Flowserve Corporation (NYSE:FLS) Q1 2022 Earnings Conference Call May 3, 2022 11:00 AM ET

Company Participants

Jay Roueche - Vice President, Investor Relations and Treasurer

Scott Rowe - President and Chief Executive Officer

Amy Schwetz - Senior Vice President and Chief Financial Officer

Conference Call Participants

Deane Dray - RBC Capital Markets

Andy Kaplowitz - Citigroup

John Walsh - Credit Suisse

Nathan Jones - Stifel

Joe Giordano - Cowen

Joe Ritchie - Goldman Sachs

Operator

Good day and welcome to the Q1 2022 Flowserve Corporation Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Jay Roueche, Vice President, Investor Relations and Treasurer. Please go ahead, sir.

Jay Roueche

Thank you, Sarah and good morning everyone. We appreciate you participating in our conference call today to discuss Flowserve’s first quarter 2022 financial results. On the call with me this morning 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 also 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 May 3, 2022 and they involve risks and uncertainties, many of which are beyond the company’s control. We encourage you to fully review our Safe Harbor disclosures as well as our 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 at flowserve.com in the Investor Relations 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, Jay and good morning everyone. Thank you for joining our first quarter earnings call. I want to start with an overview of our bookings and then quickly turn to our global operations in the first quarter results.

Clearly, the highlight of the first quarter was our success in capitalizing on the improving demand environment, including the award of several midsized projects, which contributed to Flowserve achieving its highest bookings level since the second quarter of 2019. First quarter bookings of $1.09 billion increased 15% over prior year and about 18% on a constant currency basis. This level was also up 12% sequentially compared to last year’s fourth quarter, which was the highest bookings quarter of 2021. As a later cycle company, we are encouraged by the demand improvement that we have seen in our served end-markets this year and our ability to profitably win those opportunities. Based on the trends we are observing today, we believe that these market dynamics will remain strong in the coming months.