Dover(US:DOV)2026-02-13 21:22Financial 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].