Question-and-Answer SessionSo Rich, I think one thing that's sort of exercising a lot of people's minds right now is health of the U.S. industrial economy, a lot of optimism. Last year seemed to end strong. PMIs were good 2 to 3 weeks ago. What are kind of your perspectives? You've got a very broad portfolio touching a lot of different parts of the U.S. industrial economy.Richard TobinPresident, CEO & Chairman of the Board Sure. It feels eerily similar than it did this time last year. I thought the setup wa ...

Dover Corporation FY Conference Summary Industry Overview - The discussion revolves around the U.S. industrial economy, with a focus on the health and optimism surrounding it as of early 2026. The sentiment is cautiously optimistic compared to the previous year, with a notable difference being lower interest rates and an acceleration in orders leading into 2026 [1][2]. Key Insights - **Order Acceleration**: There has been a significant increase in orders leading into 2026, contrasting with the previous year where orders were less predictable. This is attributed to a more stable economic environment and a backlog that provides confidence for the year ahead [2][4]. - **Impact of Tariffs**: The previous year's tariffs caused a significant disruption, leading to lost time and deferred capital expenditures (CapEx). However, the current environment shows signs of recovery as fears surrounding tariffs have lessened [5][6]. - **Segment Growth**: The Clean Energy and Climate & Sustainability segments are expected to drive the most growth in both revenue and profit. The Clean Energy segment has doubled in size due to mergers and acquisitions (M&A) and is poised for a three-year upcycle [10][11]. - **Cryogenic Components**: Investments in the gas complex, including LNG and propane, are highlighted as significant growth areas. The company has made substantial acquisitions in this space and is restructuring to optimize operations [12][24]. - **Retail Refrigeration**: The retail refrigeration segment is expected to see growth after a period of deferred CapEx due to tariffs. The company has also introduced new CO2 technology, generating over $300 million in revenue in 18 months [15][16]. Risks and Concerns - **Engineered Products Segment**: There are concerns regarding the vehicle aftermarket, particularly in Europe, which may face challenges. However, it is not expected to decline further this year [17][18]. - **Cost Inflation**: The company has not been significantly impacted by price fatigue among customers, as a large portion of its portfolio consists of subcomponents in B2B sales. Unit volume is expected to drive revenue growth rather than price increases [19][20]. Financial Performance and Projections - **Operating Margins**: The company anticipates a muted start to margin expansion, with expectations for overall portfolio margins to improve but at a slower rate due to a more diverse revenue mix [21][22]. - **M&A Strategy**: Dover has maintained a cautious approach to M&A, with a focus on extracting synergies from past acquisitions. The company has a strong liquidity position and is prepared to return capital to shareholders if market conditions do not favor acquisitions [56][60]. - **Long-term Growth**: The company aims for 4-6% organic growth annually, with a focus on maintaining a strong cash-generative portfolio to support future investments [75][78]. Additional Insights - **Data Center Exposure**: The company has significant exposure to data centers through thermal connectors and Brazed Plate Heat Exchangers, which are expected to grow, although Dover is not a major supplier in this space [31][32]. - **Heat Pumps Market**: The heat pump market is expected to recover, but growth rates will not return to the highs of 2022 and 2023. The company is cautious about over-capacitating during this cycle [40][41]. - **Portfolio Management**: Dover has strategically exited lower-performing segments to focus on higher growth areas, emphasizing the importance of return on invested capital (ROIC) over mere margin metrics [45][48]. Conclusion Dover Corporation is positioned for growth in 2026, driven by strong order acceleration, strategic investments in clean energy, and a focus on optimizing its portfolio. While there are risks associated with certain segments and market conditions, the overall outlook remains positive with a disciplined approach to capital allocation and M&A.

