Dover Corporation Q1 FY2026 earnings call

• Revenue grew double digits in Q1 2026, driven by secular growth exposed end markets, acquired company performance, and constructive demand; - Bookings totaled $2.5 billion, up 24% YOY, book to bill 1.2, all segments above 1; - Balance sheet strong, returning capital to shareholders and investing in capacity expansions; - Acquisition pipeline active; - All-in adjusted EPS $2.28 per share, up 11% YOY; - Bookings momentum continued, trailing 12-month book-to-bill above 1; - Highlighted key end markets driving revenue growth, including AI, power generation, data centers, natural gas, biopharma, CO2 refrigeration; - Organic investments priority, $40M+ rightsizing savings expected in 2026; - Segmental outlooks: Engineered products low single-digit organic growth; Clean energy and fueling broad-based organic growth; Imaging and ID low single-digit growth; Pumps and process solutions benefit from industrial pumps growth; Climate and sustainability technologies double-digit organic growth

Engineered products: revenue increased modestly, supported by aerospace and defense components, industrial winches, and improving vehicle aftermarket; Clean energy and fueling: grew 11% organically, led by clean energy components, fluid transport, and retail fueling; Imaging and identification: stable performance, segment margins strong with foreign currency translation headwinds; Pumps and process solutions: revenue declined modestly, but segment margins expanded; Climate and sustainability technologies: delivered 15% organic growth, heat exchanges and CO2 refrigeration systems performed well

• Reaffirmed full-year guidance for now, driving to top end of range, will revisit next quarter; - 2026 free cash flow guidance remains on track at 14%-16% of revenue; - Full-year capital expenditure estimate $190-$210 million; - Expect 2026 seasonality consistent with recent years, demand signals constructive

Q: Nigel Coey with Wolf Research asked about unusual supply chain concerns and strength into April, A: No pre-buy, demand outstripping supply driving longer lead times; Q: Andrew Obin with Bank of America asked about Section 232 tariffs and organic growth guide, A: Short supply chains helpful, Booking trends may require revisiting top-line expectations; Q: Joe O'Day with Wells Fargo asked about triggers behind broad-based demand, A: Clean energy and climate segments driving growth, secular growth drivers and investments; Q: Mike Halloran with Baird asked about order pace and conversion to revenue, A: Order pace consistent, orders booked to reserve capacity; Q: Jeff Sprague with Vertical Research asked about supply constraints and climate segment capacity, A: Demand supply constraint, adding capacity in heat exchangers and refrigeration; Q: Andy Kapowitz with Citigroup asked about DPPS business and DII margin, A: DPPS overcame tough comps, DII margin compression due to FX; Q: Amit Mehrotra with UBS asked about engineered products growth and competitors, A: Defense business driving growth, success based on lead times; Q: Joe Ritchie with Goldman Sachs asked about TAM for CO2 and liquid cooling, A: CO2 systems underpenetrated in NA, liquid cooling growing; Q: Julian Mitchell with Barclays asked about bookings pace and price, A: Pricing announced at start of year, bookings pace steady; Q: Patrick Bauman with JP Morgan asked about orders conversion and price guidance, A: Orders booked into Q3, price guidance moving target; Q: Chris Snyder with Morgan Stanley asked about Q2 expectations and price, A: Q2 expected to see growth, price action anecdotally but no new broad-based pricing