Why Nearly $400 Million Has Poured Into Flowserve Stock — Is the Manufacturer a Buy?

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Jonathan Ponciano, The Motley Fool

Mon, December 8, 2025 astatine 7:43 AM CST 4 min read

New York City-based D1 Capital Partners bought astir 5.8 cardinal shares of Flowserve successful the 3rd quarter.
The worth of the presumption accrued by $309.2 cardinal from 4th to quarter.
At quarter-end, D1 reported holding astir 7.5 cardinal Flowsere shares valued astatine $397.5 million.
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New York City-based D1 Capital Partners reported a large summation successful its holding of Flowserve (NYSE:FLS), buying astir 5.8 cardinal shares successful the 3rd 4th and seeing an estimated $309.2 cardinal presumption worth change, according to a November 14 SEC filing.

According to a filing with the Securities and Exchange Commission dated November 14, D1 Capital Partners substantially accrued its involvement successful Flowserve during the 3rd quarter. The money added astir 5.8 cardinal shares, bringing its full to astir 7.5 cardinal shares arsenic of September 30. The presumption was valued astatine $397.5 cardinal astatine quarter-end.

The fund's Flowserve involvement present represents 4.6% of its $8.7 cardinal successful reportable U.S. equity holdings.

Top 5 holdings pursuing the filing:

NASDAQ: CART: $829.2 cardinal (9.5% of AUM)
NASDAQ: APP: $601.3 cardinal (6.9% of AUM)
NYSE: CLH: $567.9 cardinal (6.5% of AUM)
NYSE: RDDT: $465.6 cardinal (5.4% of AUM)
NYSE: FLS: $397.5 cardinal (4.6% of AUM)

As of Friday, shares of Flowserve were priced astatine $72.04, up 17% implicit the anterior twelvemonth and outperforming the S&P 500, which is up 13% successful the aforesaid period.

Metric

Value

Revenue (TTM)	$4.7 billion
Net Income (TTM)	$452.8 million
Market Capitalization	$9.4 billion
Price (as of marketplace adjacent Friday)	$72.04

Flowserve designs, manufactures, and services concern travel absorption instrumentality with a beingness successful the United States, Europe, the Middle East, Africa, Asia, and internationally, offering a scope of travel power products. The institution generates gross done the merchantability of engineered travel power products and aftermarket services, with a absorption connected some caller instrumentality and recurring attraction contracts. It serves customers successful lipid and gas, chemic and pharmaceutical, powerfulness generation, h2o management, and a scope of wide concern markets worldwide.

Even aft a beardown tally implicit the past year, Flowserve’s renewed momentum — and this step-up successful organization condemnation down it — matters for semipermanent investors. The banal is nearing all-time highs, and the latest 4th showed the benignant of operational consistency that tends to enactment durable reratings: expanding margins, rising currency generation, and a concern premix progressively skewed toward higher-quality aftermarket revenue.

Flowserve’s third-quarter results underscored that strength. Sales roseate 3.6% twelvemonth implicit twelvemonth to $1.2 billion, portion adjusted operating borderline jumped 370 ground points to 14.8%. Adjusted EPS climbed to $0.90, up 45% from past year. Bookings topped $1.2 billion, including 6% aftermarket growth—an important awesome of recurring demand.

For a money similar D1, Flowserve’s accelerating profitability and backlog spot are a fitting profile. And arsenic evidence, the presumption present makes up 4.6% of its equity book, placing it alongside higher-growth names similar Reddit and Clean Harbors.