with our 3D strategy and further solidifies our ability to capitalize on the power generation megatrend. It extends our leadership in mission-critical flow control solutions, enhances our service capabilities, and expands our global installed base with high aftermarket entitlement. Integration of Trillium Valves is underway using the Flowserve Business System, including our 80/20 operating principles, which we anticipate will enhance operational performance, expand margins, and allow us to serve customers with an even more powerful portfolio of products, services, and aftermarket capabilities.

[R. Scott Rowe, President and CEO at Flowserve]

In fact, we have already completed the full 80/20 data analysis. Based on this analysis, in reviewing our Trillium backlog, we expect to drive meaningful margin enhancement and support our value creation objectives moving into 2027. Though there will likely be some headwind to Trillium sales in 2027, given the 80/20 actions. In the quarter, we also completed an acquisition for the remaining equity of a joint venture company in the Middle East. This modest deployment of capital further strengthens our ability to serve customers directly in the region. Beyond M&A, we also view share repurchases as an attractive use of cash when we see dislocation between our share price and our view of the company's intrinsic value. Our healthy balance sheet, modest leverage, and improving cash generation give us the flexibility to act decisively while continuing to invest in the business.

[R. Scott Rowe, President and CEO at Flowserve]

Combined with the consistent and reliable dividend that reflects our confidence in the durability of our cash flow, returning capital to shareholders is a core discipline component of our framework. Year to date, we returned $80 million to shareholders, including $55 million of dividends and $25 million of share repurchases in the quarter at an average price of $67 per share. Additionally, we repurchased an incremental $25 million of shares in July. Across all of our capital allocation decisions, our focus remains squarely on creating long-term value for our shareholders. In summary, I could not be more pleased with our performance in the quarter and over the last several years. We are gaining momentum and confidence in our long-term 2030 financial targets. The Business System continues to drive results and guide our decision-making.

[R. Scott Rowe, President and CEO at Flowserve]

We are beginning to see the benefits of commercial excellence as we have just entered year two of execution. Operational excellence continues to be a tailwind, and our facilities are performing at the highest levels in Flowserve history. This improved productivity gives us the opportunity to drive further roofline consolidation in the years to come. We are now in the third year of portfolio excellence, with many of our business units in year two of 80/20. We are making thoughtful decisions around the portfolio, including the divestiture of a small product line in valves that we expect to close in Q3. You can expect more progress in the second half of 2026 and beyond as we continue to drive complexity reduction while leveraging the tailwinds in our end markets to grow the business with a stronger portfolio.

[R. Scott Rowe, President and CEO at Flowserve]

I'm excited about what we are doing at Flowserve and confident in our ability to continue to make significant progress in a dynamic environment. With that, I'll turn the call over to Amy to walk through our financial results and guidance in more detail.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Thank you, Scott, and good morning, everyone. Turning to income statement highlights on slide eight. Reported sales were $1.2 billion, down 2% versus the second quarter of 2025, with aftermarket sales growth of 7%, while original equipment was down 11%, primarily due to lower convertible backlog of large engineered projects. MRO sales were in line with our expectations during the quarter. Walking through the sales bridge versus the prior year, we delivered underlying growth of one percentage point, which was offset by an estimated two-point headwind from disruption in the Middle East and a two-point headwind from our 80/20 portfolio actions, resulting in organic sales down 3%. Reported sales benefited 90 basis points from acquisitions and 80 basis points from foreign exchange rates. Both organic and reported sales modestly exceeded our expectations for the quarter.

[Amy B. Schwetz, SVP and CFO at Flowserve]

We continue to make progress on our margin objectives, with adjusted gross margin expanding 100 basis points to 35.9%, our 14th consecutive quarter of year-over-year adjusted gross margin expansion, and adjusted operating margin expanding 70 basis points to 15.3%. Margin expansion in the quarter was again driven by the disciplined execution of the Flowserve Business System, with improved margins from 80/20 and strong operational execution, improved commercial discipline, and mix benefits more than offsetting lower volume. Overall, this performance was ahead of our expectation and reflects positive incrementals on lower sales. These results drove adjusted earnings per share of $0.95, up 4% versus the second quarter of 2025. Turning to slide nine. Both segments delivered strong execution and tangible progress on our full year objectives.

