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Revenue Recognition
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. More complex contracts with our customers typically have longer lead times and multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. Control transfers over time when the customer is able to direct the use of and obtain substantially all of the benefits of our work as we perform. Service-related revenues do not typically represent a significant portion of contracts with our customers and do not meet the thresholds requiring separate disclosure.
Revenue from products and services transferred to customers over time accounted for approximately 19% and 17% of total revenue for the three-month period ended March 31, 2025 and 2024, respectively. Our primary method for recognizing revenue over time is the percentage of completion ("POC") method. If control does not transfer over time, then control transfers at a point in time. For both POC and point-in-time methods, we recognize revenue at the level of each performance obligation based on the evaluation of certain indicators of control transfer, such as title transfer, risk of loss transfer, customer acceptance and physical possession. Revenue from products and services transferred to customers at a point in time accounted for approximately 81% and 83% of total revenue for the three-month period ended March 31, 2025 and 2024, respectively. Refer to Note 3, "Revenue Recognition," to our consolidated financial statements included in our 2024 Annual Report for a more comprehensive discussion of our policies and accounting practices of revenue recognition.
Disaggregated Revenue
We conduct our operations through two business segments based on the type of product and how we manage the business:
•Flowserve Pumps Division ("FPD") designs, manufactures, pretests, distributes and services highly custom engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and
•FCD designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related equipment.
Our revenue sources are derived from our original equipment manufacturing and our aftermarket sales and services. Our original equipment revenues are generally related to originally designed, manufactured, distributed and installed equipment that can range from pre-configured, short-cycle products to more customized, highly engineered equipment ("Original Equipment"). Our aftermarket sales and services are derived from sales of replacement equipment, as well as maintenance, advanced diagnostic, repair and retrofitting services ("Aftermarket"). Each of our two business segments generates Original Equipment and Aftermarket revenues.
The following tables present our customer revenues disaggregated by revenue source:
Three Months Ended March 31, 2025
(Amounts in thousands)FPDFCDTotal
Original Equipment$280,230 $276,815 $557,045 
Aftermarket501,259 86,239 587,498 
$781,489 $363,054 $1,144,543 
Three Months Ended March 31, 2024
FPDFCDTotal
Original Equipment$285,038 $243,562 $528,600 
Aftermarket483,725 75,154 558,879 
$768,763 $318,716 $1,087,479 
Our customer sales are diversified geographically. The following tables present our revenues disaggregated by geography, based on the shipping addresses of our customers:
Three Months Ended March 31, 2025
(Amounts in thousands)FPDFCDTotal
North America(1)$327,327 $139,186 $466,513 
Latin America(2)71,706 10,639 82,345 
Middle East and Africa 143,793 50,690 194,483 
Asia Pacific97,213 105,507 202,720 
Europe141,450 57,032 198,482 
$781,489 $363,054 $1,144,543 
Three Months Ended March 31, 2024
FPDFCDTotal
North America(1)$310,469 $129,002 $439,471 
Latin America(2)70,385 5,034 75,419 
Middle East and Africa136,261 46,227 182,488 
Asia Pacific106,294 76,447 182,741 
Europe145,354 62,006 207,360 
$768,763 $318,716 $1,087,479 
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(1) North America represents the United States and Canada.
(2) Latin America includes Mexico.

On March 31, 2025, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations related to contracts having an original expected duration in excess of one year was approximately $962 million. We estimate recognition of approximately $535 million of this amount as revenue in the remainder of 2025 and an additional $427 million in 2026 and thereafter.
Contract Balances
We receive payment from customers based on a contractual billing schedule and specific performance requirements as established in our contracts. We record billings as accounts receivable when an unconditional right to consideration exists. A contract asset represents revenue recognized in advance of our right to bill the customer under the terms of a contract. A contract liability represents our contractual billings in advance of revenue recognized for a contract.
The following tables present beginning and ending balances of contract assets and contract liabilities, current and long-term, for the three months ended March 31, 2025 and 2024:

(Amounts in thousands) Contract Assets, net (Current)Long-term Contract Assets, net(1)Contract Liabilities (Current)Long-term Contract Liabilities(2)
Beginning balance, January 1, 2025$298,906 $923 $283,670 $673 
Revenue recognized that was included in contract liabilities at the beginning of the period— — (119,775)— 
Revenue recognized in the period in excess of billings145,721 — — — 
Billings arising during the period in excess of revenue recognized— — 118,078 1,348 
Amounts transferred from contract assets to receivables(128,844)(768)— — 
Currency effects and other, net(3,629)49 2,724 30 
Ending balance, March 31, 2025$312,154 $204 $284,697 $2,051 


(Amounts in thousands)Contract Assets, net (Current)Long-term Contract Assets, net(1)Contract Liabilities (Current)Long-term Contract Liabilities(2)
Beginning balance, January 1, 2024$280,228 $1,034 $287,697 $1,543 
Revenue recognized that was included in contract liabilities at the beginning of the period— — (101,602)(295)
Revenue recognized in the period in excess of billings166,318 — — — 
Billings arising during the period in excess of revenue recognized— — 90,523 — 
Amounts transferred from contract assets to receivables(156,948)(713)— — 
Currency effects and other, net(2,540)342 2,598 (16)
Ending balance, March 31, 2024$287,058 $663 $279,216 $1,232 
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(1) Included in other assets, net.
(2) Included in retirement obligations and other liabilities.