Dover Surpasses Earnings Estimates in Q3, Raises '25 Outlook

Core Insights - Dover Corporation reported third-quarter 2025 adjusted earnings per share (EPS) of $2.62, exceeding the Zacks Consensus Estimate of $2.50 and up from $2.27 in the same quarter last year [1][10] - Total revenues for the quarter were $2.08 billion, a 4.8% increase year over year, but slightly below the Zacks Consensus Estimate of $2.09 billion [2][10] - The company raised its 2025 adjusted EPS guidance to $9.50-$9.60, up from $9.35-$9.55, anticipating year-over-year revenue growth of 4-6% [12] Financial Performance - The cost of sales increased by 2% year over year to $1.24 billion, while gross profit rose by 9.2% to $834 million, resulting in a gross margin of 40.1%, up from 38.5% in the previous year [3][10] - Selling, general and administrative expenses grew by 6.3% to $456 million [3] - Adjusted EBITDA increased by 12% year over year to $543 million, with an adjusted EBITDA margin of 26.1%, compared to 24.4% in the prior year [3] Segment Performance - Engineered Products segment revenues decreased by 5.5% year over year to $280 million, falling short of estimates, but adjusted EBITDA increased by 2.9% to $63 million [4] - Clean Energy & Fueling segment revenues rose to $541 million from $501 million, with adjusted EBITDA increasing to $127 million from $108 million [5] - Imaging & Identification segment revenues increased by 5.3% to $299 million, with adjusted EBITDA rising to $86 million from $81 million [6] - Pumps & Process Solutions segment revenues grew by 16.6% to $551 million, with adjusted EBITDA up 21.1% to $183 million [7] - Climate & Sustainability Technologies segment revenues fell by 5.2% to $409 million, with adjusted EBITDA slightly increasing to $83.6 million [8] Bookings and Cash Flow - Dover's bookings at the end of the third quarter were approximately $2 billion, up from $1.85 billion in the prior year, but missed estimates [9] - The company reported a free cash inflow of $370 million, compared to $315 million in the same quarter last year, with cash flow from operations amounting to $424 million [10][11] Stock Performance - Dover's shares have decreased by 11.6% over the past year, contrasting with the industry's growth of 5.4% [13]