Dover delivered a strong second quarter of 2026 with all-in revenue up 7% (5% organic) to $2.19 billion and all five segments growing organically, led by secular-growth-exposed markets that now represent roughly 25% of the portfolio (up from 20% a quarter earlier). Profitability was healthy: adjusted EBITDA margin expanded 80 basis points to 25.9%, incremental margins jumped to 38% from 25% in Q1, adjusted EPS rose 12% to $2.74, and GAAP diluted EPS from continuing operations grew 14% to $2.31, prompting management to raise full-year adjusted EPS guidance while committing to double-digit growth. Bookings were the standout, up 16% year over year with a 1.06 book-to-bill (trailing-twelve-month bookings up 15%) that was broad-based across all five segments and improved second-half visibility, with particular strength in data center liquid cooling (a record heat-exchanger quarter, with SWEP capacity being doubled over 12 months amid supply that cannot keep up), LNG/space cryogenics, single-use biopharma, and CO2 refrigeration. The quarter's clear disappointment was a refrigeration facility consolidation that fell short on production throughput during a labor ramp - which CEO Rich Tobin owned personally and estimated cost about a point to a point-and-a-half of organic growth plus redundant-facility margin pressure - while Pumps & Process Solutions was roughly flat on a tough Polymer Processing comparison (offset by a record ~35% segment margin). Free cash flow rose 23% year to date to $320 million (8% of revenue) with full-year guidance unchanged at 14%-16% of revenue, and management highlighted an improved industrial M&A pipeline, saying it will keep powder dry for deals at reasonable valuations but pivot to capital return (viewing the stock as cheap) if none materialize. Management expressed confidence in cycle durability into 2027 across its end markets while cautioning against over-extrapolating strong bookings into near-term revenue given short-cycle timing volatility.
Thank you, Katie. Good morning, everyone, and thank you for joining our call. An audio version of this call will be available on our website through August 13th, and a replay link of the webcast will be archived for 90 days. Our comments today will include forward-looking statements based on current expectations. Actual results and events could differ from those statements due to a number of risks and uncertainties, which are discussed in our SEC filing. We assume no obligation to update our forward-looking statements. With that, I will turn the call over to Rich.
Thanks, Jack. Good morning, everyone. Let's get going on slide three. We delivered another strong quarter with results that reflect the breadth of demand across the portfolio. All-in revenue grew 7% or 5% organically, with all five segments posting positive organic growth. Our top-line performance continued to be led by our secular growth exposed markets, which now represent approximately 25% of the portfolio, which is complemented by broad-based constructive trading conditions across most of our other end markets. Margin performance was solid. Adjusted EBITDA margin expanded 80 basis points to 25.9% as operational execution on incremental volume more than offset input cost inflation and facility consolidation costs during the quarter. Incremental margins were 38%, from 25% in Q1, the healthy product mix driven by our growth platforms. Adjusted EPS was $2.74 per share, up 12% year-over-year, marking another quarter of double-digit earnings growth.
Bookings were, again, the highlight in the quarter. Orders increased 16% year-over-year and outpaced shipments with book-to-bill at 1.06, extending strong order momentum of recent quarters and improving our visibility into the second half of the year. Our balance sheet remains a competitive advantage, and we continue to invest capital behind our businesses. During the quarter, we advanced capacity expansion projects to support growth as well as productivity investments to drive margin improvement across the portfolio. Industrial M&A markets have improved this year, and our acquisition pipeline has a number of interesting opportunities in attractive end markets. Given our first half performance, the momentum in our end markets, and the visibility we have in the second half, we are raising our full year adjusted EPS guidance. We are committed to delivering double-digit adjusted EPS growth consistent with Dover's long-term performance trajectory. Let's go to slide five.
Engineered Products was up 2% organically. Growth was driven by strong demand in aerospace and defense components, fluid dispensing, and industrial winches, along with continued stabilization in the North American vehicle aftermarket. Margins expanded 100 basis points on favorable mix and proactive cost containment actions. Clean Energy & Fueling grew 9% organically, with broad-based strength across clean energy components and retail fueling equipment and software. Within clean energy, our order book has expanded meaningfully from cryogenic components used in LNG and space launch infrastructure, driving momentum in that business. Retail fueling also remained healthy, with particular strength in North American dispensers, software, and below-ground equipment. Segment margin expanded 170 basis points on volume leverage and the integration benefits from recent acquisitions. Imaging & Identification grew 3% organically, with growth across core marking and coding equipment, consumable spare parts, and serialization software.
Segment margin expanded 150 basis points on productivity and structural cost discipline. Pumps & Process Solutions grew slightly, with strength in AI and energy infrastructure components, single-use biopharma, and industrial pumps. Precision Components benefited from robust demand for bearings tied to steam and gas turbines. Polymer Processing had a tough comp in the quarter, which muted this segment's top line. We expect the business to return to growth in the second half of the year. Segment margin expanded 170 basis points to 35%, I think a record or a best-in-class result driven by a mix of products delivered and augmented by M&A activity. Climate & Sustainability Technologies grew 8% organically. A bit of a tale of two cities here. Heat exchangers delivered their best quarter ever, with particularly strong demand tied to liquid cooling.
For data centers, we are actively working to double capacity for these products over the next 12 months. We also continue to see a welcome recovery in European residential heat pumps. We had a tough quarter in refrigeration. Demand was strong across all the product lines, particularly CO2 systems, which is great, but raising output proved difficult in the midst of a complex facility consolidation while simultaneously ramping labor. While we knew that there was going to be some margin pressure from running redundant facilities through the transition, we frankly did not expect to fall short on our production throughput targets. That's on me, and it cost us on the top line in the quarter probably a point to a point and a half of organic growth.
