Flowserve Corp Q2 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Maybe starting off with one on the guide. 3Q looks a lot like 1Q would imply that 4Q looks a lot like 4Q last year. I would have thought you had some tailwinds going on in terms of better pricing coming out of the backlog, maybe a better mix with all of these aftermarket bookings. Do you feel like there's still a degree of conservatism, which is understandable after the last couple of years baked into the guidance here?

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : And then maybe as my follow-up question, we'll talk about gross margins. It's good to see them getting back to this consistent 30% level. Again, you should have some tailwinds over the next 18 months as some of this backlog converts from better absorption, from better pricing coming out, probably some operational improvement that you've demonstrated here in the second quarter. Can you maybe talk a bit more about the medium-term outlook for gross margins and where you think they might be able to get to?