Flowserve Corporation FLS is gaining from solid momentum across its segments. Strength in the aftermarket business, driven by a strong demand for products and services in North America, the Middle East and Africa, is a prime catalyst for the Flowserve Pumps Division segment’s growth. An increase in bookings across general industries and power end markets also bodes well for the segment. Solid momentum across original equipment and aftermarket businesses, backed by an increase in demand for products and services in North America, Latin America, Asia Pacific and Europe, is supporting the Flow Control Division segment. Driven by strength across its businesses in 2025, the company expects total revenues to increase in the range of 4-5% from the year-ago level.
FLS solidified its product portfolio and leveraged business opportunities through asset additions. In October 2024, it completed the acquisition of MOGAS Industries, which augmented the company’s existing valve and automation product portfolio and accelerated its 3D growth strategy by significantly boosting its direct mining and mineral extraction exposure. The buyout has been integrated into Flowserve’s Flow Control Division segment and improved its aftermarket potential and generated revenue growth synergies. In July 2024, the company acquired the intellectual property and in-process R&D related to cryogenic liquefied natural gas (LNG) submerged pump technology, systems and packaging from NexGen Cryogenic Solutions Inc. NexGen’s pump and cold energy recovery turbine technology for the liquefaction, shipping and regasification markets expanded FLS’ LNG product portfolio and complemented its existing pumps, valves and mechanical seals offering. NexGen’s technology has been added to Flowserve’s Pumps Division segment.
The company’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In the first nine months of 2025, it used $82.7 million to distribute dividends and bought back shares worth $197.9 million. In the first quarter of 2024, Flowserve hiked its quarterly dividend by approximately 5% to 21 cents per share.
Price Performance of FLS
In the past six months, this Zacks Rank #3 (Hold) company’s shares have gained 38.7% compared with the industry’s 7.1% growth.
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However, high costs pose a threat to FLS’ bottom line. In the first nine months of 2025, the cost of sales increased 1.5% year over year to $2.35 billion due to higher input costs. The metric, as a percentage of net sales, was 67%. Selling, general and administrative expenses increased 12.1% in the same period.
Flowserve has a significant presence in the international markets. As a result, its financial performance is subject to various risks like the foreign currency exchange rate, interest rate fluctuations and hyperinflation in some foreign countries. For instance, currency headwinds had an adverse impact of $36.8 million on net earnings in the first nine months of 2025. The increased value of the U.S. dollar relative to the local currencies of the foreign markets may affect the company’s top line in the quarters ahead.
Stocks to Consider
Some better-ranked companies are discussed below:
DNOW Inc. DNOW presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DNOW delivered a trailing four-quarter average earnings surprise of 43.5%. In the past 30 days, the consensus estimate for DNOW’s 2025 earnings has remained steady.
Nordson Corporation NDSN presently carries a Zacks Rank #2 (Buy). NDSN delivered a trailing four-quarter average earnings surprise of 2.2%.
In the past 30 days, the consensus estimate for Nordson’s fiscal 2026 earnings has increased 0.9%.
Watts Water Technologies, Inc. WTS presently carries a Zacks Rank of 2. WTS delivered a trailing four-quarter average earnings surprise of 10.9%.
In the past 30 days, the consensus estimate for Watts Water’s 2025 earnings has increased 0.3%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
Download Atomic Opportunity: Nuclear Energy's Comeback free today.Flowserve Corporation (FLS) : Free Stock Analysis Report
Nordson Corporation (NDSN) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
DNOW Inc. (DNOW) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
