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DOV Gains From Healthy Bookings Despite Low Vehicle Service Volumes
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Key Takeaways
Dover posts seven straight quarters of organic booking growth, boosting its 2025 outlook.
Cost cuts, facility consolidations and productivity gains are set to support DOV's margins.
Recent acquisitions expand Dover's fueling and plastics capabilities, while divestitures refocus its core.
Dover Corporation (DOV - Free Report) has been gaining from its healthy order booking levels, cost-reduction initiatives and execution of margin targets. The company is focused on investments in capacity expansions in high-growth businesses and productivity improvements across its portfolio. It continues to lower its debt levels and strengthen its balance sheet.
However, Dover has been witnessing lower volumes in the vehicle services business of the Engineered Products segment for the past two quarters. This is likely to continue in the upcoming quarters and dent the company’s margin. Its margins are also anticipated to bear the brunt of input cost inflation.
Factors Aiding DOV’s Stock
Healthy Booking Levels & Upbeat Outlook: Dover’s bookings remain healthy across most of its segments. It recorded positive organic booking growth consecutively in the last seven quarters. The company expects this trend to continue throughout the remainder of the year.
This is being driven by strong demand across the majority of the company’s business and its ability to produce and ship despite several operating challenges. Solid order intake also continues to aid growth.
Backed by a strong second-quarter performance, the company raised its 2025 outlook. It hiked the adjusted EPS view to $9.35-$9.55 for 2025 from $9.20-$9.40. The company anticipates year-over-year revenue growth of 4-6%.
Impressive Strategic Actions: Dover will gain from product digitization, e-commerce, product development and investment in core business platforms. The company is focused on investments in capacity expansions in high-growth businesses and productivity improvements across its portfolio.
It continues to execute restructuring programs to better align the costs and operations with current market conditions through targeted facility consolidations, headcount reductions and other measures, which will support the company’s margins.
Focus on Portfolio Optimization: Dover has a long tradition of making successful acquisitions in diverse end markets.
On Jan. 13, 2025, the company announced that it acquired certain assets of Carter Day International, Inc.'s petrochemical division. The assets became part of Dover’s MAAG business unit within the Pumps & Process Solutions segment. The acquisition strengthens MAAG's pelletizing-system portfolio of dewatering and drying equipment for the plastics industry with highly engineered products and patented technologies. It adds high-volume dryer technology to Dover's portfolio.
On Aug. 4, 2025, the company announced that it acquired Site IQ LLC to make it part of its Dover Fueling Solutions business unit, which is within its Clean Energy & Fueling segment. This deal gives Dover industry-leading remote monitoring and analytics capabilities, which help cut operational costs and enhance maintenance efficiency for customers.
In April 2024, the company sold its De-Sta-Co business to the industrial and automotive supplier Stabilus SE for $680 million in enterprise value.
In October 2024, Dover sold ESG Group to Terex Corporation (TEX - Free Report) in a $2-billion all-cash transaction. This deal with TEX will reduce DOV’s exposure to cyclical capital goods.
These moves will help DOV focus its efforts and capital deployment on growing its core platforms.
Near-Term Concerns for Dover
In the first half of 2025, the Engineered Products segment’s revenues were impacted by lower volumes in vehicle services. The Engineered Products segment, primarily vehicle services, remains the most exposed to tariffs. It is also facing reduced volumes in food retail door cases and services in the Climate & Sustainability Technologies segment. These are likely to weigh on DOV’s 2025 top line.
Dover has been witnessing input cost inflation for the past few quarters. The company’s selling, general and administrative expenses increased 6.3% year over year in 2024, and the same is expected to be high in 2025 as well.
DOV Stock’s Price Performance
The company’s shares have lost 13.1% in the past year against the industry’s growth of 1.8%.
The Zacks Consensus Estimate for Flowserve’s 2025 earnings is pegged at $3.34 per share, indicating a year-over-year increase of 27%. Flowserve’s shares have gained 14.5% in a year.
Life360 delivered an average trailing four-quarter earnings surprise of 487%. The Zacks Consensus Estimate for LIF’s 2025 earnings is pinned at 29 cents per share, which indicates a year-over-year upsurge of 583%. Life360’s shares have skyrocketed 137.8% in a year.