Financial Performance - For the year ended December 31, 2025, consolidated revenue was $8.1 billion, an increase of $346.7 million or 4.5% compared to the prior year[143]. - Organic revenue growth of 1.6% was driven by increases of 6.7%, 4.6%, and 1.9% in the Pumps & Process Solutions, Clean Energy & Fueling, and Imaging & Identification segments, respectively[144]. - Bookings increased 6.0% over the prior year to $8.1 billion for the year ended December 31, 2025, with growth across all segments except Engineered Products[146]. - Gross profit increased $259.5 million, or 8.8%, to $3.2 billion, with a gross profit margin of 39.8%, up 160 basis points from the prior year[152]. - Earnings from continuing operations for the year ended December 31, 2025 decreased by $302.5 million, or 21.6%, to $1.1 billion, compared to $1.4 billion in 2024[163]. - Revenue for the year ended December 31, 2025 decreased by $19.8 million, or 1.3%, compared to 2024, with an organic revenue decline of 2.1% partially offset by a favorable foreign currency translation impact of 0.8%[194]. Segment Performance - Clean Energy & Fueling segment revenue increased by $193.7 million, or 10.0%, to $2.13 billion, driven by acquisition-related growth of 5.1% and organic growth of 4.6%[176]. - Engineered Products segment revenue decreased by $116.6 million, or 9.7%, to $1.09 billion, primarily due to an organic decline of 6.6% and a disposition-related decline of 4.3%[170]. - Pumps & Process Solutions segment revenue increased by $254.1 million, or 13.4%, to $2.15 billion, attributed to organic growth of 6.7% and acquisition-related growth of 5.2%[188]. - Imaging & Identification segment revenue increased by $36.3 million, or 3.2%, to $1.17 billion, with organic growth of 1.9% and a favorable impact from foreign currency translation of 1.2%[182]. - Segment earnings for Climate & Sustainability Technologies increased by $14.8 million, or 5.9%, driven by higher volumes in heat exchangers and beverage can-making, resulting in a segment margin increase to 17.0% from 15.9%[195]. Strategic Initiatives - The company aims for organic sales growth of 4% to 6% annually, complemented by strategic acquisitions[19]. - Dover is focused on improving returns on capital and earnings margin through investments in automation, digital capabilities, and operational efficiency[20]. - The company plans to invest approximately 2% of revenue annually in capital spending to expand market participation and improve productivity[38]. - Over the past three years, Dover has spent approximately $1.9 billion on acquiring fourteen businesses, aiming for double-digit returns on capital within three to four years post-acquisition[40]. - The company is expanding its operations in international markets, particularly in developing economies in Asia, the Middle East, Eastern Europe, and South America[75]. Digital Transformation - Dover's digital initiatives are driven by its Boston-based Digital Labs, enhancing customer experience and operational efficiency through automation and connected products[30]. - Dover Digital Labs focuses on enhancing customer experience through digital capabilities, including AI-based models and remote monitoring, optimizing sales and support resources[34]. - The company is focusing on digital transformation through its Digital Labs team to enhance customer experience and develop connected industrial products[73]. Environmental and Social Responsibility - The company aims for a 30% absolute reduction in scope 1 and scope 2 greenhouse gas emissions by 2030 from a 2019 baseline[77]. - The company is committed to maintaining a professional and inclusive workplace environment[67]. - The company has invested significantly in talent development to promote employee advancement and retention[66]. Risk Factors - The company faces potential adverse effects from natural disasters, public health crises, and geopolitical conflicts, which could disrupt operations and impact demand across multiple end-markets[89]. - Cybersecurity risks remain a significant concern, with reliance on third-party systems for data processing and potential vulnerabilities that could disrupt sales and manufacturing activities[91]. - The company is exposed to legal proceedings and product recalls, which could lead to substantial unexpected expenditures and negatively affect financial results[96][97]. - Rising costs of raw materials and supply chain disruptions could adversely affect operating profits, with potential delays in passing costs to customers[103][104]. - Regulatory compliance is complex and evolving, with potential penalties for non-compliance that could disrupt business operations and affect financial position[105]. Shareholder and Financial Management - The company entered into a $500.0 million accelerated share repurchase agreement with JP Morgan to repurchase shares under the 2025 ASR Program[149]. - Total dividend payments to common shareholders were $283.0 million in 2025, with a dividend per share increase of 1% to $2.07 compared to $2.05 in 2024[211]. - The company emphasizes free cash flow as a key measure of liquidity for funding acquisitions, paying dividends, and repurchasing stock[212].

Company Overview - Dover Corporation (DOV) has a market cap of $31.6 billion and operates as a diversified global manufacturer, providing equipment, components, consumables, software, digital solutions, and support services across various industrial and commercial markets [1] Stock Performance - Over the past 52 weeks, DOV stock has increased nearly 14%, outperforming the S&P 500 Index, which returned 11.8% during the same period [2] - Year-to-date, DOV shares are up 18.3%, while the S&P 500 Index has experienced a slight decline [2] - However, DOV has lagged behind the State Street Industrial Select Sector SPDR ETF (XLI), which returned 26.4% over the past 52 weeks [3] Financial Results - Dover Corporation reported strong Q4 2025 results, achieving 5% organic revenue growth and a 10% increase in bookings for the quarter [6] - The adjusted EPS for Q4 2025 was $9.61, reflecting a 14% year-over-year increase and exceeding prior guidance [6] - Management has guided for 2026 adjusted EPS to be between $10.45 and $10.65, indicating double-digit growth at the midpoint [6] Analyst Expectations - For the fiscal year ending December 2026, analysts project Dover's EPS to grow 10.1% year-over-year to $10.58 [7] - Dover has a promising earnings surprise history, having topped consensus estimates in the last four quarters [7] - Among 18 analysts covering the stock, the consensus rating is a "Moderate Buy," with 11 "Strong Buy" ratings and seven "Holds" [7] Price Target and Ratings - On February 3, Seaport Research raised its price target on Dover Corporation to $245 while maintaining a "Buy" rating [8] - The stock is currently trading above the mean price target of $227.53, with the highest price target of $256 suggesting a potential upside of 9.8% from current levels [8]

Dover Corporation (NYSE:DOV) is one of the stocks Jim Cramer commented on. Cramer mentioned the company during the episode and said: The industrials, the old-fashioned non-data center industrials, are looking like huge winners from AI, even if we don’t know yet whether they deserve it. These stocks are doing so well. Honeywell, Dover, Emerson, wowza, can they run. And in reality, all they’re really doing is catching up with the rest of the market. They’re not expensive historically versus the S&P 500, whi ...

