Snapshot
DOVER Corp reported $2.10B of revenue in Q4 2025, up 8.8% year over year, with diluted EPS of $2.06 and an operating margin of 16.5%.
- Revenue
- $2.10B
- YoY growth
- +8.8%
- Diluted EPS
- $2.06
- Operating margin
- 16.5%
What management said
- •Our fourth quarter results reflect broad-based top-line strength across the portfolio, with organic growth up to five in the quarter, the highest level of the year.
- •Revenue performance in the quarter was driven by robust trends, and our secular growth exposed markets as well as improving conditions in retail fueling and refrigerated door cases and services.
- •Segment EBITDA margins improved 60 basis points in the quarter to 24.8% on volume leverage and ongoing productivity initiatives.
- •All-in adjusted EPS at $9.61 was up 14% in the quarter, beating our raised third-quarter guide and 16% for the full year, a very encouraging result.
- •Our current acquisition pipeline is interesting and is dominated by proprietary opportunities.
- •Demand trends are solid and broad-based across the portfolio and are supported by our order book, with no individual end market presenting a material headwind based on current visibility.
- •We are guiding for adjusted EPS of $10.45-$10.65 a share in 2026, which represents double-digit growth at the midpoint, consistent with our long-term trajectory and commitment to driving sustainable value creation to our shareholders.
- •Engineered Products revenue was down in the quarter on lower volumes and vehicle services, partially offset by double-digit growth within aerospace and defense components and software.
- •Despite the organic volume decline, absolute segment profit improved in the quarter, with margins up over 200 basis points on well-executed structural cost management, product mix, and productivity initiatives.
- •Clean Energy & Fueling was up 4% organically in the quarter, led by strong shipments and new orders in clean energy components, as well as North American retail fueling software and equipment.
- •Margins were down slightly in the quarter due to lower vehicle wash solutions, but still up materially for the year as we track towards our goal of 25% margin for the segment.
- •Imaging and ID was up 1% organically in the quarter on growth in our core marking and coding business and in serialization software.
What went well
- •Fourth-quarter organic growth reached 5%, the highest level of the year, with broad-based top-line strength across the portfolio.
- •Bookings were up over 10% in the quarter and 6% for the full year, with all five segments posting bookings growth and a seasonally high book-to-bill of 1.02.
- •Segment EBITDA margins improved 60 basis points in the quarter to 24.8% on volume leverage and ongoing productivity initiatives.
- •All-in adjusted EPS of $9.61 was up 14% in the quarter, beating the raised third-quarter guide, and up 16% for the full year.
- •Pumps & Process Solutions grew 11% organically on single-use biopharma components, thermal connectors for data-center liquid cooling, precision components, and digital controls, while SIKORA continued to outperform its underwriting case.
- •Climate and Sustainability Technologies grew 9% organically with margins up 250 basis points, record U.S. quarterly shipments of brazed plate heat exchangers, and a book-to-bill of 1.21.
What went wrong
- •Engineered Products revenue declined in the quarter on lower volumes in vehicle services, with vehicle aftermarket down double digits organically in 2025.
- •Clean Energy & Fueling margins were down slightly in the quarter due to lower vehicle wash solutions.
- •Vehicle Service Group remained pressured by weak European demand, now nearly three years into the downturn.
- •The European chemical market remained weak, weighing on Maag (polymer processing) order activity.
