Dover Corporation

Dover said second-quarter revenue grew 7% year over year, or 5% organically, with all 5 segments posting positive organic growth. Adjusted EBITDA margin expanded 80 basis points to 25.9%, incremental margins were 38% versus 25% in Q1, and adjusted EPS was $2.74 per share, up 12% year over year. Year to date free cash flow was $320 million, or 8% of revenue, up 23% from the prior year. Book-to-bill was 1.06, trailing 12-month bookings were up 15%, and management said secular growth markets now represent approximately 25% of 2026 revenue, up from 20% at the end of Q1. For the full year, Dover raised adjusted EPS guidance and reiterated full-year CapEx of $190 million to $210 million; free cash flow guidance remains 14% to 16% of revenue. Management also said expected capacity additions in key businesses will come on sequentially through the back half of 2026 and into 2027.

Richard Tobin struck an upbeat but candid tone, calling Q2 “another strong quarter” and emphasizing broad-based demand across the portfolio. He highlighted secular growth exposure, improving order visibility, and the company’s ability to invest in capacity and productivity while maintaining balance sheet flexibility. He also directly owned the refrigeration throughput miss, saying the company “did not expect to fall short” on production targets and that the issue cost about 1% to 1.5% of organic growth. Even so, he said the portfolio still points to durable growth and double-digit EPS expansion.

Christopher Woenker focused on cash generation and capital spending. He said year-to-date free cash flow was $320 million, or 8% of revenue, up 23% year over year, driven by operating cash conversion that more than offset working capital tied to faster top-line growth. He reiterated full-year CapEx of $190 million to $210 million and free cash flow guidance of 14% to 16% of revenue, adding that cash flow should accelerate meaningfully in the second half as working capital unwinds seasonally. He did not give any additional margin guidance beyond the company’s stated full-year EPS raise.

Analysts focused heavily on the refrigeration execution problems, whether late deliveries affected customers, and how quickly the issue could be fixed; management said some deliveries were late, but it was not aware of losing market share and expects throughput to improve in Q3 and Q4. Several questions probed the apparent gap between strong bookings and more modest sequential revenue growth; management said book-to-bill above 1 across the portfolio is the key point, and that revenue conversion can lag because some demand is timing-related and capacity constrained. Analysts also asked about SWEP and heat exchanger capacity, and management said capacity is being added sequentially over the back half of 2026 into 2027. On capital allocation, management said more assets are coming to market, so Dover is keeping “powder dry” for M&A, while still remaining open to buybacks or other capital returns if acquisitions do not materialize.