Flowserve Corporation Reports Third Quarter 2025 Results

October 28, 2025

3D Growth Strategy and Flowserve Business System Deliver Strong Q3 Performance; Increases Full-Year Earnings Guidance

DALLAS–(BUSINESS WIRE)–Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, reported its financial results for the third quarter ended September 30, 2025.

Highlights:

Third quarter bookings of $1.2 billion, including 6% growth in aftermarket bookings to over $650 million
Power bookings increased 23% year-over-year, with $140 million in nuclear awards during the third quarter
Gross margin and adjusted¹ gross margin² of 32.4% and 34.8%, respectively, increased 90 and 240 basis points versus the prior year period
Operating margin of 6.7% decreased 240 basis points and adjusted operating margin³ of 14.8% expanded 370 basis points compared to last year
Reported and Adjusted Earnings Per Share (EPS)⁴ of $1.67 and $0.90, respectively. Reported EPS includes adjusted items of 77 cents, comprised of a merger termination payment and discrete tax items, among other items
$402 million cash from operations driven by earnings improvement and merger termination payment, with $173 million of cash returned to shareholders through dividends and share repurchases
Increased full-year 2025 Adjusted EPS guidance from $3.25-$3.40 to $3.40-$3.50, an increase of more than 30% at the midpoint of the range versus last year
Announced transaction to divest legacy asbestos liabilities, allowing Company to focus capital allocation priorities on growth and value enhancing opportunities

Management Commentary:

“Flowserve delivered another quarter of exceptional performance highlighted by strong revenue growth, significant margin and earnings expansion, and robust cash generation. This performance enabled us to repurchase over $140 million shares during the quarter. Consistent execution of our strategy has enabled us to maintain momentum, led by the strength of our aftermarket franchise and a resurgent Power and Nuclear end market fueled by growth of AI, increasing data center development, and broader electrification trends. We remain focused on leveraging the Flowserve Business System and our 80/20 initiatives to accelerate margin expansion, deliver outsized growth, and execute with excellence,” said Scott Rowe, Flowserve’s President and Chief Executive Officer.

Rowe continued, “Following three consecutive quarters of strong execution and performance, we are increasing our full-year earnings outlook. Our revised outlook represents a substantial year-over-year improvement, reinforces our confidence in the trajectory of the business, and marks an important step toward achieving our long-term targets and delivering sustained value for our shareholders.”

Key Figures:

(dollars in millions, except per share)	2025 Q3	2024 Q3	Change	YTD 2025	YTD 2024	Change
Backlog	$2,896.1	$2,783.8	4.0%	$2,896.1	$2,783.8	4.0%
Bookings	$1,213.0	$1,203.6	0.8%	$3,511.2	$3,487.2	0.7%
Original Equipment	$559.9	$589.0	(4.9%)	$1,548.9	$1,682.9	(8.0%)
Aftermarket	$653.1	$614.6	6.3%	$1,962.3	$1,804.3	8.8%
Sales⁵	$1,174.4	$1,133.1	3.6%	$3,507.1	$3,377.5	3.8%
Organic			(30 bps)			90 bps
Acquisitions			260 bps			280 bps
Foreign Exchange			130 bps			10 bps
Operating Margin	6.7%	9.1%	(240) bps	10.2%	10.0%	20 bps
Adjusted Operating Margin	14.8%	11.1%	370 bps	14.1%	11.5%	260 bps
Earnings Per Share	$1.67	$0.44	279.5%	$2.85	$1.55	83.9%
Adjusted Earnings Per Share	$0.90	$0.62	45.2%	$2.53	$1.93	31.1%
Cash From Operations	$401.8	$178.5	$223.3	$506.1	$228.0	$278.1

2025 Guidance:

The Company updated its full-year 2025 guidance, including increasing its Adjusted EPS target range. The guidance range reflects tariff rates in place as of today.

