Flowserve Corporation (NYSE:FLS) Q4 2023 Earnings Call Transcript
Flowserve Corporation (NYSE:FLS) Q4 2023 Earnings Call Transcript February 21, 2024
Flowserve Corporation isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day and welcome to the Fourth Quarter 2023 Flowserve Corporation Earnings Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to J Roueche, Vice President, Investor Relations and Treasurer. Please go ahead.
John Roueche: Thank you, Katie, and good morning, everybody. We appreciate you joining our call today to discuss Flowserve’s fourth quarter and full year 2023 financial results. On the call with me today are Scott Rowe, Flowserve’s President and Chief Executive Officer; and Amy Schwetz, Senior Vice President and Chief Financial Officer. Following our prepared comments, we will open the call for questions. As a reminder, this event is being webcast and an audio replay will be available. Please note that our earnings materials do and this call will include non-GAAP measures and contain forward-looking statements. These statements are based upon forecasts, expectations and other information available to management as of February 21, 2024, and they involve risks and uncertainties, many of which are beyond the company’s control.
We encourage you to review our safe harbor disclosures as well as the reconciliation of our non-GAAP measures to our reported results, both of which are included in our press release and earnings presentation and are accessible on our website in the Investors section. I would now like to turn the call over to Scott Rowe, Flowserve’s President and Chief Executive Officer, for his prepared comments.
Scott Rowe: Thanks, Jen, and good morning, everyone. Flowserve’s fourth quarter performance marked a strong finish to a very solid year of improved execution and consistent progress. Our financial and operating performance throughout 2023 supported raising our full year revenue and adjusted EPS guidance 3 different times as we significantly exceeded our original expectations. For the full year, we achieved year-over-year revenue growth of nearly 20%, driven by enhanced backlog conversion and operational improvement while delivering higher adjusted gross and operating margins. As a result, our adjusted earnings per share increased by over 90%, and our operating cash flow improved by over $360 million compared to 2022. Bookings exceeded $4.25 billion for just the second time since 2016, which supported our strong year-end backlog of $2.7 billion.
Most importantly, Flowserve entered 2024 well positioned to drive continued momentum and success, and we are well on our way towards achieving our 2027 financial targets that were communicated last September. I want to sincerely thank all of our associates around the world for their efforts and dedication throughout the year. Our commitment to serving our customers and their passion for our business are critical to driving exceptional financial results. I’m very pleased with our results in the fourth quarter, including our adjusted earnings per share of $0.68, which brought our full year adjusted EPS to $2.10. We are seeing the impact of our improved operating model higher backlog conversion and significantly better financial performance.
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