Dover Q4 Earnings Surpass Estimates, Revenues Increase 9% Y/Y

Core Insights - Dover Corporation (DOV) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $2.51, exceeding the Zacks Consensus Estimate of $2.48, and up from $2.20 in the same quarter last year [1] - Total revenues for the fourth quarter increased by 8.8% year over year to $2.099 billion, surpassing the Zacks Consensus Estimate of $2.068 billion [2] - Dover's adjusted EBITDA rose by 11.7% year over year to $521 million, with an adjusted EBITDA margin of 24.8% [3][11] Financial Performance - The cost of sales increased by 8% year over year to $1.28 billion, while gross profit rose by 10% to $821 million, resulting in a gross margin of 39.1%, up from 38.7% in the previous year [3] - Selling, general and administrative expenses increased by 5.5% to $475.5 million [3] - Free cash flow for the fourth quarter was $487 million, compared to $385 million in the same quarter last year [12] Segment Performance - Engineered Products segment revenues declined by 4.3% year over year to $276 million, with adjusted EBITDA increasing by 4.6% to $67.9 million [4] - Clean Energy & Fueling segment revenues were $552 million, up from $528 million, but missed estimates [5] - Imaging & Identification segment revenues increased by 4.6% to $302 million, with adjusted EBITDA of $83.6 million, which was below estimates [6] - Pumps & Process Solutions segment revenues rose by 21.8% to $584 million, with adjusted EBITDA totaling $186.5 million, also below projections [7] - Climate & Sustainability Technologies segment revenues grew by 11.4% to $387 million, with adjusted EBITDA of $68 million, which lagged estimates [8] Bookings and Future Outlook - Dover's bookings at the end of the fourth quarter were $2.14 billion, up from $1.94 billion in the prior year, exceeding estimates [9] - For 2026, Dover expects adjusted EPS between $10.45 and $10.65, anticipating year-over-year revenue growth of 5-7% [14]