-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
FLS delivered a Q1 beat with adjusted EPS of $0.85 (+18.1% Y/Y), exceeding consensus by $0.05. The beat was driven by sustained margin expansion of 230 bps to 15.1%, resulting from pricing execution and 80/20 efficiency initiatives. However, total sales declined 6.7% due to Middle East headwinds. Bookings showed a favorable mix shift toward higher-margin aftermarket services; aftermarket bookings declined just 1.2% to $680M, while original equipment bookings fell 13% to $468M. Additionally, FLS secured over $110M in nuclear bookings, continuing momentum in this strategic long-cycle market. Management reaffirmed its full-year 2026 adjusted EPS guidance of $4.00-$4.20. It also updated organic sales growth expectations to a range of (1%) to +2%, from the prior +1% to +3% range. The US-Iran conflict created a ~$50M headwind to bookings and a $25M impact to sales, resulting in a $9M reduction in operating income. An unexpected tariff recovery, however, supported the guidance reiteration.