Dover third-quarter earnings rise to $337 million on 8% revenue growth

Dover Corporation (DOV) said on Thursday that third-quarter revenue rose 8% to $2.2 billion, as the diversified global manufacturer reported higher earnings for the quarter ended Sept. 30.

The results were disclosed in a Form 8-K filed Thursday, with the press release attached as an exhibit. The company said organic revenue, which excludes currency and the effects of acquisitions and dispositions, rose 7%.

Here's how the company did:

• Revenue: $2,234 million vs. $2,078 million a year earlier
• GAAP diluted EPS from continuing operations: $2.50 vs. $2.20 a year earlier
• Adjusted diluted EPS from continuing operations: $2.88 vs. $2.62 a year earlier
• Earnings from continuing operations: $337 million vs. $303 million a year earlier
• Adjusted earnings from continuing operations: $388 million vs. $361 million a year earlier

On a GAAP basis, earnings from continuing operations rose 11%, and diluted EPS from continuing operations rose 14%.

Adjusted figures exclude after-tax purchase accounting expenses, restructuring and other costs, and gains on dispositions. On that basis, earnings rose 7% and diluted EPS rose 10%.

Purchase accounting expenses are primarily amortization of intangible assets, the company said.

For the first nine months, revenue was $6,477 million, up 8% from $5,993 million a year earlier, with organic growth of 6%.

GAAP diluted EPS from continuing operations was $6.56, up 10% from $5.96. Adjusted diluted EPS was $7.89, up 11% from $7.10.

President and Chief Executive Officer Richard J. Tobin said in the release: “Dover delivered strong results in the third quarter.” “Top-line growth accelerated, led by our secular growth markets in artificial intelligence and power generation infrastructure, energy transition, single-use biopharma, semiconductor manufacturing, and space launch. This strength was complemented by broad-based performance across the portfolio, including improving line rates in food retail as we completed the footprint consolidation.”

Bookings totaled $2,310.1 million in the quarter, against $1,999.7 million a year earlier.

Tobin said: “Bookings increased across all five segments and again outpaced shipments, reinforcing our confidence in the forecast.”

He also said a “significant portion of our backlog is scheduled for delivery in 2027.”

Segment results

Here's how Dover's segments did during the quarter:

• Climate & Sustainability Technologies: revenue $481.5 million vs. $408.5 million a year earlier, organic growth of 17.9%
• Clean Energy & Fueling: revenue $606.0 million vs. $541.4 million a year earlier, organic growth of 12.1%
• Pumps & Process Solutions: revenue $568.5 million vs. $550.9 million a year earlier, organic growth of 1.2%
• Imaging & Identification: revenue $304.7 million vs. $299.1 million a year earlier, organic growth of 2.2%
• Engineered Products: revenue $274.9 million vs. $279.7 million a year earlier, organic revenue down 1.6%

Total segment earnings were $543.1 million, up from $502.5 million a year earlier. The total segment earnings margin was 24.3%, against 24.2%.

Pumps & Process Solutions reported a segment earnings margin of 31.3%, and Imaging & Identification 31.2%.

By region, organic revenue in the United States rose 12.6% and in Asia rose 15.1%. Europe fell 3.0%, the release showed.

Full-year 2026 guidance

Dover expects 2026 GAAP EPS of $8.93 to $9.08 and adjusted EPS of $10.60 to $10.75. That outlook is based on full-year revenue growth of 7% to 8%, including organic growth of 5% to 6%.

The release does not give prior guidance figures for comparison.

Tobin said in the release: “We are on track to deliver double-digit adjusted EPS growth in 2026, in line with our long-term algorithm.”

Costs and cash flow

Restructuring and other costs were $21.8 million before tax in the quarter, up from $15.9 million a year earlier. Purchase accounting expenses were $45.9 million, down from $59.4 million.

The release said the restructuring figure includes $1.7 million tied to a footprint reduction in the Climate & Sustainability Technologies segment.

Operating cash flow was $438.8 million in the quarter, up from $424.2 million. Free cash flow, which the company defines as operating cash flow minus capital expenditures, was $383.3 million, compared with $370.1 million a year earlier.

Year-to-date free cash flow was $702.9 million, against $630.8 million a year earlier.

Tobin said the company “opportunistically repurchased over $330 million of our shares” during the quarter.

The release also says Dover announced two bolt-on acquisitions during the quarter. It does not name them or give their terms.

Dover had approximately 24,000 employees and annual revenue of over $8 billion, according to the release. The company is based in Downers Grove, Illinois, and trades on the New York Stock Exchange under “DOV.”