- •Management flagged a tough first-quarter comp in biopharma due to heavy restocking in early 2025.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Adjusted EPS | FY2026 | — | $10.45–$10.65 (double-digit growth at midpoint) | Initiated |
| Free cash flow (% of revenue) | FY2026 | 14% (FY2025 actual) | 14%–16% of revenue | Steady to higher |
| Organic revenue growth | FY2026 | — | ~4% | Initiated |
| Price embedded in guide | FY2026 | — | 1.5%–2% | Initiated |
| Incremental margin (as reported) | FY2026 | — | ~35% | Initiated |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Pumps & Process Solutions | +11% organic | Growth in single-use biopharma components, thermal connectors for data-center liquid cooling, precision components, digital controls, plus first polymer-processing organic growth since Q1 2024 on backlog delivery timing. |
| Climate and Sustainability Technologies | +9% organic | Double-digit growth in CO2 refrigeration systems and recovery in refrigerated display cases and engineering services, plus record brazed plate heat exchanger shipments for data-center liquid cooling. |
| Clean Energy & Fueling | +4% organic | Strong shipments and new orders in clean energy components and North American retail fueling software and equipment. |
| Imaging and ID | +1% organic | Growth in core marking and coding and serialization software, with margins at 28% though FX translation and higher printer-shipment mix weighed slightly. |
| Engineered Products | Revenue down | Lower volumes in vehicle services partially offset by double-digit growth in aerospace and defense components and software; segment profit and margins still rose over 200 bps on cost management and mix. |
| Free cash flow | Q4 $487M (23% of revenue); FY 14% of revenue, up ~$200M | Improved cash conversion on higher year-over-year earnings, more than offsetting higher capital spend on growth and productivity projects. |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data-center liquid cooling demand | — | Record U.S. quarterly shipments of brazed plate heat exchangers and thermal connectors; booked well beyond Q1. | rising |
| Refrigeration recovery | ~$150M drawdown / deferment discussed at Q3 | Backlog rebuilt, sold out for Q1 and booking into Q2; national retailers resuming maintenance and replacement spending. | rising |
| North American retail fueling CapEx cycle | — | Described as early innings of a new CapEx cycle, a North American phenomenon as fuel-retail spreads sit near record highs. | rising |
| M&A and capital allocation | — | $700M deployed across four acquisitions in 2025 (three in Pumps & Process Solutions) performing above underwriting; $500M accelerated share repurchase initiated in November; dry powder nearly identical to prior year. | steady |
| Secular growth-exposed markets (~20% of portfolio) | Highlighted in prior quarters | Continued double-digit growth in 2025 and expected to continue in 2026. | steady |
| Input cost / commodity inflation | — | Watching commodity costs rising into the year, particularly copper in DCST; may take pricing action to cover headwinds. | rising |
Q&A summary
What is the price/cost outlook and how much price is embedded in the guide given steel exposure? (Tusa, JPMorgan)
Management expects roughly 1%-1.5% price over cost as usual, with 1.5%-2% price embedded in the guide; commodity costs are moving up, and Dover may revisit pricing depending on the trajectory.
On 2026 mix, what operating leverage is targeted in the higher-growth, lower-margin DCEF and DCST segments? (Mitchell, Barclays)
DCEF leverage comes from revenue growth plus prior-period restructuring (rooftop) benefits that build progressively, so margin gains are back-end loaded; DCST showed a 250 bps Q4 jump but is copper-exposed, and pricing may be needed to cover input costs.
Why is 4% growth guidance below the Q4 exit rate, and is margin expansion essentially the $40M productivity carryover offset by mix? (Mehrotra, UBS)
Yes to both; the guide reflects prudence early in the year after 2025 tariff turmoil, is based on executable backlog, and could be moved up quarter by quarter as bookings momentum and visibility improve, as happened in 2025.
Is the reported incremental margin guide around 35% with nothing below the operating line to watch? (Sprague, Vertical Research)
Confirmed roughly 35% incremental with nothing material below the line.
What is the appetite for a large or transformational deal versus bolt-ons? (Sprague, Vertical Research)
Dover will not discuss the pipeline and weighs execution risk heavily; expects to do some M&A in 2026, but any transformational deal would have to be shareholder-friendly, and the company is not required to do anything given its bolt-on algorithm and organic growth.
Can you elaborate on the North American retail fueling CapEx cycle and regional dynamics? (O'Dea, Wells Fargo)
It is very much a North American phenomenon after years of low fueling CapEx tied to EV expectations; record-high retail fuel spreads (e.g., at operators like Costco) are now driving project returns, while Dover has deliberately drawn down emerging-market and EMEA exposure via 80/20.