Flowserve Corporation

Good day and welcome to the FlowServe fourth quarter 2025 earnings call. Today's call is being recorded. At this time, I'd like to turn the call over to Brian Ezell, VP of Investor Relations. Please go ahead.

Thank you and good morning, everyone. Welcome to FlowServe's fourth quarter and full year 2025 business update. I'm joined by Scott Rowe, FlowServe's President and Chief Executive Officer, and FlowServe Chief Financial Officer, Amy Schwartz. Following Scott and Amy's prepared remarks, we'll open the call for questions. Turning to slide two, our discussion will contain forward-looking statements that are based upon information available as of today. Actual results may differ due to risks and uncertainties. Refer to additional information, including our note on non-GAAP measures and our press release, earnings presentation, and SEC filings, which are available on our website. With that, I will turn it over to Scott.

Thank you, Brian, and good morning, everyone. Before I turn to the presentation, I would like to thank our associates around the world for their hard work and dedication throughout 2025. We have made tremendous progress as a company, advancing our 3D strategy to drive growth and leveraging the internal processes of a closer business system to deliver results. Our associates embrace significant change in a complex macro environment, and I could not be more pleased with what we have accomplished as an organization. These efforts culminated in outstanding financial performance in 2025 and achievement of our long-term margin targets two years ahead of plan. Let's start on slide three with bookings. Bookings for the quarter were $1.2 billion, growing roughly 3% versus the prior year period. Aftermarket bookings grew 10% to $682 million, representing the seventh consecutive quarter of bookings greater than $600 million. Project activity was steady in the quarter. We remain excited about the significant opportunities in nuclear and traditional power, with notable awards in these markets, in addition to broadly positive trends in most of the other end markets. Our largest booking in the quarter was a $28 million power award, and we delivered nearly $100 million in total nuclear bookings. Larger engineered projects in the energy end markets across both FPD and FCD remain muted, impacting original equipment bookings in the quarter. Our 3D diversification strategy has made Fullserve more cycle resilient than ever before, with consistent and durable bookings in diverse end markets that are supported by secular megatrends, offsetting temporary pockets of softness in more cyclical end markets. We have diversified our portfolio mix, and we continue to expand our aftermarket opportunities, while selectively focusing on high-margin engineered projects with strong aftermarket potential. Given our progress to date and positive momentum entering 2026, we are confident our strategic areas of focus will provide the opportunity to drive growth and deliver increasing shareholder value for years to come. I will now turn it over to Amy to review fourth quarter financial results in more detail.