Flowserve responds to Starboard letter, reaffirms financial targets

Flowserve Corporation (NYSE: FLS) issued a statement responding to a letter from activist investor Starboard Value LP, emphasizing its commitment to shareholder value creation and reaffirming its financial guidance.

The Dallas-based flow control products provider said its board and management team have held discussions with Starboard in recent months and welcome constructive input from investors. The company highlighted operational improvements that have resulted in 860 basis points of adjusted operating margin improvement since 2022.

Flowserve reaffirmed its 2026 guidance, which includes adjusted operating margin expansion and double-digit adjusted earnings per share growth. The company also maintained its 2030 financial targets of mid-single digit organic sales compound annual growth rate from 2025-2030, 20% adjusted operating margin by 2030, and double-digit adjusted EPS compound annual growth rate from 2025-2030.

The company cited strength in its aftermarket franchise and growth in power and nuclear end markets driven by artificial intelligence expansion, data center development and electrification trends. Flowserve noted that geopolitical factors should drive increased investment in energy security and diversification globally.

The statement mentioned the company's acquisition of the Valves Division of Trillium Flow Technologies and plans to return $365 million to shareholders in 2025, including $255 million in share repurchases.

Flowserve operates in more than 50 countries and produces engineered and industrial pumps, seals and valves along with related flow management services for global infrastructure markets.

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