Group 1 - Dover Corporation (NYSE:DOV) is recognized as one of the top 15 Industrial Machinery and Supplies stocks to buy according to hedge funds [1] - Walter Liptak from Seaport Research has reiterated a Buy rating on Dover Corporation and raised the price target from $230 to $245, indicating an upside potential of over 18% for investors [1][2] - Joe Ritchie from Goldman Sachs also increased his price target for Dover Corporation from $220 to $224 while maintaining a Buy rating, following the company's fourth quarter announcement that exceeded consensus estimates [2][3] Group 2 - Dover Corporation operates as a diversified industrial products manufacturer with a portfolio that includes consumable supplies, equipment & components, aftermarket parts, wheel service equipment, vehicle diagnostics, digital solutions, and support services [4] - The company is structured into five segments: Climate & Sustainability Technologies, Clean Energy & Fueling, Engineered Products, Imaging & Identification, and Pumps & Process Solutions [4]

Core Viewpoint - Dover Corporation is a diversified global manufacturer with a strong market presence and positive analyst ratings, indicating a promising outlook for investors [2][5][6] Group 1: Company Overview - Dover Corporation operates in various industries, including energy, engineering, and food equipment, and competes with industrial giants like Emerson Electric and Illinois Tool Works [1] - The company has a market capitalization of approximately $28.89 billion and a trading volume of 534,735 shares on the NYSE, highlighting its significance in the industrial sector [5][6] Group 2: Stock Performance and Analyst Ratings - Seaport Global maintained a "Buy" rating for Dover, increasing the price target from $230 to $245, reflecting confidence in the company's future performance [2][6] - Zacks Investment Research identifies Dover as a top momentum stock, supported by strong Zacks Style Scores, which evaluate stocks based on value, growth, and momentum [3][6] - Dover's stock price is currently $210.67, showing a 1.62% increase or $3.35, indicating positive momentum [3] Group 3: Price Movement and Volatility - The stock has experienced significant price movement, with a trading range between $207.40 and $211.88 during the day, and over the past year, it reached a high of $222.31 and a low of $143.04 [4] - This volatility presents opportunities for investors looking to capitalize on price fluctuations [4]

Group 1 - Flowserve Corporation (NYSE:FLS) is recognized for its strong performance and is compared to Roper, indicating a favorable outlook for the company [1] - The company specializes in producing and maintaining industrial equipment, including pumps, valves, and mechanical seals, which are essential for controlling the movement of liquids and gases [3] Group 2 - Jim Cramer has highlighted Flowserve as a significant investment opportunity, suggesting it has been a "huge winner" in the market [1]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [2][3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, aiming to find attractive investment opportunities [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score assists investors in capitalizing on price trends, utilizing metrics like short-term price changes and earnings estimate revisions to identify optimal entry points [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive assessment of stocks based on weighted characteristics, aiding in the selection of the most promising investments [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [7][9] Stock Example: Dover Corporation - Dover Corporation, an industrial conglomerate, is currently rated 3 (Hold) with a VGM Score of B and a Momentum Style Score of A, having seen a 2.5% increase in shares over the past four weeks [11] - Analysts have recently revised Dover's earnings estimate upwards, with the Zacks Consensus Estimate rising by $0.01 to $10.60 per share, and the company has an average earnings surprise of +2.8% [12]

Core Viewpoint - Diamond Hill Capital's "Large Cap Fund" investor letter for Q4 2025 highlights a cautious stance on AI-driven market enthusiasm while emphasizing the attractiveness of fundamentally stable, high-quality, cash-generative businesses [1]. Market Overview - Equity markets showed upward momentum in Q4 2025, with the Russell 1000 Value Index increasing by 3.8% - The information technology sector rose by 11%, and communication services increased by 9%, primarily driven by optimism surrounding AI [1]. Fund Performance - The Diamond Hill Large Cap Fund returned 1.41% in Q4 2025, underperforming the Russell 1000 Value Index's 3.8% return [1]. Company Focus: Dover Corporation - Dover Corporation (NYSE:DOV) was highlighted as a new addition to the fund, recognized as a leading diversified industrial company with a market capitalization of $28.435 billion [2]. - Dover Corporation's stock closed at $207.32 per share on February 2, 2026, with a 1.88% return over the past month and a 2.17% increase over the past twelve months [2]. Strategic Transition of Dover Corporation - Dover Corporation is undergoing a transition from a merger-and-acquisition-focused holding company to an execution-focused operating company, which is expected to lead to continued margin expansion [3]. - Recent portfolio adjustments have increased Dover's exposure to higher growth end markets, and cyclical headwinds are anticipated to subside after years of sluggish growth [3]. - The stock is currently trading at a significant discount to the estimated intrinsic value, prompting the initiation of a position in the company [3]. Hedge Fund Interest - Dover Corporation is not among the 30 most popular stocks among hedge funds, with 55 hedge fund portfolios holding the stock at the end of Q3 2025, up from 47 in the previous quarter [4]. - While acknowledging Dover's potential, the company believes certain AI stocks may offer greater upside potential with less downside risk [4].