Flowserve Corporation reported a 7% increase in revenue for the second quarter of 2024, reaching $1.16 billion. This growth was driven by robust demand across key sectors including oil and gas, chemicals, and power generation. The company also maintained a strong backlog of $2.7 billion, providing solid revenue visibility.
Management raised its full-year earnings per share (EPS) guidance, reflecting confidence in ongoing operational performance. This positive outlook is supported by the company's 'excellence program,' which aims for a 200 basis point improvement in margins by 2027. The company's strategic acquisitions are also expected to sustain momentum.
Despite a significant drop in free cash flow by 480% in Q2, management projects an 80% or more cash flow conversion by year-end. Net debt declined by 11%, indicating a healthy balance sheet with a current ratio of 2.0 and a quick ratio of 1.4. These financial metrics demonstrate the company's ability to manage its capital effectively.
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