[Amy B. Schwetz, SVP and CFO at Flowserve]

In FPD, bookings of $938 million were up 30% versus the prior year, an exceptional result driven by strong project activity, including energy security and industrial investments, and continued aftermarket momentum as we capture more business from our large installed base. Sales were $814 million, down 1% versus the prior year period. Adjusted gross margin expanded 100 basis points to 37.8%, driven by mix benefits, 80/20 actions, and improved project execution. Adjusted operating income grew 4% to $173 million, with adjusted operating margins up 100 basis points to 21.3%. In FCD, bookings were up 18% to $417 million, with growth across both original equipment and aftermarket. FCD saw particular strength in nuclear and energy project bookings. Sales were $357 million, down 4%, largely reflecting headwinds from the Middle East run rate business and anticipated 80/20 headwinds. Adjusted gross margin expanded 30 basis points to 31.1%.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Adjusted operating income was $45 million, with adjusted operating margin up 40 basis points to 12.6%. Lower Middle East run rate volumes in the quarter, which we anticipate will return when the conflict subsides, along with the challenging executional environment in the region, moderated FCD margin expansion. Moving to Slide 10. We generated $129 million of cash from operations in the quarter, driven by higher earnings, strong working capital management, and cash receipts related to IEPA tariff refund claims accrued in the first quarter. Second quarter free cash flow was 92% of adjusted net earnings, and we continue to expect full-year free cash flow conversion of approximately 90% of adjusted net earnings. We expect cash flow to improve through the balance of 2026, following our typical seasonal patterns and reflecting focused working capital discipline.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Our second half cash flow will include modest use of cash for our accelerated footprint realignment, including roofline consolidation, which we expect will drive structural cost savings and improved operating performance over time. Additionally, in July, we received the remaining IEPA tariff cash refunds that were submitted and recognized in our first quarter results. In May, we issued $500 million of 5.7% senior notes due in 2036, with the net proceeds used to fund the Trillium acquisition, which closed on June 30th. Even with the incremental debt, our balance sheet remains very healthy, with net leverage of 1.8 times, providing flexibility for capital allocation. Turning to our full-year outlook on Slide 11. As Scott covered earlier, we delivered exceptional bookings growth in the second quarter, and we continue to expect organic bookings growth of mid-single digits for the year. The complexion of our bookings has evolved.

[Amy B. Schwetz, SVP and CFO at Flowserve]

As the ongoing conflict in the Middle East has negatively impacted our run rate, book and ship business in the region. Additionally, the strength in original equipment bookings in Q2 positions us for future sales growth. Though the impact to the second half of this year is more muted based on project start dates impacted by the conflict. This dynamic is muting near-term sales conversion, even as we continue to expand the backlog and build momentum in the back half of the year and into 2027. Based on these updates, we are modestly lowering our sales outlook to the low end of our previous range. We now expect organic sales growth to be down approximately 1%, with roughly 300 basis points of net benefit from acquisitions and divestitures, and an estimated 100 basis point benefit from foreign exchange for total sales growth of approximately 3%.

[Amy B. Schwetz, SVP and CFO at Flowserve]

We are also raising the low end of our adjusted earnings per share guidance to $4.05-$4.20, reflecting our continued confidence in delivering another year of double-digit adjusted EPS growth. We continue to expect full-year adjusted operating margin expansion of approximately 100 basis points. The Trillium acquisition is expected to expand adjusted operating profit dollars in 2026 and be roughly neutral to adjusted earnings per share when factoring in incremental financing costs. Approximately 85% of Trillium sales will reside in FCD, with the remaining 15% of pump aftermarket business in FPD starting in the third quarter. Transitioning to Slide 12. We expect year-over-year performance to accelerate in the second half of the year, with organic sales growth of approximately 5%, driven by a larger backlog, continued aftermarket strength, and steady MRO performance and increasing project activity.

[Amy B. Schwetz, SVP and CFO at Flowserve]

We anticipate the 80/20 headwind in the first half will abate through the remainder of the year. Our back half sales outlook also contemplates similar performance in the Middle East, given the ongoing conflict. We anticipate Trillium sales will also benefit back half reported growth as we deliver from the acquired backlog while implementing 80/20 portfolio actions. We expect to expand adjusted operating margins in the back half, driven by top-line growth and the associated operating leverage and the ongoing benefits from the Flowserve Business System, partially offset by the margin profile of the Trillium business backlog, expected to convert to sales in the second half of the year. Looking at the third quarter outlook, we anticipate roughly flat organic sales growth and mid-single digit total sales growth.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Third quarter adjusted operating margins are expected to expand modestly from Q2, while net earnings are expected to be similar to Q2, including the impact of the higher tax rate. Turning to Slide 13. In closing, we are proud of our strong second quarter results, particularly securing orders to underpin future revenue growth and the solid execution across the business. We remain firmly on track to deliver double-digit adjusted EPS growth in 2026 and make continued progress towards our 2030 financial targets. I want to thank our associates around the world for their continued dedication. We are confident in the near and long-term opportunities across our business and in our ability to create value for our stakeholders. With that, operator, please open the line for questions.

[Operator]

Thank you. If you are dialed in via the telephone and would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Once again, press star one to ask a question. We'll pause for just a moment to assemble the queue. We will take our first question from Andrew Kaplowitz with Citigroup.

[Andrew Kaplowitz, Analyst at Citigroup]

Good morning, everyone.

[R. Scott Rowe, President and CEO at Flowserve]

Morning, Andy.