	Prior Range	Current Range
Organic sales growth	+3% to +4%	~ 2%
Impact from acquisitions	Approx. +200 bps	Approx. +200 bps
Impact from foreign exchange translation	Approx. 0 bps	Approx. 50 bps
Total sales growth	+5% to +6%	+4% to +5%
Adjusted EPS	$3.25 to $3.40	$3.40 to $3.50
Net interest expense	Approx. $70 million	Approx. $70 million
Adjusted tax rate	Approx. 20%	Approx. 20%
Capital expenditures	$80 to $90 million	Approx. $75 million

Divestment of Legacy Asbestos Liabilities:

In a separate press release today, the Company also announced it had reached an agreement to divest of its legacy asbestos liabilities. The transaction allows the Company to focus on allocating capital to growth enhancing opportunities.

Webcast and Conference Call Instructions:

Flowserve will host its conference call to discuss third quarter results on Wednesday, October 29, at 10:00 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve’s Investors page.

Footnotes (pages 1-2)

¹ See Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) and Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) tables for a detailed reconciliation of reported results to adjusted measures.

² Adjusted gross margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding the adjusted items.

³ Adjusted operating margin is calculated by dividing adjusted operating income by sales. Adjusted operating income is derived by excluding the adjusted items.

⁴ Adjusted 2025 EPS excludes potential realignment expenses, below-the-line foreign currency effects, actuarial-determined assessments of certain long-term liabilities and certain other discrete items which may arise during the year and utilizes foreign exchange rates of the prior 30-day period and approximately 131 million fully diluted shares.

⁵ Organic is defined as the change in Sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions. The impact of currency translation is calculated by translating current year results on a monthly basis at prior year exchange rates for the same period.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended September 30,
(Amounts in thousands, except per share data)		2025			2024

Sales	$	1,174,434		$	1,133,087
Cost of sales		(794,148	)		(776,020	)
Gross profit		380,286			357,067
Selling, general and administrative expense		(305,152	)		(259,025	)
Net earnings from affiliates		4,138			5,150
Operating income		79,272			103,192
Interest expense		(18,738	)		(16,587	)
Interest income		792			1,403
Other income (expense), net		256,220			(5,920	)
Earnings before income taxes		317,546			82,088
Provision for income taxes		(93,688	)		(18,739	)
Net earnings, including noncontrolling interests		223,858			63,349
Less: Net earnings attributable to noncontrolling interests		(4,276	)		(4,967	)
Net earnings attributable to Flowserve Corporation	$	219,582		$	58,382

Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	1.69		$	0.44
Diluted		1.67			0.44

Weighted average shares – basic		130,315			131,395
Weighted average shares – diluted		131,235			132,247

Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands, except per share data)

Three Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate		Diluted EPS
Reported	$	380,286		$	305,152		$	79,272		$	256,220		$	93,688		$	219,582		29.5	%	1.67
Reported as a percent of sales		32.4	%		26.0	%		6.7	%		21.8	%		8.0	%		18.7	%
Realignment charges (a)		25,481			(4,571	)		30,052			–			6,907			23,145		23.0	%	0.18
Acquisition related (b)		9			(4,243	)		4,252			–			1,000			3,252		23.5	%	0.02
Purchase accounting step-up and intangible asset amortization (c)		2,625			(1,300	)		3,925			–			1,182			2,743		30.1	%	0.02
Discrete items (d)(e)(f)		31			(30,351	)		30,382			1,500			7,499			24,383		23.5	%	0.19
Merger transaction costs (g)		–			(25,682	)		25,682			–			5,885			19,797		22.9	%	0.15
Merger termination payment (h)		–			–			–			(266,000	)		(60,957	)		(205,043	)	22.9	%	(1.56	)
Discrete tax items (i)		–			–			–			–			(24,860	)		24,860		0.0	%	0.19
Below-the-line foreign exchange impacts (j)		–			–			–			5,401			622			4,779		11.5	%	0.04
Adjusted	$	408,432		$	239,005		$	173,565		$	(2,879	)	$	30,966		$	117,498		20.3	%	0.90
Adjusted as a percent of sales		34.8	%		20.4	%		14.8	%		-0.2	%		2.6	%		10.0	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $2,300 is non-cash.
(b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition.
(c) Charge represents amortization of acquisition related intangible assets associated with the MOGAS acquisition.
(d) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
(e) Charge of $1,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan.
(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.


