Financial Analysis

"ACQUISITIONS Trillium Flow Technologies' Valves Division Acquisition On February 5, 2026, Flowserve signed a definitive agreement to acquire Trillium Flow Technologies Valves Division, a market leading provider of highly engineered mission-critical valves used in nuclear and traditional power generation, industrial, and critical infrastructure applications, for $490 million in cash. The transaction is expected to close mid-year 2026 and closing is subject to the satisfaction of customary closing conditions and regulatory approvals. Flowserve expects to fund the transaction through a combination of cash on hand and additional debt. The acquisition will be accounted for as a business combination under Accounting Standards Codification 805, Business Combinations , using the acquisition method of accounting. Acquisition related expenses incurred during the twelve months ended December 31, 2025 were $1.0 million and are included within SG&A expense in our condensed consolidated statement of income. Greenray Acquisition On December 16, 2025, Flowserve acquired for inclusion in FPD, United Kingdom-based Greenray Turbine Solutions, Ltd. (""Greenray""), a comprehensive provider of aftermarket products and services for industrial gas turbines, for a purchase price of $72.4 million, including cash acquired of $5.8 million. The acquisition was funded by cash on hand. The acquisition was accounted for as a business combination under ASC 805, Business Combinations , using the acquisit …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT AND FINANCE LEASE OBLIGATIONS Debt, including finance lease obligations, net of discounts and debt issuance costs, consisted of: December 31, 2025 2024 (Amounts in thousands) 3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $3,264 and $3,882, respectively 496,736 496,118 2.80% USD Senior Notes due January 15, 2032, net of unamortized discount and debt issuance costs of $3,989 and $4,585, respectively 496,011 495,415 Term Loan Facility, interest rate of 5.15% at December 31, 2025 and 5.80% at 2024, net of debt issuance costs of $736 and $993, respectively 452,389 489,632 Revolving Credit Facility, interest rate of 5.31% at December 31, 2025 100,000 Finance lease obligations and other borrowings 29,942 23,026 Debt and finance lease obligations 1,575,078 1,504,191 Less amounts due within one year 49,868 44,059 Total debt due after one year $ 1,525,210 $ 1,460,132 Scheduled maturities of our Senior Notes and other debt, are (amounts in thousands): Term Loan Senior Notes and other debt Total (Amounts in thousands) 2026 $ 40,388 $ 9,243 $ 49,631 2027 56,038 20,699 76,737 2028 74,822 74,822 2029 281,141 100,000 381,141 2030 496,736 496,736 Thereafter 496,011 496,011 Total $ 452,389 $ 1,122,689 $ 1,575,078 Senior Credit Facility On September 13, 2021, we amended and restated our credit agreement (the ""Senior Credit Agreement"") under our Senior Credit Facility (the ""Credit Facility"") with Bank of America, N.A. and the other l …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our customer revenues disaggregated by revenue source: December 31, 2025 (Amounts in thousands) FPD FCD Total Original Equipment $ 1,110,805 $ 1,108,777 $ 2,219,582 Aftermarket 2,119,431 390,247 2,509,678 $ 3,230,236 $ 1,499,024 $ 4,729,260 December 31, 2024 (Amounts in thousands) FPD FCD Total Original Equipment $ 1,152,643 $ 1,065,408 $ 2,218,051 Aftermarket 2,001,508 338,247 2,339,755 $ 3,154,151 $ 1,403,655 $ 4,557,806 December 31, 2023 (Amounts in thousands) FPD FCD Total Original Equipment $ 1,147,906 $ 938,790 $ 2,086,696 Aftermarket 1,913,087 320,794 2,233,881 $ 3,060,993 $ 1,259,584 $ 4,320,577 Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers: December 31, 2025 (Amounts in thousands) FPD FCD Total North America (1) $ 1,391,199 $ 606,091 $ 1,997,290 Latin America (1) 273,131 44,005 317,136 Middle East and Africa 601,509 234,300 835,809 Asia Pacific 384,568 360,782 745,350 Europe 579,829 253,846 833,675 $ 3,230,236 $ 1,499,024 $ 4,729,260 December 31, 2024 (Amounts in thousands) FPD FCD Total North America (1) $ 1,291,273 $ 551,101 $ 1,842,374 Latin America (1) 296,474 29,847 326,321 Middle East and Africa 542,399 223,440 765,839 Asia Pacific 425,743 363,868 789,611 Europe 598,262 235,399 833,661 $ 3,154,151 $ 1,403,655 $ 4,557,806 December 31, 2023 (Amounts in thousands) FPD FCD Total North America (1) $ 1,264,673 $ 556, …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"STOCK-BASED COMPENSATION PLANS We maintain the Flowserve Corporation 2020 Long-Term Incentive Plan (2020 Plan), which is a shareholder approved plan authorizing the issuance of 12,500,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as ""Restricted Shares""), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock. Of the shares of common stock authorized under the 2020 Plan, 