[Andrew Kaplowitz, Analyst at Citigroup]

Scott, first half bookings growth actually turned out to be high single digits, the bar for the second half to get to mid-single digits isn't that high, but maybe you could help us dissect what actually happened in Q2 in terms of the acceleration you saw in power, energy, and general industrial. I think we all understand power, but was the energy acceleration mostly the two LNG projects you mentioned, or would you call it more broad-based across your energy businesses? Do you think your general industrial momentum is sustainable? Could Flowserve actually end up delivering, let's call it, mid-single digit plus bookings growth in 2026 if the Middle East conflict were to be resolved?

[R. Scott Rowe, President and CEO at Flowserve]

Great question, Andy, let me just start. I'll start at the very end there saying that we are confident on the mid-single digit bookings growth for the full year. We're currently at 8% year to date, our setup looks really good to deliver Q3 and Q4 in line with that. Just breaking down the quarter on bookings, I really want to start with record aftermarket bookings. Nearly $700 million. It's a great outcome for our teams. I've continued to say this on earnings calls. The team focus on aftermarket has been fantastic, and we use the mantra of speed wins and making sure that we can quote our customers quickly. Our QRCs are in the neighborhood of where they need to be in terms of operating and supporting our customers. We deliver incredibly fast.

[R. Scott Rowe, President and CEO at Flowserve]

We're going to continue to refine those processes. We're going to continue to do more to drive services and solutions for our customers. We feel good about our ability to continue to sustain growth of the aftermarket business and that franchise. I think that's probably the single biggest highlight. Maybe go into some of the end markets and projects that you asked about specifically. In the quarter, we had four larger projects, and larger being kind of greater than $20 million. Two of those were in the Middle East. We had two LNG projects, one Middle East, one in Canada. We had a large nuclear award in Asia region, we're excited about continuing to do over $100 million of nuclear. We had the fourth award was another Middle Eastern project.

[R. Scott Rowe, President and CEO at Flowserve]

I'd say, healthy on the large projects, but definitely not an over-rotation. That goes back to your point. We feel reasonably good about the sustainability of the end markets across the board. All of our end market sectors showed growth in the quarter and both year-on-year and sequentially. We feel really good about our ability to look forward. With that said, our project pipeline is up year-to-date and sequentially, that gives us good visibility into Q3 and Q4. Today, we feel confident about the mid-single digit growth into 2026. That obviously provides a really nice backdrop for 2027 in achieving that mid-single digit revenue growth in the 2027 timeframe.

[Andrew Kaplowitz, Analyst at Citigroup]

Good color. FCD margin improvement, as you know, continues to lag FPD improvement, and I think we understand the weakness in the Middle East is hurting absorption FCD. Is there anything else going on in FCD besides just under absorption that needs correcting? What's your confidence level on the second half FCD ramp and margin? Are you still assuming FCD margin improvement could exceed FPD, or is that now not in guidance?

[Amy B. Schwetz, SVP and CFO at Flowserve]

I think that in terms of FCD margin improvement, we remain confident that we've taken the actions that are necessary to improve their margins. Absent the Middle East, we would've seen over 100 basis points of improvement from FCD in the quarter. In terms of confidence in the second half, I'd just point out that actions have been taken or are well underway to really achieve that margin expansion in the second half and start to see that overdrive in terms of where we've been at historically in FCD. I'd point out 80-20 footprint acceleration, we actually have two relatively significant consolidations that have taken place and will benefit the second half of the year. Also just volume elevated from what we've secured in the backlog.

[Amy B. Schwetz, SVP and CFO at Flowserve]

The last point I'd make with FCD just overall in terms of our confidence is we have seen more seasonality historically in this business, we've expanded margins year-over-year, albeit we would've liked to have seen more in the first half of the year, but we have expanded margins over last year. Last year was a year of improvement for FCD, where we saw operating margins at over 15%. We like our setup for the back half of the year.

[Andrew Kaplowitz, Analyst at Citigroup]

Appreciate all the color.

[Operator]

We'll take our next question from Deane Dray with RBC Capital Markets.

[Deane Dray, Analyst at RBC Capital Markets]

Thank you. Good morning, everyone.

[R. Scott Rowe, President and CEO at Flowserve]

Hey, Deane. Good morning.

[Deane Dray, Analyst at RBC Capital Markets]

Hey, I really appreciate the specifics you provided on both the Middle East disruption so far, also importantly, on what kind of opportunities come out of it. Obviously, we need peace to break out for those opportunities to read through. If we can just follow up, you provided some additional color on the rebuild based upon damage to customer sites. How'd you land on that $50 million estimate? And then on the energy security build-out that as a consequence of this, the pipelines and storage, do you have any estimate on a TAM of where and how Flowserve would participate in that? Maybe we can start there. Thanks.

