Dover (NYSE:DOV) executives struck an upbeat tone on the company’s fourth-quarter 2025 earnings call, pointing to broad-based organic growth, accelerating bookings, and margin expansion as the company heads into 2026. President and CEO Richard J. Tobin said Dover “had a good close to 2025,” with fourth-quarter organic revenue growth of 5%, the highest quarterly level of the year, supported by strength in secular-growth end markets and improving conditions in retail fueling and refrigeration-related businesses.
Fourth-quarter performance and full-year results
Tobin highlighted strong demand indicators, noting consolidated bookings rose more than 10% in the fourth quarter and 6% for the full year. Book-to-bill was 1.02 in the quarter, which management described as seasonally high. Segment EBITDA margins improved 60 basis points year over year to 24.8%, which Tobin attributed to volume leverage and productivity initiatives.
Segment trends: growth in Pumps & Process and Climate & Sustainability
Management described varied performance across Dover’s five segments, with notable momentum in Pumps & Process Solutions and Climate & Sustainability Technologies.
- Engineered Products: Revenue declined in the quarter due to lower volumes and vehicle services, partially offset by double-digit growth in aerospace and defense components and software. Despite the volume decline, segment profit improved and margins rose more than 200 basis points, driven by structural cost management, mix, and productivity.
- Clean Energy & Fueling: Organic revenue grew 4% in the quarter, led by clean energy components and North American retail fueling software and equipment. Margins dipped slightly in the quarter due to lower vehicle wash solutions, though management said margins improved materially for the full year and the segment is tracking toward a 25% margin goal.
- Imaging & ID: Organic growth of 1% was driven by the core marking and coding business and serialization software. EBITDA margins were cited as “very good” at 28%, though foreign exchange translation and a higher mix of printer shipments weighed slightly on quarterly margins.
- Pumps & Process Solutions: Organic growth was 11%, with gains in single-use biopharma components, thermal connectors for data-center liquid cooling, precision components, and digital controls tied to natural gas and power generation infrastructure. Tobin said SIKORA, acquired at the end of the second quarter of 2025, continues to outperform its underwriting case. Polymer processing returned to quarterly organic growth for the first time since the first quarter of 2024 due to the timing of large backlog deliveries.
- Climate & Sustainability Technologies: Organic growth rose 9% in the quarter, led by continued double-digit growth in CO2 refrigeration systems and volume improvements in refrigerated display cases and engineering services. Tobin also cited “robust momentum” in brazed plate heat exchangers tied to liquid cooling applications and data centers, with record quarterly U.S. shipments in the fourth quarter. Segment margins increased 250 basis points on volume leverage and mix. Book-to-bill was 1.21.
Cash flow and capital allocation
Chief Financial Officer Chris Woeneker said fourth-quarter free cash flow was $487 million, equal to 23% of revenue, and the company’s strongest quarter of the year, consistent with historical patterns. For the full year, Woeneker said free cash flow was 14% of revenue, up nearly $200 million versus the prior year, driven by improved cash conversion on higher earnings that offset increased capital spending.
Management reiterated a capital allocation approach focused on organic investment, acquisitions, and share repurchases. Tobin said Dover increased capital spending by more than $50 million in 2025 for growth capacity expansions, productivity and automation projects, and “rooftop consolidations.” He said the company expects about $40 million of carryover profit in 2026 from previously announced productivity actions.
Dover deployed $700 million across four acquisitions in 2025, three of which were in Pumps & Process Solutions. Tobin said those acquisitions are performing above underwriting assumptions and that the current pipeline is “interesting” and dominated by proprietary opportunities. The company also initiated a $500 million accelerated share repurchase program in November.
2026 outlook: EPS guidance, pricing assumptions, and end-market commentary
Dover issued 2026 adjusted EPS guidance of $10.45 to $10.65, which Tobin said implies double-digit growth at the midpoint. Management characterized demand trends as “solid and broad-based,” with no single end market presenting a material headwind based on current visibility. Woeneker guided to 2026 free cash flow of 14% to 16% of revenue.
In Q&A, Tobin said Dover’s guidance assumes pricing of roughly 1.5% to 2%, with an expectation that price/cost should be positive by about 1% to 1.5%—consistent with Dover’s historical approach—while acknowledging rising commodity costs and potential additional pricing actions depending on trajectories.
Management also discussed several end-market dynamics for 2026:
- Seasonality: Tobin said seasonality should resemble recent years, with first-quarter volumes ramping into second- and third-quarter peak delivery periods. He cautioned analysts that first-quarter expectations should reflect typical seasonality and reiterated prior commentary about biopharma comparisons in the first quarter.
- Retail fueling: Tobin described a North American-driven retail fueling recovery and said the market may be entering the “early innings” of a new CapEx cycle after years of subdued spending.
- Refrigeration and display cases: Tobin said the company was “sold out for Q1” in refrigeration and is booking well into Q2, noting that this is not a typical situation for that business. He also said national retailers have signaled an intent to resume maintenance and upgrade spending after tariff-related delays.
- Europe-related softness: Tobin said Vehicle Service Group weakness has been “very much” a European story and noted continued softness in the European chemical market affecting Maag, adding that the company will recognize a Maag upturn when backlog shifts due to the high dollar value of orders.
- Clean Energy & Fueling margins: Tobin said the segment should reach “low 20s” margins in 2026 and then “walk it up” from there, depending in part on mix and the completion of footprint actions expected by year-end.
On M&A, Tobin declined to comment on specific pipeline activity but said any “transformational” deal would need to be shareholder-friendly, while also emphasizing Dover is not required to pursue large transactions given its existing “algorithm” of bolt-on acquisitions and organic growth investments. He also said the company is comfortable with its current portfolio, while maintaining optionality if monetization were needed to support larger deal activity.
Overall, management said fourth-quarter bookings growth across all five segments and a book-to-bill above one provide confidence entering 2026, while also emphasizing that input costs, mix, and the pace of backlog conversion will be key factors to monitor early in the year.
About Dover (NYSE:DOV)
Dover Corporation is a diversified global manufacturer of industrial products, components and specialty systems that serve a wide range of commercial and industrial end markets. Headquartered in Downers Grove, Illinois, the company has built a portfolio of operating businesses that design, manufacture and distribute engineered equipment, aftermarket parts and related services for customers around the world.
Dover’s activities span several product and solution categories, including fluid-handling and pumping systems, material handling and processing equipment, refrigeration and foodservice technologies, product identification and printing systems, precision components and automation and sensing solutions.
