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Dover Q1 Earnings Beat Estimates, Rise Y/Y on Solid Demand
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Key Takeaways
Dover posted Q1 EPS of $2.28, up 11.2% YoY, beating estimates on 10.1% revenue growth.
DOV bookings jumped 23.8% to $2.5B, with book-to-bill at 1.20, signaling strong demand momentum.
Dover saw growth across segments, led by Climate & Sustainability and Clean Energy units.
Dover Corporation (DOV - Free Report) posted first-quarter fiscal 2026 adjusted earnings of $2.28 per share, up 11.2% from $2.05 a year ago. The figure topped the Zacks Consensus Estimate of $2.27, reflecting a 0.4% surprise.
Quarterly revenues rose 10.1% year over year to $2.05 billion, beating the consensus mark of $2.01 billion by 2.1%. The upside was backed by solid growth in secular-growth-exposed end markets and improving conditions across DOV’s portfolio. Excellent order activity, with book-to-bill above one across all five segments, aided growth.
Dover Corporation Price, Consensus and EPS Surprise
Demand strengthened meaningfully as the company moved through the quarter. Dover reported bookings of roughly $2.5 billion, up 23.8% from the year-ago period, with gains across every segment and the biggest lift coming from Climate & Sustainability Technologies. Our model predicted bookings to be around $2.1 billion for the quarter.
That order momentum translated into a consolidated book-to-bill ratio of 1.20, up from 1.07 in the prior-year quarter.
Dover’s Segmental Performance
Dover’s Clean Energy & Fueling generated $555 million of revenues, up 13% year over year, supported by solid shipments and new orders across clean energy components, fluid transport and retail fueling. We expected the segment’s revenues to be $524 million for the quarter. The segment’s adjusted EBITDA increased 14% year over year to $107.5 million. The figure beat our estimate of $98 million.
Climate & Sustainability Technologies posted $411.1 million, reflecting robust activity in refrigerated door cases, CO2 refrigeration systems and global heat exchangers. The figure marked a 18% year-over-year increase. Our model predicted quarterly revenues to be $386 million for the segment. The segment’s adjusted EBITDA totaled $72 million compared with $59 million in first-quarter 2025. The figure beat our estimate of $69 million.
Engineered Products delivered $267 million on strength in aerospace and defense components and industrial winches, which increased 4.7% year over year. The reported figure came in line with our model. The segment’s adjusted EBITDA increased 3.2% year over year to $50 million. The figure missed our estimate of $58 million.
While Imaging & Identification produced $285.4 million amid stable marking and coding and serialization software demand. The segment’s revenues increased 8.9% from the first quarter of 2025 but missed the predictions of $295 million. The segment’s adjusted EBITDA was $82 million, flat from the year-ago quarter. The figure came in line with our estimate.
Pumps & Process Solutions reported $537.8 million, with growth in AI and energy infrastructure, single-use biopharma and industrial pumps offset by lower polymer processing volumes tied to order timing. The figure marked a 8.9% year-over-year increase and surpassed our estimate of $527 million. The segment’s adjusted EBITDA totaled $183.5 million, up 11.9% from the year-ago quarter’s $164 million. The reported figure was higher than our projection of $163million.
DOV’s Profitability Shows Mix Pressure and Cost Actions
On the cost side, the company’s gross margin declined to 38.9% from 40% in the year-ago quarter, reflecting an unfavorable portfolio mix. Dover noted that productivity initiatives and benefits from restructuring actions helped cushion the impact of that mix shift.
Below the gross line, adjusted segment EBITDA rose 11% year over year to $495.3 million, and the adjusted segment EBITDA margin improved 10 basis points to 24.1%. Segment profitability remained notably strong in Pumps & Process Solutions, which sustained a 30%- plus adjusted EBITDA margin on a favorable mix and execution, while Climate & Sustainability Technologies benefited from volume leverage and positive mix tied to CO2 systems and heat exchangers.
Dover’s Cash Flow and Capital Returns Remain Active
Cash generation improved. Free cash flow was $131 million compared with $109 million a year ago, with cash flow from operations of $191 million and capital spending of about $60 million during the quarter.
Dover continued returning capital to shareholders. The company repurchased 250,000 shares for $53.9 million in the quarter (excluding the accelerated share repurchase program) and paid 52 cents per share in dividends. The balance sheet stayed liquid, with $1.64 billion in cash and cash equivalents at quarter end, supporting flexibility for ongoing investment and opportunistic buybacks.