[R. Scott Rowe, President and CEO at Flowserve]

Yeah, Deane, it's funny you say that. I'm hoping for a ceasefire right now. Peace in the Middle East seems like a stretch and something that people have been hoping and praying for decades, if not centuries. Maybe just context for everyone. The Middle East is significant for Flowserve, right? It's roughly 12%-13%. We've got a large presence in the region, both from a manufacturing standpoint and a service standpoint. I'd say, today's situation is incredibly dynamic. We saw that over the evening. We've seen it this morning. We've seen it over the last couple of weeks. I also want to just say, we believe that this is temporary or transitory, and we do believe over the long term that this is a massive opportunity for Flowserve. Maybe to hit your specific question, I want to break the kind of categories into four things.

[R. Scott Rowe, President and CEO at Flowserve]

One is our run rate business. With our QRC network, with our large installed base across the region, we do have a substantial run rate business. That currently is down about 20%. We're being impacted by the ability to go to sites, the ability to conduct our work as we normally would, just quite frankly, our customers being distracted with other things and other priorities. You've heard in the preliminary commentary, that we expect that to continue into the second half of the year. I would say your guess is as good as mine of exactly how that plays out. In our assumptions for the second half, we're saying that we're roughly going to be the same in that category. On the large projects coming into the year, we had a significant funnel of large projects and opportunities.

[R. Scott Rowe, President and CEO at Flowserve]

We saw two of those projects come to fruition in the second quarter, which we're super excited about. We're going to begin to start some work on that with revenue more in the 2027 timeline. We'll begin executing on those projects. The project funnel is still healthy, and I would expect other awards in the second half of the year. Some of those bigger projects will most likely slip into 2027 as well. Getting to restoration. In the prepared remarks, we talked about a $50 million restoration activity. We have a full understanding of what sites have been damaged, and we're starting to get an understanding of what equipment will either get repaired or replaced. That work has been slow to develop, but every week we start to get a little bit clearer picture. At this point, we believe it's $50 million.

[R. Scott Rowe, President and CEO at Flowserve]

Activities this week, that number may go up. I would say that's a relatively good estimate given what we know right now and with the limited site access that we have. I would expect to start booking some of that in the second half of this year and then into 2027. The biggest prize is on what we're calling the category of redundancy. Think of the Middle East needing to build out redundant pipelines, incremental storage, incremental capacity. We think there's a very significant prize for this type of work. You asked for an estimate. We're not ready to provide an estimate on that type of work. We are in conversations with our customers. There's some public commentary out there about redundant pipelines already, so you could expect that we're in those conversations.

[R. Scott Rowe, President and CEO at Flowserve]

We believe we have the right to win there because of our large installed base, because of our presence in the Middle East, because of our customer relationships, and because of our existing market share in the region. As this redundancy begins to shape up and the build-out begins, I'm confident that Flowserve plays a major role in the activities in the future.

[Deane Dray, Analyst at RBC Capital Markets]

I really like how you've sized that opportunity. My second question is on aftermarket. Scott, you've been working and getting the organization, we called it project selectivity, where you were passing on OE projects that didn't have a good aftermarket. You've done this for a couple of years. Now we're seeing aftermarket pick up. How much of this growth in aftermarket is a result of prior work in selectivity? What does that say about the opportunity or the sustainability aftermarket going forward?

[R. Scott Rowe, President and CEO at Flowserve]

Sure. I think the concept that we talk about is selective bidding. When we look at the large original equipment work, we're cognizant that typically you're going to get a little bit of lower margin on that versus some of the MRO run rate aftermarket business. What we want to make sure is the OE project work that we're going to win, we want to make sure it's with customers that value our ability to provide support for the life of their asset and our ability to provide the parts, service, and repairs. That's where we get really selective is we make sure that we're winning projects that we know will have a long aftermarket tail. I'd say we've kind of pulled back a little bit on our overall large project funnel.

[R. Scott Rowe, President and CEO at Flowserve]

With that said, the work that we win is definitely going to drive large installed base. And strong aftermarket for the future. The Middle East is a region that does acknowledge and respect the OEM in terms of that aftermarket pull-through. We really are leaning into the work in the Middle East because we know they value that relationship. I said this in Andy's question a little bit earlier. We delivered $700 million of bookings in the aftermarket in the quarter, which is a record. A lot of that is really just on our process focus. The speed wins is super important, quoting fast, delivering fast, and being local to provide that support. What we're finding is when we do those things, that our capture rate moves up and our ability to capitalize on our large installed base improves.

[R. Scott Rowe, President and CEO at Flowserve]

Again, really excited about what's happening with the teams and confident that we can continue to, over time, walk up that aftermarket business on a go-forward basis.

[Deane Dray, Analyst at RBC Capital Markets]

This is all good to hear. Thank you.

[R. Scott Rowe, President and CEO at Flowserve]

Thanks, Deane.

[Operator]

Michael Halloran with Baird has our next question.

[Michael Halloran, Analyst at Baird]

Hi, everybody.

[R. Scott Rowe, President and CEO at Flowserve]

Hey, Mike. Morning.

