The following is a summary of the Flowserve Corporation (FLS) Q1 2024 Earnings Call Transcript:
Financial Performance:
Flowserve reported Q1 revenue of almost $1.1 billion, an 11% increase year-over-year.
Adjusted gross margin exceeded expectations at 31.7%.
Adjusted operating income margin improved by 260 basis points year-over-year, reaching 10.9%.
Adjusted earnings per share of $0.58 reflect an increase of 45% from Q1 of 2023.
Full-year adjusted EPS guidance range uplifted to $2.50 to $2.70, indicating a near 24% increase year-over-year at the midpoint.
Company reported a record Q1 operating cash flow of $62 million.
Business Progress:
Over 1,100 associates trained as part of the operational excellence program.
Bookings in Q1 close to $1.04 billion across all industries.
Two large project awards in April exceeding $150 million to support the aggressive capital build-out in Saudi Arabia.
Plans to capitalize on anticipated growth related to capacity expansion and new generation in the power sector.
The forecasted full-year book-to-bill ratio for 2024 to exceed 1.0.
Company is focusing more on specialty chemical, water, and new energy technologies like hydrogen.
Achieved record-breaking free cash flow for the quarter and improved working capital with a target of hitting 25-27% as a percentage of sales.
Flowserve achieved growth and healthy margins in projects using a selective bidding process.
The company is well-prepared for growth in the European markets and sees its participation in decarbonization and energy security as the start of a multi-year up cycle.
New initiatives, like power projects in Europe and the Americas, expected to fuel growth.
Portfolio optimization ongoing to diversify offerings and align with the decarbonization trend in the markets.
Plans to consolidate operations as part of operational excellence program.
Investment optimism expressed for long-term prospects in Asia Pacific, especially in China.
Company aims to maintain a balanced growth profile between OE and aftermarket while being selective in large OE projects.
More details: Flowserve IR
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