FLOWSERVE CORPFLS
FLOWSERVE CORP Segments Disclosure
BUSINESS SEGMENT INFORMATION
Our business segments, which are the same as our reportable segments, share a focus on industrial flow control technology and have a high number of common customers. These segments also have complementary product offerings and technologies that are often combined in applications that provide us a net competitive advantage. Our segments also benefit from our global footprint and our economies of scale in reducing administrative and overhead costs to serve customers more cost effectively.
We conduct our operations through two business segments based on type of product and how we manage the business:
•FPD for highly custom engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and
•FCD for engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related equipment.
Our corporate headquarters does not constitute a separate division or business segment. Amounts classified as "Eliminations and All Other" include corporate headquarters costs and other minor entities that do not constitute separate segments. Inter segment sales and transfers are recorded at cost plus a profit margin, with the sales and related margin on such sales eliminated in consolidation.
Flowserve's chief operating decision maker ("CODM") is the chief executive officer.
The CODM uses segment operating income or loss for both the FPD and FCD segments in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis when making decisions about allocating capital and personnel to the segments.
The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2025, 2024 and 2023 reconciled to the amounts reported in the consolidated financial statements.
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| (Amounts in thousands) | FPD | FCD | Subtotal – Reportable Segments | Eliminations and All Other | Consolidated Total | |||||||||||||||||||||||||||
| Sales to external customers | 3,230,236 | 1,499,024 | 4,729,260 | — | 4,729,260 | |||||||||||||||||||||||||||
| Intersegment sales | 5,113 | 5,464 | 10,577 | (10,577) | — | |||||||||||||||||||||||||||
| Cost of Sales | (2,096,636) | (1,058,828) | (3,155,464) | |||||||||||||||||||||||||||||
| Selling, general and administrative expense | (558,507) | (265,973) | (824,480) | |||||||||||||||||||||||||||||
| Other Segment items (1) | 20,679 | — | 20,679 | |||||||||||||||||||||||||||||
| Segment operating income | 600,884 | 179,687 | 780,571 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 42,299 | 34,685 | 76,984 | 18,470 | 95,454 | |||||||||||||||||||||||||||
| Identifiable assets | 3,375,397 | 1,747,934 | 5,123,331 | 584,869 | 5,708,200 | |||||||||||||||||||||||||||
| Capital expenditures | 35,722 | 19,654 | 55,376 | 15,551 | 70,927 | |||||||||||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| (Amounts in thousands) | FPD | FCD | Subtotal – Reportable Segments | Eliminations and All Other | Consolidated Total | |||||||||||||||||||||||||||
| Sales to external customers | 3,154,151 | 1,403,655 | 4,557,806 | — | 4,557,806 | |||||||||||||||||||||||||||
| Intersegment sales | 4,416 | 5,641 | 10,057 | (10,057) | — | |||||||||||||||||||||||||||
| Cost of Sales | (2,141,520) | (985,323) | (3,126,843) | |||||||||||||||||||||||||||||
| Selling, general and administrative expense | (556,225) | (252,675) | (808,900) | |||||||||||||||||||||||||||||
| Other Segment items (2) | 19,394 | (13,033) | 6,361 | |||||||||||||||||||||||||||||
| Segment operating income | 480,216 | 158,265 | 638,481 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 45,726 | 21,503 | 67,229 | 18,369 | 85,598 | |||||||||||||||||||||||||||
| Identifiable assets | 3,042,859 | 1,739,425 | 4,782,284 | 718,537 | 5,500,821 | |||||||||||||||||||||||||||
| Capital expenditures | 51,315 | 20,095 | 71,410 | 9,609 | 81,019 | |||||||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| (Amounts in thousands) | FPD | FCD | Subtotal – Reportable Segments | Eliminations and All Other | Consolidated Total | ||||||||||||||||||||||||
| Sales to external customers | 3,060,993 | 1,259,584 | 4,320,577 | — | 4,320,577 | ||||||||||||||||||||||||
| Intersegment sales | 3,487 | 6,448 | 9,935 | (9,935) | — | ||||||||||||||||||||||||
| Cost of Sales | (2,157,705) | (893,224) | (3,050,929) | ||||||||||||||||||||||||||
| Selling, general and administrative expense | (575,792) | (224,774) | (800,566) | ||||||||||||||||||||||||||
| Other Segment items (1) | 17,884 | — | 17,884 | ||||||||||||||||||||||||||
| Segment operating income | 348,867 | 148,034 | 496,901 | ||||||||||||||||||||||||||
| Depreciation and amortization | 47,628 | 17,249 | 64,877 | 18,870 | 83,747 | ||||||||||||||||||||||||
| Identifiable assets | 3,191,726 | 1,333,973 | 4,525,699 | 583,020 | 5,108,719 | ||||||||||||||||||||||||
| Capital expenditures | 41,613 | 15,953 | 57,566 | 9,793 | 67,359 | ||||||||||||||||||||||||
_______________________________________
(1) Other segment items comprises Net Earnings from Affiliates.