[Michael Halloran, Analyst at Baird]

Guidance question. Morning. Thank you. Guidance question on the back half of the year. Just confirming that the $60 million headwind in the front half of the year from the Middle East is the dollar number you're roughly anticipating back half. Could you talk about the sequential ramp into the fourth quarter? Obviously it's the sharper acceleration from a growth perspective, 3Q to 4Q. There's elements of Flowserve of old in how sharp that ramp is. Just would like to understand the moving pieces behind the confidence in that kind of 4Q outlay.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Let's first half to second half, a few things that you pointed out, I think that $60 million of Middle East impact is the right ZIP code to be working with in terms of the headwind. We're essentially assuming that that run rate business that we've seen be muted in the first half of the year, that dynamic continues as we look at the second half. A couple of things that abate that we saw in the first half. The first is really that 80/20 headwind that was primarily in valves. We worked through those comps, and we see that move away from us in the second half. That was about 200 basis points over the first half of the year in terms of a sales headwind.

[Amy B. Schwetz, SVP and CFO at Flowserve]

The second is really around the North American MRO softness that we saw in the first quarter of the year. That dynamic has subsided as well. It abates as we go into the second half. You commented really on that third to fourth quarter ramp for Flowserve, and you're absolutely right that it is seasonality that we've seen in the past. I think even last year, as we actually consumed shippable backlog over the course of the year, we actually saw organic sales ramp 4% from the third quarter to the fourth quarter. The ramp that we're expecting to see from 3Q to 4Q is not out of the range of results that we've delivered in the past. I'd point out that this year we actually have seen a 9% year-over-year increase in our backlog at the end of Q2.

[Amy B. Schwetz, SVP and CFO at Flowserve]

That includes OE projects that will give us some revenue benefit in the fourth quarter of the year. We continue to have a lot of confidence in the strength of our aftermarket. The ramp in the fourth quarter is pretty well supported.

[Michael Halloran, Analyst at Baird]

Yeah. Appreciate that. Secondarily, just customers, how much hesitancy, if there is any, to move forward on some of these projects? The Middle East commentary makes a lot of sense. I'm curious outside the Middle East, if customers are moving forward at a relatively normal pace, if there's been any catch-up in some of the orders in the second quarter for what happened in the first quarter, how they're thinking about and how you are thinking about pricing in the context of the environment.

[R. Scott Rowe, President and CEO at Flowserve]

Sure, Mike. You'd have to break it by industry. I'll just start on the different industries. On the energy side, what we're seeing is energy security outside of the Middle East. We are seeing incremental activity. The LNG award in Canada came a little bit faster than we thought. We believe that some of that acceleration is possibly as a result of what's happening in the Middle East. When we look at the project funnel, there's other opportunities like that that really are trying to regionalize energy and making sure that different countries or different regions has a secure source of energy. I think you can see incremental LNG on a go-forward basis.

[R. Scott Rowe, President and CEO at Flowserve]

You see some midstream kind of build out, potentially some capital on the refining side, but I would say less OE on refining and more about making sure that they can continue to run refining assets at a really high level. If you go to power, I would say that end market or that mega trend continues to work in a big way. Right now we don't see any slowdown there, that would be both for traditional power and for nuclear. Our outlook on power remains incredibly strong. We're well positioned on the nuclear kind of backdrop, we feel good about our right to win as new awards start to move through the system.

[R. Scott Rowe, President and CEO at Flowserve]

We were very excited to get awards for two reactors in Asia in this quarter, we expect to continue to be involved in the new reactor build out, the life extension, traditional aftermarket, then ultimately in the space of SMRs. On general industries, we feel good about general industries. We saw work in the quarter Around some, you had some pharmaceutical, we had water, we had other kind of not necessarily large markets for us, but really healthy growth in demand there. I don't see that slowing down as we look at the second half of the year. The last one is chemical. We did have a large chemical award in the quarter that was in the Middle East. The rest of outside of that large order, I would say chemical business is stable.

[R. Scott Rowe, President and CEO at Flowserve]

Of all our end markets, that's the one that's roughly flat, and we feel really optimistic about the other three.

[Operator]

All right. Moving next to Nathan Jones with Stifel.

[Adam Farley, Analyst at Stifel]

Good morning. This is Adam Farley on for Nathan.

[R. Scott Rowe, President and CEO at Flowserve]

Hey, Adam.

[Adam Farley, Analyst at Stifel]

Good morning. One more on the Middle East. How should we think about working capital in 2026 from the delayed Middle East shipments and slower collections?