5,457,089 were available for issuance as of December 31, 2025. R estricted Shares primarily vest over a three- year period. Restricted Shares granted to employees who retire and have achieved at least 55 years of age and 10 years of service continue to vest over the original vesting period (""55/10 Provision""). Stock Options Options granted to officers, other employees and directors allow for the purchase of common shares at the market value of our stock on the date the options are granted. Options generally become exercisable after three years. Options generally expire ten years from the date of the grant or within a short period of time following the termination of employment or cessation of services by an option holder. As of December 31, 2025, no stock options were outstanding and exercisable. Compensation cost associated with these stock options has been fully recognized. All of the remaining 114,943 stock options outstanding were exercised during 2025, compared to n …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included above in Note 9, Derivatives and Hedging Activities."" The fair value of the MOGAS related contingent consideration was determined based on contractual provisions set forth in the purchase agreement and was fully paid in the first quarter of 2025. The carrying value of our financial instruments as reflected in our consolidated balance sheets approximates fair value, with the exception of our long-term debt. The estimated fair value …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 are as follows: FPD FCD Total Balance as of December 31, 2023 $ 779,996 $ 402,229 $ 1,182,225 Acquisition(1) 127,249 127,249 Currency translation and other (14,256) (8,923) (23,179) Balance as of December 31, 2024 $ 765,740 $ 520,555 $ 1,286,295 Acquisition(1) 47,034 8,168 55,202 Currency translation and other 30,228 20,263 50,491 Balance as of December 31, 2025 $ 843,002 $ 548,986 $ 1,391,988 (1) In 2024, includes goodwill additions in FCD of $127.2 million related to the MOGAS acquisition. In 2025 includes goodwill additions of $47.0 million in FPD related to the Greenray acquisition and $8.2 million in FCD related to business combinations accounting measurement period adjustments for the MOGAS acquisition. See Note 2, ""Acquisitions"" for additional information. The following table provides information about our intangible assets for the years ended December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Useful Life (Years) Ending Gross Amount Accumulated Amortization Ending Gross Amount Accumulated Amortization (Amounts in thousands, except years) Finite-lived intangible assets: Engineering drawings(1) 10-22 $ 92,205 $ (92,205) $ 89,529 $ (89,529) Existing customer relationships(2) 5-10 151,216 (90,137) 126,761 (79,039) Patents 9-16 25,836 (25,836) 25,086 (25,086) Other 1-40 101,858 (63,839) 102,634 (58,800) $ 371,115 $ (272,017) $ 34 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Earnings before income taxes comprised: Year Ended December 31, 2025 2024 2023 (Amounts in thousands) U.S. $ 137,874 $ 109,794 $ 212,631 Foreign 387,524 276,361 11,119 Total $ 525,398 $ 386,155 $ 223,750 The provision (benefit) for income taxes consists of the following: Year Ended December 31, 2025 2024 2023 (Amounts in thousands) Current: U.S. federal $ 25,597 $ 36,330 $ 24,766 State and local 6,591 5,055 5,018 Foreign 75,681 56,991 51,431 Total current provision 107,869 98,376 81,215 Deferred: U.S. federal 51,375 (12,648) 3,665 State and local 4,840 (1,180) (3,374) Foreign (8,488) 381 (62,944) Total deferred provision (benefit) 47,727 (13,447) (62,653) Total: U.S. federal 76,972 23,682 28,431 State and local 11,431 3,875 1,644 Foreign 67,193 57,372 (11,513) Total provision $ 155,596 $ 84,929 $ 18,562 The following table presents the Income taxes paid (net of refunds): Year Ended December 31, 2025 (Amounts in thousands) U.S. federal $ 11,500 State and local 7,621 Foreign Austria 4,867 Germany 6,653 India 13,404 Saudi Arabia 7,163 Singapore 7,013 Spain 6,805 Other 27,303 Total $ 92,329 The provision for income taxes differs from the statutory corporate rate due to the following: Year Ended December 31, 2025 (Amounts in millions) Amount Percent Statutory federal income tax at 21% $ 110.3 21.0 % State and local income taxes, net of federal income tax effect (1) 9.7 1.8 Nontaxable or nondeductible items Nondeductible loss on asbestos divestiture 27.1 5.2 Other 0.5 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"LEGAL MATTERS AND CONTINGENCIES Divestiture of Asbestos-Related Assets and Liabilities On December 11, 2025, we completed the divestiture of all our legacy asbestos liabilities by selling BW/IP New Mexico, Inc., a Delaware corporation and previously wholly owned subsidiary of Flowserve that held the liabilities and related insurance assets. The Asbestos Divestiture was made