(2) Other segment items comprises Net Earnings from Affiliates as well as the Loss on sale of business of $13 million recorded in the FCD segment in 2024 related to the disposal of the NAF AB control valves business.
The following are reconciliations from total segment operating income to earnings before income tax reported in the consolidated income statement.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Amounts in thousands) | |||||||||||||||||
| Total segment operating income | 780,571 | 638,481 | 496,901 | ||||||||||||||
| Intersegment sales | (10,577) | (10,057) | (9,935) | ||||||||||||||
| Eliminations and all other cost of sales | 7,641 | 3,282 | 7,180 | ||||||||||||||
| Eliminations and all other SG&A | (237,619) | (169,137) | (160,603) | ||||||||||||||
| Loss on divestiture of asbestos-related assets and liabilities (a) | (140,092) | — | — | ||||||||||||||
| Interest expense | (77,740) | (69,301) | (66,924) | ||||||||||||||
| Interest income | 7,551 | 5,371 | 6,991 | ||||||||||||||
| Net earnings (loss) from affiliates | — | (290) | 10 | ||||||||||||||
| Other income (expense), net | 195,663 | (12,194) | (49,870) | ||||||||||||||
| Earnings before income taxes | 525,398 | 386,155 | 223,750 | ||||||||||||||
_______________________________________
(a) Loss on divestiture of asbestos-related assets and liabilities is described within Note 17, "Legal Matters and Contingencies," to our consolidated financial statements included in this Annual Report.
Geographic Information — We attribute sales to different geographic areas based on our facilities’ locations. Long-lived assets are classified based on the geographic area in which the assets are located and exclude deferred taxes, goodwill and intangible assets. Sales and long-lived assets by geographic area are as follows:
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Sales | Percentage | Long-Lived assets | Percentage | ||||||||||||||||||||
| (Amounts in thousands, except percentages) | |||||||||||||||||||||||
| United States | $ | 1,965,150 | 41.6 | % | $ | 383,022 | 41.7 | % | |||||||||||||||
| EMA(1) | 1,616,809 | 34.1 | % | 315,073 | 34.3 | % | |||||||||||||||||
| Asia(2) | 722,856 | 15.3 | % | 156,904 | 17.1 | % | |||||||||||||||||
| Other(3) | 424,445 | 9.0 | % | 63,603 | 6.9 | % | |||||||||||||||||
| Consolidated total | $ | 4,729,260 | 100.0 | % | $ | 918,602 | 100.0 | % | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Sales | Percentage | Long-Lived assets | Percentage | ||||||||||||||||||||
| (Amounts in thousands, except percentages) | |||||||||||||||||||||||
| United States | $ | 1,823,595 | 40.0 | % | $ | 421,797 | 46.9 | % | |||||||||||||||
| EMA(1) | 1,583,302 | 34.7 | % | 278,197 | 30.9 | % | |||||||||||||||||
| Asia(2) | 676,989 | 14.9 | % | 151,727 | 16.9 | % | |||||||||||||||||
| Other(3) | 473,920 | 10.4 | % | 47,962 | 5.3 | % | |||||||||||||||||
| Consolidated total | $ | 4,557,806 | 100.0 | % | $ | 899,683 | 100.0 | % | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Sales | Percentage | Long-Lived assets | Percentage | ||||||||||||||||||||
| (Amounts in thousands, except percentages) | |||||||||||||||||||||||
| United States | $ | 1,821,751 | 42.2 | % | $ | 394,395 | 44.7 | % | |||||||||||||||
| EMA(1) | 1,503,776 | 34.8 | % | 289,061 | 32.8 | % | |||||||||||||||||
| Asia(2) | 584,759 | 13.5 | % | 140,596 | 15.9 | % | |||||||||||||||||
| Other(3) | 410,291 | 9.5 | % | 58,059 | 6.6 | % | |||||||||||||||||
| Consolidated total | $ | 4,320,577 | 100.0 | % | $ | 882,111 | 100.0 | % | |||||||||||||||
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(1)"EMA" includes Europe, the Middle East and Africa. The United Kingdom accounted for approximately 11% for 2025, 10% for 2024 and 11% for 2023, of consolidated long-lived assets. No other individual country within this group represents 10% or more of consolidated totals for any period presented.
(2)"Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented.
(3)"Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented.
Net sales to international customers, including export sales from the United States, represented approximately 58%, 64% and 62% of total sales in 2025, 2024 and 2023, respectively.
Major Customer Information — We have a large number of customers across a large number of manufacturing and service facilities and do not have sales to any individual customer that represent 10% or more of consolidated sales for any of the years presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 18, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.