[R. Scott Rowe, President and CEO at Flowserve]

Yeah, I'll start, Amy can hit that. We put some pictures on the slide there of valves and pumps that are tied up at our facilities awaiting to get approval to ship to the Middle East. It's definitely having an impact. As the situation evolves there, we certainly expect to ship that and get back to a more normal place. Amy, maybe you can provide more details there.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Yeah, I think, if we look at our working capital performance in the quarter, we continue to make improvements. We want to see more in this area, the Middle East has certainly been a headwind. Scott's pointed out really two ways that we're seeing that, or one way that we're seeing that in terms of shipments just being slowed into the Middle East, which slows our cash conversion cycle, overall, particularly on that run rate business, where we're recognizing revenue and getting payments after shipment. With our POC or our sort of large project revenue, particularly out of the region, we are seeing a little bit elongated payment cycles from some of our customers as it relates to the Middle East projects.

[Amy B. Schwetz, SVP and CFO at Flowserve]

We continue to watch that carefully and ensure that we have the appropriate discipline internally to manage those collections and make sure that they're coming through overall. Working capital is going to be a focus for us, as it has been. It's an area that we've made a lot of improvements in, we continue to watch. The Middle East is just another situation that we'll manage and overcome.

[Adam Farley, Analyst at Stifel]

All right. Thank you for that color. Maybe switching gears to FPD margins, really strong in the quarter up 100 basis points year-over-year. What were the primary drivers of FPD margins in the quarter? Were there any discrete mix benefits? Maybe just expectations in the back half. Thank you.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Yeah. We're super proud of what we've been able to continue to deliver in FPD in terms of margin expansion. No unusual items in the quarter. You pointed out mix. We continue to see that strength in aftermarket. The record bookings from an aftermarket perspective are going to assist with mix. As we see the return of larger projects, that could be a year-over-year moderation that we see in the back half of the year. What we're seeing is great execution on the project side as well. That was some of the delivery that we saw in the quarter. This is the playbook.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Frankly, it's the same playbook that we're running for FPD as we look to expand margins, which is the focus on operational excellence, the discipline of the 80/20 process and making our customers happy, in terms of efficient use through our facilities. We're going to continue to do more of the same.

[Adam Farley, Analyst at Stifel]

All right. Thank you for taking my questions.

[Operator]

Moving next to Amit Mehrotra with UBS.

[Amit Mehrotra, Analyst at UBS]

Thank you. Morning. I just wanted to circle back on the aftermarket, $700 million bookings up 12%. It sounded like a lot of that strength is sort of you guys just doing things better, but I'd be curious to get a perspective on maybe price versus volume and regions and markets that kind of produce the strongest growth there. Just related to that, obviously, organic growth down 7% in the first half, inflecting to +5 in the back half. You have the bookings. I'd just be curious to understand how much of that inflection is already supported by that scheduled backlog. Any sort of variables or execution assumptions we have to make to get our confidence around basically hitting that inflection?

[R. Scott Rowe, President and CEO at Flowserve]

Yeah. I'll start with aftermarket, then Amy can talk about the inflection in the back half of the year on the sales number. Again, $700 million. We're super proud of what the team's able to accomplish there. I didn't say this earlier, but we continue to make great progress with that aftermarket business, and we're now in the ninth consecutive quarter greater than $600 million. I think we kind of established a floor here, $600 million, $650 million is kind of what we think is our entitlement and we really want to grow on the back of that. As you know, right after market continues to hold a premium in terms of margin, right? We've got a substantial portion of our aftermarket is pumps or pump parts. Pump parts come at a really high margin entitlement as well as the valve parts.

[R. Scott Rowe, President and CEO at Flowserve]

Repairs is an area that we've continued to do a much better job at growing that business and making sure that we can do the repairs efficiently for our customers, but also making sure that we can get the margin we believe that we're entitled to as we do that repair work. The teams have done a really nice job in improving the overall repair. I'd say from a price cost standpoint, the aftermarket business continues to shine. We continue to expand our margins and grow that business. I'll just go back a few years. In 2023, we made the org design change to really have a dedicated focus team across both pumps and valves. Really, that effort, that focus, is helping us drive success. The other thing would be commercial excellence.

[R. Scott Rowe, President and CEO at Flowserve]

As we're a year into our Commercial Excellence program, as I've described it historically, we're really investing in our sales force to do the good hygiene of selling. Part of that is mapping our markets, mapping our customers, making sure we have account plans, making sure that we have visibility to that installed base, and making sure our sales engineers know what that entitlement and what that prize is. We're giving them more tools to do their job. We're early days in Commercial Excellence, but we're starting to see some really nice wins which support the aftermarket growth.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Maybe turning to the organic growth assumptions in the second half of the year, I'd start by saying, just reiterating those two headwinds that we have in the first half that we know have abated and the first real around the 80/20 impact that we saw in the first half of the year, that was primarily in valves. That was about 200 basis points of headwind. That wraparound effect goes away as we look at the second half of the year in terms of those product decisions that we've made. The second is around 200 basis points of the MRO slowness that we had to start the year in North America. That situation has abated as well. We continue to see strong bookings in this area, and have gained confidence in our ability to perform at those levels.