DOV Keeps 2026 Targets Intact
The company is maintaining its full-year outlook. For fiscal 2026, Dover expects adjusted earnings of $10.45 to $10.65 per share, alongside total revenue growth of 5-7% (3% to 5% organic).
The framework calls for free cash flow equal to 14-16% of revenues, capital expenditures of $190-$210 million and an effective tax rate of 20-21%. With order books strengthening and book-to-bill running above one across the portfolio, Dover is leaning on operational execution and ongoing productivity initiatives as it works to convert demand strength into full-year results.
Dover Stock’s Price Performance
The company’s shares have gained 28.8% over the past year compared with the industry’s growth of 27.6%. In comparison, the broader Zacks Industrial Products sector has increased 37.9% and the S&P 500 grew 35.9%.
Graco Inc.’s (GGG - Free Report) first-quarter 2026 adjusted earnings of 66 cents per share beat the Zacks Consensus Estimate of 75 cents. The bottom line dipped 14% year over year.
Graco’s revenues of $540 million missed the consensus estimate of $560 million. The top line increased 2.3% year over year.
Manufacturing Stock Awaiting Results
Flowserve Corporation (FLS - Free Report) is scheduled to release first-quarter 2026 results on April 29. The Zacks Consensus Estimate for FLS’s first-quarter 2026 earnings is pegged at 82 cents per share, suggesting year-over-year growth of 13.8%.
The Zacks Consensus Estimate for Flowserve’s top line is pegged at $1.19 billion, indicating an increase of 3.8% from the prior year’s actual. FLS has a trailing four-quarter average surprise of 17.3%.
Applied Industrial Technologies, Inc. (AIT - Free Report) is scheduled to release third-quarter fiscal 2026 results on April 28. The Zacks Consensus Estimate for AIT’s third-quarter 2026 earnings is pegged at $2.63 per share, suggesting year-over-year growth of 2.3%.
The Zacks Consensus Estimate for Applied Industrial’s top line is pegged at $1.22 billion, indicating an increase of 4.9% from the prior year’s actual. AIT has a trailing four-quarter average surprise of 5.6%.
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Dover Q1 Earnings Beat Estimates, Rise Y/Y on Solid Demand
Key Takeaways
Dover Corporation (DOV - Free Report) posted first-quarter fiscal 2026 adjusted earnings of $2.28 per share, up 11.2% from $2.05 a year ago. The figure topped the Zacks Consensus Estimate of $2.27, reflecting a 0.4% surprise.
Quarterly revenues rose 10.1% year over year to $2.05 billion, beating the consensus mark of $2.01 billion by 2.1%. The upside was backed by solid growth in secular-growth-exposed end markets and improving conditions across DOV’s portfolio. Excellent order activity, with book-to-bill above one across all five segments, aided growth.
Dover Corporation Price, Consensus and EPS Surprise
Dover Corporation price-consensus-eps-surprise-chart | Dover Corporation Quote
DOV Bookings Point to Stronger Visibility
Demand strengthened meaningfully as the company moved through the quarter. Dover reported bookings of roughly $2.5 billion, up 23.8% from the year-ago period, with gains across every segment and the biggest lift coming from Climate & Sustainability Technologies. Our model predicted bookings to be around $2.1 billion for the quarter.
That order momentum translated into a consolidated book-to-bill ratio of 1.20, up from 1.07 in the prior-year quarter.
Dover’s Segmental Performance
Dover’s Clean Energy & Fueling generated $555 million of revenues, up 13% year over year, supported by solid shipments and new orders across clean energy components, fluid transport and retail fueling. We expected the segment’s revenues to be $524 million for the quarter. The segment’s adjusted EBITDA increased 14% year over year to $107.5 million. The figure beat our estimate of $98 million.
Climate & Sustainability Technologies posted $411.1 million, reflecting robust activity in refrigerated door cases, CO2 refrigeration systems and global heat exchangers. The figure marked a 18% year-over-year increase. Our model predicted quarterly revenues to be $386 million for the segment. The segment’s adjusted EBITDA totaled $72 million compared with $59 million in first-quarter 2025. The figure beat our estimate of $69 million.