to Ajax HoldCo LLC (the Buyer), an affiliate of Acorn Investment Partners, a portfolio company of funds managed by Oaktree Capital Management L.P. At closing, BWIP was capitalized with the related insurance assets and a total of approximately $219 million in cash, of which the Company contributed $199 million and Buyer contributed $20 million. In connection with the Asbestos Divestiture, the board of directors of each seller under the purchase agreement dated October 28, 2025 received a solvency opinion from an independent advisory firm that formed the basis (along with other inputs) for its determination that BWIP was solvent and adequately capitalized as of the date of, and after giving effect to the consummation of, the Asbestos Divestiture. As a result of the Asbestos Divestiture, the divested asbestos liabilities and related insurance assets were removed from the Companys consolidated balance sheet. Buyer has assumed management of BWIP, including the management of its claims and insurance policy reimbursements. Flowserve has no further financial exposure to the transferred liabilities and Flowserve i …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

We had $17.1 million and $0.4 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2025 and 2024. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. Other information related to our leases is as follows: December 31, 2025 2024 (Amounts in thousands) Finance Leases: ROU assets recorded under finance leases $ 47,086 $ 32,385 Accumulated depreciation associated with finance leases (21,981) (17,020) Total finance leases ROU assets, net(1) $ 25,105 $ 15,365 Total finance leases liabilities(2) $ 29,847 $ 19,990 The costs components of operating and finance leases are as follows: December 31, 2025 2024 2023 (Amounts in thousands) Operating Lease Costs: Fixed lease expense(3) $ 58,051 $ 57,862 $ 55,588 Variable lease expense(3) 10,661 8,990 8,131 Total operating lease expense $ 68,712 $ 66,852 $ 63,719 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 9,069 $ 6,800 $ 6,655 Interest on lease liabilities(4) 1,414 1,047 885 Total finance lease expense $ 10,483 $ 7,847 $ 7,540 _____________________ (1) Included in property, plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year , accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information relat …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Accounting Developments Pronouncements Implemented In August 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-05, ""Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement."" The amendments require that newly formed joint ventures measure the net assets and liabilities contributed at fair value. Subsequent measurement is in accordance with the requirements for acquirers of a business in Sections 805-10-35, 805-20-35, and 805-30-35, and other generally accepted accounting principles. The amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, but companies may elect to apply the amendments retrospectively to joint ventures formed prior to January 1, 2025, if it has sufficient information. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued (or made available for issuance), either prospectively or retrospectively. The adoption of this ASU did not have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, ""Income Taxes (Topic 740)."" The amendments require that entities on an annual basis disclose specific categories in the rate reconciliation, provide additional information for reconciling items that meet a quantitative threshold, and disclose specific information about income taxes paid. Th …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"PENSION AND POSTRETIREMENT BENEFITS We sponsor several noncontributory defined benefit pension plans, covering substantially all U.S. employees and certain non-U.S. employees, which provide benefits based on years of service, age, job grade levels and type of compensation. Retirement benefits for all other covered employees are provided through contributory pension plans, cash balance pension plans and government-sponsored retirement programs. All funded defined benefit pension plans receive funding based on independent actuarial valuations to provide for current service and an amount sufficient to amortize unfunded prior service over periods not to exceed 30 years, with funding falling within the legal limits prescribed by prevailing regulation. We also maintain unfunded defined benefit plans that, as permitted by local regulations, receive funding only when benefits become due. Our defined benefit plan strategy is to ensure that current and future benefit obligations are adequately funded in a cost-effective manner. Additionally, our investing objective is to achieve the highest level of investment performance that is compatible with our risk tolerance and prudent investment