[Amy B. Schwetz, SVP and CFO at Flowserve]

We're not assuming that the Middle East improves in terms of run rate, that's one of the reasons why we moderated, or the main reason why we moderated our organic growth guidance for the full year to accommodate those run rate book-to-ship sales that we don't expect to materialize in the back half of the year in the Middle East. That said, as we look at the remainder, which is, call it 400 basis points of organic growth in the back half of the year, are supported by a backlog that's grown 9%, excluding Trillium. We have a high degree of confidence that we have a large amount of that organic growth in the backlog already.

[Amy B. Schwetz, SVP and CFO at Flowserve]

That includes some of these project orders that we saw in the second quarter that start to convert to revenue in the fourth quarter of the year as we begin to receive materials and do the necessary engineering associated with these projects. Those are the factors that led to where we're at organically in the back half.

[Amit Mehrotra, Analyst at UBS]

Great. That's a perfect answer. Thank you, Amy. Just as a follow-up, as we think about some of these larger, longer cycle products in large energy, LNG, nuclear, et cetera, as they convert to revenue, obviously I assume there's an absorption benefit to the margin, but I'm more interested in kind of the economics of those contracts relative to kind of the P&L margin structure you have today. Is the assumption that there's a margin accretion as some of these larger energy LNG products projects kind of convert to revenue? If you could talk about that.

[Amy B. Schwetz, SVP and CFO at Flowserve]

Yeah, absolutely. The volume and the leverage that we get from that is a benefit over time. Aftermarket business is always going to be more accretive than original equipment. You can look across a number of industries and that's going to be the setup. That said, we're not taking projects that we think put a drag on our ability to achieve those 2030 margin targets. Everything that we're taking or putting into the backlog is assumed to provide us a benefit and steps towards that 2030 margin target. It's through both the margins that we achieve on that original equipment, but also that aftermarket annuity that we look to deliver on quickly in the cycle.

[Amit Mehrotra, Analyst at UBS]

Wonderful. Thank you so much. Appreciate it.

[R. Scott Rowe, President and CEO at Flowserve]

Thank you.

[Operator]

We'll take our next question from Joe Giordano with TD Cowen.

[Chris Grenga, Analyst at TD Cowen]

Hi. Good morning. This is Chris Grenga on for Joe. Thank you for taking the question. What do you view as the biggest execution risk to achieving that 4Q growth ramp? Is it gating factor, customer project timing, ability to ship against backlog, or something else?

[R. Scott Rowe, President and CEO at Flowserve]

Yeah, I think Amy hit this a little bit earlier. I'll just reiterate our confidence in our ability to do this. When we look at our shippable backlog, we look at our backlog conversion rates, this isn't something that's unusual. We just need to execute. I think the teams have done a really good job over the last three or four years of driving consistent execution. The one thing that could disrupt this is the book and ship business, potentially in the Q3 or early Q4. At this point, we've got good visibility into what the book and ship levels look like, and we track that on a regular basis. We've seen really nice step change really since March. March, April, May, and June, we've seen a nice trajectory of that run rate and in and out business.

[R. Scott Rowe, President and CEO at Flowserve]

We feel pretty good about the backdrop in the second half.

[Chris Grenga, Analyst at TD Cowen]

Thank you. You noted nuclear. When you look at the drivers behind the confidence in achieving the long-term growth plan despite Middle East disruption, where does nuclear rank among those growth vectors? Has anything changed in the pace of customer decision-making or project awards or funding over the last prior month that makes you incrementally more constructive on the outlook for nuclear?

[R. Scott Rowe, President and CEO at Flowserve]

Sure. Yeah, I would say I'm still incredibly optimistic about nuclear. Our first half awards for nuclear are up 34%. You've got some new reactor awards in there. You've got some life extensions in North America. We've got our general aftermarket. I'd say, those three levers will continue to work as we go forward. What's in the press and what people read all the time are the big kind of announcements of new traditional reactors. I would say there's a lot of stakeholders in those, right? You've got governments. In the U.S., it's states, it's utilities, it's the government. Also around the world, it's just a lot of stars have to align to make these projects successful and move forward.

[R. Scott Rowe, President and CEO at Flowserve]

I would say, talking to a lot of customers and visiting several countries in the second quarter, we still feel incredibly constructive about the backdrop for new large reactors. There's a concept in the U.S. of 10 reactors. The U.S. Department of Energy has leaned in on potential loan structure. I feel like at some point, either a utility or somebody in a private space will take the federal government up on the loan structure and move forward. Once the first one goes, I think you move pretty quickly to getting to 10 announced reactors on a go-forward basis. You've also got Europe that's a proven ground for energy and nuclear. There's some concepts in Eastern Europe and Europe proper in terms of what those new builds look like. I'd say we're relatively on track to our expectations on that.