Engineered Products delivered $267 million on strength in aerospace and defense components and industrial winches, which increased 4.7% year over year. The reported figure came in line with our model. The segment’s adjusted EBITDA increased 3.2% year over year to $50 million. The figure missed our estimate of $58 million.
While Imaging & Identification produced $285.4 million amid stable marking and coding and serialization software demand. The segment’s revenues increased 8.9% from the first quarter of 2025 but missed the predictions of $295 million. The segment’s adjusted EBITDA was $82 million, flat from the year-ago quarter. The figure came in line with our estimate.
Pumps & Process Solutions reported $537.8 million, with growth in AI and energy infrastructure, single-use biopharma and industrial pumps offset by lower polymer processing volumes tied to order timing. The figure marked a 8.9% year-over-year increase and surpassed our estimate of $527 million. The segment’s adjusted EBITDA totaled $183.5 million, up 11.9% from the year-ago quarter’s $164 million. The reported figure was higher than our projection of $163million.
DOV’s Profitability Shows Mix Pressure and Cost Actions
On the cost side, the company’s gross margin declined to 38.9% from 40% in the year-ago quarter, reflecting an unfavorable portfolio mix. Dover noted that productivity initiatives and benefits from restructuring actions helped cushion the impact of that mix shift.
Below the gross line, adjusted segment EBITDA rose 11% year over year to $495.3 million, and the adjusted segment EBITDA margin improved 10 basis points to 24.1%. Segment profitability remained notably strong in Pumps & Process Solutions, which sustained a 30%- plus adjusted EBITDA margin on a favorable mix and execution, while Climate & Sustainability Technologies benefited from volume leverage and positive mix tied to CO2 systems and heat exchangers.
Dover’s Cash Flow and Capital Returns Remain Active
Cash generation improved. Free cash flow was $131 million compared with $109 million a year ago, with cash flow from operations of $191 million and capital spending of about $60 million during the quarter.
Dover continued returning capital to shareholders. The company repurchased 250,000 shares for $53.9 million in the quarter (excluding the accelerated share repurchase program) and paid 52 cents per share in dividends. The balance sheet stayed liquid, with $1.64 billion in cash and cash equivalents at quarter end, supporting flexibility for ongoing investment and opportunistic buybacks.
DOV Keeps 2026 Targets Intact
The company is maintaining its full-year outlook. For fiscal 2026, Dover expects adjusted earnings of $10.45 to $10.65 per share, alongside total revenue growth of 5-7% (3% to 5% organic).
The framework calls for free cash flow equal to 14-16% of revenues, capital expenditures of $190-$210 million and an effective tax rate of 20-21%. With order books strengthening and book-to-bill running above one across the portfolio, Dover is leaning on operational execution and ongoing productivity initiatives as it works to convert demand strength into full-year results.
Dover Stock’s Price Performance
The company’s shares have gained 28.8% over the past year compared with the industry’s growth of 27.6%. In comparison, the broader Zacks Industrial Products sector has increased 37.9% and the S&P 500 grew 35.9%.
DOV’s Zacks Rank
Dover currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s Peer Performances
Graco Inc.’s (GGG - Free Report) first-quarter 2026 adjusted earnings of 66 cents per share beat the Zacks Consensus Estimate of 75 cents. The bottom line dipped 14% year over year.
Graco’s revenues of $540 million missed the consensus estimate of $560 million. The top line increased 2.3% year over year.
Manufacturing Stock Awaiting Results
Flowserve Corporation (FLS - Free Report) is scheduled to release first-quarter 2026 results on April 29. The Zacks Consensus Estimate for FLS’s first-quarter 2026 earnings is pegged at 82 cents per share, suggesting year-over-year growth of 13.8%.
The Zacks Consensus Estimate for Flowserve’s top line is pegged at $1.19 billion, indicating an increase of 3.8% from the prior year’s actual. FLS has a trailing four-quarter average surprise of 17.3%.
Applied Industrial Technologies, Inc. (AIT - Free Report) is scheduled to release third-quarter fiscal 2026 results on April 28. The Zacks Consensus Estimate for AIT’s third-quarter 2026 earnings is pegged at $2.63 per share, suggesting year-over-year growth of 2.3%.
The Zacks Consensus Estimate for Applied Industrial’s top line is pegged at $1.22 billion, indicating an increase of 4.9% from the prior year’s actual. AIT has a trailing four-quarter average surprise of 5.6%.