Dover Corporation Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
0mins
Source: seekingalpha
- Performance Growth: Dover Corporation reported a 5% organic growth in Q4, the highest of the year, reflecting strong performance across all business segments, with adjusted EPS guidance for 2026 set at $10.45 to $10.65, indicating sustained growth potential.
- Cash Flow Performance: Free cash flow in Q4 was $487 million, representing 23% of revenue and marking the highest cash flow quarter of the year, with full-year free cash flow at 14% of revenue, nearly $200 million higher than the previous year, demonstrating strong financial health.
- Strong Orders: The company experienced a 10% increase in orders in Q4 and a 6% increase for the full year, supporting ongoing momentum across its business segments, with management expressing optimism about future demand and no significant market headwinds anticipated.
- Strategic Deployment: Management highlighted the potential for margin improvement in clean energy and fueling sectors, expecting continued double-digit growth in 2026, while remaining vigilant about fluctuations in commodity costs to maintain competitive positioning.
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Analyst Views on DOV
Wall Street analysts forecast DOV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOV is 221.64 USD with a low forecast of 195.00 USD and a high forecast of 256.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 206.000
Low
195.00
Averages
221.64
High
256.00
Current: 206.000
Low
195.00
Averages
221.64
High
256.00
About DOV
Dover Corporation is a diversified global manufacturer and solutions provider. Its Engineered Products segment provides a range of equipment, components, software, solutions and services to the vehicle aftermarket, aerospace and defense, and others. Its Clean Energy & Fueling segment provides components, equipment, and software solutions and services. It also designs, manufactures, and supplies vacuum-insulated piping systems for a variety of liquefied gases like nitrogen, oxygen, carbon dioxide, and other industrial gases. Its Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection and digital textile printing equipment. Its Pumps & Process Solutions segment manufactures specialty pumps and flow meters, fluid transfer connectors, engineered precision components, instruments, and digital controls. Its Climate & Sustainability Technologies segment is a provider of energy-efficient equipment, components, and parts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dover Reports Strong Q4 Earnings and Guidance
- Revenue Growth: Dover's Q4 revenue rose 8.8% year-over-year to $2.1 billion, exceeding the market expectation of $2.08 billion, indicating strong performance across multiple markets, particularly in Engineered Products and Climate & Sustainability Technologies.
- Earnings Beat: Adjusted earnings per share came in at $2.51, ahead of the expected $2.48, reflecting improved profit margins and bolstering investor confidence in future performance.
- Order Growth: The company reported a 10% increase in booking rates, indicating robust market demand, with orders being received faster than deliveries, suggesting strong growth potential ahead.
- Outlook: Management guided that sales and organic growth for 2026 will come in slightly ahead of expectations, and while some may have hoped for a more positive outlook, the conservative management style may gradually raise estimates, enhancing investment stability.
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Dover Corporation Reports Strong Q4 Performance
- Strong Revenue Growth: Dover Corporation reported a 5% organic revenue increase in Q4, indicating improvements in retail fueling and refrigeration-related businesses, which contributed to a 6% growth in bookings for the year, reflecting broad market demand and positive business outlook.
- Margin Expansion: The company's EBITDA margin improved by 60 basis points year-over-year to 24.8% in Q4, driven by productivity enhancements and increased order volumes, demonstrating significant progress in cost management and operational efficiency.
- Cash Flow and Capital Allocation: Q4 free cash flow reached $487 million, representing 23% of revenue, with full-year free cash flow rising to 14%, as the company aims for adjusted EPS of $10.45 to $10.65 in 2026, showcasing strong financial health.
- Acquisition and Investment Strategy: Dover deployed $700 million on acquisitions in 2025, primarily in the Pumps & Process Solutions sector, while initiating a $500 million accelerated share repurchase program, indicating a proactive approach to expanding market share and enhancing competitiveness.
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