practices. Because of the long-term nature of our defined benefit plan liabilities, our funding strategy is based on a long-term perspective for formulating and implementing investment policies and evaluating their investment performance. The asset allocation of our defined benefit plans reflects our d …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"REALIGNMENT PROGRAMS In the first quarter of 2023, we identified and initiated certain realignment activities concurrent with the consolidation of our FPD aftermarket and pump operations into a single operating model. This consolidated operating model was designed to better align our go-to-market strategy with our product offerings, enable end-to-end lifecycle responsibility and accountability, and facilitate more efficient operations. During 2023, we also initiated certain product and portfolio optimization activities. Additionally, we committed to an estimated $50 million in cost reduction efforts to begin in 2023. Collectively, the above realignment activities are referred to as the ""2023 Realignment Programs."" The activities of the 2023 Realignment Programs were identified and implemented in phases throughout 2023 and 2024 and are substantially completed. In the fourth quarter of 2024, we launched the complexity reduction (""CORE"") program within the portfolio excellence category of the Flowserve Business System. We deployed the Flowserve Business System to guide the enterprise on incorporating best in class operational practices within five categories: people excellence; operational excellence; portfolio excellence; commercial excellence; and innovation excellence. The CORE program focuses on product rationalization and continuous improvement of our overall product portfolio. During 2025, we also initiated certain other portfolio and footprint optimization activities …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"REVENUE RECOGNITION The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. More complex contracts with our customers typically have longer lead times and multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. Control transfers over time when the customer is able to direct the use of and obtain substantially all of the benefits of our work as we perform. Service-related revenues do not typically represent a significant portion contracts with our customers and do not meet the thresholds requiring separate disclosure. Revenue from products and services transferred to customers over time accounted for approximately 18%, 17%, and 16% of total revenue for the years ended December 31, 2025, 2024 and 2023, respectively. Our primary method for recognizing revenue over time is the POC method. If control does not transfer over time, then control transfers at a point in time. For both POC and point-in-time methods, we recognize revenue at the level of each performance obligation based on the evaluation of certain indicators of control transfer, such as title transfer, risk of loss transfer, customer acceptance and physical possession. Revenue from products and services transferred to custo …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"BUSINESS SEGMENT INFORMATION Our business segments, which are the same as our reportable segments, share a focus on industrial flow control technology and have a high number of common customers. These segments also have complementary product offerings and technologies that are often combined in applications that provide us a net competitive advantage. Our segments also benefit from our global footprint and our economies of scale in reducing administrative and overhead costs to serve customers more cost effectively. We conduct our operations through two business segments based on type of product and how we manage the business: FPD for highly custom engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and FCD for engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related equipment. Our corporate headquarters does not constitute a separate division or business segment. Amounts classified as ""Eliminations and All Other"" include corporate headquarters costs and other minor entities that do not constitute separate segments. Inter segment sales and transfers are recorded at cost plus a profit margin, with the sales and related margin on such sales eliminated in consolidation. Flowserve's chief operating decision maker (""CODM"") is the chief executive officer. The CODM uses segment operating income or loss for both the FPD and FCD se …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS' EQUITY Dividends Generally, our dividend date-of-record is in the last month of the quarter, and the dividend is paid the following month. Any subsequent dividends will be reviewed by our Board of Directors and declared at its discretion. Dividends declared per share were as follows: Year