Three Months Ended September 30, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate		Diluted EPS
Reported	$	357,067		$	259,025		$	103,192		$	(5,920	)	$	18,739		$	58,382		22.8	%	0.44
Reported as a percent of sales		31.5	%		22.9	%		9.1	%		-0.5	%		1.7	%		5.2	%
Realignment charges (a)		6,813			(2,142	)		8,955			–			(246	)		9,201		-2.7	%	0.07
Discrete items (b)(c)		2,700			(9,500	)		12,200			–			2,869			9,331		23.5	%	0.07
Acquisition related (d)		–			(1,694	)		1,694			–			399			1,295		23.6	%	0.01
Below-the-line foreign exchange impacts (e)		–			–			–			3,184			(467	)		3,651		-14.8	%	0.03
Adjusted	$	366,580		$	245,689		$	126,041		$	(2,736	)	$	21,294		$	81,860		19.7	%	0.62
Adjusted as a percent of sales		32.4	%		21.7	%		11.1	%		-0.2	%		1.9	%		7.2	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,100 is non-cash.
(b) Charge represents a one-time $5,000 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
(c) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.
(d) Charge represents acquisition-related costs associated with the MOGAS acquisition.
(e) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.
SEGMENT INFORMATION
(Unaudited)

FLOWSERVE PUMPS DIVISION							Three Months Ended September 30,
(Amounts in millions, except percentages)								2025						2024
Bookings							$	819.5					$	886.6
Sales								800.3						782.1
Gross profit								265.8						253.2
Gross profit margin								33.2	%					32.4	%
SG&A								135.0						149.1
Segment operating income								134.9						109.3
Segment operating income as a percentage of sales								16.9	%					14.0	%

FLOW CONTROL DIVISION							Three Months Ended September 30,
(Amounts in millions, except percentages)								2025						2024
Bookings							$	396.1					$	318.4
Sales								377.4						353.1
Gross profit								114.2						106.5
Gross profit margin								30.3	%					30.2	%
SG&A								67.8						59.8
Segment operating income								46.4						46.7
Segment operating income as a percentage of sales								12.3	%					13.2	%

Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands)

Flowserve Pumps Division
Three Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Three Months Ended September 30, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	265,776		$	135,046		$	134,869		Reported	$	253,185		$	149,060		$	109,274
Reported as a percent of sales		33.2	%		16.9	%		16.9	%	Reported as a percent of sales		32.4	%		19.1	%		14.0	%
Realignment charges (a)		21,628			(88	)		21,716		Realignment charges (a)		8,415			(716	)		9,131
Discrete items (b)		24			(63	)		87		Discrete items (b)(c)		1,700			(8,000	)		9,700
Adjusted	$	287,428		$	134,895		$	156,672		Adjusted	$	263,300		$	140,344		$	128,105
Adjusted as a percent of sales		35.9	%		16.9	%		19.6	%	Adjusted as a percent of sales		33.7	%		17.9	%		16.4	%