[R. Scott Rowe, President and CEO at Flowserve]

India is moving very quickly in terms of we're moving their nuclear program forward. I feel very good about our participation and ability to serve the Indian market. You recently saw an announcement with the United States and Saudi about sharing of nuclear technology. While I don't have that in my short-term playbook, that is a win in something that will ultimately go forward. I would just say in summary, large reactors and life extensions are largely playing out like our expectations. If you remember in Q3 last year, we talked about a $10 billion number over 10 years. That's that market ability or market sizing. We believe we've got the right to win there. We're excited about what that trajectory looks like.

[R. Scott Rowe, President and CEO at Flowserve]

Maybe on the upside, the Small Modular Reactors are probably moving faster than what I expected a year ago. You've seen GE Hitachi move forward into construction. There were several announcements in July with SMR companies and the ability to meet certain technical milestones. I'd just remind people, Flowserve is incredibly well-positioned in the SMR community as we go forward. Lastly, I'd just add with the Trillium acquisition, they do really well in the nuclear space. That allows us to move up our entitlement on a reactor. We were organically about $100 million a prize per reactor. With Trillium, that moves up to kind of a $115 million number per reactor.

[R. Scott Rowe, President and CEO at Flowserve]

We continue to make sure that we're aligning our product and our technology to best support this in market, and I remain very optimistic about our growth in nuclear and our ability to participate in a large way on a global scale.

[Chris Grenga, Analyst at TD Cowen]

Thanks very much.

[Operator]

We'll take our final question today from Andrew Obin with Bank of America.

[Andrew Obin, Analyst at Bank of America]

Thanks so much. I'll squeeze in two. First one, just how much visibility do you have on MRO and turnaround sort of outage season in second half in U.S. refining? The dynamic here is weird. We're hearing they're running all out because they're making so much money, but effectively, they have to do maintenance eventually. Just color there. Second, can you remind us just timeline on LNG? How does it progress? How do your revenues progress from order until shipment, and how much visibility do you have in the funnel? Thank you so much, and thank you for taking my question.

[R. Scott Rowe, President and CEO at Flowserve]

Sure. Yeah. Andrew, on the U.S., I'll say North America refineries, a really good question. We're seeing incredibly high utilization rates. The crack spreads are high, so they're making a lot of money. That really happened from the end of February to now. We saw that dynamic in the second quarter as well. We saw one or two turnarounds that actually got pushed in the early part of the year. I'd say more realistic is just call it a skinny down turnaround, so just doing less activity, shortening the window for that, and maybe doing less work. The counter to that is if they're running flat out and don't do a turnaround, what we see is some kind of emergency spending or stacking up more spare parts in the event that they can service their business quickly.

[R. Scott Rowe, President and CEO at Flowserve]

I'd say for us, I think it's net neutral. I don't see a negative or any negative scenario where the MRO and aftermarket slows in Q3. I think when the crack spreads ultimately do subside, you'll see a more robust turnaround season potentially in 2027. We did see that in 2025, and this is why I feel like a lot of the refineries can run pretty hard in 2026 without jeopardizing their long-term program. The good refineries know that they have to do that work. We're participating in those turnarounds, and then we'll pick up the emergency type work at a premium as they're desperate to get equipment on and make sure they can keep running. Secondly-

[Andrew Obin, Analyst at Bank of America]

On the-

[R. Scott Rowe, President and CEO at Flowserve]

On the LNG-

[Andrew Obin, Analyst at Bank of America]

Yeah, thanks, Andrew.

[R. Scott Rowe, President and CEO at Flowserve]

Yeah, on the LNG timeline, kind of book to award, and it depends pumps versus valves. The pump timeline's probably 18 months. They are more engineered. The two projects that we booked this year are extensions, and so a lot of that engineering work is done. Maybe you see, call it 12 to 14 months versus an 18-month there. The valves would typically be 12 months on an LNG project.

[Andrew Obin, Analyst at Bank of America]

Thank you very much, and congratulations on good quarter.

[R. Scott Rowe, President and CEO at Flowserve]

Yeah. Thank you, Andrew.

[Operator]

Thank you. That does conclude the question and answer session. Mr. Ezzell, I will turn things back over to you for any closing comments.

[Brian Ezzell, VP of Investor Relations at Flowserve]

Great. Thank you. Thank you to everyone for joining the call today. If you do have any further questions regarding our second quarter results, please feel free to reach out to the investor relations team, we will look forward to providing another update on our business performance at the end of the third quarter. Thanks to everyone, have a great day.

Participants

Executives

• Brian Ezzell, VP of Investor Relations
• R. Scott Rowe, President and CEO
• Amy B. Schwetz, SVP and CFO

Analysts

• Andrew Kaplowitz, Analyst at Citigroup
• Deane Dray, Analyst at RBC Capital Markets
• Michael Halloran, Analyst at Baird
• Adam Farley, Analyst at Stifel
• Amit Mehrotra, Analyst at UBS
• Chris Grenga, Analyst at TD Cowen
• Andrew Obin, Analyst at Bank of America