Ended December 31, 2025 2024 2023 Dividends declared per share $ 0.84 $ 0.84 $ 0.80 Share Repurchase Program In 2014, our Board of Directors approved a $500.0 million share repurchase authorization. As of December 31, 2023, we had $96.1 million of remaining capacity under the prior share repurchase authorization. Effective February 19, 2024, the Board of Directors approved an increase in our total remaining capacity under the share repurchase program to $300.0 million, and effective August 8, 2025 the Board of Directors approved an increase in our total remaining capacity under the share repurchase program to $400.0 million, which included approximately $227.1 million of remaining capacity under the prior share repurchase authorization. Our share repurchase program does not have an expiration date and we reserve the right to limit or terminate the repurchase program at any time without notice. We repurchased 4,850,887 shares of our outstanding common stock for $254.9 million during the year ended December 31, 2025, compared to 423,785 repurchased shares for $20.1 million during the year ended December 31, 2024 and no repurchases for 2023. As of December 31, 2025, we had $197.9 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"ACQUISITIONS Trillium Flow Technologies' Valves Division Acquisition On June 30, 2026, we acquired for inclusion in FCD and Flowserve Pumps Division (""FPD""), all of the equity interests of Trillium Flow Technologies Valves Division (""TVD""), for an initial purchase price of $490 million, subject to additional preliminary closing working capital adjustments of $1.2 million, and net of cash acquired of $49.9 million. TVD is a market leading provider of highly engineered mission-critical valves used in nuclear and traditional power generation, industrial, and critical infrastructure applications. The acquisition was funded using available cash, including the use of the net proceeds from the issuance of our 2036 Senior Notes discussed in Note 7 ""Debt and Finance Lease Obligations."" The acquisition was accounted for as a business combination under Accounting Standards Codification 805, Business Combinations , using the acquisition method of accounting. The fair value of assets acquired and liabilities assumed has been recorded on a preliminary basis, including the valuation of intangible assets and opening balance sheet accounts subject to final working capital adjustments. The initial fair value estimates recorded were based primarily on purchase allocations for comparable market transactions, in addition to information available after close of the transaction. We will continue to evaluate the initial fair values, which may be adjusted as additional information relative to …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT AND FINANCE LEASE OBLIGATIONS Debt, including finance lease obligations, net of discounts and debt issuance costs, consisted of: June 30, December 31, (Amounts in thousands) 2026 2025 5.70% USD Senior Notes due May 15, 2036, net of unamortized discount and debt issuance costs of $5,501 at June 30, 2026 $ 494,499 $ 3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $2,946 and $3,264, respectively $ 497,054 $ 496,736 2.80% USD Senior Notes due January 15, 2032, net of unamortized discount and debt issuance costs of $3,685 and $3,989, respectively 496,315 496,011 Term Loan Facility, interest rate of 5.11% at June 30, 2026 and 5.15% at December 31, 2025, net of debt issuance costs of $1,119 and $736, respectively 448,881 452,389 Revolving Credit Facility, interest rate of 5.00% at June 30, 2026 150,000 100,000 Finance lease obligations and other borrowings 48,414 29,942 Debt and finance lease obligations 2,135,163 1,575,078 Less amounts due within one year 12,741 49,868 Total debt due after one year $ 2,122,423 $ 1,525,210 . 2036 Senior Notes On May 12, 2026, we completed a public offering of $500.0 million in aggregate principal amount of senior notes due May 15, 2036 (""2036 Senior Notes""). The 2036 Senior Notes bear an interest rate of 5.700% per year, payable on May 15 and November 15 of each year, commencing on November 15, 2026. The 2036 Senior Notes were priced at 99.864% of par value, reflecting a discount to the aggr …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present our customer revenues disaggregated by revenue source: Three Months Ended June 30, 2026 (Amounts in thousands) FPD FCD Total Original Equipment $ 238,921 $ 254,937 $ 493,858 Aftermarket 574,181 101,136 675,317 $ 813,102 $ 356,073 $ 1,169,175 Three Months Ended June 30, 2025 FPD FCD Total Original Equipment $ 284,481 $ 270,970 $ 555,451 Aftermarket 533,019 99,622 632,641 $ 817,500 $ 370,592 $ 1,188,092 Six Months Ended June 30, 2026 (Amounts in thousands) FPD FCD Total Original Equipment $ 454,719 $ 495,713 $ 950,432 Aftermarket 1,101,429 185,583 1,287,012 $ 1,556,148 $ 681,296 $ 2,237,444 Six Months Ended June 30, 2025 FPD FCD Total Original Equipment $ 564,711 $ 547,785 $ 1,112,496 Aftermarket 1,034,278 185,861 1,220,139 $ 1,598,989 $ 733,646 $ 2,332,635 Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers: Three Months Ended June 30, 2026 (Amounts in thousands) FPD FCD Total North America(1) $ 368,950 $ 151,679 $ 520,629 Latin America(2) 78,092 12,026 90,118 Middle East and Africa 128,613 56,369 184,982 Asia Pacific 94,156 80,019 174,175 Europe 143,291 55,980 199,271 $ 813,102 $ 356,073 $ 1,169,175 Three Months Ended June 30, 2025 FPD FCD Total North America(1) $ 362,410 $ 156,340 $ 518,750 Latin America(2) 56,332 12,106 68,438 Middle East and Africa 151,210 49,827 201,037 Asia Pacific 99,195 86,167 185,362 Europe 148,353 66,152 2 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"STOCK-BASED COMPENSATION PLANS We maintain the Flowserve Corporation 2020 Long-Term Incentive Plan (2020 Plan), which is a shareholder approved plan authorizing the issuance of 12,500,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as ""Restricted Shares""), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock. Of the shares of common stock authorized under the 2020 Plan, 4,394,824 were available for issuance as of June 30, 2026. Restricted Shares primarily vest over a three-year period. Restricted Shares granted to employees who retire and have achieved at least 55 years of age and 10 years of service continue to vest over the original vesting period (""55/10 Provision""). As of, and for the three and six-month periods ended June 30, 2026, no stock options were outstanding and exercisable, granted or vested. Restricted Shares Awards of Restricted Shares are valued at the closing market price of our common stock on the date of grant. The unearned compensation is amortized to compensation expense over the vesting period of the restricted shares, except for awards related to the 55/10 Provision which are expensed in the period granted for awards issued prior to 2024. For awards of Restricted Shares granted beginning in 2024 and subject to the 55/10 Provision, compensation expense is recognized over a required six-month service period. We had …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included above in Note 6, ""Derivatives and Hedging Activities."" The fair value of the MOGAS related contingent consideration was determined based on contractual provisions set forth in the purchase agreement and was fully paid in the first quarter of 2025. The carrying value of our financial instruments as reflected in our condensed consolidated balance sheets approximates fair value, with the exception of our long-term debt. The estimated fair value of our long-t …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES For the three-months ended June 30, 2026, we earned $118.7 million before taxes and recorded a provision for income taxes of $17.1 million resulting in an effective tax rate of 14.4%. For the six months ended June 30, 2026, we earned $226.2 million before taxes and recorded a provision for income taxes of $38.2 million resulting in an effective tax rate of 16.9%. The effective tax rate varied from the U.S. federal statutory rate for the three-months ended June 30, 2026 primarily due to the net impact of the non-taxable FAMCO acquisition gain and foreign operations, partially offset by state income taxes. The effective tax rate varied from the U.S. federal statutory rate for the six months ended June 30, 2026 primarily due to the net impact of U.S. discrete items, the non-taxable FAMCO acquisition gain and foreign operations, partially offset by state income taxes. For the three-months ended June 30, 2025, we earned $103.9 million before taxes and recorded a provision for income taxes of $15.6 million resulting in an effective tax rate of 15.1%. For the six months ended June 30, 2025, we earned $201.1 million before taxes and recorded a provision for income taxes of $33.4 million resulting in an effective tax rate of 16.6%. The effective tax rate varied from the U.S. federal statutory rate for the three-months ended June 30, 2025 primarily due to the net impact of foreign operations. The effective tax rate varied from the U.S. federal statutory rate for the six mo …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEGAL MATTERS AND CONTINGENCIES Divestiture of Asbestos-Related Assets and Liabilities On December 11, 2025, we completed the divestiture of all our legacy asbestos liabilities by selling BW/IP New Mexico, Inc., a Delaware corporation and previously wholly owned subsidiary of Flowserve that held the liabilities and related insurance assets. The Asbestos Divestiture was made to Ajax HoldCo LLC (the Buyer), an affiliate of Acorn Investment Partners, a portfolio company of funds managed by Oaktree Capital Management L.P. At