Flow Control Division
Three Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Three Months Ended September 30, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	114,250		$	67,810		$	46,440		Reported	$	106,503		$	59,790		$	46,713
Reported as a percent of sales		30.3	%		18.0	%		12.3	%	Reported as a percent of sales		30.2	%		16.9	%		13.2	%
Realignment charges (a)		4,386			(2,395	)		6,781		Realignment charges (a)		(1,590	)		(1,379	)		(211	)
Acquisition related (c)		9			(4,243	)		4,252		Discrete items (b)		800			(400	)		1,200
Purchase accounting step-up and intangible asset amortization (d)		2,625			(1,300	)		3,925		Acquisition related (d)		–			(1,694	)		1,694
Discrete items (b)		5			(45	)		50		Adjusted	$	105,713		$	56,317		$	49,396
Adjusted	$	121,275		$	59,827		$	61,448		Adjusted as a percent of sales		29.9	%		15.9	%		14.0	%
Adjusted as a percent of sales		32.1	%		15.9	%		16.3	%

Note: Amounts may not calculate due to rounding										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.										(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,100 is non-cash.
(b) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan.										(b) Charge represents a one-time $3,700 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.										(c) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.
(d) Charge represents amortization of acquisition related intangible assets associated with the MOGAS acquisition.										(d) Charge represents acquisition-related costs associated with the MOGAS acquisition.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Nine Months Ended September 30,
(Amounts in thousands, except per share data)		2025			2024

Sales	$	3,507,069		$	3,377,458
Cost of sales		(2,350,867	)		(2,315,326	)
Gross profit		1,156,202			1,062,132
Selling, general and administrative expense		(814,237	)		(726,070	)
Loss on sale of business		–			(12,981	)
Net earnings from affiliates		15,786			14,494
Operating income		357,751			337,575
Interest expense		(58,166	)		(48,820	)
Interest income		5,063			3,746
Other income (expense), net		213,958			(12,057	)
Earnings before income taxes		518,606			280,444
Provision for income taxes		(127,067	)		(62,728	)
Net earnings, including noncontrolling interests		391,539			217,716
Less: Net earnings attributable to noncontrolling interests		(16,298	)		(12,498	)
Net earnings attributable to Flowserve Corporation	$	375,241		$	205,218

Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	2.87		$	1.56
Diluted		2.85			1.55

Weighted average shares – basic		130,910			131,520
Weighted average shares – diluted		131,836			132,343

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	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $5,300 is non-cash.
(b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition.
(c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.
(d) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
(e) Charge of $4,500 represents a non-cash pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan.
(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.


Nine Months Ended September 30, 2024	Gross Profit			Selling, General & Administrative Expense			Loss on Sale of Business			Operating Income			Other Income (Expense), Net			Provision For (Benefit From) Income Taxes			Net Earnings (Loss)			Effective Tax Rate		Diluted EPS
Reported	$	1,062,132		$	726,070		$	12,981		$	337,575		$	(12,057	)	$	62,728		$	205,218		22.4	%	1.55
Reported as a percent of sales		31.4	%		21.5	%		0.4	%		10.0	%		-0.4	%		1.9	%		6.1	%
Realignment charges (a)		20,007			(3,369	)		(12,981	)		36,357			–			2,035			34,322		5.6	%	0.26
Discrete items (b)(c)(d)		2,700			(7,500	)		–			10,200			–			2,869			7,331		28.1	%	0.06
Acquisition related (e)		–			(2,794	)		–			2,794			–			658			2,136		23.6	%	0.02
Discrete asset write-downs (f)(g)		–			(1,795	)		–			1,795			3,567			1,342			4,020		25.0	%	0.03
Below-the-line foreign exchange impacts (h)		–			–			–			–			2,068			(489	)		2,557		-23.6	%	0.02
Adjusted	$	1,084,839		$	710,612		$	–		$	388,721		$	(6,422	)	$	69,143		$	255,584		20.5	%	1.93
Adjusted as a percent of sales		32.1	%		21.0	%		0.0	%		11.5	%		-0.2	%		2.0	%		7.6	%

Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $25,100 is non-cash.
(b) Charge represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.
(c) Charge represents a one-time $5,000 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
(d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.
(e) Charge represents acquisition-related costs associated with the MOGAS acquisition.
(f) Charge represents a $1,795 non-cash write-down of a software asset.
(g) Charge represents a $3,567 non-cash write-down of a debt investment.
(h) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.

