Dover (DOV -0.07%), a diversified industrial and manufacturing company serving a broad set of business-to-business markets, released its second quarter 2025 results on July 24, 2025. The headline news: Adjusted earnings per share (EPS) (non-GAAP) came in at $2.44, topping analyst expectations of $2.39. GAAP revenue rose to $2.05 billion, modestly above the $2.04 billion estimate up 5% compared to Q2 2024. While overall revenue (GAAP) and profit (non-GAAP) exceeded forecasts, most of the growth came from recent acquisitions and foreign exchange rather than from core businesses. Still, Operating margin improved, and management responded by raising its full-year adjusted EPS outlook to $9.35–$9.55. The quarter was characterized by margin strength, solid cash flow, and a mixed picture across business segments.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS | $2.44 | $2.39 | $2.10 | 16% |
| Revenue | $2.05 billion | $2.04 billion | $1.95 billion | 5% |
| Operating Margin | 17.3% | 16.96% | 34 bps | |
| Free Cash Flow | $151 million | $113 million | 34% |
Source: Dover. Note: Analysts' consensus estimates for the quarter provided by FactSet.
About Dover: Business Mix and Areas of Focus
Dover is a diversified business operating in five main segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies. These businesses make products that serve industries ranging from energy and transportation to healthcare, retail refrigeration, electronics, and more. Dover’s mix of short-cycle products—those sold in high volumes and needed regularly—and longer-cycle project components helps it manage economic cycles and pursue opportunities across different sectors.
Recently, Dover has focused on expanding its digital offerings, improving operational efficiency, and investing in high-growth areas such as clean energy, biopharma process solutions, and data center technologies. Management cites a diversified business model, ongoing portfolio management, innovation, sustainability initiatives, and disciplined capital allocation as keys to its success. This blend is intended to help weather swings in specific end-markets while capitalizing on long-term growth trends like energy transition and industrial automation.
Q2 Highlights: Segment Results, Strategy Execution, and Trends
Financially, Dover slightly exceeded top- and bottom-line forecasts, with revenue up 5% and adjusted EPS (non-GAAP) rising 16% year-over-year in Q2 2025. However, the main drivers of the revenue gain were recent acquisitions (up 3.0%) and favorable currency effects (up 1.3%), as underlying or “organic” revenue growth—growth from existing businesses excluding those two effects—was just 0.9%.
Operating margin for Engineered Products was 17.3%. According to management, “Margin performance in the quarter was exemplary,” reflecting prior restructuring efforts, operational productivity gains, and a shift toward higher-margin product lines. Segment margins—meaning profit as a percentage of revenue for each major business line—collectively hit a record 23.2% in Q2 2025. High conversion of adjusted earnings to free cash flow (45.0% in Q2 2025) further strengthened Dover’s financial position.
Performance varied across the five business units. The Clean Energy & Fueling segment, which makes fueling equipment and clean energy solutions, reported revenue of $546.1 million in Q2 2025, up 18% compared to Q2 2024, with organic sales up 8% year-over-year and segment margin at 19.7%. Pumps & Process Solutions, which provides specialized pumps and fluid handling systems, saw revenue climb 9% compared to Q2 2024 (organic growth 3.9%), with segment margin steady at a high 30.6% in Q2 2025. Key products include pumps used in biopharmaceutical manufacturing—where single-use components for drug production posted double-digit organic growth—and data center cooling connectors, which management called out as growth drivers.
Engineered Products, which makes vehicle lifts and other industrial tools, saw revenue decline 3.3% in Q2 2025 compared to Q2 2024, with organic sales down 5.1%. Imaging & Identification, which supplies equipment for marking and coding packaged goods, achieved modest year-over-year gains in both revenue and profit for Q2 2025, with organic growth flat. Climate & Sustainability Technologies, which manufactures refrigeration and heating solutions including CO2 refrigeration systems and heat exchangers, saw GAAP revenue decline 4.7% in Q2 2025 compared to Q2 2024. Notably, the Climate segment still managed to improve profit margin to 18.6% (GAAP) in Q2 2025, driven by cost discipline and a favorable mix.
During Q2 2025, Dover completed two acquisitions within the Pumps & Process Solutions segment, continuing its strategy of adding high-growth, high-margin businesses. The company also increased capital expenditures to $60.9 million in Q2 2025, reflecting investments in expanding productive capacity and upgrading facilities for greater efficiency. Management noted that much of this increased spending targeted projects expected to deliver strong financial returns.
Orders received in Q2 2025 (bookings) rose 7.0% year-over-year to $2.01 billion. This means new incoming orders closely matched the level of shipped sales, providing visibility into next quarter’s revenue pipeline. Management reported “positive momentum” in bookings and said most of Q3 2025 revenue was already in the backlog—orders on hand but not yet delivered to customers.
From a capital returns perspective, Dover paid a dividend of $0.515 per share, unchanged from prior quarters.
Looking Ahead: Outlook and Investor Watchpoints
Management raised its full-year 2025 adjusted (non-GAAP) earnings per share guidance to $9.35–$9.55, up from the earlier $9.20–$9.40 forecast. This guidance assumes full-year revenue growth of 4% to 6%. Management emphasized confidence in margin structure and underlying demand trends, but remained “cautious” given ongoing macroeconomic volatility and uncertainty regarding tariffs—especially those applied to Chinese imports of structural steel, which most affect Dover’s vehicle services business, as discussed in Q1 2025.
At the same time, the company highlighted risks. Organic revenue growth remained slow, and most of the revenue increase was due to recent acquisitions and currency translation. Dover faces potential challenges from shifting tariffs, which could impact volume in some product lines despite price mitigation efforts. Management said: “The risk here is not price cost ... it's volume.” Currency fluctuations could provide either a headwind or tailwind, depending on market movements in the second half of the year. As no material one-time events were reported for the quarter, investors should watch order trends, segment profitability, and progress on capital investments as key signals for the business going forward. The quarterly dividend was unchanged at $0.515 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