closing, BWIP was capitalized with the related insurance assets and a total of approximately $219 million in cash, of which the Company contributed $199 million and Buyer contributed $20 million. As a result of the Asbestos Divestiture, the divested asbestos liabilities and related insurance assets were removed from the Companys consolidated balance sheet. Buyer has assumed management of BWIP, including the management of its claims and insurance policy reimbursements. Flowserve has no further financial exposure to the transferred liabilities and Flowserve is fully indemnified. On December 11, 2025, we recognized a one-time loss on the divestiture of $140.1 million, which included $8.3 million of transaction-related costs in the period ended December 31, 2025. During the three and six months ended June 30, 2026, we incurred no expenses and had no cash outflows to defend, resolve or otherwise dispose of asbestos-related claims. For the three and six months ende …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

"Accounting Developments Pronouncements Implemented In August 2023, the FASB issued ASU No. 2023-05, ""Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement."" The amendments require that newly formed joint ventures measure the net assets and liabilities contributed at fair value. Subsequent measurement is in accordance with the requirements for acquirers of a business in Sections 805-10-35, 805-20-35, and 805-30-35, and other generally accepted accounting principles. The amendments were effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, but companies may elect to apply the amendments retrospectively to joint ventures formed prior to January 1, 2025, if it has sufficient information. The adoption of this ASU did not have a material impact on the Company. In December 2023, the FASB issued ASU No. 2023-09, ""Income Taxes (Topic 740)."" The amendments require that entities on an annual basis disclose specific categories in the rate reconciliation, provide additional information for reconciling items that meet a quantitative threshold, and disclose specific information about income taxes paid. The amendments eliminate previously required disclosures around changes in unrecognized tax benefits and cumulative amounts of certain temporary differences. The amendments were effective prospectively for annual periods beginning after December 15, 2024. Early adoption is permitted. T …

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"PENSION AND POSTRETIREMENT BENEFITS Components of the net periodic cost for pension and postretirement benefits for the three-months ended June 30, 2026 and 2025 were as follows: U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Postretirement Medical Benefits (Amounts in millions) 2026 2025 2026 2025 2026 2025 Service cost $ 0.2 $ 0.2 $ 1.6 $ 1.7 $ $ Interest cost 4.9 5.3 3.4 3.7 0.1 Expected return on plan assets (5.3) (5.5) (2.2) (2.2) Settlement loss (1)(2) 1.5 1.5 1.6 Amortization of unrecognized prior service cost and other costs 0.1 0.1 Amortization of unrecognized net loss (gain) 0.3 0.1 0.4 0.6 (0.2) Net periodic cost recognized $ 1.6 $ 1.6 $ 4.9 $ 3.8 $ 0.1 $ (0.1) Components of the net periodic cost for pension and postretirement benefits for the six months ended June 30, 2026 and 2025 were as follows: U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Postretirement Medical Benefits (Amounts in millions) 2026 2025 2026 2025 2026 2025 Service cost $ 0.4 $ 0.4 $ 3.3 $ 3.2 $ $ Interest cost 10.3 10.9 6.8 6.9 0.2 0.2 Expected return on plan assets (11.2) (11.5) (4.4) (4.2) Settlement loss (1)(2) 3.0 3.0 1.6 Amortization of unrecognized prior service cost and other costs 0.1 0.1 0.1 0.2 0.1 Amortization of unrecognized net loss (gain) 0.5 0.2 0.9 1.1 (0.1) (0.2) Net periodic cost recognized $ 3.1 $ 3.1 $ 8.3 $ 7.2 $ 0.1 $ 0.1 _________________ (1) Represents a pension settlement accounting loss incurred in conjunction with the freeze of our Company-spon …

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"REALIGNMENT PROGRAMS In the first quarter of 2023, we identified and initiated certain realignment activities concurrent with the consolidation of our FPD aftermarket and pump operations into a single operating model. This consolidated operating model was designed to better align our go-to-market strategy with our product offerings, enable end-to-end lifecycle responsibility and accountability, and to facilitate more efficient operations. During 2023, we also initiated certain product and portfolio optimization activities. Collectively, the above realignment activities are referred to as the ""2023 Realignment Programs."" The activities of the 2023 Realignment Programs were identified and implemented in phases throughout 2023 and 2024 and are substantially completed. In the fourth quarter of 2024, we launched the complexity reduction (""CORE"") program within the portfolio excellence category of the Flowserve Business System. We deployed the Flowserve Business System to guide the enterprise on incorporating best in class operational practices within five categories: people excellence; operational excellence; portfolio excellence; commercial excellence; and innovation excellence. The CORE program focuses on product rationalization and continuous improvement of our overall product portfolio. During 2025, we also initiated certain other portfolio and footprint optimization activities that will continue to be executed throughout 2026 and 2027. These optimization activities toget …