SEGMENT INFORMATION
(Unaudited)

FLOWSERVE PUMPS DIVISION	Nine Months Ended September 30,
(Amounts in millions, except percentages)		2025			2024
Bookings	$	2,394.8		$	2,488.6
Sales		2,402.4			2,363.7
Gross profit		833.5			761.3
Gross profit margin		34.7	%		32.2	%
SG&A		415.1			424.8
Segment operating income		434.1			351.1
Segment operating income as a percentage of sales		18.1	%		14.9	%

FLOW CONTROL DIVISION	Nine Months Ended September 30,
(Amounts in millions, except percentages)		2025			2024
Bookings	$	1,126.1		$	1,008.3
Sales		1,112.9			1,021.4
Gross profit		322.1			305.5
Gross profit margin		28.9	%		29.9	%
SG&A		206.4			178.8
Loss on sale of business		–			(13.0	)
Segment operating income		115.7			113.7
Segment operating income as a percentage of sales		10.4	%		11.1	%

Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands)

Flowserve Pumps Division
Nine Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Nine Months Ended September 30, 2024	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	833,467		$	415,126		$	434,128		Reported	$	761,338		$	424,824		$	351,146
Reported as a percent of sales		34.7	%		17.3	%		18.1	%	Reported as a percent of sales		32.2	%		18.0	%		14.9	%
Realignment charges (a)		26,495			(840	)		27,335		Realignment charges (a)		20,837			(1,037	)		21,874
Discrete items (b)		87			(287	)		374		Discrete items (b)(c)(d)		1,700			(6,000	)		7,700
Adjusted	$	860,049		$	413,999		$	461,837		Adjusted	$	783,875		$	417,787		$	380,720
Adjusted as a percent of sales		35.8	%		17.2	%		19.2	%	Adjusted as a percent of sales		33.2	%		17.7	%		16.1	%


Flow Control Division
Nine Months Ended September 30, 2025	Gross Profit			Selling, General & Administrative Expense			Operating Income			Nine Months Ended September 30, 2024	Gross Profit			Selling, General & Administrative Expense			Loss on Sale of Business			Operating Income
Reported	$	322,131		$	206,437		$	115,694		Reported	$	305,469		$	178,816		$	12,981		$	113,672
Reported as a percent of sales		28.9	%		18.5	%		10.4	%	Reported as a percent of sales		29.9	%		17.5	%		1.3	%		11.1	%
Realignment charges (a)		14,704			1,230			13,474		Realignment charges (a)		(602	)		(1,440	)		(12,981	)		13,819
Acquisition related (c)		761			(8,714	)		9,475		Discrete item (b)		800			(400	)		–			1,200
Purchase accounting step-up and intangible asset amortization (d)		8,742			(3,900	)		12,642		Acquisition related (e)		–			(2,794	)		–			2,794
Discrete items (b)		14			(208	)		222		Adjusted	$	305,667		$	174,182		$	–		$	131,485
Adjusted	$	346,352		$	194,845		$	151,507		Adjusted as a percent of sales		29.9	%		17.1	%		0.0	%		12.9	%
Adjusted as a percent of sales		31.1	%		17.5	%		13.6	%

Note: Amounts may not calculate due to rounding										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.										(a) Charges represent realignment costs incurred as a result of realignment programs of which $25,100 is non-cash.
(b) Charge represents non-cash share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan.										(b) Charge represents a one-time $3,700 discretionary cash transition benefit provided to certain employees in conjunction with the freeze of our US Qualified pension plan.
(c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition.										(c) Charge represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022.
(d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition.										(d) Charge represents the $7,200 strategic acquisition of intellectual property related to certain liquefied natural gas technology.
										(e) Charge represents acquisition-related costs associated with the MOGAS acquisition.