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Revenue Recognition
 6 Months Ended
Jun. 30, 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 17% of total revenue for both the three-month period ended June 30, 2025 and 2024, and 18% and 17% for the six month period ended June 30, 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 83% of total revenue for both the three month period ended June 30, 2025 and 2024, and 82% and 83% for the six month period ended June 30, 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 June 30, 2025
(Amounts in thousands)FPDFCDTotal
Original Equipment$284,481 $270,970 $555,451 
Aftermarket533,019 99,622 632,641 
$817,500 $370,592 $1,188,092 
Three Months Ended June 30, 2024
FPDFCDTotal
Original Equipment$301,866 $264,504 $566,370 
Aftermarket508,747 81,775 590,522 
$810,613 $346,279 $1,156,892 
Six Months Ended June 30, 2025
(Amounts in thousands)FPD FCDTotal
Original Equipment$564,711 $547,785 $1,112,496 
Aftermarket1,034,278 185,861 1,220,139 
$1,598,989 $733,646 $2,332,635 
Six Months Ended June 30, 2024
FPDFCDTotal
Original Equipment$586,904 $508,067 $1,094,971 
Aftermarket992,472 156,928 1,149,400 
$1,579,376 $664,995 $2,244,371 
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 June 30, 2025
(Amounts in thousands)FPDFCDTotal
North America(1)$362,410 $156,340 $518,750 
Latin America(2)56,332 12,106 68,438 
Middle East and Africa 151,210 49,827 201,037 
Asia Pacific99,195 86,167 185,362 
Europe148,353 66,152 214,505 
$817,500 $370,592 $1,188,092 
Three Months Ended June 30, 2024
FPDFCDTotal
North America(1)$342,678 $143,402 $486,080 
Latin America(2)72,948 6,116 79,064 
Middle East and Africa134,652 50,627 185,279 
Asia Pacific105,832 87,036 192,868 
Europe154,503 59,098 213,601 
$810,613 $346,279 $1,156,892 
Six Months Ended June 30, 2025
(Amounts in thousands)FPD FCDTotal
North America(1)$689,737 $295,526 $985,263 
Latin America(2)128,038 22,745 150,783 
Middle East and Africa 295,003 100,517 395,520 
Asia Pacific196,408 191,674 388,082 
Europe289,803 123,184 412,987 
$1,598,989 $733,646 $2,332,635 
Six Months Ended June 30, 2024
FPDFCDTotal
North America(1)$653,143 $272,405 $925,548 
Latin America(2)143,334 11,150 154,484 
Middle East and Africa270,915 96,854 367,769 
Asia Pacific212,127 163,483 375,610 
Europe299,857 121,103 420,960 
$1,579,376 $664,995 $2,244,371 
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(1) North America represents the United States and Canada.
(2) Latin America includes Mexico.
On June 30, 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 $994 million. We estimate recognition of approximately $373 million of this amount as revenue in the remainder of 2025 and an additional $621 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 six months ended June 30, 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 the contract liabilities at the beginning of the period— — (183,543)— 
Revenue recognized in the period in excess of billings385,606 — — — 
Billings arising during the period in excess of revenue recognized— — 169,624 4,328 
Amounts transferred from contract assets to receivables(349,394)(966)— — 
Currency effects and other, net4,237 136 13,430 93 
Ending balance, June 30, 2025$339,355 $93 $283,181 $5,094 


(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 the contract liabilities at the beginning of the period— — (163,330)(174)
Revenue recognized in the period in excess of billings400,743 — — — 
Billings arising during the period in excess of revenue recognized— — 175,447 — 
Amounts transferred from contract assets to receivables(380,362)(437)— — 
Currency effects and other, net(12,933)332 (6,460)(57)
Ending balance, June 30, 2024$287,676 $929 $293,354 $1,312 
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(1) Included in other assets, net.
(2) Included in retirement obligations and other liabilities.