Dover(DOV) - 2024 Q4 - Annual Results

Financial Performance - Dover reported Q4 2024 revenue of $1.9 billion, a 1% increase compared to Q4 2023[4] - GAAP earnings from continuing operations for Q4 2024 were$ 238 million, down 8%, with diluted EPS of $1.72, a decrease of 7%[4] - For the full year 2024, Dover generated revenue of$ 7.7 billion, also a 1% increase year-over-year[5] - Full year GAAP earnings from continuing operations rose to $1.4 billion, a 48% increase, with diluted EPS increasing by 50% to$ 10.09[5] - Adjusted diluted EPS for 2024 was $8.29, reflecting a 4% increase compared to 2023[5] - Net earnings from continuing operations for FY 2024 reached$ 1,399,968, compared to $943,864 in FY 2023, representing a 48.3% increase[20] - Net earnings for 2024 reached$ 2,697,126, a significant increase from $1,056,828 in 2023, representing a growth of approximately 154%[27] - Adjusted earnings from continuing operations for FY 2024 totaled$ 1,150,250, compared to $1,118,051 in FY 2023, reflecting a growth of about 3%[29] - Adjusted diluted earnings per share from continuing operations for FY 2024 were$ 10.09, an increase from $6.71 in FY 2023, representing a growth of approximately 50%[29] Revenue Growth - Dover anticipates full year revenue growth of 2% to 4% in 2025, with organic growth expected to be between 3% and 5%[11] - The Clean Energy & Fueling segment generated revenue of$ 528,032 in Q4 2024, a 17.5% increase from $449,423 in Q4 2023[23] - Organic revenue growth for the Engineered Products segment was 8.2% for Q4 2024, contributing to a total organic growth of 0.3% for the same quarter[34] - Organic bookings growth for Clean Energy & Fueling segment was 5.8% for FY 2024, with a notable 17.4% growth in Q4[39] Cash Flow and Liquidity - The company ended 2024 with a strong cash position, providing flexibility for future capital deployment[9] - Cash and cash equivalents increased significantly to$ 1,844,877 in December 2024 from $398,561 in December 2023, marking a growth of 362.5%[24] - Net cash provided by operating activities decreased to$ 1,087,833 in 2024 from $1,219,546 in 2023, a decline of about 11%[27] - Cash and cash equivalents at the end of 2024 were$ 1,844,877, up from $415,861 in 2023, indicating a substantial increase of approximately 343%[27] - The company reported a net debt to net capitalization ratio of 13.5% as of December 31, 2024, a significant decrease from 37.3% in the previous year[49] - Cash flow from operating activities as a percentage of revenue reached 22.7% in Q4 2024, up from 16.9% in Q4 2023, indicating improved operational efficiency[51] - Free cash flow as a percentage of revenue was 20.0% in Q4 2024, compared to 14.8% in Q4 2023, reflecting stronger cash generation capabilities[51] Acquisitions and Investments - The company completed six acquisitions over the last three years, enhancing its Clean Energy & Fueling segment[9] - The company completed the acquisition of eight businesses in FY 2024 for a total consideration of$ 674.0 million, aimed at expanding operations in various segments[42] - The sale of the Environmental Solutions Group business generated a total consideration of $2.0 billion, resulting in a pre-tax gain of$ 1.6 billion for the fourth quarter of 2024[43] Segment Performance - Segment earnings for Engineered Products in Q4 2024 were $59,989, up from$ 67,590 in Q4 2023, reflecting a decrease of 11.2%[23] - The total segment earnings for FY 2024 were $1,680,418, compared to$ 1,614,952 in FY 2023, marking an increase of 4.0%[33] - The Clean Energy & Fueling segment reported adjusted segment EBITDA of $391,969 for FY 2024, up from$ 358,721 in FY 2023, representing an increase of 9.2%[31] - The Imaging & Identification segment achieved an adjusted segment EBITDA margin of 27.8% for FY 2024, compared to 25.8% in FY 2023, indicating a year-over-year improvement of 2 percentage points[31] Tax and Expenses - The company reported a provision for income taxes of $357,048 for FY 2024, compared to$ 179,136 for FY 2023, indicating an increase of 99.5%[23] - The effective tax rate for FY 2024 was 20.3%, up from 16.0% in FY 2023, primarily due to gains on dispositions[47] - The company incurred $186,241 in purchase accounting expenses for FY 2024, up from$ 158,582 in FY 2023, an increase of about 17%[29] Shareholder Returns - Total dividends paid to stockholders in 2024 were $283,117, slightly down from$ 284,297 in 2023, a decrease of about 0.4%[27] - The company repurchased 2,869,282 shares for $500 million under the accelerated share repurchase program during FY 2024[48] Operational Efficiency - The total adjusted segment EBITDA margin for FY 2024 was 23.6%, up from 22.9% in FY 2023[31] - The company emphasized the importance of organic revenue growth, which excludes the impact of foreign currency exchange rates and acquisitions, for assessing performance trends[61] - Management highlighted the significance of free cash flow as a measure of liquidity, essential for funding acquisitions and paying dividends[60]