Flowserve reported fourth-quarter adjusted earnings of $1.11 per share, outperforming the Zacks Consensus Estimate of $0.94 and representing a 58% increase from the $0.70 posted in the year-ago period. The company highlighted stronger aftermarket sales in oil & gas and chemical end markets, with order intake up 12% sequentially and backlog expanding by $150 million to $2.1 billion. Flowserve noted a gross margin improvement of 180 basis points year-over-year, driven by productivity initiatives and favorable mix from higher-margin service revenues, which grew 9% compared to Q4 2024. Free cash flow in the quarter reached $185 million, up 20% from the prior year, reflecting disciplined working capital management and continued cost control measures.

In a move to strengthen its position in power generation, Flowserve has entered a definitive agreement to acquire Trillium Flow Technologies’ Valves Division for $490 million in cash. The acquired business supplies mission-critical valves for nuclear, coal and gas power plants, adding approximately $120 million in annual revenue and a mid-teens operating margin profile. Flowserve expects the transaction to be accretive to adjusted EPS within the first 12 months and to generate $25 million in run-rate synergies by year two, primarily through shared procurement and cross-selling opportunities. The acquisition expands Flowserve’s addressable market in engineered valves to over $1.5 billion annually and reinforces its commitment to high-growth infrastructure segments.