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"REVENUE RECOGNITION The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. More complex contracts with our customers typically have longer lead times and multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. Control transfers over time when the customer is able to direct the use of and obtain substantially all of the benefits of our work as we perform. Service-related revenues do not typically represent a significant portion of contracts with our customers and do not meet the thresholds requiring separate disclosure. Revenue from products and services transferred to customers over time accounted for approximately 16% and 17% of total revenue for the three-month period ended June 30, 2026 and 2025, respectively, and 17% and 18% for the six-month period ended June 30, 2026 and 2025, respectively. Our primary method for recognizing revenue over time is the percentage of completion (""POC"") method. If control does not transfer over time, then control transfers at a point in time. For both POC and point-in-time methods, we recognize revenue at the level of each performance obligation based on the evaluation of certain indicators of control transfer, such as title transfer, risk of …

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BUSINESS SEGMENT INFORMATION The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements: Three Months Ended June 30, 2026 (Amounts in thousands) FPD FCD Subtotal Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers 813,102 356,073 1,169,175 1,169,175 Intersegment sales 992 1,222 2,214 (2,214) Cost of Sales (517,953) (268,749) (786,702) Selling, general and administrative expense (148,004) (77,528) (225,532) Other Segment items (1) 33,014 33,014 Segment operating income 181,151 11,018 192,169 Depreciation and amortization 13,305 6,581 19,886 4,371 24,257 Identifiable assets 3,506,395 2,312,896 5,819,291 500,997 6,320,288 Capital expenditures 7,858 3,813 11,671 5,237 16,908 Three Months Ended June 30, 2025 (Amounts in thousands) FPD FCD Subtotal Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers 817,500 370,592 1,188,092 1,188,092 Intersegment sales 1,444 858 2,302 (2,302) Cost of Sales (519,715) (263,756) (783,471) Selling, general and administrative expense (142,400) (69,922) (212,322) Other Segment items (1) 5,916 5,916 Segment operating income 162,744 37,772 200,516 Depreciation and amortization 10,634 9,144 19,778 4,104 23,882 Identifiable assets 3,289,405 1,778,910 5,068,315 614,210 5,682,525 Capital expenditures 10,623 3,331 13,954 2,648 16,602 Six Months Ended June 30, 2026 (Amou …

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SHAREHOLDERS' EQUITY Dividends Generally, our dividend date-of-record is in the last month of the quarter, and the dividend is paid the following month. Any subsequent dividends will be reviewed by our Board of Directors and declared at its discretion. Dividends declared per share were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Dividends declared per share $ 0.22 $ 0.21 $ 0.44 $ 0.42 Share Repurchase Program In 2014, our Board of Directors approved a $500.0 million share repurchase authorization. As of December 31, 2023, we had $96.1 million of remaining capacity under the prior share repurchase authorization. Effective February 19, 2024, the Board of Directors approved an increase in our total remaining capacity under the share repurchase program to $300.0 million, and effective August 8, 2025 the Board of Directors approved an increase in our total remaining capacity under the share repurchase program to $400.0 million, which included approximately $227.1 million of remaining capacity under the prior share repurchase authorization. Our share repurchase program does not have an expiration date and we reserve the right to limit or terminate the repurchase program at any time without notice. We repurchased 374,690 shares of our outstanding common stock for $25.0 million and 737,524 shares of our outstanding common stock for $31.7 million during the three-months ended June 30, 2026 and 2025, respectively. We repurchased 374,690 shares …

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