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DOV Gains From Healthy Bookings Despite Low Vehicle Service Volumes
Key Takeaways
Dover Corporation (DOV - Free Report) has been gaining from its healthy order booking levels, cost-reduction initiatives and execution of margin targets. The company is focused on investments in capacity expansions in high-growth businesses and productivity improvements across its portfolio. It continues to lower its debt levels and strengthen its balance sheet.
However, Dover has been witnessing lower volumes in the vehicle services business of the Engineered Products segment for the past two quarters. This is likely to continue in the upcoming quarters and dent the company’s margin. Its margins are also anticipated to bear the brunt of input cost inflation.
Factors Aiding DOV’s Stock
Healthy Booking Levels & Upbeat Outlook: Dover’s bookings remain healthy across most of its segments. It recorded positive organic booking growth consecutively in the last seven quarters. The company expects this trend to continue throughout the remainder of the year.
This is being driven by strong demand across the majority of the company’s business and its ability to produce and ship despite several operating challenges. Solid order intake also continues to aid growth.
Backed by a strong second-quarter performance, the company raised its 2025 outlook. It hiked the adjusted EPS view to $9.35-$9.55 for 2025 from $9.20-$9.40. The company anticipates year-over-year revenue growth of 4-6%.
Impressive Strategic Actions: Dover will gain from product digitization, e-commerce, product development and investment in core business platforms. The company is focused on investments in capacity expansions in high-growth businesses and productivity improvements across its portfolio.
It continues to execute restructuring programs to better align the costs and operations with current market conditions through targeted facility consolidations, headcount reductions and other measures, which will support the company’s margins.
Focus on Portfolio Optimization: Dover has a long tradition of making successful acquisitions in diverse end markets.
On Jan. 13, 2025, the company announced that it acquired certain assets of Carter Day International, Inc.'s petrochemical division. The assets became part of Dover’s MAAG business unit within the Pumps & Process Solutions segment. The acquisition strengthens MAAG's pelletizing-system portfolio of dewatering and drying equipment for the plastics industry with highly engineered products and patented technologies. It adds high-volume dryer technology to Dover's portfolio.
On Aug. 4, 2025, the company announced that it acquired Site IQ LLC to make it part of its Dover Fueling Solutions business unit, which is within its Clean Energy & Fueling segment. This deal gives Dover industry-leading remote monitoring and analytics capabilities, which help cut operational costs and enhance maintenance efficiency for customers.
In April 2024, the company sold its De-Sta-Co business to the industrial and automotive supplier Stabilus SE for $680 million in enterprise value.
In October 2024, Dover sold ESG Group to Terex Corporation (TEX - Free Report) in a $2-billion all-cash transaction. This deal with TEX will reduce DOV’s exposure to cyclical capital goods.
These moves will help DOV focus its efforts and capital deployment on growing its core platforms.
Near-Term Concerns for Dover
In the first half of 2025, the Engineered Products segment’s revenues were impacted by lower volumes in vehicle services. The Engineered Products segment, primarily vehicle services, remains the most exposed to tariffs. It is also facing reduced volumes in food retail door cases and services in the Climate & Sustainability Technologies segment. These are likely to weigh on DOV’s 2025 top line.
Dover has been witnessing input cost inflation for the past few quarters. The company’s selling, general and administrative expenses increased 6.3% year over year in 2024, and the same is expected to be high in 2025 as well.
DOV Stock’s Price Performance
The company’s shares have lost 13.1% in the past year against the industry’s growth of 1.8%.
Image Source: Zacks Investment Research
Dover’s Zacks Rank & Stocks to Consider
DOV currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Flowserve Corporation (FLS - Free Report) and Life360, Inc. (LIF - Free Report) . Both these companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Flowserve’s 2025 earnings is pegged at $3.34 per share, indicating a year-over-year increase of 27%. Flowserve’s shares have gained 14.5% in a year.
Life360 delivered an average trailing four-quarter earnings surprise of 487%. The Zacks Consensus Estimate for LIF’s 2025 earnings is pinned at 29 cents per share, which indicates a year-over-year upsurge of 583%. Life360’s shares have skyrocketed 137.8% in a year.