FLS · CIK 0000030625
What Flowserve Corporation told the SEC could break it.
Flowserve's disclosures converge on metal inputs and the trade policy around them. Its pumps, valves and seals are steel- and aluminum-intensive, so its costs are directly exposed to those commodities — and that exposure sharpened in 2025 when the U.S. imposed 50% tariffs on steel, aluminum and products containing them from a range of trading partners. That cost pressure compounds a globally sourced supply chain: it sells in more than 90 countries (58% of sales international) and primarily sources certain manufacturing, engineering, raw materials and components from China, Eastern Europe, India and Latin America, leaving it exposed to those regions' political and economic risk and to broader U.S. trade actions — tariffs on China, India and Mexico, retaliatory measures and USMCA uncertainty.
3 self-disclosed vulnerabilities, pulled from its own filings — each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- steel and aluminum (and products containing them)medium
Flowserve's pumps, valves and seals are steel- and aluminum-intensive; in 2025 the U.S. imposed 50% tariffs on steel, aluminum and products containing them from a range of trading partners, directly raising Flowserve's input costs.
“For example, in 2025, the United States expanded and increased existing tariffs on steel and aluminum, imposing 50% tariffs on steel, aluminum, and products containing steel and aluminum from a range of U.S. trading partners.”
Geographic concentration
- offshore sourcing from China, Eastern Europe, India and Latin Americamedium
Flowserve sells in 90+ countries (58% international sales) and primarily sources certain manufacturing/engineering functions, raw materials and components from China, Eastern Europe, India and Latin America, exposing its supply chain to those regions' political/economic risk.
“Moreover, we primarily source certain of our manufacturing and engineering functions, raw materials and components from China, Eastern Europe, India and Latin America.”
Regulatory & policy
- U.S. tariffs and trade actions (China/India/Mexico; USMCA uncertainty)medium
U.S. trade actions — tariffs on goods from China, India, Mexico and others, expanded steel/aluminum tariffs, retaliatory tariffs and USMCA uncertainty — could adversely affect Flowserve's globally sourced manufacturing and components.
“The United States continues to implement certain trade actions, including imposing tariffs on certain goods imported from China, India, Mexico, and other countries, which have also resulted in certain retaliatory tariffs being imposed.”
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