FLOWSERVE CORP

Flowserve Corporation issued a press release in response to public statements by Starboard Value LP, reaffirming its full-year guidance for fiscal year 2026. The company underscored its commitment to driving shareholder value, highlighting 860 basis points of adjusted operating margin improvement since 2022. Flowserve also reaffirmed its 2030 financial targets, including mid-single digit organic sales CAGR, 20% adjusted operating margin, and double-digit adjusted EPS CAGR.

Flowserve Corporation's Board of Directors approved an amendment to its By-Laws, reducing the number of directors from eleven to nine, effective May 14, 2026. At its 2026 Annual Meeting, shareholders elected nine directors, approved the advisory vote on executive compensation, and ratified PricewaterhouseCoopers LLP as the independent auditor for 2026. Additionally, a shareholder proposal requesting an annual advisory vote on stock repurchases was not approved.

Flowserve Corporation issued $500 million aggregate principal amount of 5.700% Senior Notes due 2036. Interest on the notes is payable semi-annually, commencing November 15, 2026. A special mandatory redemption clause is triggered if the Trillium Flow Technologies Valves Division acquisition is not consummated by February 4, 2027, or if the related purchase agreement is terminated. The notes are general senior unsecured obligations.

Flowserve Corporation has entered into an underwriting agreement to offer and sell $500 million in 5.700% Senior Notes due 2036. The primary purpose of this debt issuance is to fund the acquisition of Trillium Flow Technologies Valves Division. The offering is expected to close on May 12, 2026, with a contingency plan to redeem the notes at 101% of principal if the acquisition is not completed by February 4, 2027.

Flowserve reported Q1 2026 diluted EPS of $0.64, up from $0.56 in Q1 2025, with net earnings attributable to Flowserve Corporation increasing by 10.5% to $81.7 million despite a 6.7% decrease in sales to $1.07 billion. The company signed a definitive agreement to acquire Trillium Flow Technologies’ Valves Division for $490 million in cash, expected to close mid-2026. Additionally, Flowserve submitted a $35.4 million tariff refund request following a U.S. Supreme Court ruling and plans to acquire the remaining 51% equity in FAMCO for $34.5 million.

Flowserve Corp. announced a definitive agreement to acquire Trillium Flow Technologies’ Valves Division for $490M in cash, expected to close mid-2026. For Q1 2026, the company reported a 14.3% increase in diluted EPS to $0.64, despite a 6.7% decline in sales to $1,068.269M. Net earnings attributable to Flowserve Corporation grew 10.5% to $81.681M, significantly aided by a $35.4M tariff refund recognized during the quarter. Additionally, Flowserve signed an agreement to acquire the remaining 51% equity interest in Flowserve Al Mansoori Services Company for $34.5M, while noting ongoing impacts from the Middle East conflict on regional demand and supply chains.

Flowserve Corporation entered into a Third Amended and Restated Credit Agreement, establishing a new $1,000.0 million unsecured revolving credit facility and a $450.0 million unsecured term loan facility. Both facilities mature on April 15, 2031. The company drew approximately $450.0 million from the term loan and $250.0 million from the revolving facility to refinance existing debt and for general corporate purposes.