We'll get this fixed over the balance of the year, and I expect it to be reflected in the revenue growth rate and margin in the second half. Pass it over to Chris.
Thanks, Rich, and good morning, everyone. Let's go to our cash flow statement on slide six. Year-to-date free cash flow of $320 million or 8% of revenue was up 23% over prior year. This improvement was primarily driven by operating cash conversion on year-over-year earnings growth, which more than offset working capital investments tied to accelerating top-line growth. Consistent with historical trends, we expect cash flow generation to accelerate meaningfully in the second half, driven by seasonal working capital liquidation in the third and fourth quarters. Our full year CapEx estimate remains $190 million-$210 million, and our free cash flow guidance remains 14%-16% of revenue. With that, let me turn it back to Rich.
I'm on slide seven. Broad-based booking momentum continued in Q2, with all five segments posting year-over-year growth. On a trailing 12-month basis, consolidated bookings are up 15%, and book-to-bill is well above one, providing further visibility and confidence in our outlook. The breadth of our order growth is important and points to continued top-line strength in the second half. We are seeing particular strength in the areas we have highlighted as secular growth priorities, aerospace and defense, components for steam and gas turbines, and broader power generation infrastructure, single-use biopharma, CO2 refrigeration systems, and the heat exchangers for liquid cooling of data centers, where in many cases, demand is outpacing supply and extending lead times, and we are actively expanding capacity in those areas. We are also seeing order improvement in parts of the portfolio that have recently been pressured.
Refrigerated door cases and engineering services continued to recover from 20-year lows as national retailers reengage in maintenance and replacement activity. In Polymer Processing, a book-to-bill above one in the quarter is an early signal of stabilization and a better outlook for that longer cycle business as we look towards 2027. Turning to slide eight. We highlight the breadth of our exposure across multiple secular growth end markets. These markets, which now represent approximately 25% of our 2026 revenue, up from 20%, I think at the end of Q1, are becoming increasingly visible across all five segments. Across the energy transition and power generation markets, natural gas remains the most viable option for scalable, reliable electricity.
We participate in the natural gas ecosystem through cryogenic components such as valves and vacuum-jacketed piping for LNG infrastructure, and through precision components for reciprocating compressors, engines, steam, and gas turbines, where OEM lead times now extend for years. Our acquisition of SIKORA a year ago continues to meaningfully outperform its underwriting case, providing test and measurement equipment for high voltage wires tied to electrification, and increasingly for polymer-coated fiber optic cables tied to the data center build-out. In data centers, the density of thermal requirements of new chips are driving a shift towards liquid cooling, as we all know, which directly benefits our connector and heat exchanger businesses. Through SWEP, we participate across multiple parts of the liquid cooling ecosystem, supplying brazed plate heat exchangers in both coolant distribution unit and chiller OEMs.
Our OPW business is also capitalizing on this growth through supplying couplers, adapters, and cryogenic cooling infrastructure, as well as fiberglass trench systems, which were originally designed for retail fueling and are increasingly being specified for data center applications by hyperscalers. Demand tied to data center infrastructure remains exceptional, with customers securing capacity well ahead of need. In CO2 refrigeration, we hold a first-mover advantage of fully platform product offering and a recently retrofitted plant in Georgia that gives us differentiated scale and product performance. Importantly, industry adoption is no longer driven by regulation, but rather by economic payoff and the total cost of ownership versus legacy refrigerants. We are also seeing robust growth across our exposures to semiconductor and electronics manufacturing, where cryogenic components, flow meters, and specialized heat exchangers position us well against a durable multi-year investment cycle.
In biopharma and medical, our single-use connectors, pumps, and flow meters continue to benefit from investment behind new therapies, increasing production rates, and secular shift towards single-use batch manufacturing. Finally, we have a growing exposure to space through our cryogenic components business, particularly vacuum-jacketed piping and valves for launch infrastructure, as well as through our Microwave Products Group, which supplies radio frequency filters, amplifiers, and switches for satellites. All in, we expect to generate $50 million in revenue tied to space this year, with order rates signaling significant momentum going forward. These are the types of markets where Dover tends to win, technically demanding applications with mission-critical components, strong customer relations, and differentiated product performance. These are the hallmarks of a Dover business and support durable competitive positions, attractive margins, and long growth runways.
As a result, the majority of our acquisition capital over the past five years has been deployed in these areas, and they continue to represent the most attractive opportunities in our M&A pipeline. Okay. Finally, let's go to slide nine. Our updated full-year guidance is shown on the left and reflects the raise of our organic growth and adjusted EPS outlook. For the full year, we expect positive organic growth across all five segments. Similar top-line trends that we saw in the first half of the year. The secular growth exposed markets should continue to lead the way Complemented by solid broad-based demands across most of our other end markets. The operating environment still has its share of uncertainty, geopolitics, input costs, and evolving trade and tariff background are factors that we are managing closely.
That said, demand signals remain constructive across the portfolio, the strength and duration of our order book gives a level of visibility that supports the guidance increase. We are staying disciplined in our operations, investing behind platforms where returns are most compelling, and maintaining balance sheet flexibility to play offense on capital deployment. That combination, operating execution, durable demand, and disciplined capital allocation, is what gives us confidence in the outlook and our ability to continue creating long-term value for shareholders. With that, Jack, let's go to Q&A.